FedEx provides shipping services through FedEx Express, Ground, Freight, Custom Critical, Trade Networks, and Supply Chain (FedEx, 2014). Tracking and package management services are available for all services through fedex.com (FedEx, 2014). FedEx also shares knowledge of shipping best practices on its website (FedEx, 2014). FedEx Office is another division of FedEx, where customers have an in-store option for taking care of their shipping, copying, and printing needs (FedEx, 2014). FedEx connects our global economy by linking 99 percent of the world’s GDP (FedEx, 2014). FedEx Express services every US address, as well as 220 other countries (FedEx, 2014). Some of the corporation’s new services include FedEx Delivery Manager and One Rate (FedEx, 2014). FedEx Delivery Manager is a service that is tailored to the needs of the recipient of a package (FedEx, 2014). FedEx One Rate is simply that, flat-rate shipping without the weighing and measuring (FedEx, 2014).
FedEx’s strengths as a company include its company culture and workforce (Ferrell & Hartline, 2011). The corporation has always chosen to be innovative in providing the most timely distribution services (Ferrell & Hartline, 2011). For example, their focus on technology that can be installed in at a customers business to create their own shipping labels through Ship Manager (Ferrell & Hartline, 2011).
The weakness of FedEx is actually its size. The corporation is so large it is costly to run and pay for employee salary and benefits (Ferrell & Hartline, 2011). They have even found themselves in legal trouble because they did not feel they could afford to provide their drivers benefits like all other employees (Ferrell & Hartline, 2011).
The corporation’s opportunities are...
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...smart acquisitions, the corporation has been able to provide a vast array of services to its consumers (Ferrell & Hartline, 2011). Now FedEx provides one place for the consumer to go for their shipping services and other office needs (Ferrell & Hartline, 2011).
References
FedEx (2014). Retrieved from http://www.fedex.com/us/
Ferrell, O.C. & Hartline, M. (2011). Marketing Strategy. 5th edition. South-Western/Cengage Learning.
Forman, J., & Argenti, P. A. (2005). How Corporate Communication Influences Strategy Implementation, Reputation and the Corporate Brand: An Exploratory Qualitative Study. Corporate Reputation Review, 8(3), 245-264.
Valos, M., Polonsky, M., Geursen, G., & Zutshi, A. (2010). Marketers' perceptions of the implementation difficulties of multichannel marketing. Journal Of Strategic Marketing, 18(5), 417-434. doi:10.1080/0965254X.2010.497845
Federal Express main products are delivering packages to widespread locations within a short time. In this case study, we would focus our discussion on its most profitable services, i.e. Priority One, Standard Air Service, and Courier Pak (Table 1).
In 2003 in an unprecedented move, UPS teamed up with rival FedEx to keep DHL from entering the US parcel market. DHL had purchased Airborne Express in an attempt to enter the US market. UPS and FedEx identified that DHL would distort US competition because DHL could subsidize its competitive activities with revenues gained from its postal monopoly in Germany. Unable to compete against the two US shipping giants, DHL announced in 2013, it would close its North American operations. In May 2013 DHL started outsourcing some of its operations to UPS.
Pelton, L. E., Strutton, D. & Lumpkin, J. R. 2002, Marketing channels: a relationship management approach. McGraw-Hill Irwin: Boston, p. 387.
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
They have good practices in password management and recovery mechanisms. They have built-in redundancy in their systems. So if a network element fails their sales order systems still continue running so that the orders do not get lost.
The City Couriers case study will be examined in regards to the company’s overall performance. The internal and external environments of City Couriers will be analysed in regards to the key performance requirements and key success factors. Issues with performance measurement, feedback, development and remuneration will be identified. Furthermore, the issues relating to validity, reliability, fairness and cost-effectiveness in the management of both performance and remuneration will be explored. This assessment aims to highlight the current situation and areas of improvement at City Couriers.
FedEx’s modeling capability gave them a competitive advantage as they implemented new methods and technology. They currently have a SuperHub with several regional hubs and packages are managed and tracked by a system called COSMOS. This system allowed customers to know where their packages were at all times and was later integrated for web use, allowing customers to track packages over the Internet. Today, UPS also allows customers to track packages over the Internet and has improved customer service. I would assume that they have developed a mainframe similar to that of FedEx to decrease FedEx’s competitive advantage. The United States Postal Service, which has lower rates, has also increased their customer service and quality. FedEx must find new technological advancements to stay ahead of the competition in the package delivery industry.
The company has a very good information systems support in being able to make strategic and routine decisions. They research and look into every available option prior to committing to purchasing or contracting with the companies in making sure that they are able to make the best quality product at the lowest costs.
In formulating any marketing strategy, knowledge of the market is the key to success. The most successful companies are continually reviewing and adapting to their customer’s needs. It is therefore, vital to continue to collect, and correctly analyse data, thus enabling a profitable strategic marketing plan to be developed and implemented. By creating the multi-channel platform, you can integrate both the emerging channels with the more traditional ones. The execution of multi-channel marketing campaigns then becomes more simple, as one campaign can then be replicated across a variety of channels, creating the most effective results with a greater return on investment.
UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service. UPS has continued its strong marketing efforts in overnight and deferred air services. Both of these carriers have introduced information systems, which include user-friendly Internet interfaces. The carriers have also expanded logistical services and improved integration with customer supply chains.
In August of 1971, Smith started his venture by buying controlling interest in Arkansas Aviation Sales. While operating his new firm, Smith recognized the tremendous difficulty in getting packages delivered within one- to- two days. This dilemma motivated him to do the necessary research for resolving the current inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability1.
Postal Service to the dead end in the past decade and become obsolete. The U.S. Postal Service faces the declining of business management by exchanging and replacing of electronic media, such as e-mail, Facebook chat, and WhatsApp instead of letter mail and the competition of private express companies. Also, the failure of two major encouragements for cost limit and service development.
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
Cost cutting; Technology plays a significant part in package delivery companies capability to assist customers in cutting their inventories which UPS owns. The UPS system processes packages using advanced information technology and are transported by the companies’ own aircraft, fleet or delivery vehicle so UPS does not rely on other companies.
DHL has been in the logistics business for over 45 years, as a result it has built its brand and image. DHL has a 37.5% market share and rated number one globally. Operating in 220 countries with over 4000 offices DHL handles over 160million shipments per annum and meets the demands for over one million customers around the world. This fact works to its advantage because they have standard workflows and use fixed routes for its delivery services.