“FEDERAL EXPRESS, THEY LIVE TO DELIVER”
Federal express is the world’s number one delivery courier because of their kind of services and worldwide approach, plus the advance technology and dedication of staff. No question about it that FedEx still hold the number one position in terms of prompt delivery. They have been the leader in overnight delivery offering unmatched technologically advanced system tools and equipments only FedEx can give. From then on FedEx has become the leader in express delivery.
Although in the last five years of operation they have encountered critical challenges particularly last December of 2007 when US Internal Revenue filed a case of tax evasion ranging from 9 million US dollar due to misclassification while FedEx denies such misclassification. Good thing that the US IRS has withdrawn their assessment last October of 2008. Last June of 2009 FedEx launched a bailout against UPS; they gather support from people to stir up sentiments from advertising campaigns of brown bailout.
FedEx also adopted Porters generic strategy through which they simplified their strategies in three different sections 1. Market segmentation has a narrow scope while 2. Cost leadership in particular has broad market scope same with 3. Differentiation strategy. Porter suggestion would be to combine these three strategies if they are possible so as to test the market potential demand. The combination of multiple strategies maybe hard but this indicates a very practical and winning strategies toward the achievement of sustainable competitive advantage.
The Bowman’s strategic clock to analyze their competitive advantage over their competition. Represented by a star clock, these strategies have the following six core strategic options, 8 possible strategy in 4 quadrants.
Value \ Price
Low price
Medium price
High price
High added value
Hybrid
Low cost base and reinvestment in low price and differentiation
Differentiation
Perceived added value by user, yielding market share benefits or allowing price premium
Focused differentiation
Perceived added value to a particular segment warranting a premium price
Mediocre added value
Cost leader
\ | /
– * –
/ | \
Raise prices
to get higher margins. Works in de facto industry standard position. Risk losing market share to competitors.
Low added value
Segment specific
Increased price & low value
Risks losing market share; only feasible in monopoly position.
(The above table simplifies the bowman’s strategic clock used by FedEx).
Since their beginning and up to date the FedEx group has been widely accepted in the market and made history. Due to the following plans and strategies FedEx has dominated leadership in courier service and continues market acceptance. FedEx still uses the following quality services they upheld and recently just launched a new portfolio of marketing campaign to render its remarkable services. So if you have sent small or big packages to over 220 countries worldwide they have a complete reliable services offered just for everyone. Customers are assured to get the full benefit in delivering their letters and packages because they offered speedy delivery and International transport system using sophisticated real time tracking system and custom tools in document preparation, easy access effective and fast customer clearance and toll free local and international help desk and online Customer oriented services. To sum it all up this strategy bolsters a troop of immeasurable competitive advantages against the other courier services the world have known.
They also boost a remarkable worldwide acknowledgement as a world class company receiving numerous awards and citation from various award giving industries. As of today they have 280,000 employees, 669 delivery cargo planes and 75,000 vehicles that can deliver more than 6 million packages daily.
The phenomenal growth of this company is a milestone in the making. With annual revenue that surpasses Billion US dollars. Their financial statement shows in the last five years a continues increase in,
· 2006 which is 32.2 Billion US dollar
· 2007 .2 Billion US dollar and finally in
· 2008 which is almost Billion US dollar and a short downfall in
· 2009 which is .4 US dollars and
· 2010 which is .7 US dollars
The sudden increase and decrease may or may not be due to worldwide recession but still the comparative analysis to their competitors have shown a big marginal efficiency in sales and services. This financial statement has been prepared to show the public the comparison from other companies in different time perspective. This data is highly beyond compare to any well known courier service industry throughout the world.
Credit:ivythesis.typepad.com
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