Fedex Case Study

Case Study of FedEx-

Federal Express is a global express transportation and logistics firm that provides customers with global shipping, logistics, and supply chain solutions from a single source. Frederick W. Smith started the company in 1973. FedEx has been a leader in the express delivery market since it was found. The company concentrated on its main business of rapid delivery and offered clients worldwide overnight delivery services. Since, businesses and customers shifted from the old to the new economy, FedEx was compelled to reinvent itself from an "overnight delivery service" to a "one-stop-shop" for all of the company's logistical needs. Leading corporations, such as General Motors, turned to the firm for logistical services.

Journey of FedEx-

FedEx has grown as a reputable brand in these 36 years, with five subsidiaries: FedEx Express, FedEx Ground, FedEx Custom Critical, FedEx Logistics, and Viking Freight. As a consequence, the organization can compete in the express transportation and logistics industries as a whole. FedEx's approach is to work together on sales and synergies across all of its businesses, but to operate independently and to maintain each company's competences and markets separate. FedEx now provides international express delivery, ground small-parcel delivery, less-than-truckload freight transportation, and global logistics, supply chain management, and electronic commerce solutions, among other services. Today, Federal Express is the major package delivery firm in the world. You can get case study help to get the assistance from top assignment experts.

FedEx started its operations with the primary purpose of increasing customer division, price, and service quality for the US delivery market. Subsequently, it has expanded to become a prominent provider of document and freight services for all of North America as well as over 212 countries around the world.

The organization had a vision to be the first mover in the express transportation and the logistic industry barring FedEx with only one point of differentiation: their capability to support the supply chain management.

Competitors have found it difficult to match the company's service standards due to its capacity to employ technology and produce its own supply of resources.

FedEx's success has been largely due to technical improvements. They were able to provide outstanding service to customer and quality that no other firm could match. Federal Express was the only firm that could deliver items overnight with the same speed and precision. As they incorporated new processes and technology, FedEx's demonstrating capabilities offered them a competitive advantage. Business management assignment help is a good option.

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Use of Information Technology in business-

FedEx recognized the value of utilizing information technology to streamline their business operations in the late 1970s. Smith recognized early on that in the global transportation sector, speed, dependability, and customer service were critical to success.

FedEx benefited greatly from the broad adoption of the Internet in the early 1990s. FedEx opted to utilize a mix of the Internet and the EDI since it already had an EDI-based system on which it had invested a lot of money. One instance, is the implementation done for goods purchases. Ariba is a firm that FedEx acquired a product from. On the FedEx intranet, there existed a requisitioning system called Ariba. The system was designed so that vendors could maintain a catalogue database that any FedEx employee could access.

The company's website receives over 6.3 million unique visitors per month and processes over 2.4 million package monitoring queries each day on average. Every day, more than 2 million consumers interacted with the firm electronically, accounting for about two-thirds of the more than five million items FedEx delivered each day. FedEx has one of the biggest computers and telecommunications networks in the world, with more than 75,000 networked computers and thousands of handheld computers recording and tracking shipments. FedEx's data center processes more information management system transactions than any other US firm on a daily basis. This is the best solution for students thinking “who can write my case study?”

The importance of information technology in FedEx's strategy is fascinating. FedEx has reached an almost totally new group of individuals by making IT a significant component of its operation. It has kept its good name and grown its company at the same time. Customers now have more opportunities in the global market because to technological advancements. They may now use the internet to request service, pay for it, and track the package. FedEx customers are no longer required to contact the company. They may now place orders whenever they want, 24 hours a day, seven days a week. FedEx's strategy has shifted as a result. It is currently mostly concerned with the usage of the Internet and other technical developments. Because this is such a crucial element of the plan, it needed to be implemented as soon as possible. FedEx needed to deliver a service to consumers that could be accessible via technology in order to compete with other large firms in the sector. They had to offer a parcel tracking service as well. Their reputation and business expanded as they created this service.

