...Case 9 FedEx vs. UPS—Competing with Contrasting Strategies in China Fiona 11125231 Introduction FedEx and UPS are two U.S based logistics corporations which entered into China in the 1980s. However, both two companies adopted contrasting entry approaches. As for expanding strategies, FedEx adopted a forceful approach while UPS followed a conservative strategy till the late 1990s. With the improved business prospects in the Chinese logistics industry, the intensified rivalry between FedEx and UPS reached its peak gradually. Following Chinese entry into the World Trade Organization (WTO), FedEx and UPS continuously implemented various new services and agreements to grab Chinese logistics market. Obviously, these strategies helped both companies increase their revenues significantly so both companies expected to gain more market share in the future. Entering and Expanding Services Network At first, FedEx commenced its operation in China in 1984 by means of joint venture while UPS entered into China through an agent partnership relationship. FedEx partnered with multinational companies in China to build service network thus FedEx focused on building infrastructure and distribution centers in the first decade of its operations in China. Though joint venture provided FedEx with greater opportunities that are inaccessible through other strategies, it brought much higher investments and risks. On the contrary, an agent partnership relationship saved UPS from high risks. Unlike...
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...B2B Marketing Plan of FedEx 1.0 Introduction According to Hutt and Speh (2004), Contemporary businesses operate in an environment that gets fiercely competitive by the day. To deal with this intensity of rivalry the typology of business networks has experienced extensive changes. One of the marked changes that businesses are undertaking is a change in marketing techniques. In an era where switching costs are low making customer loyalty to be shaky, old marketing strategies are no longer efficient. To attain a competitive edge and to attain sustainability, companies are being forced into the aspect of not only concentrating on current customers but actively looking for prospective customers. These changes in organizational buying and selling behaviour can be explained by the concept of B2B marketing. The goal of this paper therefore is to write an managerial report on B2B communication at FedEx. To achieve this goal it is imperative by understanding the fundamentals of B2B marketing. The second section will be a brief overview of the company in question, FedEx. This will be followed by the crux of the report an exploration of B2B marketing at FedEx. The paper will then be concluded by a summary of the major points covered. 2.0 Fundamentals of B2B Marketing Business to business branding hereinafter referred to simply as B2B is a marketing terminology that is used to describe a multi layered commercial strategy between businesses. Biemans (2010) explains that B2B...
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...Abstract A leading company in the transportation agency, FedEx is known all around the world for its fast and on time delivery. Its slogan, “when it absolutely, positively has to be there overnight” says it all for the company. When one needs to get a package or parcel anywhere FedEx is one of the top choices. The company’s primary competitive advantage is its IT infrastructure. FedEx was the first to introduce a real corporate website where customers could print their unique barcode and have it picked up, track their packages and verify pricing and other helpful information. In this analysis different functions of the company are reviewed, such as different factors affecting the company, the key challenges and the recommendations to the company. FedEx: When it Absolutely, Positively has to be there Overnight About FedEx Headquartered in Memphis, Tennessee FedEx is the world’s express delivery. FedEx offers a variety of international packages and document delivery services to 214 countries, as well as freight services. On February 2004 FedEx acquired Kinko’s Inc. Now together the company provides document solutions and business services including copying, scanning, printing services, graphics, video conferencing, wireless and wired internet. FedEx is best known for its motto “when it absolutely, positively has to get there”. Fred Smith founded FedEx in 1971 and incorporated management philosophy that made FedEx a rapidly shining business in the industry. The principles...
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...Introduction Business SegmentsFedEx ExpressFedEx GroundFedEx FreightFedEx ServicesCorporate Strategy“Compete Collectively, Manage Collaboratively” • 3. Brand Planning AssessmentThe FedEx PositionWho is the target market?“anyone who needs to send something anywhere in the world. Whether it’s the one and only package you'll ever ship in your life or you have 1000 packages to ship every day.” • 4. Brand Planning AssessmentThe FedEx PositionWho are the main competitors?UPS • 5. Brand Planning AssessmentThe FedEx PositionWhat are the points of parity?-Both companies ship packagesBoth online services allow you to track packages, order supplies and pay bills.What are the points of difference?-FedEx has 3 times as many planes-Print and ship from anywhere services-FedEx has been known to update technology more frequently than UPS • 6. Brand Planning AssessmentThe FedEx PositionFast Forward MovingPrecise • 7. Brand Planning AssessmentKey Marketing ActivitiesAlliances with NFL, NBA, FedEx cup, FedEx racing, the FedEx orange bowl, and the FedEx field Senior Vice President of International Marketing, Rajesh Subramaniam, said, “FedEx sponsors and associates with several sports that share its attributes of speed, reliability, precision, teamwork and flawless execution.” • 8. Brand Valuation Assessment Building EquityFavorability & Awareness Through Six ElementsMEMORABLEMEANINGFULLIKEABLETRANSFERABLEADAPTABLEPROTECTABLE • 9. Brand Valuation...
