Since 1973, FedEx believes that speed and reliability of deliveries are effective way to win customers and increase competitiveness in global market. Due to globalization competition, FedEx has invested in company’s information technology in order to cater to market’s needs. FedEx started to launch a series of technological system which provide additional services to customers. To compete globally, FedEx has started its logistics operation to generate positive effect on cash flow.
Although FedEx is an extremely successful company, problems occur when five separate subsidiary companies following the acquisition of Caliber System was formed and managed independently. Besides, there is fierce competition among competitors and another external problem is fuel price increase. FedEx should come out with solutions to solve the problems in order to increase revenue and to reduce costs in company. My recommendations consist of reorganization in FedEx Group’s operation. Five subsidiary companies should function under one operation. Besides, FedEx has to sell the entire organization under one collective and global brand. FedEx should take concern of customer satisfaction to build customers’ brand loyalty. By having a good management in supply chain, business linkages among FedEx, customers and suppliers can be established. Other recommended solutions include forming alliance relationship with competitors and employment of MIS company. To wider customer segment, a business of home delivery service should be established by FedEx.
By implement the solutions that I suggested, I believe that FedEx can solve the problems, increase profit and continue compete with other competitors successfully.
1. Introduction:
Federal Express was founded by Fred Smith in 1971. Federal Express was original overnight courier services; FedEx Express provides delivery of goods, from envelopes to freight. Speed became of significance to achieve competitiveness to improve