Fedex Strategic Analysis

Topics: Express mail, Logistics, FedEx Pages: 14 (2355 words) Published: October 30, 2007
Federal Express Corporation (FedEx) started its operation in March 1973 building a express delivery company to global logistics and supply chain management company. With logistics as a key part of forming a strong strategy formulation FedEx provided their customers differentiating means thus winning a healthy customer loyalty with enormous.

The growth of the express transportation and logistic industry was brought about by three main trends •The globalization of businesses.
•Technological advancements and applications innovations.
•The changing market demand for more value added service.. •Application of new technology to generate process efficiencies, and changing market demand for more value- added services. •Operational efficiencies, reduce costs, and improve customer services is a key point of expansion of express transport industry. •Operate start on Just- in -Time Inventory systems in industries. FedEx was able to capitalize on all six trends giving maximum priority in technological investment, which ensured a better future for the company to serve its customers

Fedex at a glance:

FedEx is pioneering of the express transportation and logistics industry. By it's excellent operation and service 1973,had won over 194 awards, which is till largest in the express industry life cycle.

"If we're all operating in a day –to-day environment, we're thinking one to two tears out. Fred's thinking five, ten, fifteen years out."

Fred Smith, chairman, president and chief executive officer of FedEx Corporation, invented the express distribution in March 1973. FedEx shortened lead times for companies, provided a logistic management service which concerned not only on handling, warehousing and transportation but also inbound and outbound flow of materials within the company as well as the movement of finished goods from dock to dock.

Simultaneously by applying IT to the business FedEx was able to drive ahead from the rest of the industry. FedEx gave away more than 100,000 sets of personal computer loaded with FedEx software, designed to link and log customer's into FedEx's ordering and tracking system. FedEx was the first to issue its drivers handheld scanners that alerted customer of when packages were picked up or delivered. It was the first

transportation company to launch a website with tracking and tracing capability for the customers. In the year 1979 the company had a centralized computer system – Computer Operation Service Master On-Line System (COSMOS) that was revolutionary.

A few unique systems applications included:
•Global Inventory Visibility System
•Inventory Management System
•Warehouse Management System
•Enterprise Resource Planning
•Custom Clearance System
•Transportation Optimization System
•FedEx had a workforce of 5000 people.
In 2000 FedEx served 210 countries (90% of the world's GDP), Operated 34000 Drop-Off Locations, and managed over 10 million square feet warehouse space worldwide. It had a fleet of 648 aircraft and more than. 60,000 vehicles, with a staff of 200,000. It was the world's largest overnight package carrier, with a market share of about 30 Percent.

Problem statement:
Overview of FedEx Corporation we get some minor problems which are dissipated below: Initially, customers associated the FedEx brand with only Transportation. Fed Ex was trying to promote 5 different subsidiary companies with completely unrelated names and business logos the FedEx banner.

Some Minor Problems:
High capital Investment in the physical transportation infrastructure. Rising inflation and slow growth rate of US hampered the company's net income. Global competition was becoming the major threats.

High transportation of DHL UPS may faces to problem of FedEx.

Main Competitors:
Since the entire world was moving towards globalization FedEx...
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