FedEX case study
1. Explain FedEx busisness model
1. The Hub-and-spoke model- centralized distribution system (the company put all points on a network and connect them through a central hub). 2. Various service: the company offers a service to ship packages of many sizes over both short and long distances. 3. Continuous technology development (Its aircraft,trucks, bar-code scanners, servers, web pages and more were linked to one of the world’s largest, most advanced infrastructures 4. Quality customer service : thanks to webbased customer services, FedEx has the ability to také service levels to new heights by building oneto-one customer relationships. Customers have opportunities to track their shipments ,it forces FedEx do its work more effectively
2. Highlight FedEx growth strategies and its international expansion phases. (You should refer to Ansoff strategies). Market penetration – In 1973 FedEx penetrates on market with service to ship packages of many sizes over both short and long distances, with speed and reliability. FedEx had a wide array of partnerships in technology, which helped FedEx to develope innovative technology solutions based on customer need (Orbit Commerce, Cisco, AT&T). FedEx also signed exclusive delivery agreements with a number of e-tailers( eToys, Pro-Flowers, Value America and LL Bean). In 2000 FedEx renamed itself as FedEx Corporation, to leverage its brand strength. This recognised the fact that customers wanted to deal with just one company to meet their total logistics requirements Market development – In 1984 FedEx began to offer its services in Europe and Asia. By 2004 expansion had created an unsurpassed worldwide network delivering to customers in more than 210 countries. Product development – In 1995 FedEx began first offering webbased customer services, which allowed customers to track their shipments by means of a reference number. Diversification - In 2000, it launched its FedEx Home Services...
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