Tag: FedEx

Top 5 case studies of FedEx company that we realize is why they are the Best

Here is top 5 case study about FedEx, FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. FedEx Company will be doing courier services of delivering Goods and Package. Also learn, Continue to learn Top 5 case studies of FedEx company that we realize is why they are the Best.

Understanding and Learn What? Top 5 case studies of FedEx company that we realize is why they are the Best.

The case study is the study of knowledge, When will the FedEx Company need to create a courier company, or the FedEx company has done the job of courier for the first time? This case study tells us that when the FedEx company has started the work of the courier, and how will it be started?

What problems did they get after starting the courier company, and how would they have solved the problem? Case studies of all companies tell us how the company started, how the company touched the new height and went ahead? Occasionally the company’s case study also shows how much money the company has earned and spent?

Some company’s case studies also tell us how, when, and how, or what do the customers join the company, and what does not make the company away and go towards new companies. So, here are the top 5 case studies of the FedEx Courier Company. How do they make the company? How are they all right? How are they growing and achieving success? How have they started courier services in many places? Now, learn and understand how the FedEx company started, and day by day, the company touched the new height of the sky.

FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express (now FedEx Express), which was used from 1973 until 2000.

The company is known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location (to help in finding lost packages), a feature that has now been implemented by most other carrier services. This information was collected from Wikipedia.

FedEx, an international company that provides shipping by air and ground and a range of logistics and trade consulting services, must provide speed and dependability globally not only for its core businesses with customers but also in its communications with constituencies about key business objectives. Employees at FedEx work in 200 countries 7 days a week, 24 hours a day. The corporate communication function must operate in as broad a landscape with speed, high impact, and precision.

1. Case Study of Leveraging Information Technology to Grow Business in FedEx.

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The Federal Express Corporation had a visionary leader to become the first motivator in the express transport and logistics industry, leaving FedEx with a remote source: their ability to help them control the entire supply chain management.

The ability of the company to use technology and its supply of resources has made competitors difficult to match standards of company standards. FedEx is mainly successful because of their technical progress. Technology has given them better customer service and quality which is not unique by any company. No company was able to offer overnight delivery of packages with speed and precision of the Federal Express. Learn More to Visit the Article.

2. Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

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Given the core businesses of the company, communication challenges can arise in many challenges – anything from crisis management, such as an accident after the accident or computer outage, for the management of e-commerce initiatives, the implementation of a new business model quickly for.

According to Corporate Vice President Bill Margaritas, corporate communications need to add significant value to the business and the company should have a complete alliance with high impact strategic decision makers. But how did they complete it in FedEx? First of all, Margaritis organizes an annual audit with the authorities so that it can know what they are trying to achieve and establish a scorecard for success.

These are the company’s new “customer-facing market-market” strategies to improve development and profitability. This structure allows the team to pay full attention to active opportunities, rather than being less vulnerable to operational issues, which are important for management but are distinctly different. Learn More to Visit the Article.

3. Case Study of the Success Story of FedEx Company.

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FedEx’s strengths in logistics, operations, and technological innovation allow them to pursue a differentiation business level strategy. FedEx works to stand apart from its competitors by creating a level of service that is difficult for competitors to match. FedEx has clearly been identified as an innovator, but what they need to get across to their customers is that they provide a high level of quality service.

FedEx charges higher prices for its services than many of its competitors in the industry. This is considered a premium that a customer pays for the quality of service FedEx provides. By differentiating their standard of quality from their competitors, FedEx lets their customers know that if they are willing to pay more, it will be worth it.

FedEx is able to meet the needs of all these segments. They have spent an extraordinary amount of capital developing their infrastructure just so they can make the best promises to their customers. FedEx transports more than 3 million items to over 200 countries each day. Within each business unit are specific functional units that perform particular functions. The main functional units are logistics and operations for its transportation system. Learn More to Visit the Article.

4. Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx.

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It provided a successful technology for the FedEx Corporation as a pioneer in the whole industry for e-business. This strategy became an advantage that they used to undermine their competitors’ strengths and localized customer service. With a globally connected IT network, FedEx was able to leverage their IT advantage to service their corporate accounts on a global basis, rather than on a country by country basis.

Pioneer of Internet Business in the Global Transportation and Logistics Industry:

FedEx Corporation created its own website form in 1994, it is the first step and basis for the company to develop its e-commerce. FedEx.com is the first transportation website which could accept the one line order for package tracking and allow the customers to transact the business by the Internet.

Both shippers and recipients could access shipping information and print documentation via the Internet. As the pioneer in the industry, FedEx should continually improve their system and service due to its competitor also created the Internet service and Internet software. Learn More to Visit the Article.

5. Case Study of Using Marketing Channels to Create Value for FedEx Customers.

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FedEx’s service covered all around the globe, making services available for customers from many countries and almost every place. FedEx has many drops off location around the globe. A customer can choose either one drop- off location that is nearest to them. This Case Study analysis with How companies create value for customers? How is Value Created and What Does It Do?

