THE

SUCCESS STORY
DEBOPAM DAS
(37162)
DIPTENDU
DAS (37167)
SAPTARSHI SARKAR (37262)

FedEx Success Story

1973
Founded by Frederick W. Smith; Headquartered at Memphis, USA
On the first day of operation, 14 cargo aircrafts delivered 186
25 U.S cities
1974
Within a year, delivery increased to 10,000

packages in

packages/day

1977
Congress passes Public Law 95-163 (Deregulation of Air Cargo transport)
1978

Listed in New York Stock Exchange, ticker symbol FDX

1981
Overnight letter service
International service in Canada
First hub at Memphis Intl Airport

FedEx Success Story Contd

1983
First U.S. company to reach revenues of $1

billion

1994
IT integration - www.fedex.com
Delivery time substantially shortened
Cargo handling reached 2
1998

million packages/day

Acquires Caliber System Inc. and creates FDX Corporation

Launches ground and home delivery services
2000
FDX corporation renamed FedEx Corporation
2014
Cargo handling reached 10 million

packages/day

FedEx Service Operation Service Basket

FedEx Service Analysis Porters Five Forces

Risk of new entry by potential
competitors
High fixed cost associated
Economies of scale for existing
Extent
of rivalry between established firms
companies
Continuous improvement in quality, price, and
innovation
Very low switching cost for consumers
High exit barrier due to high fixed costs
Bargaining power of buyers
Switching cost is very low
Faster service, lower price, or service innovation
important
Quantity discounts bargaining by large
Bargaining
power of suppliers
corporations
Regulatory power- prices of supplies e.g.. packaging
materials
Purchase in large quantities and supplier switching
Threat of substitute products
There are not many substitutes to shipping
Difficult to find a substitute in right price and right

FedEx
Service
Analysis Segmentation & Targeting
Segmentation
and Targeting:

FedEx Service Analysis Service Qualifiers & Service Winner

Points of Parity (Service
Qualifiers)
Shipment of Packages
Tracking Packages, Ordering
supplies
Payment of Bills
Points of Differences
(Service Winners)
Larger Fleet catering to a
Larger number of Customers
Print & Ship from anywhere
Service
Updating of Technology
Better Transportation
Management
Better Logistics through
Centre of gravity Method

FedEx Service Analysis Competitive Service Strategy

Computerized Package
Tracking System

Benefits for premium

Integrated Information
Technology

Digital Signatures: Better Service

Fusion of Technology:
Use of Handheld
Devices

Overnight Package

Centre of Gravity Method Hub and Spoke Model

Finds location of
Distribution Center that
minimizes distribution costs
Considers
Location of Markets
Volume of Goods
Shipped to those
markets
Shipping Cost
Place existing Locations on
a coordinate grid
Calculate X and Y
coordinates for Center of
Gravity
Assumes cost is directly

FedEx Service Analysis Transportation Management

Advantages of using FedEx Transportation

Management
Visibility
Speed
Flexibility

For less than truckload (LTL) freight additional services

are:
Call before delivery
Hazardous material
Inside pickup/delivery
Perishable
Residential pickup/delivery
Freezable protection

FedEx Service Analysis Marketing Mix

7 P S OF FED EX
1. PRODUCT
and
ELEMENTS

Product:
OFFICE

2. PLACE &
TIME

3.PROMOTION
& EDUCATION

4.PHYSICAL
ENVIRONMEN
T

5.PRICE

FDE, FDEG, FDCC, FEXF, FFDIN, FDSCS, FDCS, FCIS, FEDEX

Place:
Asia, Europe, Middle East/Africa, Latin America, North
America, Australia
Services provided : 24*7
Promotion: FedEx uses sports as a medium for promoting its services,
e.g.- Motorsports(F1),Golf(PGA Tour), Tennis (Roger Federer).
FedEx promoted its brand through Cast Away, one of the Oscar nominated
movie
In Nov.03 FedEx along with University of Memphis, started FedEx Institute
of Technology.
Since 2003 FedEx has contributed $5 million in R&D.
FedEx Centre for SCM is helping organizations to meet key supply chain

6.PROCESS

7.PEOPLE

FedEx Service Analysis Marketing Mix Contd...

cal Environment:
The staff members & vehicles as well as aircrafts plays an major role for providing s
ngs, landscape, interiors etc. are least important for FedEx.
ect customer interaction they recruit front desk executives & provides coded information for their parcels

:
Charges premium prices for quality services.
te of FedEx Freight & FedEx LTL segments has shown an increase of 5.7% but there is no change in its rate
na FedEx is slashing its prices for market penetration.
vides booking facility through internet.

ss:
Procuring
products from
the clients

Manufacturing,
procurement
and Order
Management
Functions

Delivering
products and
services to
customers

For complexities
EDI, EFT
Bandwidth and
DSS for
planning and
execution

People:
FedEx employees provide both pre service as well as post service.
FedEx seeks to employ staff from its surrounding communities.
FedEx hires people who have enough experience in transportation and SCM.

FedEx Service Analysis Service Innovations

To streamline automation solutions and make tracking even easier for
customer, FedEx Freight will be retiring the Extensible Markup Language
(XML) tracking application on December 31, 2014. They recommend
integrating FedEx Web Services into your systems moving forward.

FedEx Priority OvernightTM intra-country domestic for Austria, Czech

Republic, Finland, Hungary, Norway, Poland, Russia, Spain and Sweden.

FedEx Economy intra-country domestic for France, Germany, Italy, Russia

and Spain.

Domestic and international shipping is easier with FedEx Web Services

version 2013. The integration of domestic shipping capabilities into
FedEx customer automation allows for one platform to be used for all
domestic and international shipments originating . This feature also
introduces Freight To Collect and Same Day Services (contracted
services) for domestic shippers.

FedEx Service Analysis More Service Innovations

FedEx Ground shipping label will enable to implement new services and
include more detail about each shipment right on the label. A better label
layout and improved barcode legibility which means increased read rates
and service reliability.
Integrate common FedEx shipping functionality into your website or
application, including the ability to locate the best rates, estimate transit
times, and track the status of shipments.
You can optimize your shipping processes by integrating FedEx Ship
Manager Server into your system and controlling it through your database.
If you are integrating FedEx functionality into an application intended for
resale, the integration process differs from applications not being resold. Be
sure to follow the process for applications intended for resale by using
FedEx Compatible.
The customized asset returns solution designed by FedEx Transportation
Management enables high-value containers to be more closely tracked and
managed.