ARLYENE.MIRANDA.SREELAKSHMI ANUJA .NIVILIKARSUMIT.NAIRVIDDHI.PAREKH

Welcome to

History Founded in 1971 by Frederick W. Smith. First Investment 1980’s:

– FedEx reached its maturing stage.– First US company to reach $1 billion in

revenues. FedEx handles 3.3 million packages

Yesterday and TodayApril 17, 1973 – First day of Operations

– 186 packages– 25 cities

Today – 210 countries

Global network – Asia-Pacific– Canada– Europe, Middle East, Africa– Latin America-Caribbean

CURRENT STATISTICS

2011 REVENUE= $ 39.3 billion

290,000 + EMPLOYEES50,000+ LOCATIONS

MILESTONES1975 – First showed profits1977 –Deregulation for air

cargo allowed use of larger aircraft

1984 – Services to Europe and Asia began

• Cost effective.• Alternative for small

packages.• Distance and time are wider.

• When customers need it now.• 24hrs. 7 days a week,

including nights, weekends and holidays.

• Most familiar service.• Handles millions of shipments.• Delivers in 1 to 2 business

days.

• Heavy weight shipments.• Less than truck load (LTL)

freight.• 600 miles next day delivery.• 1,600+ miles second day

delivery.

• Custom brokerage.• Electronic custom clearance.• Speed shipments across the

border.

GENERAL ENVIRONMENTGlobal Provider of: - Transportation - e-commerce - supply chain management FedEx an Innovator company: - Overnight package and letter

delivery - 10:30 am next day delivery

- Saturday delivery service

EXTERNAL ENVIRONMENT

Household nameCompetitive environmentGlobal Presence IT advancesStrong market position in air

freight

COMPETITIVE MARKET

World wide presenceDominates ground services domesticallyHigh market share in the USAcquired full ownership of Mail Boxes, etc. Intense competition with FedEx

COMPETITIVE ENVIRONMENT

Recent acquire of ground services Specialize in air freight deliveriesGlobal presenceOther mergers, the effects.

COMPETITIVE ENVIRONMENT

Largest customer, but strong competitor

Attempt injunction against the alliance

Competition Between FedEx and its Rivals

Is extremely intense• New business strategy

e.g.) UPS who is specialized in ground shipping has came up with UPS Overnight

e.g.) FedEx who’s main focus is in the business segment is planning to enter the residential market

None of the companies have a clear domination over one another

Political donations and lobbying

According to the Center for Responsive Politics, FedEx Corp is the 21st largest campaign contributor in the United States.. In 2001, FedEx sealed a $9 billion deal with the USPS to transport all of the post office's overnight and express deliveries.

In 2005, FedEx was among 53 entities that contributed the maximum of $250,000 to sponsor the second inauguration of President George W. Bush

During the first three months of 2010, FedEx spent nearly $4.9 million lobbying the federal government (UPS, FedEx's main competitor, spent $1.6 million on lobbying over the same period), a 4% increase from the $4.7 million spent during the last quarter of 2009, but more than twice what it spent on lobbying during the first quarter of 2009.

INTERNAL EVALUATION

Management Uses strategic management in

planning and meeting goals

Strong in its corporate structure with low absenteeism and low turn over rates at the corporate level, by paying well and showing respect

2002 hours were reduced, with wages and benefits increasing but with profit and incentive sharing plans reduced

Marketing Major advantage by being a

household name

Able to respond to a changing consumer environment by operating independently completely and collectively

INTERNAL EVALUATION

Finance/Accounting

Fairly strong financial position

Year 2002 Highlights include large free positive cash flows, 22% increased net income and a $.05 dividend declared on common stock.

Fairly weak in leveraging; incurred large amounts of debt for an expansion project.

Production/Operations

Industry leaders in Air Express

Handles well over 3 million packages daily.

Excellent ground crew & pilots

24 hour customer service

INTERNAL EVALUATION

Research & Development

Very innovative R&D team.

Six year expansion plan – Estimated cost of over

1.8 Billion– Doubling package

volume capacity– 10 new distribution hubs

& 23 expanded hubs– Relocation or expansion

of up to 300 existing facilities

– Expected completion in 2009

CIS Highly innovative

software user and designer.

Very aware of competitors programs and systems.

Constant and up to date system employee training.

SWOT ANALYSIS

Strengths

– Household name

– Product quality– Global

expansion– Abreast in

technology– Air fleet

Weaknesses– Employee racial

discrimination– Lack of ground

transportation force

– Costly technology innovations

– Judgment for late deliveries

– Increased debt

SWOT ANALYSIS

Opportunities

– Global business growth– Online consumer services– Increase demand in logistics– Alliance with USPS

Threats

– Foreign competition entry into home

– Economic standing – Online competitive

advantages of rivals

– Gain in competition service costs

STRATEGY FORMULATION

Strategy with

Last minute discount air travel tickets available to the public in order to gain additional profits from the already existing and operating transportation system in use

Major positive strength and opportunity(SWOT Analysis, Space Matrix)

Travel

STRATEGY FORMULATION

Strategy

Enhancing and providing existing postal services formally provided by USPS

Strong opportunity and high competitive advantage

(SWOT Analysis, Space Matrix)

Mail

STRATEGY IMPLEMENTATION

Strategy – Concentric

Diversification/Horizontal Integration

– Additional personnel– Insurance– Training

employee evaluations

Mail

STRATEGY IMPLEMENTATION

Service sites by way of franchise – UPS and Mail Boxes, etc.

Ample resources to accommodate USPS needs

Expansion project can handle additional/new inflows– Extra packages and mail

Mail

STRATEGY

AdvertisingTVInternetSporting events/arenasNew labeling on boxes

Mail

FedEx’s AD CAMPAINGN

When it Absolutely, Positively has to be there overnight" – 1978–1983

"It's not Just a Package, It's Your Business" – 1987–1988 “ Our Most Important Package is Yours" – 1991–1994 "Absolutely, Positively Anytime" – 1995 "The Way the World Works," 1996–1998 "Be Absolutely

Sure," 1998–2000 "This is a Job for FedEx," 2001–2002 "Don’t worry, there's a FedEx for that,” 2002–2003 "Relax, it’s FedEx," 2004–2008 "We Understand," 2009– "WeLiveToDeliver" 2009 "Brown Bailout" 2009– "The World On Time" 2009

BRAND RECOMMENDATION

Social Marketing Campaigns

BRAND RECOMMENDATION

Business Twitter Campaign Register with Twitter to get discounts on services

offered at FedEx Office deliver tips for small business owners

• Tax tips• SBA Classes or Seminars• Networking Opportunities

Personal Twitter Campaign• Register to win tickets to FedEx sponsored sporting

events• Reminders about FedEx Sponsored sporting events• Scores and Highlights of FedEx Sponsored events

BRAND RECOMMENDATION Marketing to help reinforce the brand Viral Video Ads that reinforce image of speed

and agility Ex. Orange Bowl Highlight with images of FedEx Development of a FedEx Application on people’s

pages Research and Development Efforts

• Corporate Page for people to join and provide feedback

– and ideas for products or services to improve

Marketing to help reinforce the brand• Banners to help market services for

professionals – and small business

Research and Development Efforts• Host a group for small business owners to – share tips and needs • Review the posting to determine potential – marketing opportunities

BRAND RECOMMENDATION

BRAND RECOMMENDATIONS

Alliances: Google• Google pushes and

new products• Google is a global

powerhouse on the internet• Co-brand cloud

computing and information

exchange services

TOTAL INCOME

GROWTH OF FedEx AS COMPARED TO ITS COMPETITORS

…and remember to mail by Mail