FedEx has great air network, having more than 320 daily international flight and 654 aircraft ready to ship the packages. FedEx has many hubs around the world working as a midpoint for delivering the packages. There are four hubs in the Asia Pacific. That is Shanghai, Osaka, Seoul and Guang Zhou. Besides, FedEx has hubs in London, Cologne, Frankfurt, and Paris which will later ship the parcel around the European area. Moreover, hubs that link Latin America, the Caribbean and Canada were in Memphis and Miami.

One thing that makes FedEx so special out of so many transportation or shipping company is the collection of airplane uses by FedEx in order to ship the parcel. FedEx is the first company who use the plane called the Boeing 777. The uniqueness of the plane is the plane is a fuel saver. It shorter the transit time with larger space to put the parcel. This had made the overnight courier service possible. Learn More to Visit the Article.

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July 17, 2018
Case Study of Using Marketing Channels to Create Value for FedEx Customers

FedEx as a service company that mainly focuses on transportation or shipment services, channel played an important role leading to success. FedEx need a good channel to get and reach more customers. FedEx has a strong network structure linking all the market together. FedEx serves more than 220 countries and territories currently. Further, these networks are linked up by land, air and ocean transportation. Also learn, Case Study of Using Marketing Channels to Create Value for FedEx Customers, with How companies create value for customers? How is Value Created and What Does It Do?

Understanding and learn what? Case Study of Using Marketing Channels to Create Value for FedEx Customers.

FedEx’s service covered all around the globe, making services available for customers from many countries and almost every place. FedEx has many drops off location around the globe. A customer can choose either one drop- off location that is nearest to them.

FedEx has great air network, having more than 320 daily international flight and 654 aircraft ready to ship the packages. FedEx has many hubs around the world working as a midpoint for delivering the packages. There are four hubs in the Asia Pacific. That is Shanghai, Osaka, Seoul and Guang Zhou. Besides, FedEx has hubs in London, Cologne, Frankfurt, and Paris which will later ship the parcel around the European area. Moreover, hubs that link Latin America, the Caribbean and Canada were in Memphis and Miami.

One thing that makes FedEx so special out of so many transportation or shipping company is the collection of airplane uses by FedEx in order to ship the parcel. FedEx is the first company who use the plane called the Boeing 777. The uniqueness of the plane is the plane is a fuel saver. It shorter the transit time with larger space to put the parcel. This had made the overnight courier service possible.

FedEx was famous for its overnight service. Customers can receive their packages at the same time on the next day. The strong backbone of shipping network structure by FedEx makes this service available. An example is given to explain how FedEx manage to ship the parcel between 24 hours and reach 10.30am. A customer decided to ship his parcel from Shang Hai to New York City. FedEx pick up the shipment in time to make the same-day trans-oceanic flight. FedEx picked up the package from the client at the time of 4:50 pm, Tuesday. The package was delivered to Shang Hai’s facility for sorting process.

Then, the package reaches Shang Hai Pudong International Airport at 9:30 pm. At 11:30 pm, the package leaves China and in the Boeing 777 aircraft on the way direct to Memphis, Tenn. The flight travel east of the Pacific Ocean and passed the International Date Line. At the time 11:30 pm, the package arrived in Memphis. In Memphis, the package was on loaded, cleared, sorted and reloaded on to a flight from Memphis to Newark. In Newark, the shipment ship by truck to New York City. This is how the package from Shang Hai reach the client in New York City and at the time 10:30 am Wednesday.

From the example, the package was first picked up and sends to the facility for the process, then to the airport. The package then reaches the hub and been process again. Finally, the package was delivered by motorized vehicle. FedEx has more than 43,000 motorized vehicles which make FedEx manage to reach many places in the different country. Example of motorized vehicle commonly used by FedEx was trucks, vans, containers, and also tricycles.

FedEx delivered by electrically-assisted tricycles in Paris to avoid the traffic jam in order to ship in time. The tricycle was designed to put packages back on the tricycle. It has a removable storage container that places between the back two wheels. It is 100 percent electrical and it has to start manually. It is 100 percent eco-friendly and it enables delivery work more efficient even faster than a car or truck.

FedEx not only ship with aircraft and motorized vehicles, but also by ocean cargo. It provides another choice for the customer to choose from. The ocean cargo services provided by FedEx linking North America, Latin America, the Asia-Pacific region, Europe and the Middle East together. Besides, FedEx has enough amount of ocean cargo to make their services, choosing the space of cargo available.

For example, allow the customer to have full-container-load (FCL) for the user that need huge space and less-than-container-load (LCL) for those customers that does not need so much cargo space. Further, FedEx has ocean cargo with the different facility like the refrigerator, onboard cranes, on the cargo ship to provide the service like ship dry or liquid bulk shipments and handle heavy shipments to smaller ports.

