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Federal Express

Amanjit Kaur Melanie Kwan Lalaine Lagsob Phoebe Lee Jennifer Low

Background
Founded Original Early 1971

by Frederick W. Smith concept at Yale

beginnings first incorporation

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

FedEx Corporation
Subsidiaries
FedEx Express FedEx Ground FedEx Freight FedEx Custom Critical FedEx Trade Networks FedEx Services

FedEx Corporation
1998

Original name of FDX corporation

January

2000 Change name to FedEx Corporation

Milestones
1975

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

Goal
Operate

independently and compete collectively

Current Statistics
2003

Revenue of $22.5 billion Location Employees

44,000+

185,000+

Suppliers
Supply

chain management

Competition
United DHL United

Parcel Service: Net Income

States Postal Service

Customers
Small

businesses

Shoppers Meeting

customers expectations through IT

Use of IT/IS
FedEx FedEx FedEx Smart

Insight Wireless Solutions Global Solutions Tags from FedEx

Bargaining Power of Suppliers


Fairly

low for FedEx

Suppliers have to face their own competitions e.g. Suppliers of delivery vehicles have to compete in order to gain FedExs business

Exceptions:
Highly unionized workforce can have more

power if protected by their unions and labor contracts

Threat of New Entrants


Large

capital investments are required for entering this industry


Air fleets, warehouses, distribution centers,

labor force

Customers

are difficult to attract because of switching costs


Online tracking, online sales, and shipping

system

Bargaining Power of Buyers


Can

vary greatly between new and existing customers


New customers initially have power Shop around for low prices; demand a certain level of service

Existing

customers have decreased power

High switching costs made them unwilling to

change

Threat of Substitutes
Currently E-mail
Less likely to be used to transmit sensetive info

low, but subject to change

Regular

mail (e.g. US Postal Service)

Still have issues with security, speed, and

reliability

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

Opportunities
Top

Employer Commitment

Strong IT

as culture

Key Strategies
People-Service-Profit COSMOS IT/IS

Company Strengths
Transportation

& Logistics

World-class logistic services

Business Logistics Services Division

Company Weaknesses
Web-based

interface

-Design/layout of software -Lack of a single systems/data transfer standard -Difficulties filling out online air bills

Company Strengths
Virtual

Merchandising

Gives business opportunity to outsource a lot more of its logistics operations irrespective of size or nature of its business.

Electronic Integrated

Commerce Supply Chain Solution

Electronic order taking and customer interaction drove costs down.

Allowed firms to concentrate on their core business, be it in manufacturing or service excellence