Fed ex is more diverse in its operations with even small subsidiaries and also in making a meaningful relation between them. The calibre subsidiaries which made market include the RPS, a grand service package, Roberts Express an inclusive shifting provider, vicking freight. A freight service that serves the western US, Caribbean transportation services, Caribbean islands and Caribbean logistics are few other subsidiaries that form the part of the company that are supporting the fed ex to achieve its reliability from customers point of view.
In the year 2000 January after the acquisition of the caliber fed ex stretched its operations and became supreme in the area of the logistics and supply chain management. After the integration, the entire portfolio of services by the fed ex corp. named as fed ex corporation.
After a year of its re-branding Fed ex has announced the assimilation of the tower group international, a supreme in the area of logistics and trade information technology at international level.
The acquisition of the new subsidiary to the fed Ex was named as Fed Ex trade networks, after these immense changes in fed ex there have been a separation of the services into groups for further enhancing the quality of services it is providing to the company.
In the same year, Fed Ex has taken over the American freight ways and was clubbed to vicking freight and was called as Fed Ex Freights. In 2004 February, Kinko's the acquired a private organisation known as Fed Ex office. In the same year , separately 2004 Fed Ex corporation assimilated parcel direct and renamed it as Fed Ex smart post. In 2006, Fed Ex corporation got ANC holding PLC a renowned local company in UK for transportation. By acquiring this, it was able to serve entire UK market domestically. In the year 2007, Fed Ex corp. assimilated Tiangin Dation W.Group Corporation limited of china by which Fed Ex was able to service the entire market of China. As a part of its acquisition it under took Prakash air Freight Pvt.Ltd. (PAFEX) an Indian Express company, flying cargo Hungary Kft. The acquisition of all these companies have shown the strength and position of Fed ex in global market.
Fed Ex and its strategic position:
For any organisation to maintain its reputation within the market, the world 'strategy' is the key word. Every company creates its own strategy to carry out the operations, to make the operations often strategic planning and value creation to the customers and the corporate aspects in different forms such as corporate governance and corporate social responsibility play an important role. The strategies of an organisation can be achieved by the following decisions.
- Long term goals of the company
- Activities concentrated by the organisation
- Strengths of company compared to the competitors
- Strategic planning to service in the business environment.
- The resources and structure of organisation
- Value creation and co-creation
"strategy is the way and the opportunity created by the organisation in along term perspective, that creates a value-addition in the transforming environment by making
One of the resources and competences and satisfying the levels of share holders.
The few aspects that explain the strategy and survival of the fed ex in the world as a leader in the area of the logistics and supply chain management.
Strategic vision and Visionary leadership.
o Strategic vision and visionary leadership: looking at the vision and mission of the fed ex corporation it aims for providing high customer value and at the other end it promotes its business in the interest of the share holders. It is aiming to meet customer requirements to offer an high quality standards to the customer through out the globe.The market is segmented based upon the demographics, geographics and few other factors. It has obtained its own values and styles to approach every country. Fed ex is also committed to develop the employees along with its growth by rewarding them mutually. Not only employees, it has spread this as a word of commitment to maintain the relationship with supplies, partners. They want all their corporate activities to the highest ethical and professional standards.
Fe ex is committed with a high quality service with strategic planning at three levels.
- Making fed ex the one brand voice all over the world, which is expressed as competing collectively.
- Target on independent networks to meet distinct customer needs to make the operations independent.
- Manage collaboratively by working to together to maintain locality of the relationships with the work force, customers and investors.
SWOT analysis: Fed Ex has grown from gross hood level to a global leader where it has adopted various strategies and faced different situations in its enormous growth. In which some of them became its strengths, it overcame many of the weakness to emerge as a global leader even by converting every opportunity they found in the way to their growth. As it has became the global and more competitive corporation in the market where it have been facing high competition from other corporations and some threats with the growing technology.
There is an uncertainty in the areas with the threats in the following areas like:
- E-mail is reducing the amount of overnight packages: In present day technology the E-mail has became most powerful and secured way of transmitting the documents all over the world safely, which also costs very low and with in a short span of time. The email has became a best for sending commercial documents with high security, this is leading to the decrease in the amount of overnight packages for the fed ex.