Moreover, customers usually expect their package to ship in time with good condition. FedEx understand that and come out a solution that is provided packing service. It tried to help in avoiding damage in packages. In order to make the service available, one of the FedEx’s subsidiaries company was designed to become one of the channels in helping customers to pack their packages. So, customers can now bring their package to any of the FedEx Office and ask for pack up service.

Further, FedEx knows that this the era of information technology. Everyone seems to be online often and many things can be done online. FedEx understand that there is a need to open a website as a channel in order to make the service available for more people, especially for those who seldom go out and always do online shopping. The website makes the process of shipping easier. Everyone can use the service. Now, FedEx’s customer can ship online with few steps and avoid many processes of filling up the forms.

FedEx reach customers in many different ways. Beside of online, by air, by land, and by sea, FedEx reach customers by telephone and fax. This is another channel provided by FedEx to the customer called and picks up service. In order to provide convenience to the customer, understanding some people might think lazy to go out just for dropping a small package, and also for people who definitely very busy and lack of time, called and pick up service is a very good way to reach them. The customer can just dial FedEx’s customer service number and ask for a pickup. FedEx will pick up the package from you and the great thing was the time count once the package was picked up by them. Further, Customer can fax to the company to have the service.

In another hand, mobile phone or smartphone are using as a channel to reach more customers. Smartphone becomes very popular nowadays. People tend to have one smartphone to do many tasks on the go. FedEx makes the website of FedEx available for the smartphone user, trying to attract more customers to use their service. FedEx customer can do tracking of the parcel, schedule a pickup, and even billing by using the phone. It makes the service become very convenient especially for those who usually travel around and wish to deliver their parcel.

FedEx understands the importance of customer service. So, a company called FedEx Service is there specialized in information technology. They providing back up and information like tracking information, customer’s detail, and customer’s history of using FedEx’s services, estimate the duties and taxes and handle the claims and complaints. Besides, the company also provides information about the service and company. It is to make the customer service and online tool available at all the time whenever customer needed them. Furthermore, it is a guide for the customer because much information was provided on the website.

One of the channels in marketing is the employee. As a service provider, the employee is the first who reach the customer and make the service available. It often leads to satisfaction of the customer. In order to make the service delivery to a certain standard, the employee is trained. The employees required to test every six months to ensure their skills meet minimum acceptable requirements. Extra training was required for those who have not met the minimum requirement. Employees need to go through computer-based training, satellite broadcast training, and staff-conducted training in order to perform the service to the customer.

FedEx’s channels are backed by the computer system called COSMOS. That is Customers, Operations, and Services Master Online System. It is a centralized computer system to manage people, packages, vehicles and weather scenarios in real time. It is to make sure all the channels are working properly.

How companies create value for customers?

With these concepts in mind, think about ways you can improve customer value to grow your business. This is article presenting by inc.com. Here are 5 steps you can take:

Step 1: Understand what drives value for your customers.

Talk to them, survey them, and watch their actions and reactions. In short, capture data to understand what is important to your customers and what opportunities you have to help them.

Step 2: Understand your value proposition.

The value customers receive is equal to the benefits of a product or service minus its costs. What value does your product or service create for them? What does it cost them–in terms of price plus any ancillary costs of ownership or usage (e.g., how much of their time do they have to devote to buying or using your product or service?)

Step 3: Identify the customers and segments where are you can create more value relative to competitors.

Different customers will have varying perceptions of your value relative to your competitors, based on geographic proximity, for example, or a product attribute that one segment may find particularly attractive.

Step 4: Create a win-win price.

Set a price that makes it clear that customers are receiving value but also maximizes your “take.” Satisfied customers that perceive a lot of value in your offering are usually willing to pay more, while unsatisfied customers will leave, even at a low price. Using “cost-plus” pricing (i.e., pricing at some fixed multiple of product costs) often results in giving away margin unnecessarily to some customers while losing incremental profits from others.

Step 5: Focus investments on your most valuable customers.

Disproportionately allocate your sales force, marketing dollars, and R&D investments toward the customers and segments that you can best serve and will provide the greatest value in return. Also, allocate your growth capital toward new products and solutions that serve your best customers or can attract more customers that are similar to your best customers.

Your customers are the lifeblood of your business. They are the source of current profits and the foundation of future growth. These steps will help you find more ways to grow your business by better serving your best customers.

How is Value Created and What Does It Do?

Value is created just as much by a focus on processes and systems as much as it is my mindset and culture. Mindset and culture are much more difficult to change, and also difficult to emulate. It is easier to copy products and systems than to change mindsets and culture. Therefore, for long-term success, mindset and culture are important and lasting. These, along with systems create great experience and value.

Value changes during the use of a product or during the Customer Journey. Value is perceived during the purchase intent, the shopping, the actual purchase or buying, the installation or start-up, the use, and even the re-sale. We sometimes call this the waterfall of needs. Needs change during the Customer Journey.

Creating Customer Value increases customer satisfaction and customer experience. (The reverse is also true. A good customer experience will create value for a Customer). Creating Customer Value (better benefits versus price) increases loyalty, market share, price, reduces errors and increases efficiency. Higher market share and better efficiency lead to higher profits.