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SWOT Analysis-

FedEx’s Strengths

1. Reputation of the brand

As a brand, FedEx is well-known. It is well-known for its dependability, quickness, and excellent service.

2. Reasonable Prices

Consumers care about pricing regardless of what you're selling. FedEx uses economies of scale to provide high-quality service at a low cost.

3. Critical delivery deadlines

If a consumer requests an overnight delivery, they may expect it to arrive on their doorstep the next day.

4. A Wide Range of Services

FedEx's business segments are as follows:

• FedEx Express
• FedEx Ground
• FedEx Freight
• FedEx Services 

FedEx’s Weaknesses

1. Excessive reliance on the US market

The United States accounts for the majority of FedEx's revenue (68 percent). The US market accounts for $47.5 billion of the total sales of $69.69 billion. FedEx's income might plummet in the case of economic difficulties in the United States.

2. Insufficiency in Diversification

FedEx's stability, like that of any other service firm, may be improved by diversifying its offerings.

3. Delivery Drivers' Attitudes

Improper package handling, unpleasant attitudes, and reckless driving by its drivers can all harm the company's reputation.

4. Transportation Costs are Increasing

FedEx employs third-party transportation providers to fulfil the increasing demand, which raises transportation costs.

FedEx’s Opportunities

1. Increase your presence in emerging markets.

FedEx has the potential to grow its operations in Asia, Africa, and Latin America.

2. Emphasis on e-commerce in the retail sector

FedEx has a chance to profit from the increasing demand for delivery services in the retail e-commerce industry.

3. Diversify FedEx's Portfolio

 By joining the online retail industry, the company may diversify its portfolio.

FedEx’s Threats

1. A Strenuous Competition

FedEx is losing market share in the courier, logistics, and freight sectors to both established and new companies.

2. Amazon and Uber Freight are two new competitors

Amazon, a FedEx client, and Uber Freight are preparing to take on FedEx. For instance, Amazon is gradually severing connections with FedEx Ground, which might put the firm at risk.

3. Globalization Opposition

Over the last several years, many nations have adopted anti-globalization beliefs in a backward and misguided attempt to safeguard local interests against globalization that may have an impact on their businesses.

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Pestle Analysis

Political Factors:

FedEx has a global presence in 220 countries. Each of these countries' political stability is critical for their businesses to flourish. Because the United States is the parent and largest market, the dollar's strength has an impact on company. Political issues, like as the trade war with China, impede business since FedEx has operations all over the world, including China. Government stability is also important. Proper functioning is the result of a stable administration.

Economic Factors:

Because the majority of the company's operations are based in the United States, regulations, inflation rates, and interest rates all play a significant role. Because it works in many places throughout the world, business keeps a close eye on currency rates. The business's tactical decisions are governed by the unemployment rate and labour legislation.

Social Factors:

In the twenty-first century, social image and social media are highly significant factors. Every company strives to project a socially responsible image in the community. Every move they do must be anticipated in advance of societal reaction. FedEx has developed a positive social image in society as a result of the social issues for which it has advocated.

Technological Factors:

The importance of information technology in FedEx's strategy is fascinating. FedEx has reached an almost totally new group of individuals by making IT a significant component of its operation. It has kept its good name and grown its company at the same time. Customers now have more opportunities in the global market because to technological advancements. FedEx has joined the ‘Blockchain in Transportation Alliance (BiTA)' to promote blockchain technology in the transportation industry. You can get assignment help to solve all types of case study assignment.

Legal Factors:

E-commerce, consumer protection, and health and safety rules are only a few of them. In this business, privacy regulations are very tight. Data breaches will continue until blockchain takes over fully, but businesses are accountable for the security and privacy of their customers and the products they carry.

Environmental Factors:

Goods-carrying flights must utilise conventional gasoline. However, the on-road vehicles may be converted to electric mode. Wherever possible, FedEx has switched to solar energy. This assists in gaining public support. But, more crucially, it lowers operating costs.