Strategic Management

• Presented to:
Mr. Omar Shawky
• Presented by:
Ahmed Osman
Amal Ali
Hasnaa Fouad
Haythem Youssef
Mohamed Zarah
 AGENDA

• Company Profile
• Vision, Mission, Strategy and Values
• Societal Environmental Scanning
• Porter’s 5 Forces
• SWOT Analysis
• Value Chain
• Corporate Strategy
• Business Strategy
• Recommendations
 Company Profile
• FedEx is one of the leading shipping service
companies around the globe since inception in 1973

• Egyptian operation started in the year 1997as Egypt

Express

• Worldwide network ensures delivery to more than 220

countries and territories
 FedEx Scope of Services

• Worldwide Express Delivery

• Customs Brokerage
• Trade Facilitation
• Electronic Commerce Solutions.
• Business Services Including Copying
and Printing Services, Signs and Graphics,
Videoconferencing, High-Speed Wireless
and Wired Internet Access.
OUR VISION
Become Europe, Middle East, Indian Subcontinent and
Africa (EMEA) preferred supplier of international express box
shipments in all major markets.

OUR MISSION
• Produce superior financial returns for its shareowners by providing
high value-added logistics, transportation and related business
services through focused operating companies.
• Customer requirements will be met in the highest quality manner
appropriate to each market segment served.
• Develop mutually rewarding relationships with its employees,
partners, and suppliers.
• Corporate activities will be conducted to the highest ethical and
professional standards.
OUR STRATEGY
The unique FedEx operating strategy works seamlessly and simultaneously
on three levels:
•Operate independently by focusing on our independent networks to meet

distinct customer needs.

•Compete collectively by standing as one brand worldwide and speaking
with one voice.
•Manage collaboratively by working together to sustain loyal relationships
with our workforce, customers and investors.
 Our Values
We value our people and promote diversity in our
People Workplace and in our thinking.

Our absolutely, positively spirit puts our customers

at the heart of everything we do.
Service
We invent and inspire the services and technologies
Innovation that improve the way we work and live.

Integrity We manage our operations, finances and services

With honesty, efficiency and reliability.

Responsibility We champion safe and healthy environments for the

communities in which we live and work.

Loyalty We earn the respect and confidence of our FedEx people,

customers and investors every day, in everything we do.
 Societal Environmental Scanning

Economic Forces Tech. Forces Political & Legal Forces Social Cultural
Forces
•GDP •Internet Availability •Law & Tax regulations •Life style Change
•Inflation Rate •Availability of •Attitude Towards Foreign •Population Growth
•Disposable Income Information Needed Co. Rate
•Stability of Government •Age Distribution
•Foreign Trade Laws •Birth Rate
•Customs Regulation
 Economic Forces

1- GDP
The Increase of every member’s share from
the GDP highly influences (companies to
use such services as FedEx.

2- Inflation
The Decrease encourages economy and
foreign investments opportunities such as
FedEx.
3- Disposable Income
Noticeable raise in wages creates
disposable income (encourage people to
use FedEx and other services to facilitate
their lives.
 Technological Forces

1- Internet Availability
Purchase through internet & deliver

by FedEx.

2- Availability of Information Needed

Assist in the awareness of people
about delivery services.

3- Telecommunications Revolution
 Political & Legal Forces
1- Tax Laws:
Attitude towards foreign investments is recently encouraging.

2- Political Environment:
Stability of government is an asset that encourages foreign trade & services
such as FedEx to invest in Egypt.

3- Custom Regulations
This factor affects Industries negatively in Egypt (FedEx)
 Social Cultural Forces
Age Distribution
1- Life Style Changes
Globalization & wages raise encourages
people to improve there life style by using
facilitating services such as FedEx.

2- Population Growth
Egypt Population is an enormous & growing
that encourages all kinds economical
investment of specially that most of its public
is between (20 & 35) great consumption
force.
Industry Analysis Porter’s 5 Forces

Entry Barriers

Bargaining Power Rivalry among Bargaining Power

Of Suppliers Competition Of Buyers

Threat of
Substitute
 1. Threat of new Entrants

• Raise of customs clearance fees

• Capital requirements

• Outsourcing for distribution

 2. Rivalry among Competition

• Numbers of strong competitors such as “DHL,TNT &

UPS”

• Very strong marketing activities and promotions

• High exit barriers

 3. Threat of Substitute

• Availability of substitute

• Low switching cost

 4. Bargaining Power of Buyers

• Industry based on a particular number of customer

• Increasing price may affect on losing a part of client

base

• FedEx have a high quality service

 5. Bargaining Power of Suppliers

• FedEx have its Own printing house of the

international supplies “AWB, Packing materials”

• FedEx supplied its local supplies from outsource

supplier and depend on one supplier
Service Value Chain
 SWOT Analysis
Strength Weaknesses
• Widesnetwork coverage. • Customer's expectations in local
• Powerful brand image. market (Timing).
• Services variety with full coverage. • Customs clearance delay.
• Net Income increases 7% percent. • High turn over.
• International acquisitions.
• Money back guarantee.

Opportunities Threats
• High development in third world • Natural disasters and catastrophes
economies. and in consequence pay high insurance
• Liberation of international • High competition.
commerce. • Terrorism and conflicts affect negatively
• New acquisitions and expanding on the business.
market share.
 Corporate Strategy
“How to Grow”

1 – Vertical integration
Affects profit margin
2 – Horizontal integration
Affects distribution
 Corporation Corporate Strategy
FedEx Global

Forward Integration
Customer Inf. Service

Tracking System
&E-Business

Canada Asia Pacific Automated Call Center Europe Japan

1981 1984 1985 1988

Backward Integration
FedEx 1973
Middle East Sout. Africa Afgh.&Iraq Kinko
noi t ar get nI l aci t re V

1989 1991 FedEx Ground 2003 2004

New Markets
FedEx Services New Markets

FedEx Custom Critical

23
Horizontal Integration
 Business Strategy
“How to compete”

1 – Competitive
All around the world, DHL, TNT & UPS.
2 – Cooperative
Alliances & Acquisitions with GELCO
EXPRESS, CALIBER System, Tianjin
Datian W. Group Co., Ltd & Prakash
Air Freight Pvt. Ltd

Market Share
 Managing Business Strategically

Competitive Advantage Matrix

High
Degree of differentiation

Outstanding
Maintain
Success
Specialty
Hope for New Maintain
Investment to Cost
Push Economy advantage
Growth
Low

Relative Cost Low 25

High
Corporation Life Cycle

1994 Technology & E-business

1984-1993 Global New Markets io n

s
r Vi
O u
n g
v i
h ie
A c
1973-1983 Local Leader in USA 26
 Corporate Strategy
BCG Matrix

High Star
?
Market Growth Rate

Question Mark

Cash Cow Dog

Low
27
High Low
Relative Market Share
 Recommendations
• In order to achieve the aforementioned
objectives, FedEx needs:

– Benefit from local market opportunities

– Communicate various offers – each separately –
during the year
– Employment fidelity plans
– Create integration with powerful companies
– Opening new outlets
Thank You