Executing Strategies in a Global Environment: Examining the Case of Federal Express
Executing Strategies in a Global Environment: Examining the Case of Federal Express
Abstract
This paper will analyze Federal Express’s value creation frontier, and determine which of the four building blocks of competitive advantage the company needs in order to continue their above average profitability. It will also explore the main aspect of product differentiations and capacity control of the company to maintain an edge on their rivals. Furthermore, for this assignment I will attempt examine the efficiency of FedEx’s current business model and recommend a new business level strategy that will give Federal Express a competitive advantage over it rivals. In addition, this paper will also examine the manner in which overall, global competition may influence my recommended business strategy and I will suggest a significant way that Federal Express can confront its global competition.
Introduction
Federal Express began operating in 1973, under the leadership of Fred Smith Jr. Before Federal Express, a major portion for small packaging airfreight flew on commercial passenger flights. Fred Smith believed that these two services should be treated differently, because the commercial passenger and cargo shipper had different needs. The commercial passenger they wanted the convenience of daytime flights. As for the cargo shippers, they preferred night services, which would afford them late afternoon pickups and next day delivery (Hill,2013). Since small-package airfreight only went out based on the commercial flight scheduling, it was hard for cargo shippers to achieve next day delivery. To remedy the shipping issue cargo shippers had Smith aimed to build a system that could achieve next day delivery of small package airfreight (Hill,2013). Today Federal Express has grown from a express delivery company to a global logistic and supply chain management company (Crane, et al., 2003). Over the years Federal Express was able to grow through acquistions
Abstract
This paper will analyze Federal Express’s value creation frontier, and determine which of the four building blocks of competitive advantage the company needs in order to continue their above average profitability. It will also explore the main aspect of product differentiations and capacity control of the company to maintain an edge on their rivals. Furthermore, for this assignment I will attempt examine the efficiency of FedEx’s current business model and recommend a new business level strategy that will give Federal Express a competitive advantage over it rivals. In addition, this paper will also examine the manner in which overall, global competition may influence my recommended business strategy and I will suggest a significant way that Federal Express can confront its global competition.
Introduction
Federal Express began operating in 1973, under the leadership of Fred Smith Jr. Before Federal Express, a major portion for small packaging airfreight flew on commercial passenger flights. Fred Smith believed that these two services should be treated differently, because the commercial passenger and cargo shipper had different needs. The commercial passenger they wanted the convenience of daytime flights. As for the cargo shippers, they preferred night services, which would afford them late afternoon pickups and next day delivery (Hill,2013). Since small-package airfreight only went out based on the commercial flight scheduling, it was hard for cargo shippers to achieve next day delivery. To remedy the shipping issue cargo shippers had Smith aimed to build a system that could achieve next day delivery of small package airfreight (Hill,2013). Today Federal Express has grown from a express delivery company to a global logistic and supply chain management company (Crane, et al., 2003). Over the years Federal Express was able to grow through acquistions
References: Amsler, M., Cullen, J., & Erdmenger, J. C. (2010). Strategic Report for FedEx Corporation. Vector Strategy Group. Conger, R., Dezemplen, R., Haas, J., & McLeod, J. (2010). Using GIS Strategic Planning and Execution at FedEx Express. Crane, B., Landthorn, B., Miri, B., Relph, J., Sanchez, C., & Vernerova, A. (2003). FedEx Corpration: Strategic Management Project. Hill, C. L. (2013). Case 7: The Evolution of the Samll Package Express Delivery Industry, 1973-2010. In C. L. Hill, & G. R. Jones, Strategic Management: An Integrated Approach (pp. C83-C96). Independence: Cengage. Hill, C. L., & Jones, G. R. (2013). Strategic Management: An Integrated Approach (10th ed.). Independence: Cengage. Smith, F. W. (2005). FedEx. Retrieved from FedEx corporation annual report: http://www.fedex.com/us/investorrelations/financialinfo/2005annualreport/online/msg_chair.html