- Unclear strategy to deploy FDX's ground transportation division: UPS is the supreme in ground transportation with more than 75% of market share. UPS has the consistency in labour and networks to deliver goods from "business to residential" level. Fed ex has been facing a strong competition in this area. Fed ex has using its brand recognition in establishing the forces to build labour and extend its network in ground transportation, but the stability of UPS with maintaining its market share and increase of labour and network has became a big competitor to the fed ex, Fed ex has to implement new strategies in this area to improve its existence in this area.
- Low single digit domestic growth: In the current domestic market the growth of the company is from 3% to 5% every year. The market initially composed of priority and standard overnight packages. The fed ex over the period from its existence to present day it has an average growth of 12% from year to year.
- International growth promising, but requires a successful track record: Today the international sectors are growing in tandem. As the Asian market is growing and recovering from its down grade. The fed ex is improving and extending its market all over the world as a strong competitor with its revenues increasing around 15 to 20% in the world market, although the expected growth figures are high, the related database is low.
- Maintaining the infrastructure of an express delivery company is a exhibit barrier because of high fixed costs.
- The volumes of sales are leading to acquire the required capital but the fixed high costs can effect when times are slow.
- The nature of industry these days make it clear that becoming a unique and giant industry is not that easily possible. This is because it is gaining low profits on invested capital due to the nature of the industry.
- The demand for low rate shipping charges because of E-tailing pulling the customers from retailing industries.
- The cost of infrastructure of express delivery companies are a barrier of entry to new comers.
- The requirement of express delivery in present day socioeconomic environment leads to extensive growth of the company as FedEx is the leading company in express delivery world wide.
- E-business is creating an increased need for express delivery and the opportunities are increased due to the globalisation.
- The express delivery makes fed ex most famous and places in a best position when compared with all other companies in the existing market. its growth in strong infrastructure, brand equity and a feriece commitment to technology and innovation lead to its growth in the market. if any one want to send a parcel quickly and in a short span of time they says simply " FedEx" can do it. In such a way it has extended its market with best brand recognition.
- The fed ex has been using new technologies and following new strategies and implementing innovative methods to make itself strong and competitive in the market. for example it uses wireless technology in scanning, tracing the parcels and helping the customers to track their parcel by launching a website where they can track the parcel until it reaches the specified destination. They uses largely aircraft services to make the express deliveries in meeting the customers needs which made it to extend its market over 210 countries in the world.
FedEx business level strategy: Logistics, operations and technological innovation are the areas where the FedEx is stronger and uses it in achieving the different level business strategy. It is known for its reputation and brand. It provides the customers a quick and faster service when compared with their competitors. It is known for its quality. They use high innovative technology in providing a quality service to the customer to become more competitive and stable in the market. The service provided by fed ex is more innovative and far better from its rivals. It uses best way of methods in attracting the customers to use its products. It is especially known for its express services which they deliver quickly using air services. It uses largely aerial services in meeting the customers demands. It costs high prices when compared with its rivals. Their prices show the quality of service provided by it. For maintaining a strong customer base to know that it offers a better service than its rivals it follows differentiation strategies. It provides a customer friendly service, with high quality. Even lot of them provide a faster services but it is known for its quality and even home deliveries and pick ups. In this way it approaches different business level strategies in meeting customer needs.
Targeting customer needs: Fed ex faces some problems from the customers in the area of pricing. As the customer looks to send his/her parcel at lower cost, they never care about the type of the technology or the service that they use. For those types of customers the price is the main consideration in sending their parcel. Keeping all these types of situations in consideration the fed ex has divided into six segments in providing services to all the types of customers, as different customers have different needs. These segments are named as FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks and FedEx Supply Chain services. It uses different types of services depending on the customer needs as the people have different requirements in different situations. So the fed ex understands the customer needs in different situations and uses different types of services it has in dealing with the situation. Some times people demand for high quality and a faster service to deliver their parcel by the next day irresponsible of cost at certain situation it uses express service to meet the requirement in such a way it uses different type of services depending on the customers need and situation. It uses all the services depending on the scenario.
