Fedex Marketing Mix Essays

Federal Express was founded in 1971. In 1973, FedEx started operations officially and its hub-spoke distribution pattern enabled it to offer cheaper and faster service than its competitors. By 1981, UPS began to enter into the overnight air market and the United States Postal Service (USPS) cut its overnight letter at half the price of FedEx’s. Despite facing such extreme competition in the industry, FedEx could still excel due to change in the business environment. The success of the firm could be attributed to several factors:

Furthermore, FedEx flights were not even loaded to maximum capacity. Using just 85 percent of capacity, FedEx delivered a combined 20,726 packages and reaped about 376,000 in revenue. Of this amount, Courier Pak deliveries accounted for just 6 percent of daily flight volume, and 4 percent of daily revenue. Ideally, FedEx should focus on maximizing this unused capacity with increased Courier Pak deliveries, which would result from a direct marketing campaign.

The functionality of FedEx is based on a model that encourages a high level of interconnectedness. The company routes shipments from all over the world through regional hubs. There are only a handful of such hubs around the world. Around five cities in the US form hubs the main hub in Memphis, the west coast hub in Oakland, customs clearance in Anchorage, east coast hub in Newark and Latin America hub in Miami. The use of so many hubs indicates that North America remains a key market, which also accounts for some of the

FedEx planned that it would load all the packages from the United States and would transport and ship it out every night.

The main station is located in Memphis, Tennessee in the United States. The company started off by delivering couriers to some American cities, which was the first time for parcel delivery to take place at that time. As stated before, the industry’s goal is to fulfill the needs of customers, developing relations with different companies, and ensure a high investment for its shareholders. This is made possible through their six shared principles: people, service, innovation, integrity, responsibility and loyalty (FedEx). In order to satisfy its clients, FedEx has3 branches which provide customers with different services regulated on different demands; this include FedEx Corporation, FedEx Express, FedEx Kinko’s, FedEx Ground, FedEx Freight, and FedEx Services. It delivers more than 10.5 million shipments daily, covering more than 220 countries. Monthly, it has over 50 million visitors. In order to… it has 1250 express stations, 33 ground hubs, 370 freight service centers, and more than 1800 offices. The company also possessed 656 aircrafts and more than 100,000 motorized vehicles for express, ground, freight and expedited delivery service (FedEx). Through these aspects and values, Smith achieves to develop a company with a productive way in controlling time, space, and

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.

Even in the transportation of packages, FedEx has developed a good process based on technological tools : managers and employees in airport are aware of delays and know how many must be delivered.

FedEx Corporation, situated in US, is one of the leading supply chain management solution providers in the world. With annual revenues as high as USD33 billion, the company offers incorporated business

Innovation: FedEx maintains about 670 aircrafts and more than 43,000 vehicles using them differently than any other company.

FedEx is a logistical service company specialized in transportation, e-commerce and business services. The success of FedEx lies on an efficient information system. The business process is as follows:

Fedex has Hub & Spoke sorting and distribution system with 520 facilities & 32 hubs all over the world and it is continuously adding more hubs every year to make its delivery system more extensive. It also has 5000 drop boxes at US post office which enhances the reach of

UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service.

FedEx is integrated in the fact that it offers transportation, e-commerce, and business services to its consumers. The company operates through four business segments, which include FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx Express is engaged in packages and deliveries throughout the US and to 220 countries worldwide. FedEx Express also offers domestic pickup-and-delivery services within certain non-US countries, including the UK, Canada, China, India, Mexico, Brazil, France, Poland, and South Africa. FedEx Express has approximately 55,500 drop-off locations, 650 aircrafts and approximately 55,000 vehicles and trailers in its fright line. FedEx ground offers its service to the North American consumers for smaller packages, primarily

In addition to that, FedEx came up with new services such as Saturday deliveries, delivery by 10:30 A.M., customer interfaces (drop boxes, drive through stations and express delivery stores) and same day pickup of order. This is to distinguish its services. More on that, FedEx's philosophy of "People-Service-Profit" was successful in insuring a union free workforce devoted to customer focus. In 1978, deregulation in transportation helped FedEx to acquire larger planes therefore achieve lower cost. Trade deregulation in Asia-Pacific enabled FedEx to expand further. The acquisition of Gelco express, Tiger International, and establishment of Airport Hub in Brussels expanded FedEx internationally. Inflation and rising global competitiveness generated the need for "just-in-time" supply model, which was the advantage supported by FedEx advanced technologies.

FedEx is an American global courier delivery services company. The company has expanded from its original focus on ground and air-based services to include home delivery options and a retail division. They have 5 choices when shipping around the world. In case of above 68kg packages, customers can choose 2 choices,