Case Study: Fed Ex

1201 words - 5 pages

FedEx provides shipping services through FedEx Express, Ground, Freight, Custom Critical, Trade Networks, and Supply Chain (FedEx, 2014). Tracking and package management services are available for all services through fedex.com (FedEx, 2014). FedEx also shares knowledge of shipping best practices on its website (FedEx, 2014). FedEx Office is another division of FedEx, where customers have an in-store option for taking care of their shipping, copying, and printing needs (FedEx, 2014). FedEx connects our global economy by linking 99 percent of the world’s GDP (FedEx, 2014). FedEx Express services every US address, as well as 220 other countries (FedEx, 2014). Some of the corporation’s new services include FedEx Delivery Manager and One Rate (FedEx, 2014). FedEx Delivery Manager is a service that is tailored to the needs of the recipient of a package (FedEx, 2014). FedEx One Rate is simply that, flat-rate shipping without the weighing and measuring (FedEx, 2014).

FedEx’s strengths as a company include its company culture and workforce (Ferrell & Hartline, 2011). The corporation has always chosen to be innovative in providing the most timely distribution services (Ferrell & Hartline, 2011). For example, their focus on technology that can be installed in at a customers business to create their own shipping labels through Ship Manager (Ferrell & Hartline, 2011).

The weakness of FedEx is actually its size. The corporation is so large it is costly to run and pay for employee salary and benefits (Ferrell & Hartline, 2011). They have even found themselves in legal trouble because they did not feel they could afford to provide their drivers benefits like all other employees (Ferrell & Hartline, 2011).

The corporation’s opportunities are in its established, trusted brand name. They have made a name for themselves that stands for expedited delivery, and their customer service and employees back that up (Ferrell & Hartline, 2011). They stay ranked consistently high in customer satisfaction among express delivery companies (Ferrell & Hartline, 2011).

The threats for FedEx include rising employee costs and fuel prices. Because FedEx consumers rely so heavily on the Express services, jet fuel is a major expense for the company (Ferrell & Hartline, 2011).

The goal of FedEx as a corporation is to meet the needs of its consumers in the express delivery sector (Ferrell & Hartline, 2011). They have successfully implemented this strategy by consistently recognizing their consumer’s needs and fulfilling them (Ferrell & Hartline, 2011). They have grown from a solely domestic carrier to a global supplier of goods (Ferrell & Hartline, 2011). Much of this growth came from their strategy of acquisitions of companies that strengthened a service they were lacking (Ferrell & Hartline, 2011). FedEx has completely saturated the US market and has services available is 220 other countries (FedEx, 2014). They have become a “one-stop shop” for consumers with shipping and...

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