FedEx: Building a Global Distribution Powerhouse Questions
1. Evaluate the methods used by FedEx to grow domestically and internationally. Why do you think that the company initially had problems in its global operations? We are living in a global world so business, companies and people needs to communicate and deliver something to others quick and successfully in domestically and internationally. For that reason, Smith designed efficient distribution system to overcome difficulties in moving packages to destinations within one or two days. FedEx has a reputation with overnight delivery services and this services are dived into four segments and eleven operation companies which are FedEx Express Segment (Express transportation), FedEx Ground Segment 8 Cost-effective and small packages), FedEx Freight Segment (less than truck load and it is regional), FedEx Services Segment (Sales, marketing, IT support). Smith believed, name meaning of the company will attract people’s attention so it will promote strong awareness. FedEx Company’s reputation will be broadened thanks to its name just like they did with FedEx Express FedEx is a leader in the express transportation with 49% market share in the Unites States. One of the great movements of FedEx was agreement with USPS in 2001. FedEx Express will have a change to put their drop boxes in every U.S post office. It is a great achievement for FedEx so they increased their accessibility in the sector. With the agreement USPS supply billions in revenue for FedEx and it show us it was great move for FedEx. FedEx just to keep up with the global words expectations, they introduced Zap Mail service for customer who do not have Fax machines so If customer pay monthly bill of it they could send Zap Mail to another offices of FedEx in all over the world but e-document hit the segment. After that experience, FedEx had tried to expand their overseas operations so they acquisitioned Gelco International in 1984. This...
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