FedEx strategic analysis

Résumé du document

FedEx is the IT-focused market leader of the international express courier business and further offers supply-chain-management solutions. Indeed, this company was founded as Federal Express in 1971 by the U.S. Marine and Frederick W. Smith in Little Rock (Arkansas). FedEx has been chosen in order to symbolize a national marketplace. FedEx is the first cargo airline that used jet aircraft for its services.

Concerning the industry, the company takes part in the Air courier industry, indeed i it is a company that delivers packages and mail, often between offices and generally in a shorter timescale than surface mail. Nowadays, bicycle couriers, motorcycle couriers, cars, trucks and aircrafts are used to deliver the packages. Concerning the economy, we can state that the number of jobs for this industry is projected to drop over the next 5 to 10 years; this is due because technology creates efficiencies during the delivery process and therefore reduces the number of employees required to deliver each package. However, the number of packages delivered throughout the world is increasing. It is important to precise as well that the industry is managed by many courier enterprises. Indeed, the world's largest courier companies are "the big four": UPS, FedEx, USPS and DHL.

Extraits

[...] Furthermore, technology advances open new opportunities as well. The logistics market providers is protected due to an increasing in JIT, e-tailing, ebusiness, businesses re-engineering their supply chains, and consumers considering logistics as competitive imperative and beginning to outsource this part of business Threats The changing environment and the permanent rising demands in innovation and technology compose more a danger than an occasion for FedEx at the instant. Even though they have a history of innovation and first-to-market records, which shows their capability of innovating, they have weakened their position in this field. [...]

[...] The high fixed cost of the fleets intensifies competition and pressure on price. Moreover, competitive advantages built on technology are short term and do not lead to competitive advantage if they are not linked with other competences and continuous improvement. So, in order to sustain, companies need a portfolio and linkages of advantages. The high fixed cost of the fleets intensifies competition and pressure on price Conclusion To summarise, it possible to say that the key forces are: 9 -Competition -High entry barriers The industry seems attractive for existing companies as globalisation opens new opportunities. [...]

[...] First Express is one of New Zealand's fastest growing domestic courier companies. Established by Air New Zealand in 1989 as a door-to-door courier service to complement the airline's existing airport-to-airport cargo service, First Express has experienced revenue growth of between 10 to 30 per cent per annum over the past few years. The company currently employs 160 people in 22 offices. It has 120 vehicles, as well as owner-drivers and agents in provincial areas. FedEx currently serves the Asia Pacific market with approximately 4,300 employees serving more than 30 countries and territories. [...]

[...] That's announced as a top priority for FedEx, which also hopes to expand its overseas presence, The two operations should help market each other. The involvement of Clayton Dubilier is part of an interesting tren., That equity firm bought a big portion of Kinko's in 1997, with the idea of making it more profitable, then cashing out. Their oversight has now been for five (somewhat tumultuous) years in which they bought out some other investors to become majority owner; they were unable to unload the company since the M&A market went sour in the last few years. [...]

[...] FedEx has provided international express services to a fast-growing customer base in New Zealand since 1991. Since then, the company has experienced significant growth, recording 25 per cent year-over-year increases. Much of that growth has been attributed to New Zealand's successful export drive in recent years. On an annual basis, FedEx has experienced an increase in the amount of high-value items shipped from the electronics, medical, aircraft and vehicle maintenance industries. FedEx has increased staff considerably over the previous six years. It has extensive operations in the key centers of Auckland, Wellington and Christchurch. [...]