FedEx Corporation Strategic Management Project Prepared for: DR. Robert Ch. Wood BUSINESS 189 – Strategic Management Prepared by: SAN JOSE CONSULTING GROUP: Billy CRANE Brad LANDTHORN Bob MIRI Jeremy RELPH Chris SANCHEZ Andrea VERNEROVA December 9‚ 2003 TABLE OF CONTENTS EXECUTIVE SUMMARY ……………………………………………………………… 3-5 Chapter I: HISTORY
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in order to gain a competitive edge. The main benefits of the CP are its high profit margin and the small amount of volume they take up. The variable costs of the CP are much smaller than Standard Air Service packages and Priority One packages. The variable costs for CP are $4.25‚ Standard Air Service: $9.21‚ and Priority One: $10.60. Not only does it have the lowest variable cost‚ it also yields the highest profit margin at 66% while SAS is 27% and Priority One is 55%. Due to the low variable cost
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the industry is not an easy task provided that FedEx Corporation provides various shipping services. In FedEx‚ these two sectors are represented by FedEx Express and FedEx Ground. FedEx Express is the world’s largest express transportation company. FedEx Ground‚ on the other hand‚ is the North America’s second largest provider of small-package ground delivery service‚ following the lead of United Parcel Service (UPS). 1. Risk of new entry by potential competitors The barriers to entry are very
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To begin‚ it is important to note that TNT’s major competitors include FedEx‚ United Parcel Service (UPS)‚ DHL‚ and national post carriers such as US Postal Service and Royal Mail. They are well implanted and strong‚ they have strong marketing management to stay competitive. Thus‚ TNT needs to have high-level skills to cover a wide range of functions‚ including distribution‚ sales and marketing‚ finance‚ customer services and human resources. This will result in the use of highly trained staff‚ and
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support & logistics services. The company operates its business through four main segments: FedEx Express: FedEx Express‚ one of the largest express transportation companies‚ makes packages and freight deliveries throughout the US and to 220 countries worldwide. FedEx Express offers time-bound delivery for documents‚ packages‚ and freight. Products: Documents‚ packages transportation International trade services Customs brokerage Cargo distribution Advisory services FedEx Ground: FedEx
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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:
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SPC1017 After the completing the Self-Perception Project with my mom and friends‚ I have come away with a clearer understanding of the importance of a tool such as this. I am a second year student at Miami- Dade College and I currently work at United Parcel Service (UPS) as a management person. At the beginning of my second year this semester‚ there were a lot of uncertainty with regards to what is expected of me and setting goals with clear map for learning. I decided to major in business administration
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Airborne Express‚ an air express transportation company has succeeded to compete with a few big competitors such as Federal Express and United Parcel Service (UPS) even it does not have funding as much as its competitors. In 1996‚ it held third position in the industry with 9 percent of the market. Even Airborne is smaller size company compared to its main competitors‚ it still can survive with the competitive advantage through its resources and capabilities. With some unique resources and core competences
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trucks) are the other suppliers‚ but they do not have much power as there are many alternatives available to the industry players and a good price for their products can be negotiated. Customers Customers include anyone who wants to send an urgent parcel/letter to someone else. Majority of the customers are business customers who require urgent delivery to conduct their business.
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or different? Airborne Express Federal Express UPS Product Line Air-express transportation + provides delivery service of small packages and documents FedEx Ground delivery (No shipment) (Business documents‚ electronic components‚ medical samples and replacement parts) Ground delivery + express delivery by air (Courier Express Services Freight Forwarding Services Logistics Services) Target Customer Segment Business customers that regularly ships large volume of urgent items All Segments
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