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July 17, 2018
Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx
Transportation is one of the largest industries in the world, and its sector range is very wide which include taxis, truck, train, ships, barges, airplanes, pipelines, warehouse and logistics service. For the industry, the three main trends were the globalization of business, information technology development and new technology to support process efficient, and the market demand for more value-added. Also learn, Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx.

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Hence, the companies in the transportation and logistics industry depend on the global network of distribution centers to gain quick payment cycle and cheaper resources. In FedEx Corporation, as a leading firm in the industry, its centralized structures have always required, and facilitated billion dollar investments in IT and established the website from 1994.

It provided a successful technology for the FedEx Corporation as a pioneer in the whole industry for e-business. This strategy became an advantage that they used to undermine their competitors’ strengths and localized customer service. With a globally connected IT network, FedEx was able to leverage their IT advantage to service their corporate accounts on a global basis, rather than on a country by country basis.

Pioneer of Internet Business in the Global Transportation and Logistics Industry.

FedEx Corporation created its own website form in 1994, it is the first step and basis for the company to develop its e-commerce. FedEx.com is the first transportation website which could accept the one line order for package tracking and allow the customers to transact the business by the Internet.

Both shippers and recipients could access shipping information and print documentation via the Internet. As the pioneer in the industry, FedEx should continually improve their system and service due to its competitor also created the Internet service and Internet software.

For instance, the DHL launched the website in 1995, UPS spent billions on IT and electronic commerce. The express transportation associated with e-tailing would reach $7 billion in the year 2000, but FedEx only handled with 10 percent of purchase online goods. All of these brought heavy pressure to FedEx. In 1998, the company paid more than $2 billion to acquire the Caliber System, Inc. to increase the abilities and power on Internet service and e-tailing.

Because of the large potential market and lower cost, the Internet and e-tailing market was continually enlarging in the Global Transportation and Logistics Industry. To evaluate the performance of FedEx in Internet and e-tailing market should be from the view of five performance objectives.

Firstly, from the view of cost, FedEx as the first one for Internet and e-tailing in the Global Transportation and Logistics Industry, it focused on long-term investment on IT and led the company to have the specific position in the area. For the intense competition, the company paid more than $2 million to purchase Caliber System. It could effectively increase their market share in business-to-consumer delivery service. Hence, the investment partly made up the weakness against with UPS.

Secondly, flexibility, the Internet service, and e-tailing provide the convenience for the customers, increase an easy and quick channel for the transportation and e-tailing business. For instance, in the year 1999, FedEx Marketplace created a link to the online shopping, the online shopper could click to the top online stores and with FedEx delivery.

Thirdly, dependability, the establishing of the website enhanced the dependability between the organization and customers. The computer system supported the customers to know their goods conditions during the whole delivery process. For example, the company created software called FedEx Virtual Order in 1999 which provide Internet order and also provide the customers’ catalogs for them on the website. Moreover, the IT system also enhanced the internal management of FedEx Corporation. For the enormous organization, the dependable information system should be the basis for the busy operation process.

Fourthly, speed, for the transportation and logistics industry, speed is one of the crucial elements for the customers choosing a transportation company. The online order and the unique information system in FedEx deal with the order and storage, goods and shipping process, every process could reduce the time than before. For example, the FedEx Marketplace provided easy access to online merchants to offer fast FedEx shipping.

Last but not least, quality, all of the strategies and performances about Internet and e-tailing could be linked to improving the quality providing for the customers and partners. For instance, the FedEx created e-business Tool in the year of 1997 which could support an easier connection with FedEx shipping applications. And the EuroOne network established also provide a powerful transportation routing system which linking more than 30 cities. All of this would enhance the service quality of FedEx’s Internet and e-tailing.

Consequently, the FedEx had an explicit objective in the Internet and e-tailing market, for both financial and non-financial performance of an organization in this area was the focus on achieving their objective. For the customers and partners, FedEx tries to provide more flexible, convenient, fast service by the Internet and e-tailing channel, created dependable and loyal relationships with them and build a perfect reputation in the market. For the own organization, it insisted on long-term investment on the Internet and e-tailing area, it would lead to earning a long-term benefit.

Besides, the organization continually emphasized the infrastructure building and technology improvement, to create a dependable operating system and transportation team which could support the smooth operation of the Internet and e-tailing market. All of these performances lead the development of FedEx. It could not satisfy only by the pioneer of Internet business in the Global Transportation and Logistics Industry but try to be the long-term leadership in this market.

Evaluation of FedEx Acquisition of Caliber System.

To evaluate the success or failure of FedEx Corporation acquired Caliber Systems in 1998 should also form different points of view. From the positive side, the company use $88 million acquired the Caliber System, Inc., it could provide the company with a powerful technical support on Internet commercial at that time. In the period, the e-commercial was on the development stage in the Global Transportation and Logistics Industry, the long-term investment, and acquisition of Caliber System made the FedEx Corporation own the abilities and opportunities to be the pioneer and leader in this area.

