Professional Documents
Culture Documents
E- Business
Ezgi Öztörün
Onur Okut
Agenda
A) About FedEx
1. Information About Company Establishment
2. Industry Development- FedEx Innovations (timeline)
3. Competitor Analysis
“Since its inception in 1973, Federal Express Corporation has transformed itself
from an express company to a global logistics and supply-chain management
company.”
A) About FedEx
3 main trends:
3) Competitor Analysis
To competitiveness of transportation companies depended upon 3 factors:
Their global network of distribution centers
Their ability to delivery wherever their customers conducted business
Speed- in order to avoid from the effects of rising inflation and global
competition
Strengths:
1) global scale Weaknesses:
2) new technology 1) prices
3) strong brand 2) labor disputes
image
Threats:
Opportunities: 1) relations with
1) global expansion foreign countries
2) world economic
2) joint-ventures
and political
conditions
“Although FedEx pioneered the Web-based
package-tracking system such systems became the
industry norm rather than a competitive
advantage”
B) Structural Transformation
Through E- Business
1) FedEx Problem
The effects of the internet on express transportation and logistics market was
twofold:
FedEx Corp.
FedEx
FedEx FedEx FedEx Viking FedEx Trade
Custom
Express Ground Logistics Freight Networks
Critical
FedEx Logistics
FedEx Home
Delivery
January 2000
Caribbean
Reorganization Transportation
B) Structural Transformation
Through E- Business
Introduction of a new low-cost residential delivery service - FedEx Home Delivery
Changes for B2B solutions
Growth in consumer e-commerce (B2C e-tailing)
BEFORE AFTER
Streamlined
Multiple automation
automation
10%
Did it provide the right
9%
ingredients to achieve
the objectives of 8%
2%
1%
0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Return on Sales Ratio
C) Between 2000 - 2010 FedEx
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
The adaptation problems of FedEx can easily be solved if our expectations will
realize. FedEx implemented an integrated system(like FedEx Corp.) The acquisition
strategy should always be complemented with integration strategy.
The problems in supply-chain of FedEx was solved with the support of internet
technology. Since 2000 transformations, FedEx renovated itself with e-commerce
applications such that B2C was a new idea for FedEx, unlike its competitor –UPS.
D) Questions and Answers
In 2000, FedEx did not only combine its subsidiaries but also transform its supply
chain systems. What factors gave rise to the structural transformation of FedEx?
The internet forced the company to consolidate its supply chain systems and
solutions as customers demanded global solutions .
Customers were confused because of decentralized structure of FedEx.
Integration with customer supply chains was the key.
Fill in the blanks:
______became
Speed of significance to achieve competitiveness, not only for the
transportation companies but also for their customers in
express transportation
____________________industry.
True or False?
After the 2000 implementations, FedEx did not anticipate to meet needs of businesses
specializing in B2C e-tailing.
False