¶ … Federal Express
One of the major segments of the wider postal and cargo industries is the small package express delivery sector or industry, which is an increasingly complex and competitive sector. The complexity and competitiveness of this industry requires the use of combating and strategic approach to enhance the profitability of the small package express delivery industry. The contemporary express delivery industry in America originated from Fred Smith's vision for the Federal Express Company that is commonly known as FedEx. FedEx has played an important role in the small package express delivery industry through the establishment of a system that contribute to the realization of next-day delivery of small package airfreight that weighs less than 70 lbs. The company has also been instrumental in the development of the use of standard packaging with a weight that exceeds 70 lbs. This role has contributed to FedEx's value creation, product differentiation, and effectiveness of existing business model.
Brief History of the FedEx
The Federal Express was established in 1971 by Fred Smith, Jr. And later incorporated before commencing operations in 1973. This company was founded at a time when a sizeable portion of small-package airfreight was transported on commercial passenger flights. Actually, the major cargo carriers during this period were the main passenger airlines that operated various cargo planes and carried extra cargo in passenger planes. Since the beginning of 1973, passenger airlines shifted significantly from all-cargo planes when they started to focus on cargo freight in passenger planes. The company was established based on Smith's belief that passengers and packages had significant differences between them, which contributed to the need to treat them distinctively (Hill & Jones, 2013, p.C84). The main goal of Fred Smith was to develop a system that could help in promoting next-day delivery of small-package airfreight that was less than 70 lbs in weight. Smith founded the Federal Express Company i.e. The FedEx with his family inheritance worth $8 million and venture capital worth $90 million. As a result, the Federal Express became the first airline to develop a hub-and-spoke route system through Memphis.
Since its inception, the Federal Express has significantly invested in Information Technology systems and integrated their systems since the Internet was introduced to offer effective services throughout the supply chains of its customers. Moreover, the company has eventually developed a potent technical architecture that was integrated into Internet commerce through infrastructural investment in the system. However, the company's logistics and supply chain operations have experienced tremendous challenges throughout its history. FedEx has also faced increased competition in the delivery sector that has worsened following reports of declining growth in growth of its transportation volume. This contributed to the company's reorganization of operations to promote ease of doing business.
FedEx's Value Creation Frontier
The strategic competitiveness of the Federal Express has been entirely focused on developing a delivery speed and dependability as the company's major value creation frontier for its customers. According to Hill & Jones (2013), this core value creation frontier for customers has been a crucial aspect in the search for opportunities in relation to Smith's vision of contemporary fast paced global economy. Generally, the Federal Express believes that value addition to its operations can be achieved if the company gathers urgently needed materials with a short period of time. As a result of collecting these materials, the Federal Express would in turn become pioneers of a reliable and fast delivery system though relatively expensive.
In light of the recent increase in the number of the company's customers, one of the four building blocks of competitive advantage that could benefit the FedEx is innovation. Innovation will play a crucial role in ensuring the company obtains competitive advantages over rivals and sustaining above-average profitability across all operations. Pine II & Korn (2011), state that the use of innovation as a building block for competitive advantage would require letting customers to have instant access to and keep track of their packages through online platforms. The increase in the number of FedEx's customers is fueled by their increased dependability on and speed of the company's package delivery operations. Speed and reliability in FedEx's operations is achieved through effective coordination of all logistic activities, which results in lessened costs and improved capability for value creation through management of own supply chain.
The building block of innovation as a core aspect of business development for FedEx's customers would help the company enhance its competitive advantage over rivals. Most of the Federal Express' major competitors in the very complex and highly competitive small package delivery industry are using innovation to create enhanced technological capabilities. Through innovation,...
FedEx Corporation FedEx Company Overview FedEx is a global organization that provides wide variety of business portfolio such as e-commerce, transportation and business services. FedEx operates and competes effectively under collective brand names such as FedEx Express, FedEx Freight, FedEx Ground, and FedEx Kinko's. The objective of the paper is to provide comprehensive report on FedEx that include FedEx's strategy for success in the marketplace and the company four main business strategy. The report
FedEx Corporation is a logistics services company based in the United States. It was founded in Little Rock, Arkansas in 1971 by Frederick W. Smith and since then has grown into a multibillion-dollar company with aerial and terrestrial forces that cater to almost 6 million packages per day. The company's headquarters are currently in Memphis, Tennessee. Originally known as FDX Corporation, it was renamed to FedEx Corporation in January 2000
FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL
FedEx In the case of FedEx, some elements of its business would be subject to regulatory oversight from the Department of Justice, which enforces the nation's antitrust statutes. These laws exist to protect consumers from unfair business practices. If the DoJ were to be involved in a FedEx merger this might imply that the company was attempting to merge with UPS. The result of that merger would be to take the
02143 USD Rate CAD 1 1.019015 0.00861 0.011 2 1.022995 0.01315 0.0116 3 1.027413 0.01833 0.0124 4 1.030542 0.02244 0.0134 5 1.03375 0.02623 0.014 6 1.033257 0.02827 0.0165 These figures that be used to convert the CAD cash flows into future USD. According to the FedEx 2010 Annual Report (p.49), the company's discount rate for internal usage is 12%, so that is the discount rate used in this example. The prospect of higher inflation in the future has already been accounted for. The discount rate factors in future inflation, as does the interest rates that are used in interest
FedEx Corporation Complete Exercise • What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion? FedEx relies on a product leadership approach for their success. The company commands four different market businesses, but has focused on keeping the businesses seamless and working together. According to their report, "We believe that sales
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