Federal Express

Amanjit Kaur Melanie Kwan Lalaine Lagsob Phoebe Lee Jennifer Low


by Frederick W. Smith at Yale 

Original concept  Early beginnings  1971

first incorporation

Middle East. 1973 ± First day of Operations ± 186 packages ± 25 cities  Today ± 210 countries  Global network ± ± ± ± Asia-Pacific Canada Europe.Yesterday and Today  April 17. Africa Latin America-Caribbean .

FedEx Corporation  Subsidiaries ± FedEx Express ± FedEx Ground ± FedEx Freight ± FedEx Custom Critical ± FedEx Trade Networks ± FedEx Services .

FedEx Corporation  1998 ± Original name of FDX corporation  January 2000 ± Change name to FedEx Corporation .

Milestones  1975 ± First showed profits  1977 ±Deregulation for air cargo allowed use of larger aircraft  1984 ± Services to Europe and Asia began .

Goal  Operate independently and compete collectively .

000+ .000+  185.5 billion Location Employees  44.Current Statistics  2003 Revenue of $22.

Suppliers  Supply chain management .

Competition  United  DHL  United Parcel Service: Net Income States Postal Service .

Customers  Small businesses  Shoppers  Meeting customers¶ expectations through IT .

Use of IT/IS  FedEx Insight  FedEx Wireless  FedEx Global  Smart Solutions Solutions Tags from FedEx .

Bargaining Power of Suppliers  Fairly low for FedEx ± Suppliers have to face their own competitions  e. Suppliers of delivery vehicles have to compete in order to gain FedEx¶s business  Exceptions: ± Highly unionized workforce can have more power if protected by their unions and labor contracts .g.

warehouses. and shipping system .Threat of New Entrants  Large capital investments are required for entering this industry ± Air fleets. online sales. distribution centers. labor force  Customers are difficult to attract because of switching costs ± Online tracking.

Bargaining Power of Buyers  Can vary greatly between new and existing customers ± New customers initially have power  Shop around for low prices. demand a certain level of service  Existing customers have decreased power ± High switching costs made them unwilling to change .

 E-mail ± Less likely to be used to transmit sensetive info but subject to change  Regular mail (e. US Postal Service) ± Still have issues with security.g. speed.Threat of Substitutes  Currently low. and reliability .

g.g.Competition Between FedEx and its Rivals  Is extremely intense ‡ New business strategy   e.) UPS who is specialized in ground shipping has came up with UPS Overnight e.) FedEx who¶s main focus is in the business segment is planning to enter the residential market  None of the companies have a clear domination over one another .

Opportunities  Top Employer  Strong Commitment  IT as culture .

Key Strategies  People-Service-Profit  COSMOS  IT/IS .

Company Strengths  Transportation  & Logistics World-class logistic services  Business Logistics Services Division .

Company Weaknesses  Web-based  interface -Design/layout of software -Lack of a single systems/data transfer standard -Difficulties filling out online air bills   .

be it in manufacturing or service excellence .  Electronic Commerce Electronic order taking and customer interaction drove costs down.Company Strengths  Virtual Merchandising Gives business opportunity to outsource a lot more of its logistics operations irrespective of size or nature of its business.  Integrated Supply Chain Solution Allowed firms to concentrate on their core business.

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