Fedex Case Study
Fed Ex Case
Federal Express is a strong recognizable brand with growth potential, but the company faces a multitude of challenges with rising fuel prices, increased value of living, as well as a decline in the economy. FedEx also encounters issues with competition and even negative publicity due to various lawsuits involving violations against EEOC laws and regulations.
• Best leader in express shipping
o 99% of deliveries are on time
• Expansion of operations into international markets
o Purchase of Tiger International
• Strong brand image associated with products, quality, and reliability
• Expensive compared to other services
• Increased amount of debt
• Decreased expansion in Europe
• Expansion of online consumer services
• Offer larger variety of shipping services
• Global business growth
• Technological advancements
o Overnight delivery market matured rapidly
• Rising fuel prices
• Decline in worldwide economy
• Rising costs associated with employee salaries and benefits • Negative publicity due to lawsuits
Critical SWOT Factors:
Federal Express needs to focus on their strengths in the company, as well as pursuing their opportunities. FedEx built its foundation on being the fastest and most reliable postal service in the United States, and has taken these principles overseas in foreign markets. The FedEx brand name and image is critical toward the company’s on-going success and future growth opportunities. Being globally known, as well as having a strong foothold in almost every country will allow FedEx customers to more willingly accept new services offered by the company. Such factors for expansion and competitive advantage will include offering online services. The world is becoming more technologically advanced
In April 17 of 1973, Federal express began shipping six packages including one sent to the owner of the company Frederick W. Smith. With $8 million inheritance. At the time, he did established the U.S Postal Service and United Parcel Service (UPS) provided to the business delivering over night letters, documents, and packages.
FedEx is a logistics company based out of Memphis, Tennessee. They control over 50 percent of the overnight delivery market. The case elucidates how FedEx has remained a trendsetting leader in the parcel delivery industry and indicates the qualities that make FedEx such a thriving corporation. FedEx is dedicated to and appreciates the importance of effective marketing and will continue to build relationships by continuously adding to the range of quality and service offered to customers.
Key Marketing Issues
Customer Service – FedEx believes that by providing reliable, fast, competitive, and reasonably priced global air and ground transportation will influence consumers to utilize their services. Developing relationships based on the way consumers view FedEx is tremendously crucial in properly marketing the company. FedEx strives to achieve one hundred percent customer satisfaction. They have done an outstanding job thus far, as client satisfaction surveys have indicated that one of FedEx’s greatest strengths is their commitment to customer service standards.
New Branding Unveiled – Federal Express was a company name so recognizable by the public that it became the standard name of overnight delivery service. Why would they choose to change their name to simply FedEx? Not only did they run into some issues with using the word federal, but they wanted a name more fitting with the times. The shortening of the original moniker both closely identified with speed, reliability, innovation and customer service, and the power of its signature colors purple and orange to communicate urgency and...
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