BUS 599 Nadine Gilles Week 6 Assignment 2
The Evolution of the Small Package Express Delivery
Nadine Gilles
Strategic Management
16 November 2014
Instructor: Desmond Osborne, Ph.D.
The Evolution of the Small Package Express Delivery
Federal Express, which has since changed their name to The FedEx Corporation, was founded in 1971. FedEx began running their operations in 1973 and created an air and ground industry of delivering packages. FedEx is renowned for the being a leader in the courier industry and also play a very important role in the logistics industry.
FedEx is known for their very strategic advantages, their techniques that are highly unmatched and competitive. FedEx’s functional level strategies include customer service, efficiency and productivity. These are their main strategies that must be met at all times. FedEx directs their focus primarily on their business to customer deliveries. They are able to target an online retailer which is the way most people currently shop. FedEx does not have communication barriers and very innovative ideas. FedEx has many competitors, but has surpassed their competition by using those innovative ideas and providing many services to fit the customers need. They were the first company to use electronic means for their orders. FedEx goals are to increase their net income and revenues. They are known to differentiate their services products from others.
This paper is to compare and analyze FedEx’s value creation frontier and execution strategies. I will also take a look at the four building blocks that FedEx needs for a competitive advantage to stay ahead and maintain above-average profitability. I will assess FedEx’s current business model and recommend a strategy on a business level to also give them an advantage over their competitors. I must also assess in what manner the overall global competition may impact FedEx’s new business strategy. I will also suggest one significant way that FedEx may confront the global
Nadine Gilles
Strategic Management
16 November 2014
Instructor: Desmond Osborne, Ph.D.
The Evolution of the Small Package Express Delivery
Federal Express, which has since changed their name to The FedEx Corporation, was founded in 1971. FedEx began running their operations in 1973 and created an air and ground industry of delivering packages. FedEx is renowned for the being a leader in the courier industry and also play a very important role in the logistics industry.
FedEx is known for their very strategic advantages, their techniques that are highly unmatched and competitive. FedEx’s functional level strategies include customer service, efficiency and productivity. These are their main strategies that must be met at all times. FedEx directs their focus primarily on their business to customer deliveries. They are able to target an online retailer which is the way most people currently shop. FedEx does not have communication barriers and very innovative ideas. FedEx has many competitors, but has surpassed their competition by using those innovative ideas and providing many services to fit the customers need. They were the first company to use electronic means for their orders. FedEx goals are to increase their net income and revenues. They are known to differentiate their services products from others.
This paper is to compare and analyze FedEx’s value creation frontier and execution strategies. I will also take a look at the four building blocks that FedEx needs for a competitive advantage to stay ahead and maintain above-average profitability. I will assess FedEx’s current business model and recommend a strategy on a business level to also give them an advantage over their competitors. I must also assess in what manner the overall global competition may impact FedEx’s new business strategy. I will also suggest one significant way that FedEx may confront the global
References: Arthur, J. B. (1992). The link between business strategy and industrial relations systems in American steel minimills. Industrial and Labor Relations Review, 488-506. Farhoomand, A. F., Ng, P. S., & Conley, W. L. (2003). Building a successful e-business: the FedEx story. Communications of the ACM, 46(4), 84-89. Hill, C., & Jones, G. R. (2013). Strategic management: An integrated approach (10th ed.). Independence, KY: Cengage. Hult, G. T. M., Hurley, R. F., Giunipero, L. C., & Nichols, E. L. (2000). Organizational Learning in Global Purchasing: A Model and Test of Internal Users and Corporate Buyers*. Decision sciences, 31(2), 293-325. Quelch, J. A., & Klein, L. R. (1996). The Internet and international marketing. Sloan Management Review, 37(3). South-Western Retrieved 16 November 2014 from: http://www.swlearning.com/management/hitt/sm6e/isc/focus/sf03_03.html