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Welcome to

ARLYENE.MIRANDA. SREELAKSHMI ANUJA .NIVILIKAR SUMIT.NAIR VIDDHI.PAREKH

History
Founded in 1971 by Frederick W. Smith. First Investment 1980s: FedEx reached its maturing stage. First US company to reach $1 billion in revenues. FedEx handles 3.3 million packages

Yesterday and Today


April 17, 1973 First day of Operations 186 packages 25 cities Today 210 countries Global network Asia-Pacific Canada Europe, Middle East, Africa Latin America-Caribbean

CURRENT STATISTICS
2011 REVENUE= $ 39.3 billion 290,000 + EMPLOYEES 50,000+ LOCATIONS

MILESTONES
1975 First showed profits 1977 Deregulation for air cargo allowed use of larger aircraft 1984 Services to Europe and Asia began

Cost effective. Alternative for small packages. Distance and time are wider.

Most familiar service. Handles millions of shipments. Delivers in 1 to 2 business days.

When customers need it now. 24hrs. 7 days a week, including nights, weekends and holidays.

Heavy weight shipments. Less than truck load (LTL) freight. 600 miles next day delivery. 1,600+ miles second day delivery.

Custom brokerage. Electronic custom clearance. Speed shipments across the border.

GENERAL ENVIRONMENT
Global Provider of: - Transportation - e-commerce - supply chain management FedEx an Innovator company: - Overnight package and letter delivery - 10:30 am next day delivery - Saturday delivery service

EXTERNAL ENVIRONMENT
Household name Competitive environment Global Presence IT advances Strong market position in air freight

COMPETITIVE MARKET
World wide presence Dominates ground services domestically High market share in the US Acquired full ownership of Mail Boxes, etc. Intense competition with FedEx

COMPETITIVE ENVIRONMENT

Recent acquire of ground services Specialize in air freight deliveries Global presence Other mergers, the effects.

COMPETITIVE ENVIRONMENT
Largest customer, but strong competitor Attempt injunction against the alliance

Competition Between FedEx and its Rivals


Is extremely intense New business strategy e.g.) UPS who is specialized in ground shipping has came up with UPS Overnight e.g.) FedEx whos main focus is in the business segment is planning to enter the residential market None of the companies have a clear domination over one another

Political donations and lobbying


According to the Center for Responsive Politics, FedEx Corp is the 21st largest campaign contributor in the United States.. In 2001, FedEx sealed a $9 billion deal with the USPS to transport all of the post office's overnight and express deliveries. In 2005, FedEx was among 53 entities that contributed the maximum of $250,000 to sponsor the second inauguration of President George W. Bush During the first three months of 2010, FedEx spent nearly $4.9 million lobbying the federal government (UPS, FedEx's main competitor, spent $1.6 million on lobbying over the same period), a 4% increase from the $4.7 million spent during the last quarter of 2009, but more than twice what it spent on lobbying during the first quarter of 2009.

INTERNAL EVALUATION
Management
Uses strategic management in planning and meeting goals

Marketing
Major advantage by being a household name

Strong in its corporate structure Able to respond to a with low absenteeism and low changing consumer turn over rates at the corporate environment by operating level, by paying well and showing respect independently completely and collectively 2002 hours were reduced, with wages and benefits increasing but with profit and incentive sharing plans reduced

INTERNAL EVALUATION
Finance/Accounting
Fairly strong financial position Year 2002 Highlights include large free positive cash flows, 22% increased net income and a $.05 dividend declared on common stock. Fairly weak in leveraging; incurred large amounts of debt for an expansion project.

Production/Operations
Industry leaders in Air Express Handles well over 3 million packages daily. Excellent ground crew & pilots 24 hour customer service

INTERNAL EVALUATION
Research & Development
Very innovative R&D team. Six year expansion plan
Estimated cost of over 1.8 Billion Doubling package volume capacity 10 new distribution hubs & 23 expanded hubs Relocation or expansion of up to 300 existing facilities Expected completion in 2009

CIS
Highly innovative software user and designer. Very aware of competitors programs and systems. Constant and up to date system employee training.

SWOT ANALYSIS
Strengths Household name Product quality Global expansion Abreast in technology Air fleet Weaknesses Employee racial discrimination Lack of ground transportation force Costly technology innovations Judgment for late deliveries Increased debt

SWOT ANALYSIS
Opportunities Global business growth Online consumer services Increase demand in logistics Alliance with USPS Threats Foreign competition entry into home Economic standing Online competitive advantages of rivals Gain in competition service costs

STRATEGY FORMULATION
Strategy with
Travel

Last minute discount air travel tickets available to the public in order to gain additional profits from the already existing and operating transportation system in use
Major positive strength and opportunity (SWOT Analysis, Space Matrix)

STRATEGY FORMULATION
Strategy
Mail

Enhancing and providing existing postal services formally provided by USPS Strong opportunity and high competitive advantage (SWOT Analysis, Space Matrix)

STRATEGY IMPLEMENTATION
Strategy Concentric Diversification/Horizontal Integration
Mail

Additional personnel Insurance Training employee evaluations

STRATEGY IMPLEMENTATION
Mail

Service sites by way of franchise UPS and Mail Boxes, etc. Ample resources to accommodate USPS needs Expansion project can handle additional/new inflows Extra packages and mail

STRATEGY
Mail

Advertising TV Internet Sporting events/arenas New labeling on boxes

FedExs AD CAMPAINGN
When it Absolutely, Positively has to be there overnight" 19781983 "It's not Just a Package, It's Your Business" 19871988 Our Most Important Package is Yours" 19911994 "Absolutely, Positively Anytime" 1995 "The Way the World Works," 19961998 "Be Absolutely Sure," 19982000 "This is a Job for FedEx," 20012002 "Dont worry, there's a FedEx for that, 20022003 "Relax, its FedEx," 20042008 "We Understand," 2009 "WeLiveToDeliver" 2009 "Brown Bailout" 2009 "The World On Time" 2009

BRAND RECOMMENDATION

Social Marketing Campaigns

BRAND RECOMMENDATION
Business Twitter Campaign Register with Twitter to get discounts on services offered at FedEx Office deliver tips for small business owners Tax tips SBA Classes or Seminars Networking Opportunities

Personal Twitter Campaign Register to win tickets to FedEx sponsored sporting events Reminders about FedEx Sponsored sporting events Scores and Highlights of FedEx Sponsored events

BRAND RECOMMENDATION
Marketing to help reinforce the brand Viral Video Ads that reinforce image of speed and agility Ex. Orange Bowl Highlight with images of FedEx Development of a FedEx Application on peoples pages Research and Development Efforts Corporate Page for people to join and provide feedback and ideas for products or services to improve

BRAND RECOMMENDATION
Marketing to help reinforce the brand
Banners to help market services for professionals and small business

Research and Development Efforts

Host a group for small business owners to share tips and needs Review the posting to determine potential marketing opportunities

BRAND RECOMMENDATIONS
Alliances: Google Google pushes and new products Google is a global powerhouse on the internet Co-brand cloud computing and information exchange services

TOTAL INCOME

GROWTH OF FedEx AS COMPARED TO ITS COMPETITORS

and remember to mail by

Mail

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