In UPS' case, the bottleneck appears to be the number of aircraft it had in service, which was not enough to meet the last minute volume spike. Retailers such as Toys "R" Us Inc. What Do You Say? Click Here to See Reader Feedback That volume growth issue was exacerbated by the mix between air and ground shipments.
List of References 1. Executive Summary The FedEx Corporation founded in in Memphis is a logistic company which provides transportation, e-commerce, and business services. The company is globally presence in countries and has more thanemployees.
In FedEx introduced the next-day delivery revolutionising the distribution industry. Since the foundation FedEx made large investments in research and development as well as in its logistic infrastructure.
As of JanuaryFedEx created a worldwide network consisting of 34, drop-off locations, 10 million square feet of warehouse space, aircrafts, and 60, vehicles. In addition FedEx introduced several technological innovations which in turn has given the company an enormous competitive advantage.
Nevertheless the environment changes constantly due to the increasing number of competitors, financial crisis or globalisation. Due to this strategic management becomes more and more important for FedEx. This report presents a critical analysis and evaluation of the strategic development of the FedEx Corporation.
This report is divided into three parts. Then the core competencies and capabilities of FedEx between and will be identified. At the end of the first part the main advantages and disadvantages of international trade to FedEx Corporation will be mentioned.
The strength of each of the five competitive forces is a function of industry structure or the underlying economic and technical characteristics of an industry De wit, B.
Suppliers - Bargaining power of suppliers The suppliers can increase the prices for goods or services if there are no substitutes for the supplies they offer or if there are only a few suppliers. The FedEx Company depends on several suppliers such as fuel suppliers, airports, shipping materials manufactures as well as vehicle and airplane manufactures.
Fuel suppliers have strong bargaining power because there are only a few of them as well there is no adequate substitutes for fuel. The fluctuating price of oil affects the profitability of fed ex.
To decrease expenses for fuel and the bargaining power of fuel suppliers FedEx must renew the aircraft fleet and buy new more fuel-efficient aircrafts. Furthermore shipping materials manufactures which supply packaging equipment such as boxes and plastics have not strong bargaining power because there are a lot of existing substitute products and these costs represent a relatively small proportion of FedEx total expenses.
Due to the high number of vehicle manufactures FedEx has a strong bargaining power towards their supplier because the company does not depend on one single manufacturer.
However, it exist an oligopoly within the aircraft industry -Boeing and Airbusand the transportation vehicles such as trains have a limited capacity. Therefore these suppliers do have a bargaining power. Buyers - Bargaining power of buyers Buyers have a great power if buyers are concentrated and there are few of them or if the product from the organisation is not clearly differentiated from the product from other suppliers Sunderland Contemporary Developments,p.
There are more than enough potential customers. Furthermore e- commerce has been rising constantly. Companies such as Dell must ensure that they can deliver their products to any part of the world. Due to this FedEx provides customer solutions to these companies. Since prices of the competitors are similar to FedEx, FedEx created value-added services for customers in order to differentiate their service from their competitors.The case gave a detailed description of the operational efficiency of FedEx, the way the company operates and the trends in global express delivery industry.
Business Case Studies, Organizational Behavior Case Study, Strategy, Operating Strategies Case Studies. Abstract: The case, 'FedEx - The e-Procurement Journey' looks at how the leading logistics solutions company FedEx implemented e-procurement solutions to enhance the efficiency of its procurement process.
The evolution of the e- procurement concept. Explores the implementation procedure of the Ariba Buyer solution at the company. The case study. Case Study IT Initiatives at FedEx FedEx implements the schwenkreis.comement Solution The Future Prof.
Narendran (B2B Marketing). 1. Narendran (B2B Marketing).
Examine FedEx’s IT initiatives over the years and comment on the rationale behind the company’s decision to . The case discusses how FedEx Corporation (FedEx) emerged as the leading global provider of supply chain management (SCM) services to corporate customers. The case discusses in detail the SCM.
Fedex Case Study Fed Ex Case Issue: Federal Express is a strong recognizable brand with growth potential, but the company faces a multitude of challenges with rising fuel prices, increased value of living, as well as a decline in the economy.
Supply Chain Improvement Initiative Goals The key goals of the supply chain improvement initiative are to assess the current distribution network and determine if there are ways to consolidate the number of facilities and still achieve a 2-‐day delivery.