This website uses cookies to ensure you have the best experience. Learn more

Fedex Comparison Essay

5164 words - 21 pages



FedEx Corporation (FedEx) is a US based company mainly engaged in offering logistics solutions. The company, through its subsidiaries, provides transportation, e-commerce and business services under the FedEx brand. The major benefit of using the company is its ability to provide “day-certain” service to every business address in the US and Canada, as well as provide “time-certain” delivery to those areas within one to three business days.

The company was founded in 1973 by Frederick W. Smith, whose vision was to provide overnight delivery services for his clients. The company is divided into eight major divisions:


The mission of FedEx is to ...view middle of the document...

The financial performance of FedEx can easily be seen in the following chart:


The company reported a revenue increase of 13.6% during the fiscal year ending May, 2011, in conjunction with an increase of operating profit of 19.02%. This reflected an increase of net profit by 22.64% over 2010 (FedEx Corporation – Financial and Strategic Analysis Review, 2011). The marketing goals of FedEx are to continue to maintain its competitive presence in the minds of the consumers and to provide timely courier delivery process in order to increase its revenue and develop new customer bases.

Customer Needs

Through the years, FedEx has developed a solid foundation and infrastructure to guide the company’s growth. Frederick Smith has taken a novel approach in expanding FedEx into the different market segments. Recognizing early on that transportation service was extremely competitive with customers constantly comparing different choices and prices to get the best delivery deal, FedEx started to focus on a differentiation strategy to set itself apart from its’ competitors. By dividing the business unit into different segments, FedEx was able to develop a foundation that will help the company achieve a high level of quality services. Their services include customer responsiveness, customer support functions and logistics support. To meet the dynamic demand in the delivery process, FedEx established the first tracking application on the website and provided each customer with a unique bar code to individualize each shipment. This has now expanded to downloading the information to I-Phone and personal data assistance (PDA) devices, allowing customers to access tracking information from anywhere and anytime (SRI International).

Companies must also develop a global strategy that will allow for the maximum use of their existing product and market activities through standardization while simultaneously taking advantage of the local culture to adjust to the unique aspects of any market (Keillor, Kohut, Walsh & Hausknecht, 2011). FedEx utilized a holistic strategy approach as they forecasted the trend in the global shipping market. To further meet customer needs worldwide, FedEx has invested heavily in global infrastructure as well as investments in local countries to position the company to penetrate into the different key markets internationally (SRI International).

Competitive Structure and External Analysis

To understand the competitive structure and the challenges of different market segment, the Porter’s Five Forces model was applied on two of the top FedEx subsidiaries; FedEx Express and FedEx Ground.


(Source - Crane, Landthorn, Miri, Relph, Sanchez & Vernerova, 2003)

I. Risk of new entry by potential competitors is low since there is a high fixed cost associated with establishing the international transportation network, including hubs, grand transportation vehicles and air fleet.


Other Essays Like Fedex Comparison

Management Essay

2306 words - 10 pages solutions though it not guaranteeing a particular result; therefore allowing the firm initiate rational comparison between alternative solutions. In conducting the evaluation, vital information is availed to avoid getting inaccurate results. Most logistic and industrial systems used by FedEx have lifespans between 15 to 20 years. For this firm, cost elements are incurred during the installation period of the new equipment while others are

Imaginative Journey Essay

2747 words - 11 pages that…” 11 Her incredible display of strength has definitely changed the course of science, especially for women. Whether she was truly genius or not is not at all the case. Her journey as a female role model has been significant beyond comparison. On the contrary, it could be argued that without a goal nothing is accomplishable. The alluring force of success is what really motivates all scientists, especially Marie Curie, “Marie Curie was

Startup Example

1544 words - 7 pages Delivery Comparison Company Availability Markup Minimum Order Standard Charge Delivery Restrictions Same day delivery Food Limitations Schwans National N ? $1.75 M-S any N Schwans Only Amazon National N No ? S&H Fedex Schedule N No fresh foods Greenling Major Metro TX Y $25.00 $10+ Route restrictions N Yes, website only Artizone Dallas & Chicago Y No $5.95 Route restrictions N Yes, website only Instacart

