Case Analysis – Sales Force Integration at

FedEx

GROUP 4

MEGHNA BAGRI

NIHAL SINGH

N I K H I L M A H E S H WA R I

P R E R N A C H A U R A S I YA

RY T HM B AJ AJ

TA N YA J A I N
 5C Analysis
Company
started by Fred Smith in 1973

has $15 billion revenues as on 2000

main products are FedEx Express (87% of revenues) and FedEx Ground (13% of revenues) which takes care of shipments through air and road respectively

Customers
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 of more than $10 million per year. Bottom of the pyramid are companies which do a business of $6000 - $ 40000 per year

Competition

 In ground segment main competitors are UPS (United parcel service), U.S. Postal services(USPS) and Airborne Freight. 
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.

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.

Context
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.
Decision Problem
To redesign the compensation plan and unify the salesforces of FedEx
 Alternatives
Alternative 1:
Integrate the sales force into one
• One shipping system
• Single point of contact
• Focus on consultative selling

Alternative 2
Coordinate the units instead of integrating the sales force
• Will become difficult to judge the units
• Chances of coordination problems among sales executives
 Recommendations

1. First, ,make employees understand the goals of ARISE

2. Merge services division
3. Cross train the sales forces
4. Include more parameters to evaluate compensation
5. Appoint a pre sales consultant to facilitate the selling process
Thank you