De Jong, Ron
Van der Poel, Peter
FedEx Case Study
30 June 2003
FedEx Case Study
FedEx Corporation was created in 1973 as an entirely new concept in package delivery – an overnight air delivery service. The company also provides e-commerce and supply chain management services to its clients in more than 210 countries. The company has grown from a packaging company to a software company. Providing there customers with state of the art software for supply-chain management and logistics At the end of 1999 the company reported a slowing down of the growth. The Board reacted by anouncing major re-organizations. These re-organization was a success in the way it made the company grow again in volume and market share.
The Jan 2000 Announcement
At the end of 1999 there were two major issues leading to the idea of a reorganisation: • Because of the company’s historical image of the company as an express delivery business there were had a lot of difficulties to shine in the logistics and supply-chain operations • The competition in the transportation/express delivery industry is intense and there were reports that FedEx transportation volume growth was slowing down, even though the company was poised to take advantage of the surge in traffic that e-tailing and electronic commerce were supposed to generate. So on 19 January 2000, FedEx announced three major strategic initiatives: • A new branding strategy that involved changing the company’s name to “FedEX Corporation”, and extending the “FedEx” brand to four (4) of its five subsidiary companies: • One point of access to sales, customer services, billing and automation systems. With these consolidations, the Company announced intentions to form a sixth subsidiary called FedEx Corporate Services Corp. in June 2000. The new subsidiary would pool together the marketing, sales, customer services, information technology and...
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