Fedex Analysis

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FedEx Corporation

Strategic Management Project

Prepared for:

DR. Robert Ch. Wood

BUSINESS 189 – Strategic Management

Prepared by:

SAN JOSE CONSULTING GROUP:

Billy CRANE

Brad LANDTHORN

Bob MIRI

Jeremy RELPH

Chris SANCHEZ

Andrea VERNEROVA

December 9, 2003

TABLE OF CONTENTS

EXECUTIVE SUMMARY ……………………………………………………………… 3-5

Chapter I: HISTORY ……………………………………………………………… 6 -9

Chapter II: EXTERNAL ANALYSIS ……………………………………………….9-15

A. Industry Life Cycle

B. Industry Dynamics

C. Porter’s Five Forces

D. Global Competition

E. National Context

F. Opportunities and Threats

Chapter III: INTERNAL ANALYSIS ………………………………………………16-23

A. Competitive Advantage

B. Distinctive Competencies

C. Strategies

D. Four Building Blocks

E. Strengths

F. Weaknesses

G. Image

Chapter IV: BUSINESS-LEVEL ………………………………………………………23-28

A. Business Level Strategy

B. Issues in Differentiation

C. Targeting Customer Needs

D. Market Segmentation

E. Differentiation of Quality

F. Differentiation in World

G. Advantages of Differentiation

H. Impact of Strategy

Chapter V: VALUE CHAIN ……………………………………………………… 28-34

A. Value Chain

B. Product Technology

C. Impact of National Context of Industry

D. Response to Differences Among Nations

E. Global Dimensions of Strategy

Chapter VI: CORPORATE-LEVEL STRATEGY ………………………………………. 35-41

A. Fedex Corporation

B. Express

C. Ground

D. New Offerings

E. Horizontal Integration

F. Vertical Integration

G. Fill in the Blanks, H. White Spaces

I. Premier Plus 10, J. Mega Opportunities

REFRENCES………………………………………………………………… 42-44

EXECUTIVE SUMMARY

During one of his two combat tours in Vietnam, Federal Express CEO Frederick Smith got a quick lesson in survival from a crusty Marine sergeant. “Lieutenant,” the sergeant told Smith, “there’s only three things you gotta remember: shoot, move, and communicate.”(Fortune, Nov. 1997)

Some thirty plus years later, and at the helm of one the shipping industry’s largest competitors, Smith has utilized that same tactical advice in the business world. His maneuvering of FedEx has incorporated an aggressive shooting strategy as the company has emerged into numerous shipping regions around the world such as Asia, and furthermore, FedEx continuously has been pursuing and developing a solid foundation and infrastructure for the company and its future. One example is the addition of a new hub in the Philippines, at Subic Bay. His movement has guided the company to innovate its products and develop with the needs of its customers. Finally, the use of communication has emerged as one of the company’s greatest competencies, not only with customers, but internally as well. “FedEx has always been a technology trailblazer, and the success of fedex.com is testament to that.” The company was one of the first to harness the power of the Internet, launching its Web site in 1994 with a bold new package tracking application one of the first true corporate Web services. Soon after, FedEx became the first transportation company with Web site features that allowed customers to generate their own unique bar-coded shipping labels and request couriers to pick up shipments. FedEx Ground is taking advantage of the wireless LAN technology by expediting the movement of shipping information from delivery workers' terminals to a central database.

It is with these tactics along with FedEx strong competencies and worldwide infrastructure,...
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