FDX
Value Creation Frontier
The value creation frontier "represents the maximum amount of value that the products of different companies inside an industry can give customers at any one time by using different business models" (Hill & Jones, 2008). FedEx focuses on quality and excellence, as well as responsiveness to customer, as the core elements of its business model. Reliability and efficiency are also facets of business on which FedEx focuses. What this means is that FedEx can and should offer higher prices, because its business has higher costs. FedEx is basically offering a premium service within the package delivery business, in the express division. FedEx Ground is more reliability and efficiency, which implies that division should offer a lower price and move more towards cost leadership.
To maintain above-average productivity, FedEx needs to continually innovate. The company has been an innovator in the past, first when it was the first company to offer overnight service to other cities using the hub-and-spoke model with its aircraft. The company has also been a customer service innovator, and to this day its tracking capabilities far exceed those of its competitors, delivering better value for the customer. Because FedEx excels at the other building blocks of competitive advantage, the company can earn competitive advantage through innovation. Its close competitor, UPS, is also pretty good at the same elements that FedEx is, but FedEx has a history of being the innovation leader in the business. If it can maintain that reputation, then FedEx will most likely be able to maintain competitive advantage.
Product Differentiation and Capacity Control
FedEx has sought to differentiate itself by offering a comprehensive...
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
A fourth weakness is the declining level of business services sales during one period of the case study, brought about by the economic recession impacting areas of the global economy unevenly. Opportunities FedEx can expand significantly more into the highest-growth economies of the world by pursuing more acquisitions in specific logistics and transportation management companies. As one of their core strengths is growth through acquisition, the company needs to consider how
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 is in the global logistics industry, and offers a wide range of products and services within this space. The major business units are Express, Ground, Office, Custom Critical, Freight, SupplyChain and Trade Networks. The major business is Express, which is the overnight courier business. FedEx pioneered this service and remains the global leader in overnight shipping. While most subsidiaries are based in the United States, Express operates globally, spanning
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
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
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now