Fedex Case Analysis

In this short essay, the author will analyze the tenure Frederick W. (Fred) Smith Chairman, president, and CEO at FedEx Corporation. While this paper will not just be a report Smith's tenure, but it will actively analyze his leadership of the FedEx Corporation and how he has affected the placement of the company in the market against its competitors such as UPS. We will see how he has combined the best of Yale and the Marine Corps to give the company a leading edge in the package delivery business.

The concept of Federal Express was born in 1965, when founder Fred Smith wrote a paper outlining to logistics needed to get important shipments around the country in record time, he received an average grade. Flash ahead 6 years, Federal Express Corporation is born. (Time Flies: The FedEx Timeline). “The earliest logo of Federal Express logo was created in 1973 by Richard Runyon. It featured the company’s name in a diagonal position on a blue and white background. The company’s immense success as a huge global delivery firm led to a highly innovative redesign and a massive advertising campaign to support it” (Alexander). Somewhat staying true to the original logo, Leader came in and amplified its attributes in 1994 when “Federal Express officially adopt[ed] ‘FedEx’ as its brand recognized as the worldwide standard

The present paper will analyze FedEx’s value creation frontier for identifying which of the four building blocks of competitive benefits the corporation needs for continuing their average profitability. And also will discover the primary aspect of

FedEx able to identify the needs of its customer where many businesses demand a more efficient and reliable delivery services. After knowing the needs, FedEx develop an efficient overnight delivery services. This has shown that FedEx’s strategy is market-orientated where it estimated the market needs and created a value to serve the needs. He is able to identify market opportunities, target its market segment (businessmen) and effectively position their service (highly effective overnight delivery service). FedEx adopted market development strategy where it identifies and develops its new market segment by expanding its operation. It purchases Kinko’s, which operates in 11 countries and help the company to reach new customers and expand in Asia and Europe. It expands its reach further with U.S Postal Service where they can place a drop box in every U.S post offices.

FedEx has two major customers who consist of businesses and individual customers. These business customers have accounts with FedEx to arrive at their location to pick up packages daily or weekly. Two-thirds of FedEx’s business comes from these customers so FedEx curves their operations to satisfy this clientele. Since FedEx’s competition is trying to acquire some of this clientele they have begun to operate and market to this clientele more effectively. Individual customers are also in FedEx’s internal environment. These customers represent one-third of their business. With increased competition from competitors FedEx has marketed to this market substantially. They have created boxes that are prepaid for shipment as long as the contents fit into the box. This has effectively increased business amongst individual customers for FedEx.

FedEx is one of the top delivery companies in the world, competing with companies like United Parcel Service (UPS) and United States Postal Service (USPS) among a few. Online shopping has driven a huge demand for these type of companies. However, increasing costs like fuel and pressure for faster delivery have effected these companies. We will be analyze FedEx from four perspectives, ratios, horizontal and vertical analysis, and management discussions.

Throughout its history, FedEx has been a leader in the transportation and information industry. In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. Smith wrote of the need for shippers to have a system designed

FedEx has reached this frontier through a combination of the four building blocks of competitive advantage. According to Morris (2009), FedEx is not just noted for its revolutionary idea of overnight delivery, or for its innovation through technology, or for its reputation as a reliable, courteous, and service-oriented alternative to the postal service, but for the mixture of all these elements fused together into a successful business model. Reliability and innovation have played a major part in FedEx’s success and value creation. If it is going to continue to maintain a

During the nearly these years, FedEx has done many successful promotions to the target customers so that its business has attracted more and more consumers. The most well-known is "Relax, its FedEx."

One interesting way to analyze customer satisfaction is to look at the apostles and terrorists. Apostles are those customers that are so pleased with a product or company, that they get more people to like the product as well. Terrorists are those customers who are so displeased that

FedEx’s product mix breadth consists of FedEx Service, Express, Ground, and Freight. FedEx Services “provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services for U.S customers” (Investors.Fedex. 2017) which its main target is businesses and companies by providing a product line depth of print and copy services along with shipping, pickup, delivery and same day delivery services. This benefits corporations and small businesses because it provides a service that makes communication and the exchange of information a lot more efficient. The copy and print is a big advantage, because companies and or individuals can now replicate or reproduce certain documents and information that is need if they do not have the ability to reproduce such information.

In 1978, the FedEx Corporation sent out its annual report noting that Federal deregulation, recapitalization, and public offering were credited as the impetus for record sales and earnings (FedEx Corporation, 1978). At the close of the report, the chairman of the board credited the employees as the most important factor in such favorable outcomes. Nearly 40 years later, the message and tone of the FedEx Corporation (2015a) Annual Report was again boasting a transformative year, and crediting its employees. But the success of FedEx Corporation, and specifically its air cargo and freight services (known as FedEx Express), does not rely solely on the hard work of people. Instead, success is the result of a vision, philosophy, approach, and perhaps simply some good fortune; all of which can be found in closer look at the making of FedEx Express.

• Innovation is one big advantage which FedEx carries and thus it keeps on innovating new solutions for client’s problems.

FedEx always recruited people who were willing to take risks, who were risk-taking by nature, and was willing to take up challenges. During its initial years, when Fedex was relatively unknown and the overnight express delivery concept was not tested and proven, joining the company was considered a risky proposition. The company tempted functional experts by offering them stock options, and also opportunities to work in a motivating and interesting environment. The company recruited people from leading

Customer satisfaction is to meet customers’ expectation according to measuring of products or services’ value and it provides a chance for company owners or marketers to ensure what customers want and what they can improve.