Case analysis : Sales force integration at FedEx

5C analysis:

Company: Started by Fred Smith in 1973. The company has $15 billion revenues as on 2000. Its main
products are FedEx Express (87% of revenues) and FedEx Ground(13% of revenues) which takes care of
shipments through air and road respectively.

Customer: Customer segments were based on the revenue FedEx obtained from customer in the
previous year. On the top of the pyramid are companies like General Electrics and Daimler-Chryselrs
with billings more than $10 million per year. Bottom of the pyramid are companies which do a business
of $6000 - $ 40000 per year.

Collaborators: Independent contractors of RPS who operate the fleet of trucks and a consulting service
for transportation called caliber logistics which looks after transportation, logistics and supply chain
customer needs.

Competitor: In ground segment main competitors are UPS (United parcel service), U.S. Postal
services(USPS) and Airborne Freight. In July 1999 UPS is the worlds largest delivery company in terms of
volume and revenue. It controls full 75% of ground market. Airborne freight primarily offered next-day
delivery of packages less than 2 lbs and it is the third largest express carrier of US in 1999.

Context:Project ARISE which essentially is integrating FedEx Express and FedEx Ground sales forces is
been taken up internally by FedEx. Projects scope is substantial as it affects almost every aspect of sales
and marketing apart from customer-facing information technology that supported these functions.