Fed Ex Case Study
Autor: Hughjassol • March 25, 2012 • Case Study • 730 Words (3 Pages) • 1,740 Views
FedEx Case
1. FedEx’s domestic growth occurred from a several tactical methods. The use of the Memphis airport as a central hub for all air delivered packages proved to be a good move. At night, all FedEx planes would line up side by side, and sort out packages on to planes going to other destinations, then they planes would take off after all packages boarded, ensuring the delivered package would be in a close proximity of its destination within 24 hours. Packages that could be shipped via ground were used whenever possible to save on expenses.
Breaking up the country into zones for pricing also proved to be a method that customers appreciated. It was fair, and predictable. Other conveniences such as Saturday or Sunday pick-up, or shipment pick-up at your house seemed to also enhance FedEx’s brand to the customer.
What I feel really helped FedEx grow domestically was the partnership they had with the U.S. Postal Service. FedEx basically outsourced the Post Office’s air transportation. This would provide more revenue into a system that works. In addition, the partnership allowed FedEx to place a drop box in every Post Office. FedEx would also profit from this partnership when it signed an international agreement in 2004 and 2009. They were able to provide the same Express Guarantee on a global scale. The acquisitions of existing, successful delivery service companies mainly helped FedEx become a global success.
FedEx initially had difficulty entering into European markets because the volume did not suffice the investment that FedEx had put up. But by acquiring existing delivery services and implementing a successful system, it allowed FedEx to easily transition and inherit access that would have normally taken them years to develop in places around the world.
2. Major SWOT considerations FedEx should be aware of are the following:
Strengths:
Strong brand image, great revenue growth, and a large scale, global operation.
Weakness:
Weak returns in some global markets, operating systems are not as effective, and a dependence of the American market.
Opportunities:
The growth
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