Introduction
FedEx a courier company head quartered in Memphis, Tennessee United States. The company was founded in 1970’s for overnight shipping purpose. The company is primarily associated with document shipping and express packs. Basically it is the American association but is expanding otherwise as well.
Target Market
Target market of FedEx includes;
• Embassies and other governmental institutions
• Small business owners and professionals that are in need of professional connections at far off places.
• It would not be an exaggeration anyone who needs to send something anywhere in the world is FedEx market.
Industry Trends
FedEx hold almost 50% shares in United States markets. Basically its establishment is dominated by its
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The competition is basically on price and profits. Other small and private carriers are also competing with FedEx (Foust, 2003).
Strengths
• Major strength of FedEx is its fastest home delivery service among all courier companies.
• Customer base of FedEx is its one major strength but proper attention should be paid to maintain it properly.
• Another huge privilege which FedEx possess is its Smart-Post option which allows it to utilize e-commerce to carry out the courier delivery services.
• It has gained the position of 2nd largest LTL carrier in US and thus has gained much popularity among its clients.
• It’s well established online courier tracking services are gaining more and more popularity in recent times thus allowing the clients to attract towards the company more easily.
• Innovation is one big advantage which FedEx carries and thus it keeps on innovating new solutions for client’s problems.
Weaknesses
• One big weakness of FedEx is its inability in maintaining its competitive position in the marketing especially in comparison to its big competitor named UPS.
• Not completely but high costs are also making its success a bit away because competitors offer such packages at low rates.
• Although it is efficient but sometimes quality of services does not satisfy clients which in case make the customer base decrease at a slower pace but it is still dangerous for the company.
Monthly Tactics
Market dominance, growing market, technology, and globalization are enabling factors for both companies. In a more specific approach, FedEx’s enabling factors are their adaptation to modernization, being able to really take an advantage of technology. Also, their more
UPS has nothing on Fedex, UPS is a quantum particle, ever changing. From their service, so slow not real and inconsistent. Fedex is nothing less than a supermassive black hole. Colossally enormous, unimaginable in size, so big in fact to keep consistent with
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.
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 Office 's primary competitors include The UPS Store, OfficeMax, AlphaGraphics, Staples, Sir Speedy, and VistaPrint.
FedEx’s new product Courier Pak makes sense because of its’ high profit margin and potential to generate new volume. Out of the 3 services that Fed Ex provides, CP yields the highest profit margin at 66% while Priority-One is at 55% and SAS is only at 27%. In addition to this, the company believes that it will be able to boost up sale of CP from 1300 to 6000 packages per day. This shows that CP is the most profitable and huge potential for growth.
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 was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)
Trends and opportunities of the parcel service industry include globalization, e-commerce, and supply-chain management. Internet logistics was FedEx and UPS’s fastest growing business. The internet enabled customers to link directly to retailers and their manufacturers. In 2001, parcel carriers served almost all of the online market. They were able to provide information on packages to customers through tracking systems on the web. This allowed customers to plan ahead and decrease delays in deliveries. It also allowed for faster transactions and lower communication costs. Parcel companies created partnerships with large Internet retailers. These partnerships allowed parcel service companies to expand its overall delivery volume. Parcel companies improved tracking by implementing several technological innovations. These included “laser scanners and bar codes, state of the art software programs, satellite and cell phone communication equipment, electronic information interchanges, and the Internet.”
Fedex also known as Federal Express is an organization that offers transportation, web based business and business administrations with the assistance of a few organizations that are working together under one brand. The organization has four business portions, for example, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services (FedEx Corporation, 2012). Mean while United Postal Services (UPS) is the world 's greatest package movement association and pioneer in giving overall stock system organization game plans. It is a pioneer in collaborations and makes a motivating force for customer through organizations, cut down costs and significantly movable stock system control and detectable quality (United Parcel Service,
The point of quality, FedEx’s commitment about quality is very clear. They invest seriously in new technologies that allow them to develop their service and make it give credible and helpful for their customers’ mind . They have developed quality by presenting innovative technologies like package following system on the website, address checker which can aid you decrease some possible mistakes, unpunctual packages and dissatisfied clients causing from incorrect addresses. (Benson, Joe and Kinsella,2001) This commitment to developing the quality of their service with supplemental makes a more useful service for current and future clients.
Innovation: FedEx maintains about 670 aircrafts and more than 43,000 vehicles using them differently than any other company.
Federal Express, or now known as FedEx, is an international express shipping company that ships anything from envelopes and small packages to large freight. It was the brain child of college student Fredrick Smith, when in 1965 at Yale a professor assigned the class to invent an industry. At that time the only option companies had was to utilized passenger routes to ship packages, which was not very efficient for time sensitive deliveries. Six years later after Smith left the military he bought a small company and experienced how difficult it was to get supplies delivered within a couple of days. Remembering the paper he had written in college, Smith founded Federal Express in 1973. Starting with 14 small planes today it has grown into the world’s largest al-cargo air fleet.
FedEx was established on June 18, 1971, founded by Fredrick W. Smith, in Little Rock, AR. FedEx is a well known American corporation that brings courier global delivery service to its customers. Having such a wide range of portfolios, FedEx has been able to incorporate many different delivery systems for maximum customer satisfactory, with the help of e-commerce, and global delivery service it is no surprise that FedEx has consecutively been ranked amongst the most admired and trusted employers.
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