According to the summary of benefits for M&A, The strategy helped FedEx Corporation enter a new market, broaden the business range, develop the new product and also gain new information technology. From the result, after the acquisition, in the following year, the company had an excellent performance, the net income increased 30 percent and posting record earning risen 73 percent.

However, as the passage of time, the competition in the market became more intense, despite the e-tailing and electric commerce supporting, the report showed that both the volume and the income have a negative trend. From the view of the financial report, the result had an obvious falling. This condition was the cause of several factors.
- Firstly, the fuel pricing jumping was unexpected, it will increase the cost for the company.
- Secondly, it also meant the Caliber System did not blend into the organization completely.
The organization was enormous, the operation was complicated, hence, just acquisition strategy without good association could not make the new party perform perfectly. For solving the problems, the FedEx Corporation announced reorganization on 19, Jan 2000.

Consequently, it is hard to simply judge whether success or failure for the acquisition of Caliber System. The acquisition brought benefits, opportunities and also new operation method for FedEx Corporation. The negative result in the following years was also caused by multiple factors, i.e. the competition in the industry, the fuel price rapid rising and etc.

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July 14, 2018
Case Study of the Success Story of FedEx Company
Federal Express was founded in 1971 as the “big idea” of charter airplane pilot Fred Smith. It launched its overnight air express business in 1973, and just 10 years later, it was the first U.S. company to top $1 billion in revenues in its first decade. What do you learn, Case Study of the Success Story of FedEx Company?

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The intro of FedEx by Wikipedia: FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express (now FedEx Express), which was used from 1973 until 2000. The company is known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location (to help in finding lost packages), a feature that has now been implemented by most other carrier services.

Today, FedEx (its nickname, “FedEx,” officially became the company name in 2000) is the world’s largest express transportation company-almost 196,000 employees move more than 3 million items to more than 200 countries each business day, up from 110,000 workers and 2 million packages just five years ago! In 1990, FedEx became the first service company to win the Baldrige Award. Since then, the company has expanded its ground delivery business by purchasing both Parcel Direct (formerly a division of Quad/Graphics, now renamed FedEx SmartPost) and more than 1,100 Kinko’s locations (now FedEx Kinko’s Office and Print Centers) in 2004.

The survival issue is prominent in the minds of quality leaders. FedEx’s Fred Smith compares the awakening to quality to “a near-death experience. A lot of times it’s brought on by trauma.” Leaders often embrace Total Quality Management because they see no alternative: improve or die. Whatever inspires them-the fear of failure, the promise of success, the achievement of other companies, the belief that there must be a better way to manage a company-triggers the leap of faith. Once they are on the quality path, the cultural changes they see all around them frequently breed a missionary zeal about the need for, and the benefits of, the quality improvement process.

The first step for any company president, chairman, or CEO is committing himself or herself, as well as the company, to the process. Jamie Houghton took this step in 1983, shortly after he became Corning’s chairman. Fred Smith and his top executives founded FedEx on the idea of providing the highest quality of service, then participated in quality training in the first year of the company’s existence.

At FedEx, Fred Smith has been directly involved in the development of every quality process and system the company has implemented. He founded the company on a belief that customers would value a time-definite express delivery service, then used on-time delivery as the company’s primary measure of performance. In the late 1980s, he helped develop a more comprehensive, proactive, customer-oriented measure of customer satisfaction and service quality: the Service Quality Index (SQI).

As Smith said, “We believe that service quality must be mathematically measured.” The company tracks these 12 indicators daily, individually and in total, across its entire system. Each indicator is weighted: the greater the weight, the greater the impact on customer satisfaction. One of FedEx’s service goals is to reduce the totals of the SQI every year.

SCAC codes use by FedEx:

The Standard Carrier Alpha Code (SCAC) is a unique code used to identify transportation companies. It is typically two to four alphabetic letters long. It was developed by the National Motor Freight Traffic Association in the 1960s to help the transportation industry for computerizing data and records.

FedEx’s codes include:
- FXE – FedEx Express.
- FXSP – FedEx SmartPost.
- FXG – FedEx Ground.
- FXFE – FedEx Freight.
- FDCC – FedEx Custom Critical.
- FXO – FedEx Office, and.
- FSDC – FedEx Same Day City.
Service is one of the company’s three overall corporate objectives: People-Service-Profit. Every manager at FedEx, including Fred Smith and the senior executive staff, has annual benchmarks for each of these three corporate objectives. Smith sets his own personal objectives with input from the board of directors, and the process cascades through the organization from there. Managers are evaluated on how well they achieve their objectives.

To develop and implement such broad measures and objectives, Smith and his staff had to understand the company’s quality objectives, its customers’ needs, and the potential effectiveness of the SQI as a measure and motivator. Many other service companies are still trying to figure out what to measure. Smith led the development of a measure that tells all FedEx employees, every day, exactly how they are doing on customer satisfaction and service quality. Active participation in the quality improvement process doesn’t get any better than that.

