FedEx Corporation is a Delaware corporation, incorporated October 2, 1997. Initially knows as FDX and Federal Express. Founded by Mr. Fredrick W. Smith in 1971 as Federal Express Corporation. Mr. Fredrick W. Smith is also the CEO and Chairman. Its Headquarters are located in Memphis, Tennessee. It operates in four different segments, FedEx Express, FedEx Ground, FedEx Freight and FedEx Services.
Current Market Standing:
FedEx is the clear market leader in express shipping, nearly 49% market share by volume in the U.S. Its biggest competitor is Unites Parcel Services(UPS) with 45-50% market share world-wide.
Service Differentiation:
FedEx differentiates itself from its competitors by fast and efficient delivery of packages all over the world.
Few points of Service Differentiation of FedEx are:
1. Hub and Spoke Strategy: As the name suggests, all the pick up points of the goods/packets act as the spokes of a bicycle wheel and the place where they are assembled acts as the hub or the meeting of the spoke.
2. Security: FedEx provides safe delivery and undertakes various levels of security actions to ensure the safety of the good. Every good undergoes high level of security to ensure delivery without any damage or manhandling of the shipment. 3. Technology Differentiation: In order to provide quick and reliable service, FedEx invests largely on developing and innovating its infrastructure. It constantly strives for better performance to meet its customer requirements. 4. Customer Service Differentiation: FedEx boasts a very user friendly website to order and track your shipment. They also provide pick up and call up delivery services for the goods for the convenience of the customers. 5. Trained Employees: FedEx trains its employees so that they meet any emergency or requirement at any point of time. They are specially trained to be courteous to their customers. 6. Scale of Operations: FedEx operates at a very different level from