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FedEx Corporation.
The overview of the company situation:
The Federal Express Corporation (FedEx) was established 1973. ... With heavy investment in technology, FedEx launched Internet in 1994, the potential for further integration of systems to provide service throughout its customers’ supply chain. ...
From the establishment of the corporation, the first three years of operation the company got losses due to high capital investments in physical transportation infrastructure of the business, FedEx began to see profits from 1976. With the breakthrough technology, in the 1980s, FedEx gave away more than 100,000 sets of personal computers loaded with Fed Ex software, designed to link and log customers into FedEx’s ordering and tracking systems. ...
It was reported due to competition, FedEx’s transport volume growth was slow down, even though the company was poised to take the advantage of the surge in traffic that entailing and electronic commerce (EC) were supposed to generate.
FedEx Strategy before January 2000
The strategy of expanding the company through acquiring more trucks and planes continued, while its competitors were buying space on commercial airlines and subcontracting their shipment to third parties. With this strategy, by the 10th year of operation, FedEx earned the accolade of the first U. ...
Throughout the next three decades, FedEx’s transportation business growth was attributable to number of external factors that FedEx was quick to capitalize on. ...
As of Jan 2000, Fedex served 210 countries(making up more than 90%of the world GDP), operated 34,000 drop-off locations, and managed over 10miliion square feet of warehouse space worldwide. ...
i) FedEx record of system Innovations, 1979-99
As in the case: tighter supply chain management was no longer viewed as a competitive advantage but a competitive imperative.
By integrating its service within the supply chain of its customers, and thus generating increases in customer loyalty and in customers’ switching cost, FedEx managed to effectively raise the barriers to entry for competitors. This was through its innovative customers who demanded greater integration eg Cisco Systems developed an extranet that allow its customers to order FedEx service without leaving the Cisco website. ...
FedEx operated under the corporate name of Federal Express Corporation for the first 21yrs of operation, under the purple-and-orange flag. In 1994 it was natural that the company should change its brand name to FedEx.
In 1988, the Parts Bank was given official recognition when it become a division of FedEx Corporation and became Business Logistics Services(BLS). ... In 1994 it was renamed FedEx Logistics, and became mandatory for logistics business to include FedEx transportation as part of its solutions to customers. In 1996 the division changed its name yet again, to FedEx Logistics and Electronic Commerce (FLEC). ... Caliber and FedEx ‘s logistics operations were fundamentally different in that they had completely distinct customer base and service offering.
Approximate Word count = 2264
Approximate Pages = 9.1
(250 words per page double spaced)
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