For getting out from the crowd, FedEx introduced progressive and advance services

to improve customer loyalty and attract new customers. However, a killing obstacle has
shown up to limit this advantage. Several competitors duplicated what FedEx had
introduced as a value proposition. UPS is a clear example of that. UPS has a market cap
of $65.85B with 23.69% Gross Margin, while FedEx has 24.83% (Yahoo Finance,
2010). The slight difference indicates that FedEx could not deliver very different value
to the customers. On the other hand, the current campaign is based on brand, loyalty,
aid‎partiership‎thrrugh‎FedEx’s‎technology leadership.
The customer perspective dedicated in the current campaign emphasises multiple
attributes. The price is one of them, where all partners should comply with specific
ranges across different countries. Additionally, the quality has also specific tolerance
that should not be exceeded. But most importantly, the selection of resources and
availability records should be accurate as much as possible, since they are market
qualifiers and losing them means losing the entire business.

5. CONCLUSIONS
The‎case‎FedEx‎reviews‎srme‎sides‎rf‎B2B‎market‎usiig‎the‎perspective‎“busiiess‎
as‎ietwrrks”.‎As‎crurier‎deeivery‎service‎prrvider,‎FedEx‎sets distinctive strategies to
increase current customer loyalty globally in the first place, and expand the network. To
be responsive with innovation and technological updates, FedEx refreshes context of
relationships with partners by introducing periodic campaigns. Each campaign
integrates appropriate strategies fit the potentials and dedicated resources. The current
campaign adopts the collaborative exchange as a basic relationship. The strategy is set
to be flexible so that many specific adjustments and repositioning are considered to
meet differentiated demands and values across different countries. The global market
effects such as complexity and the dynamic nature of courier delivery service as
industry are significant factors in nominating the collaborative style. Furthermore, the
continuous improvement of relevant technology facilitated the adoption of collaborative
exchange through 3D globe and sophisticated tracking systems. On the other hand, there
could be serious threats from collaborative partnership including the loss of high
confidential information and high switching costs. The main point is that the
collaborative partnership is expensive, since there are critical quality standards, price

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ranges, consistent selections of resources, and availability records to comply with.
However, the collaborative exchange made easier for FedEx to promote its main five
themes including partners including expansion, breadth of service, expertise and
innovation, sustainability, and education.

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 6. REFERENCES
Literature Sources:

deBurca, S. (1995). Service management in the business-to-business sector: From

networks to relationship marketing. In Glynn, W. B., and Barnes, J. G. (ed.), 1995,
Understanding service management—Integrating marketing, organizational behavior,
operations and human resource management. Chichester: John Wiley & Sons.

Hutt, M.D. and Speh, T.W. (2001). “Business Marketing Management: A Strategic View
of Industrial and Organizational Markets”, 7th edition, Fort Worth TX: Dryden.

Håkansson, H. (1982) “An Interaction Approach, in International Marketing and

Purchasing of Industrial Goods”, Wiley, Chichester, pp. 10-27

IMP (1982). An interaction approach. In Håkansson, H. (Ed). 1982. International

marketing and purchasing of Industrial goods—An interaction approach. London: John
Wiley.

Turnbull, P. and Wilson, D. (1989). Developing and protecting profitable customer

relationships. Industrial Marketing Management.

Electronic Sources:
FedEx (2013). FedEx Strategy, mission, and values. Available:
http://about.van.fedex.com/mission-strategy-values [2013-02-23].

FedEx (2013). Overview and facts. Available: http://about.van.fedex.com/fedex-

overview [2013-02-23].

Yahoo Finance (2010). Available http://tinyurl.com/bhy8a57 [2010-02-28].

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