Four Elements Of The Marketing Mix

1496 words - 6 pages objectives and targeted customers. Organizations must also remember that many customers are receptive to the value of a specific product and to the benefits offered by the product. The second section of pricing is to decide how a firm’s price will compare with its competitors. Consider Wal-Mart, for example, to set a price of a 42-inch Samsung television set in comparison with the competitors, Wal-Mart would offer a lower price or a similar price to

Leadership Essay

3353 words - 14 pages have lower operating costs and more customer convenience. Another threat comes from FedEx, UPS, and the US Postal Service as they offer their services directly to the consumer. Organizational Strengths A major strength is local ownership of the organization. The staff attends school, church, and community events with customers, encouraging customer loyalty. The business has a stake in the welfare of the community. Also, hosting events to

E-Commerce in India

5037 words - 21 pages deals but no brand imagery has been created. Also most consumers would survey online and purchase offline which defeats the very purpose of an online store. * The apprehension is also fuelled by the payment processes in place. Most shoppers are wary of using their credit cards and limit their online actions to only browsing and price/product comparison. Thus the above factors make competition even more intense and challenge for firms to


3608 words - 15 pages not stopping there. It seemeddifficult to gain much international insight regarding Wal Mart's competitionoverseas and creating comparison with other American companies and how theyfaired once going international.With that insight I want to lead into what companies both on a nationaland international level which could be possible threats and indications now thatWal-Mart's rivals in the industry have 'shied' away from the dynamism of Wal-Mart's

Dillanos Marketing Plan

2829 words - 12 pages more vulnerable in comparison to companies such as Green Mountain Coffee Roasters and Starbucks. • Since Dillanos is positioned as a wholesale roaster that sells almost exclusively to coffee shops, kiosks and drive-thrus, they cannot thrive unless its customers do. Opportunities • Continue to participate within the farming industry. • The ability to increase their profit margin Threats • Rising costs of coffee

The Separation Of Capital Ownership And Control

1577 words - 7 pages that under little or no outside forces on managers’ reward, they tend to deviate from the principle in order to achieve their own interests. In comparison, the results suggest the top managers tend to fail to implement effective management. The inherent principle agency problem remains unsolved, but there are still some options that investors can chose to cope with this issue. The first option of enhancing role of banks and other lenders

The Versatility And Flexibility Of OLED's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues

Related Papers

Final Comparison Report Ups And Fed Ex

4674 words - 19 pages , 2005, p. F-6) while FedEx showed increases of 11.4%, 24.4%, and 6.6% (FedEx, 2005, p. 61). There does seem to be a larger variation within the FedEx percentages in comparison to UPS. This may or may not be an issue. To find out, a look at the liabilities is necessary.The total liabilities of each company show more interesting results. UPS had increases in 2003, 2004, and 2005 of 7.5%, 12.3%, and 9.7% (UPS, 2005, p. F-6) while FedEx showed increases

Fedex Case Study

3641 words - 15 pages , the strength of FedEx and the strength of Caliber Systems. Instead of developing these competences( back end operations of the supply chain) they bought them. 1.7 Inside-out perspective One could make a few arguments where the inside-out perspective applies to FedEx. Over the years, FedEx has done all IT related developments themselves. In comparison, UPS formed alliances for their E-Commerce business. One of the CIO’s of FedEx, Dennis

Corporate Strategy Fedex Essay

3586 words - 15 pages Executive Summary This report endeavors to look at FedEx from the strategic initiative point of view and how it was able to adapt to changing business environment to improve itself.  While organisations the world over have come and gone a few leave a lasting footprint on the way they have moved in the particular sector.  FedEx with its various innovative ideas has left lasting footprint that has forever altered the scope of service within the

Airborne Express Essay

2153 words - 9 pages Industry Analysis: In the early 1970’s, Federal Express (FedEx) pioneered the domestic express mail industry, starting with defining the market and developing a comprehensive solution for overnight express delivery of small packages. Prior to FedEx, express deliveries flew primarily as freight in the holds of passenger airplanes managed by several airfreight forwarders. FedEx grew rapidly, reaching $1 billion revenue in 1983, and a revenue of