Good leaders know that having a customer focus is critical. At FedEx, each officer is assigned responsibility for the major customers in a sales district. Smith and his staff talk to customers continuously at the executive level to make sure their needs are being met.

FedEx has three corporate goals: People-Service-Profit. As Smith summarizes, “when people are placed first, they will provide the highest possible service, and profits will follow.” The three corporate goals are translated into measurable objectives throughout the corporation. Progress on the people goal is determined by the Leadership Index, a statistical measurement of subordinates’ opinions of management’s performance.

Service is based on the Service Quality Indicators described earlier. The profit goal is a percentage of pretax margin, determined by the previous year’s financial results. Success in meeting the objectives for each area determines the annual bonuses for management and professionals.

FedEx Corporation in the United States administers the variety of advanced factors of production. These are managerial sophistication, logistics know-how, and physical infrastructure. Logistics is one of the main advanced factors which FedEx developed for managing its complex hubs. Physical infrastructure that FedEx uses is not only airports but also roads and ports.

Additional distinctive competencies that FedEx have, also arise from firm-specific tangible and intangible resources, namely, FedEx’s hubs and package handling systems; its package tracking and customer support function and its logistics support. Again, the main barrier to imitate these firm-specific resources is the high cost associated with acquiring them. FedEx’s package tracking and customer support functions, as well as their logistic support, are examples of the firm’s distinctive competencies as well.

The barriers to imitate FedEx’s package tracking and customer support functions are based on the fact that FedEx was the initiator in establishing the first tracking applications website and providing each customer with a unique barcode to individualize each shipment. That allowed FedEx to gain proficiency in these systems and knowledge about the functional operations.

FedEx’s strengths in logistics, operations, and technological innovation allow them to pursue a differentiation business level strategy. FedEx works to stand apart from its competitors by creating a level of service that is difficult for competitors to match. FedEx has clearly been identified as an innovator, but what they need to get across to their customers is that they provide a high level of quality service.

FedEx charges higher prices for its services than many of its competitors in the industry. This is considered a premium that a customer pays for the quality of service FedEx provides. By differentiating their standard of quality from their competitors, FedEx lets their customers know that if they are willing to pay more, it will be worth it.

FedEx is able to meet the needs of all these segments. They have spent an extraordinary amount of capital developing their infrastructure just so they can make the best promises to their customers. FedEx transports more than 3 million items to over 200 countries each day. Within each business unit are specific functional units that perform particular functions. The main functional units are logistics and operations for its transportation system.

These units assure the coordination and smooth flow of FedEx’s deliveries. The end result is a high level of quality service. Their service includes customer responsiveness and innovations such as; its aircraft fleet, its hubs and package handling systems, package tracking, customer support functions, and logistics support. Not only does this help FedEx follow through with their promises, but in some ways that are superior to that of the competition.

FedEx has transformed itself into an e-business by integrating physical and virtual infrastructures across information systems, business processes, and organizational bounds. FedEx’s experience in building an e-business shows how a company can successfully apply its information technology expertise in order to pioneer “customer-centric” innovations with sweeping structural and strategic impacts. It also shows the role of outsourcing, which frees companies to concentrate on their core business.

The value chain for FedEx Express can be seen as starting with the pick-up of the packages. FedEx employees gather the packages from various locations such as drop boxes, businesses, and residences. Value is created for the customers by making package pick-ups possible just about anywhere or anytime. FedEx has a money back guarantee for those people whose packages do not arrive on time, therefore creating value by assuring timely delivery of the packages.

After the packages are initially picked up, they must then be transported to a hub. The hub is a central location where packages are sorted according to their destinations. The packages will likely pass through many hands before reaching their final destination. The packages stay at the hub until they are picked up and shipped either by truck or plane.

FedEx Supply Chain Services which synchronize the movement of goods for enhanced customer satisfaction. With all of this evident, it can be said that FedEx segments its markets according to the needs of the customers and not by demographic regions.

While FedEx is a very large company that occupies a large portion of market share in the express delivery sector as well as the ground sector we have concluded that FedEx does not so much possess distinctive competencies, as it has strong existing competencies that allow it to compete competitively with industry leader UPS. These competencies include a very timely customer response time, cutting-edge technology and innovation.

With the fact that FedEx does not have a competitive advantage, or distinctive competencies, yet is still the largest express package delivery service there are many directives that could be followed to attain both. This is obviously a long-term goal, however, it can be seen that the undertakings have already begun. Its most recent endeavor, characterized as a diversification from its “usual” product offering of actual shipment of good’s, is the newer service offering of consultation.

Labeled FedEx Trade Networks, this newest division of the FedEx offerings showcases the company’s vast competence of international shipping knowledge to an array of customers. These customers are provided value creation with the knowledge that can greatly increase efficiencies through the supply chain. FedEx Trade Networks offers a full range of international support services, including customs clearance, freight forwarding, Trade & Customs Advisory Services (TCAS) and trade technology solutions.

