FedEx will not be treated by Delta airlines because FedEx itself had their own experience and established more than a decade. They have the world largest airfreight fleet, including McDonnell-Douglas MD-11s, Airbus A-300 and A-310s. The plans itself have a total daily lift capacity of more than 26.5 million pounds. From networking aspects, FedEx has established the strong networking services across world by door to door service, had employee more than 50 thousand employee around the world. It also growing fast performance with 13% increase in revenue to 39 Billion and serve covering more than 200 cities within China, FedEx had only drop-off locations domestically as of 2008. Compare to Delta airlines it just give 2.5% of its revenue from cargo and it has a passengers airlines which has many airplane to serve the passenger. Meanwhile FedEx is the cargo airline that around the world knows their service very fast and cheap, from aspect of service FedEx has their own strategies and market, and it had almost 100 years experienced in this industry. On the other hand, Delta is a passenger airline that took a cargo business and merge with Northwest and Western airlines, from our group view Delta cannot make the service better than FedEx did because FedEx has already establish and the hub itself for distribution of cargo has many in word include Asia and Europe.
Firstly, Federal Express may maintain the capacity in order to keep up with China’s growth by implement the customer relationship management strategy (CRM). This is because each of the customers has different type of requirements and demands. Federal Express should expand their forwarding capability, expand the services territory and also improving the cycle times. Federal Express also can provide shipment information to the customers in China. Not only that, Federal Express also should be more progressive in providing advance services to the customers so that can help to improve the customers loyalty and also able to attract a new customers. Secondly, Federal Express can hire local managers. This is because by hiring local managers, they are more understand the local culture of the local areas in order to avoid disturbing inherent values and practices. Every different country has a different culture and procedures, by having a person that more familiar with the culture it will help Federal Express in determining the sensitiveness of China citizens. Thirdly, Federal Express also need to choose an airport for the expanding their business environment of the Pearl River Delta which serves 40% of the China’s export volume. By concurring all the airports in China, it will allow Federal Express to increase the capacity of the business. This is showed by China has been making substantially investment in their infrastructure include the port facilities, airports and cargo terminals. Lastly, Federal Express should more understanding the different set of values and demands in each country. The marketing also play an important role on advertising the services that provided by the Federal Express. Federal Express should examine the major player or competitors and changes in the China industries, by examine this it able to improve the services that had been provided by Federal Express. By improving the quality of services it will help in attracting a new customer and also earn their confidence in using all the services of Federal Express.
Federal Express having a quality problem because the subcontracting companies are more motivated by profits. Usually, contract in the fixed price, so in order increasing their profit they will cut off their expenses. This will give an effect to the Federal Express because they still need to pay according to the contract. Additionally, Subcontracting often give a negative impacts to the service quality and also may affect the satisfaction of their customers. This is...
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