Professional Documents
Culture Documents
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
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.
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
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
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
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
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
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