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...TABLE OF CONTENT 1.0 Introduction 2 2.0 Measurement of Success 2 3.0 Reasons Behind FedEx Corporation’s Success 4 3.1 Excellent and Leading Service Quality 4 3.2 Effective Employee Management 4 3.3 Intended Acquisition Strategy 5 3.4 Sustained Innovation 5 3.5 Global Reach and Further Expansion 5 3.6 Pursuance of International Market Dominance 5 4.0 Justification of FedEx Corp. Success 6 4.1 Value Chain Framework 6 4.1.1 Support Activities 6 4.1.2 Primary Activities 7 4.2 VRIN Framework 7 4.2.1 Value 7 4.2.2 Rarity 8 4.2.3 Inimitability 8 4.2.4 Non – Substitutability 9 4.3 International Strategy 9 5.0 Contribution of Leadership 11 5.1 Traits Theory of Leadership 11 5.2 4E’s of Leadership 11 5.1.1 Envision 11 5.1.2 Enable 12 5.1.3 Empower 12 5.1.4 Energise 12 6.0 Challenge for Future Success 13 6.1 Intense Competition 13 Reference List 14 LIST OF FIGURES Figure 2.1: Annual Financials of FedEx Corp…….……………………………………………………………………2 Figure 2.2: FedEx Market Share…………………………………………………………………………………………….3 Figure 2.3: Air Freight & Logistics Market Growth…………………………………………………………………3 Figure 2.4: Customer Satisfaction Benchmark……………………………………………………………………….4 Figure 4.1: Porter's Value Chain Framework………………………………………………………………………….6 Figure 4.1.2: FedEx Primary Activities……………………………………………………………………………………7 1.0 Introduction According to Amsler et al (2010), the market of shipping and transport logistics has become a leading...
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...Between 1973 and 2000, FedEx developed and implemented a strategy that integrated the various business units and processes. Such strategy may be best explained by examining it based on the three levels that De Wit and Meyer (2003) suggested, these being the business, corporate, and network levels of strategy. However, two important elements stand out in Federal Express’ strategy. One of these was evident in all levels and this was the use of technology, particularly the advances in information technology to restructure and reorganize the company, its subsidiaries, its units, and it business functions (Conley et al, 2000, Rigsby & Greco, 2002). Secondly, capital investment was a major part of the strategy. FedEx Strategy at the Business Level Federal Express’ clients ranged from large scale business to individual customers that required a wide range of services. As such, Federal Express needed to find a way to meet the needs of the various groups of customers that it provided services to. By streamlining its operations and by integrating its various systems, the company was able to develop a customer logistics management segment of its business to cater especially to its large-scale business clients that required such service (Conley et al, 2000). This included providing warehousing and distribution services that cut the costs for its business customers. Such strategy demonstrates the company’s way of dealing with the paradox of market adaptation and resource leveraging. Having...
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...CONTENTS I. Introduction……………………………………………………………………………….2 II. Company Overview……………………………………………………………………..3 Company Background……………………………………………………………...3 Services Offered……………………………………………………………………..4 SWOT Analysis……………………………………………………………………...5 III. Environmental Analysis………………………………………………………...……13 PESTEL Analysis…………………………………………………………………..13 Competition Analysis………………………………………………………………16 IV. Marketing Plan…………………………………………………………………………16 Marketing Goals…………………………………………………………………….16 Marketing Strategies……………………………………………………………….17 Marketing Mix……………………………………………………………………….20 Marketing Budget…………………………………………………………………..22 V. Recommendation………………………………………………………………….…..23 INTRODUCTION The competition in the business arena has been very stiff and complex. In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000; 2003). There are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. Traditionally, marketing...
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...Company Analysis: FedEx is systematically apperceived as a standout among the most recognized brands in the world. FedEx located and oversaw in Memphis, Tennessee and formally start operations on seventeen April, 1973. Federal Express started by Frederick W. Smith. FedEx has designed a set of new and interesting solutions to facilities buyers of more than 220 states. FedEx Company offers strategic and logistical backing for an assortment of operational divisions, formerly referred as FedEx Services, FedEx Freight, FedEx Ground, and FedEx Express. These bodies compete all together under FedEx name, however work relatively independent. FedEx select for best corporation at ranking number 64 in Fortune 500 (Fortune, 2014). FedEx express frequently...
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...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 logistics industry. From its humble beginnings as a delivery company, it has set itself up a global logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base. With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block. The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them. Introduction A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and...
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...discuss and analyze structural transformation of the FedEx corporation through e- business by using different strategic perspectives presented during the course Strategy- Process, Content, Context. Firstly, I will present the brief history timeline of the FedEx Corporation with the main highlights that are important for my discussion. Then in the part Business level strategy I will try to explain how the company related their business with its environment. From its very beginning in 1973, FedEx had transformed itself from the express delivery company to a global logistics and supply- chain company and invested a lot of money into the IT systems1, which in my opinion implies outside- in perspective. Corporate level strategy part deals with the diversification of the FedEx in order to become more than just a express delivery company. Taking into account the international context of the company I will discuss the global convergence perspective and how FedEx positioned itself there. The international context part will discuss how FedEx expanded globally and how FedEx positioned itself under the Global convergence perspective. History of the FedEx Corporation2 Federal Express Corporation was founded in 1971...
