executing strategies
Executing Strategies in a Global Environment Federal Express, known today as FedEx was developed by Fred Smith in 1973. Mr. Smith saw need for customer to receive packages sooner than 1-3 business days; this was the norm for express mail 40 years ago (Hill & Jones, 2013). Federal Express changed the structure of air cargo industry and improves on the overnight delivery service (Hill & Jones, 2013). In this paper, it will analyze value creation frontier of FedEx, determine which four building blocks will give competitive advantage to maintain profitability, its efficiency, and examine the overall competition the global industry (Hill & Jones, 2013).
Analysis of Company’s Value Creation Frontier FedEx accomplished it value creation frontier with innovation. The founder saw that there was a need for faster and more reliable express delivery service. FedEx competitors offered 1-3 day deliveries shipments, but didn’t take into consideration residential customers or businesses that would need their shipments sooner. Mr. Smith saw this need, but it couldn’t be accomplished by sharing air space on commercial flights. On commercial flights passengers were first and the space that was left was divided amongst the competitors. For his vision to be achieved he needed his own fleet of cargo jets (Hill & Jones, 2013). Federal Express founder started with the higher end of competitive advantage which is differentiation. Mr. Smith invested $91 million dollars of venture capital plus $4 million dollar of inheritance funds, which he used to purchase an aircraft company in Little Rock, Arkansas. He started using the aircraft to deliver envelopes and small packages overnight within the United States (Ecommerce, n.d.). Mr. Smith didn’t give the official name Federal Express until 1973. He brought the operation closer to home, which was Memphis, Tennessee. The business was operating out of Memphis International Airport. By this time the company owned 14 Dassault Falcon
Analysis of Company’s Value Creation Frontier FedEx accomplished it value creation frontier with innovation. The founder saw that there was a need for faster and more reliable express delivery service. FedEx competitors offered 1-3 day deliveries shipments, but didn’t take into consideration residential customers or businesses that would need their shipments sooner. Mr. Smith saw this need, but it couldn’t be accomplished by sharing air space on commercial flights. On commercial flights passengers were first and the space that was left was divided amongst the competitors. For his vision to be achieved he needed his own fleet of cargo jets (Hill & Jones, 2013). Federal Express founder started with the higher end of competitive advantage which is differentiation. Mr. Smith invested $91 million dollars of venture capital plus $4 million dollar of inheritance funds, which he used to purchase an aircraft company in Little Rock, Arkansas. He started using the aircraft to deliver envelopes and small packages overnight within the United States (Ecommerce, n.d.). Mr. Smith didn’t give the official name Federal Express until 1973. He brought the operation closer to home, which was Memphis, Tennessee. The business was operating out of Memphis International Airport. By this time the company owned 14 Dassault Falcon