FedEx adopted a different and powerful strategy in meeting the requirements of the customers in the market. To make its strong existence in the market and to provide a better service to the customers it has divided into business segments. Their main goal is to work individually as a segment in meeting the customer needs to each other yet to compete collectively. This helped them to work individually to meet the requirements of the specific customers and to extend their business in all areas, not only that this type of strategy differentiated it from its competitors to place them in a better position. They achieved their goals and meet the market requirements by splitting and working individually by each segment concentrating on its own market rather than the whole market.
The FedEx Express is the largest segment of FedEx, as it is famous for its fast and quick parcels. It is speedy in delivering the parcels in a quick time, it is known for its quality and time. The small and important documents like legal papers are delivered over a night to meet the requirements of the customers with a money back guarantee to ensure deliver on time. The business-to-business requirements are met by using FedEx Ground services with in a short time and destination restraints. They also account FedEx home delivery where they deliver the parcels from the business to home and also pick the packets from home. Another following segment is a heavy parcel segment, FedEx freight.
This service allows the customers to send packages of heavy weights over 100 pounds, these are delivered regional and interregional within the US continent. This caters to large shipments that have flexible time restraints. All the other remaining are the small substantial segments like FedEx custom critical, it provides shipping of the products which require special care in handling or specially equipped vehicles, the end to end support for international trade is provided by the FedEx Trade Networks segment and finally the supply chain services are used to carry the goods to the meet the enhanced customer satisfaction. In this way the FedEx meets all the needs of its customers and make itself different from its competitors.
FedEx Express and FedEx Ground make most of the company's business and are currently its high profitable aspects. FedEx Express and FedEx Ground accounts over a turnover of $ 14 billion in revenue during 2003. This shows the how Fed Ex promises its customers in meeting their requirements. FedEx gives a good picture of the company's over all success. FedEx is pride itself on Fed Ex Express. They do what they say. That's their brand is known for a faster and quick delivery of parcels.
The value for FedEx Express starts from the pick-up of packages starting from such as drop boxes, business and residence, all these are gathered at one place by the FedEx employees. They pick up the packages from anywhere at any time to meet the customer needs. These packages are delivered to a central hub before delivering to their final destination. All the parcels after they are initially picked are transported to a central hub where these are sorted based on their destinations. The packages passes through many stages before they are delivered to their destination. From central hub these sorted parcels are sent to their destinations using different types of transport depending on the distance and priority of the parcel. If it has to delivery quickly and fastly then those type of parcels are delivered using airplanes if they are of farer distance. FedEx uses money guarantee policy to deliver the parcel on time. Suppose if the packet is not delivered then they will return the amount. The package delivery is the important stage where they assure to create a best reputation for their brand by delivering goods on time.
Generally they use airplanes, trucks, shipping and other type's services depending on the priority and distance of the destination. The employees like drivers play important role in this stage by delivering the parcels efficiently in the mean time.
The final primary activity is customer service. This function is to provide after sales service and support, however, FedEx provides customer service during the use of the service by letting customers track their package while it's in route. This creates extreme value for customers because they are able to check the status of their package at any given moment for an increased sense of security. In such a way they increase the value of their company and satisfy the customers in providing the service.Each of the primary activities is able to take place due to support activities such as company infrastructure, which is planes, buildings, trucks etc. Information systems, another support activity, allow the customers to track their products and place orders on-line. Materials management and human resources are additional support activities. Materials management can also be referred to as logistics, or the flow of goods or services through production into distribution. Overall, the support activities allow the primary activities to take place and function correctly.
FedEx uses more innovative technological methods in IT to provide the customers with an excellent customer service. The customers can track their parcels in every stage until it reaches the destination. They can go online and track the parcel by using a parcel ID rather than calling the customer service, which saves time and money for both the customer and the company. The airplanes, automobiles, trucks and employees add up to the company infrastructure in providing a good service to the customers by delivering the goods in time reliably. They also guarantee the package delivery on time to the destination, which is helping the company to be pride of itself from decades and extending its market.!--Content ends here!-->