Fedex Business Strategy

1277 Words6 Pages
What is FedEx’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion? FedEx’s strategy for success in the marketplace is centered on providing time- sensitive delivery through multiple branches of the organization: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko’s. FedEx keeps all branched separate in order to run them as separate entities with the thought process that it enables each type of customer to the best of their ability. Although customers may utilize different segments the organizations runs independently in each segment. FedEx depends on operations excellence by providing many different services that allow customers a tailored experience, where cost and timeframe play a major role in their success (Noreen, Brewer & Garrison, 2011). The organization also leads the industry by servicing such a large percentage of all shipping consumers. Although FedEx may not know all customer’s on a directly personal level, they do offer products for every consumer, with the same dedication to on time delivery. “ While we have increased our emphasis on competing collectively and managing collaboratively, we continue to believe that operating independent networks, each focused on its own respective markets, results in optimal service quality, reliability and profitability from each business unit (FedEx’s Form 10-K).” What are FedEx’s four main business segments? Provide two examples of traceable fixed costs for each of FedEx’s four business segments. Provide two examples of common costs that are not traceable to the four business segments. FedEx’s four main business segments are: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko’s. FedEx Express- Traceable: 1. The salary

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