FedEx Final Project 2
FedEx Corporation is a market structure of an oligopoly they have control over the supply of a commodity is held by a small number of producers each of whom is able to influence prices and thus directly affect the position of competitors. The chief competitor is UPS (United Parcel Services) and both companies ship throughout the United States and have shipping to international ports.
One thing that differentiates the company’s products from its competitor is that it does not so much possess distinctive competencies but has strong existing competencies. FedEx’s existing competencies include brand equity, strong infrastructure and a fierce commitment to innovation and technology. These enable FedEx to become the premier express delivery company of the world. The FedEx brand name is synonymous with express package delivery. “When a company or individual needs to send a package in a quick and timely manner, they say FedEx it.” They don’t say UPS it. They have positioned themselves in the minds of its customers they they are the company you turn too when you need it there fast (San Jose Consulting Group, 2003).
Due to the nature of the industry and the awareness level of customers, differentiating themselves is proving to be difficult. When it comes to shipping, customers are very price sensitive, usually choosing the cheaper carrier. They don’t care how well FedEx can deliver around the world but what their package delivered from point A to point B as cheap as possible. They need to differentiate itself in as many ways as possible from its competitor, namely UPS. The less they resemble their rivals, the better their customers can...