FedEx’s Successful Internationalization
1. FedEx has found immense success in Asian market because, it identified the constant change in customer needs and to meet such needs the organization itself had to be dynamic in their approach and in formulating and deploying strategies. FedEx owner Fred Smith acknowledged the growing market in China as early as 1979 and made a sound decision to expand to Asian continent.
Based on the identification of opportunities in the global market, FedEx launched operations in China in 1984. Its success in Asia predominantly owns to the implementation of smart strategies such as buying out a struggling hauler, Tiger International Inc., which had rights to fly into most Asian airports and having a management team accustomed to the Pacific Rim. Another vital decision was taken in January 2006 to acquire its partner in China, Tanjin Datian W Group, which resulted in having complete control over all trucking fleet and distribution hubs. It gave the organisation more control over its internal task environment.
FedEx has always been a customer responsive organisation, so customer satisfaction has always been paramount to it. In order to achieve this, it implemented proper technology and put an apt IT system in place. The company invested $1.4 billion in business technology in the 2004 fiscal year, a respectable 6% of revenue (Foley, John 2004). It shows the organisations awareness about the external environment of ever evolving technological advancements blended with the need to keep customers need and satisfaction in check. The investment in innovative technology made customers more aware of the services it offer, helped them track the waiting time of their shipping and the ability to check shipments status online. As the IT system electronically tracks all shipments online, it simplifies the custom process which is an operational barrier, admitted by Eddie Chan, Head of China and senior vice-president of FedEx Express. Chan said "When the customs are slow and inefficient, they serve as barriers to us and our customers" (Zheng 2015). Having invested in proper technology helps the organisation get rid of such barriers and results in smooth conduct of everyday operations.
Hence, having apt strategies in action and smart investments along with critical decisions helped FedEx emerge as a premiere courier delivery service provider in Asia.
2. Yes, there is always the possibility of other organisations trying to imitate a successful global organisations approach such as FedEx to get a hold in international market, but I would doubt such imitation of approach resulting in snatching away the already set market share of the company.
FedEx acted swiftly after identifying the growing market internationally and was one of the first cargo companies operating intercontinental between Asia and Europe. FedEx dramatically enhanced its services between China and Europe to meet increased customer demand, as China has become Europe's...