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July 14, 2018
Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx

Understanding and Learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

FedEx is an international company that provides shipping by a series of air and land and logistics and business consulting services, not only for its core businesses with customers but also for the main business objectives, with speed in their communication with the constituencies And provide dependence. In FedEx, employees work in 200 countries for 7 days a week, 24 hours a day. The corporate communication function should act as a broader scenario with speed, high impact, and precision. Also learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

Given the core businesses of the company, communication challenges can arise in many challenges – anything from crisis management, such as an accident after the accident or computer outage, for the management of e-commerce initiatives, the implementation of a new business model quickly for.

According to Corporate Vice President Bill Margaritas, corporate communications need to add significant value to the business and the company should have a complete alliance with high impact strategic decision makers. But how did they complete it in FedEx? First of all, Margaritis organizes an annual audit with the authorities so that it can know what they are trying to achieve and establish a scorecard for success. These are the company’s new “customer-facing market-market” strategies to improve development and profitability. This structure allows the team to pay full attention to active opportunities, rather than being less vulnerable to operational issues, which are important for management but are distinctly different.

Since the company has created cross-functional groups to solve these strategies, which are at the center of FedEx business. Margaritis Corporate Communications specifies people to have each cross-functional groups dedicated to the “well-known market” strategy. In this way, the perspective of corporate communications on issues such as message about launching a new product, sending news about mergers and acquisitions, pitching the media, and helping in the management of government relations in highly regulated environments, where FedEx operates , Voices are raised with concerns about finance, operations, information systems, and long-term strategic goals.

By dividing corporate communications employees into “go-to-market” groups, customer-facing tasks such as sales, customer care and information technology, Margaritis has gained significant side-effects, they develop a multi-talented group of communication professionals Strategic-level issues of reduction in functional areas such as marketing, finance, sales, technology, and tactics Can help solve problems. Members of his team do not just fill a narrow space, such as writing newsletters for pilots or making speeches for senior executives. Instead, their employees can move through projects to build a comprehensive knowledge of business and can contribute to value-added advocates in those decisions.

The senior management at FedEx realizes that when the company offers new services, offering new services, and making a commitment in the market, the company’s brand is online with several constituencies – opinion leaders, media, Investors, employees, customers as well. For the strategy of working, the company’s culture has to be migrated to a new strategic direction; Employee behavior, motivation, and emotions should be changed accordingly.

Using an example of the company need to make a purchase for a new customer initiative, Margaritas explained the possible partnership between corporate communications and the company’s major strategic decisions:

When companies are rapidly considering changes to their business strategies or business models, then corporate communications groups should play a vital role in the planning and execution process. To change quickly, the company needs to get this news primarily in an attractive, versatile manner in important constituencies, and they have to buy. For example, the company makes a new pledge to the customers, the organization should have a program that connects employees with this new purpose.

A company wants that loyalty of employees to be combined with new value propositions, and translate the new pledge into shareholder value. Employees need to reach new strategies. If not, the company’s brand and reputation may be suffering, corporate communications, one of the things is related to research between employee behavior, and tasks with customer service, and therefore performance interval with active communication programs. Corporate communication has to play a leadership role in a changing environment.

FedEx takes a holistic view of corporate communications in all channels and audiences: by planning and executing a new strategy to measure attempts to add behavior and approach to business and market behavior related to marketplace and market behavior.

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July 12, 2018
Case Study of Leveraging Information Technology to Grow Business in FedEx

Understanding and Learn, Case Study of Leveraging Information Technology to Grow Business in FedEx.

Federal Express is a global express transportation and logistics company that provides customers with a single source for global shipping, logistics, and supply chain solutions. It was founded in 1973 by Frederick W. Smith. Since its launch, FedEx has led the express delivery industry. The company focused on the main business of express delivery and provided delivery services to customers at night globally. However, the change of businesses and customers from the old economy to the new economy forced FEDx to shift itself from ‘overnight delivery service’ to the ‘one-stop-shop’ for the full logistic requirement of the business. The company became the logistics service provider of major organizations like General Motors. Also learn, Case Study of Leveraging Information Technology to Grow Business in FedEx.

Background of FedEx:

In the late 1960s, Frederick Smith (Smith) emphasized the idea of starting an airline courier company. During this period, it was a common practice for sending commercial packages such as cargo on commercial carriers such as American, United or Delta Airlines. There were many shortcomings in this exercise because the passenger airlines usually operated during the day and were on land in the night. In addition, freight forwarders (the company responsible for taking the package from the airport to the destination address) usually do not offer home delivery. Smith felt the need to start an airline courier company which would solve all these problems.