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...1.0 INTRODUCTION An American global courier delivery service, Federal Express (FedEx) Corporation was founded by Frederick W. Smith in 1971 (Ferrell & Hartline, 2011). Formerly known as FDX Corporation, its headquarter is in Memphis, Tennessee, U.S. There are four segments that the company is divided into which are FedEx Express Segment, FedEx Ground Segment, FedEx Freight Segment and FedEx Services Segment. The FedEx Express Segment includes two companies which are FedEx Express and FedEx Trade Networks. In the FedEx Ground Segment includes FedEx Ground and FedEx SmartPost, For FedEx Freight Segment consists of FedEx Freight, FedEx Custom Critical and Caribbean Transportation Services. As for FedEx Services Segment comprise of FedEx Services, FedEx Office, FedEx Customer Information Services as well as FedEx Global Supply Chain Services. FedEx has experience tremendous success domestically and internationally since it began operations, however FedEx is still does not has the main market share in both markets as UPS dominates the ground delivery and DHL dominates the international express delivery. So in this paper, we will be answering three questions regarding FedEx’s methods of expansion, reasons for its global operations problems, SWOT considerations, competitive landscape and recommendations to encroach upon the two competitors. 2.0 QUESTION 1 Evaluate the methods used by FedEx to grow domestically and internationally. Why do you think that the company initially...
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...[pic] Introduction 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: [pic] The mission of FedEx is to provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer needs will be met in the highest quality manner appropriate to each market segment served. FedEx strives to develop gratifying relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations and all activities will be conducted to the highest ethical and professional standards (FedEx Corporation – Financial and Strategic Analysis Review, 2011). FedEx’s vision is a world where goods and information move quickly and seamlessly. The company’s goal is to connect the world in such a way that consumers will view them as a provider of convenient...
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...Fed Ex is an express parcel delivery service. This modern air/ground express industry was started by the creation of Federal Express in 1971; this company evolved into the FedEx Corporation in 2000 (FedEx, 2011). For the 2011 Fiscal Year, they had revenue in excess of $39 billion dollars. FedEx is comprised of more than 290,000 global employees. They process more than 8.5 millions shipments each day (FedEx, 2011). FedEx provides services to more than 220 countries and territories, including every address in the United States (FedEx, 2011). FedEx Corporation is the premier provider of shipping and information services worldwide. Their mission statement is evident in everything they do. The mission of FedEx is “FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards (FedEx, 2011). The operating strategy of FedEx works seamlessly and continuously on three levels: compete collectively-they are one brand worldwide and speak with one voice. Operate independently-allowing the different...
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...1. INTRODUCTION FedEx Corporation is a leading logistics services company, based in the United States. The previous names were Federal Express, Federal Express Corporation, and FDX Corporation. FedEx was found in 1971 by Frederick W. Smith in Little Rock, Arkansas (http://en.wikipedia.org/wiki/Fedex). The company officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. On that night, FedEx delivered 186 packages to 25 U.S. cities from Rochester, New York, to Miami, Florida. The FedEx headquarters then move to Memphis, Tennessee, and now the company had employed more than 290,000 workers. FedEx was the pioneer of the express transportation and logistics industry. In fiscal year 1983, Federal Express reported $1 billion in revenues, making American business history as the first company to reach that financial hallmark inside ten years of start-up without mergers or acquisitions (http://about.fedex.designcdt.com/our_company/company_information/fedex_history). 2. DESCRIPTION OF FEDEX’S STRATEGY CONTEXT BETWEEN 1973 - 2000 2.1. THE INDUSTRY CONTEXT “Know the other and know yourself: Triumph without peril. Know nature and know the situation: Triumph completely” (by Sun Tzu). If strategic management is concerned with relating firm to its environment, then it is essential to know this environment well. While the entire outside world was taken into consideration, emphasis was placed on the direct environment...
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...UESTION FOR DISCUSSION 1. FedEx entered in to China in 1984 through a joint venture, while UPS entered China in 1988 through an agent partnership relationship. Critically examine the contrasting strategies adopted by both the companies, while entering and expanding their service network in China. The case discusses in detail about the entry and expansion strategies of the two US-based logistics companies - FedEx and UPS in the Chinese market .The case examines the contrasting strategies adopted by FedEx and UPS in their efforts to establish presence in China. FedEx followed an aggressive, high risk, more investments approach to expand its services network in China which enabled the company to capture higher market share .On the contrary, till the late 1990s, UPS followed a conservative, low risk, low investment approach to establish its presence in China. The case brings out the contrasting elements of the strategies adopted by both companies including establishing the services network, advertising and promotion, targeting customers and the investments made. Finally, the case examines how the expansion strategies of both companies have changed with the improving business prospects in China, following its entry into WTO. The case discusses in detail the entry and expansion strategies of the two US-based logistics companies - FedEx and United Parcel Services (UPS) - in the Chinese market. The case examines the contrasting strategies adopted by FedEx and UPS in their efforts to...
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