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“the Evolution of the Small Package Express Delivery Industry, 1973-2010”

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Submitted By uat819
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Case 7- “The Evolution of the Small Package Express Delivery Industry, 1973-2010” The small package express delivery industry is a very complex and competitive Industry that take a lot of combating and strategic approach to get them to a profitable state. Many of the companies in the industry have integrate the Porter’s Five Forces model to give each of the companies the possibility to make profits with a low risk of entry and a weak bargaining power of suppliers. There has been an intense rivalry between these company and the strong bargaining power of buyers has had a negative impact over the prices which have begun to lower revenues for some of the companies. The most interesting thing about this specific case was the struggle of the global delivery company DHL to penetrate the American market. However, the focus of this paper is primarily on delivery system of Federal Express (FedEx). The paper will analyze FedEx’s value creation frontier in order to determine which of the four building blocks of competitive advantage the company needs in order to continue their above average profitability. It will also explore the main aspect of product differentiations and capacity control of the company to maintain an edge on their rivals. Furthermore, the efficiency of FedEx will be assessed in regards to its current business model viability in order to recommend a new business level strategy that gives that company a competitive advantage over the rivals in the industry. Additionally, this paper will express which new business strategy will impact the global competition will also be examined in order to suggest one significant way in that FedEx can confront and out beat their global competition.
Brief History of Federal Express Federal Express was initiated in 1973, and since then has transformed themselves from an express delivery company to a global logistics

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