During his college years, he recognized that the United States is becoming a service-oriented economy and requires a reliable, overnight delivery service company designed to fully package and transport documents. He wrote a Yale Term Paper on this idea and received the ‘C’ grade. His professor thought that this would never work. Fortunately for Frederick Smith, he did not take it in his heart and finished building the company he dreamed of. Smith found investors willing to contribute $ 40 million, used $ 8 million in family money and received bank financing. They started the Federal Express with more than $ 80 million, from which it was ever funded by capital.

In the last 36 years, in the past 36 years, FedEx has called for the addition of Fadex Express (formerly the Federal Express), FedEx Ground (formerly the Roadway Package System), FedEx Custom Critical (formerly the Roberts Express), FedEx Logistics (formerly Caliber Logistics) Horizontally expanded with five subsidiaries, and Viking Freight. Consequently, the FedEx family has been able to compete collectively in clear transport and logistics industries. The FedEx strategy is to collaborate on all sales and engagement for FedEx companies, but run different operations and keep each company’s strengths and markets separately. Today, the services provided by FedEx include worldwide express delivery, ground small-parcel delivery, less truckload freight, and global logistics, supply chain management and electronic commerce solutions. Federal Express is the world’s largest package delivery company today.

FedEx began operations with the sole focus on improving customer quality, pricing, and quality of services for the overnight delivery market in the United States. Since then, it has emerged to provide leading document and freight services for more than 212 countries across North America and abroad.

The Federal Express Corporation had a visionary leader to become the first motivator in the express transport and logistics industry, leaving FedEx with a remote source: their ability to help them control the entire supply chain management.

The ability of the company to use technology and its supply of resources has made competitors difficult to match standards of company standards. FedEx is mainly successful because of their technical progress. Technology has given them better customer service and quality which is not unique by any company. No company was able to offer overnight delivery of packages with speed and precision of the Federal Express.

FedEx’s modeling capabilities gave them a competitive advantage because they implemented new methods and technology. Currently, they have a superhub with many regional centers and packages are tracked by managed and tracked systems. COSMOS – A centralized computer system to manage people, operations, and services, Master Online Systems, people, packages, vehicles and weather scenarios in real time. This system allowed the customers to know where their packages were on and later integrated for web usage, allowing customers to track the package on the Internet. Apart from this, the company’s customized delivery service is unique in the market.

Leveraging Information Technology:

In the late 1970s, FedEx saw a major advantage in using IT to simplify its business processes. Smith was quick to understand that speed, reliability and customer service were a necessary factor for success in the global transportation industry.

From the beginning of the 1990s, the widespread use of the Internet has thrown open opportunities for FedEx. Since the company already had an EDI based system on which he had spent a lot of money, FedEx decided to use the combination of Internet and EDI. One example was the implementation of the purchase of products. FedEx bought a product from a company named Eriba. Eriba was a demanding system that was placed on the FedEx intranet. The system was installed so that the supplier can retain the database of catalogs that can be accessed by any FedEx employee.

The company’s website hosts more than 6.3 million unique visitors per month and averages more than 2.4 million package tracking requests on average. More than 2 million customers are connected electronically with the company, and the electronic transaction is responsible for approximately two-thirds of the daily shipments of more than 5 lakh shipments. FedEx operates one of the world’s largest computers and telecommunication networks – computers with more than 75,000 networks and thousands of hand-held computers that ship shipment records and track. FedEx’s data center processes more than 20 million information management systems transactions every day, more than any other American company.

The company is involved in connecting 39 hubs around the world, operating 677 aircraft and 90,000 vehicles, monitoring 200,000 employees and delivering six million packages per day in 220 countries, where every second was important. This is ‘FedEx Edge’ which is known for the company. FedEx has changed both customer and business transport models with high speed, reliability, information technology applications, better content handling systems and streamlined logistics networks.

The company popularized the concepts of ‘first-in-time’ and ‘build-to-order’, thereby reducing the time of customer leadership and increasing productivity. In addition to joining the ‘Logistics Solutions Provider’, the company was able to maintain its leadership position in small packages and light freight markets through its unique ‘Hub and Speak’ model.

FedEx played a role in the strategic role played in the strategy. Using IT as a major part of your business, the FedEx has reached almost entirely new groups of people. It has retained its reputation and has increased its business at the same time. IT has created a huge opportunity for customers in the global market. They can now request service, pay for that service, and track the online package. Customers no longer need to talk to FedEx.

They are now free to order, twenty-four hours per day, seven days per week. Because of this, the strategy of FedEx has changed. It is now focused on the use of the internet and other technological advances. Because it is such an important aspect of strategy, the implementation of the strategy should be almost immediate. In order to compete with other major businesses in the industry, FedEx was supposed to serve customers who could be accessed using technology. They had to provide package tracking services too. As soon as they developed this service, their prestige and business increased.

FedEx has done many things with its value chain to develop new business. First of all, they have always recognized the need to work in technology and IT to run logistics. They have developed Internet technologies that work smoothly and efficiently to enable customers and vendors to use Fadex. It has enabled many companies to integrate FedEx technology into their websites for the use of customers.

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July 12, 2018