Fed Ex: Business Strategy Essay

1652 words - 7 pages

Since the case has been published, FedEx has been continuing to be a strong deliverer of services. According to their website, the busiest day of the year is December 2nd, and they will be shipping eleven percent more than last year’s busiest day and have announced higher year over year results even though they increased their rates. Adding to their advantage, FedEx now offers a one rate shipping service for the convenience of their customers. Also per their website, FedEx has proved they have continued to be innovative by offering electric and hybrid vehicles and recycled envelopes to help lessen their carbon footprint.

Over the years, FedEx has continued to strengthen its fleet by acquiring similar business in other countries, and they continue to do so. Sometimes these are the only major competition in that country, which leads to FedEx being a super power in those areas. FedEx has a strong marketing concept that allows them to build their products together and add value to their products and suites. However, sometimes FedEx has not researched successfully in the past, which caused loss of niche parts of the company including their fax services and the intra-European delivery services. Looking forward, FedEx has the opportunity to continue to grow their business with the advancement of other economies growing since FedEx has such a vast empire already established. This will allow them to continue to have a competitive advantage. FedEx will need to consider its threats in order to continue its success. The threats that FedEx has to face are not only outside competition from other carriers and delivery providers and rising operation costs but also can be seen from developing technology. As more people rely on email and instant messaging, the threat of losing sales for their letter delivery is real.

Externally, FedEx faced many strategic issues in their control, but not really in their marketing implementation. Joel Arthur Baker stated "Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world". Since inception, FedEx has had a strong vision as to what their intended strategy was for the company, but due to market competition, they steered toward their realized strategy, which proved to be successful for the company. Their intended strategy was to establish a company that would allow overnight delivery or parcels and packages within the U.S.; however, their realized strategy was that in order to keep the company afloat, they had to expand their controls internationally to make it easy for all customers to do business with them. This realization allowed them to become the first company to offer express services with direct international routes. Before FedEx was able to thrive in the international market, through trial and error, the company experienced a loss of $113 million before they could capitalize on the industry and successfully transform into a global distribution and...

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