2.What’s the Difference between e-Business and e-Commerce?3 3.Who is FedEx?4
4. Ebusiness at FedEx5
4.1. E-Operations at FedEx5
4.2. E- Human Resources Management (HRM) at FedEx8
4.3. E- Marketing at FedEx9
4.4. E-Commerce at FedEx11
5. How does E-Business increase market share at FedEx?11
6. How has e-technology lead to augmentation of earnings at FedEx?13 10. The e-Business Strategy – What are the Risks? How do you mitigate these?15 11. Conclusion18
We live in a world where it is constantly becoming easier to communicate .Pause for a moment and think what would you do sans your email? Your Smartphone? Heaven forbid, if there were no Facebook? Did we ever stop to think; are there more to these software applications than just superbly intelligent algorithms? What drives people to develop programmes to make “free” calls on Skype? Or the ability to “tweet” your day away? In 2008, online sales exceeded $ 200 Billion in the USA alone, so it’s not too much of a surprise, that MONEY is the reason that drives these innovations! People are getting busier (or lazier), choosier, more demanding and wiser. The convenience and scale of the internet makes it the anytime mall of choice. Who is reaping the rewards of the internet sales channel? Retailers that engage in E-Commerce and E-Business!
This document is based on FedEx and endeavours to demonstrate how FedEx has embraced e-business and e-commerce to: •Drive and sustain market share growth,
•Increase and improve service efficiency,
•Augment their earnings.
The e-business strategy also presents a unique set of challenges and risks for the management of FedEx. These together with mitigations thereof are also discussed. 2.What’s the Difference between e-Business and e-Commerce? “e-Business” and “e-commerce” are often used interchangeably. However, they are somewhat different. E-Business: Electronic Business is ‘a broader definition of e-commerce which includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organisation.’ (King, et al, 2004). E-Business includes central business processes such as back-office activities, supply chain management, and customer relationship management. E-Commerce: Electronic Commerce is one aspect, that is, the sales aspect, of e-business. It is defined as the ‘process of buying, selling, or exchanging products, services, and information via the internet’. (King, et al, 2004). Online catalogues and e-transactions are examples of processes within e-commerce. Some of the e-business pioneers include, Amazon.com who, “www’ed” in 1995, currently has 31 million user accounts and generates revenue of $189 per user per day (Anon1, 2011), eBay – the first mover in online auction, Google.com – the search engine king and its competitor, Yahoo.com. However, more significant than the feats of the corporations mentioned above are those that rose to the challenge of realigning their existing business models and strategies with the changing times. These companies are the ‘brick and mortars’ who were forced to embrace the new efficiencies of the internet. These companies have become known as the “clicks and bricks.” While many failed to overcome this challenge, a few have come a long way in a BIG way. 3.Who is FedEx?
According to their website, www.fedex.com, FedEx was founded by Frederick W. Smith in 1973. It was known as Federal Express and the headquarters were based in Memphis, Tennessee. Federal Express achieved first mover status when it successfully delivered a package overnight across cities in the US. Over the years, Federal Express rebranded as FedEx, provides customers and businesses globally with a vast portfolio of transportation, logistics and business solutions. In 2011 the company, collectively employed 290 000 people...