1. Technological advancements and use of the internet in a variety of transactions have increased the need of delivering documents overnight. In the midst of these changes in technology and outstanding demands, FedEx has prospered in the provision of its services. FedEx launched FedEx Electronic Trade Documents, which save on money and increase efficiency in shipping. This has caused fewer delays in the client’s orders whether daytime or nighttime. Universal Electronix, a retailer on the online front with commodities such as iPads, watches and many more electronic products, has recorded improvement and efficiency since the installation of FedEx Electronic Documents. FedEx applying technology has made delivery of packages overnight easier and faster. They also have a Super Hub with packages and other regional hubs. They are handled by COSMOS, which also tracks the distribution of orders. Customers are enabled to trace their packages using the internet.
2. Collaborating with key competitors such as the US postal service is beneficial for organizations such as FedEx who have a competitive advantage. It is a strategic partnership and FedEx is set to benefit. FedEx has a strong global branding and recognition, which gives it advantage over US Postal Service. FedEx also enjoys dominance as the world’s biggest service provider in air delivery. Collaborating with a company that enjoys government protection benefits FedEx as it receives incentives from the government, which contribute to the overall returns of the company. However, the government control can have negative implications such as bureaucracy and lack of a flexible structure.
3. FedEx and UPS Have both similar delivery services and different delivery methods. FedEx has a package delivery model that includes independent contractors while UPS does not engage independent contractors. Using contractors is cutting costs within FedEx and capital is installed in other sustainable and long-term projects. The company therefore, has a competitive advantage over UPS (Bowen n.p). UPS has a standard procedure in its organization, which is not flexible like that of FedEx. On the ground, delivery by FedEx ground is enjoying growth in its business strategy and flexibility.
FedEx has managed to succeed in technical superiority over FedEx. FedEx has a sound technological system, which can adapt to present, and future changes. Efficiency has improved with the adoption of an internet tracking system and FedEx electronic Trade documents, which have eased the process of transactions. Sending packages is easier with FedEx as compared to UPS with the use of electronic documents. FedEx promotes the safety of the environment with the reduced paper use. FedEx is also reliable. Many people prefer FedEx because of its reliability and twenty-four hour services. Even though UPS started a twenty-four hour system FedEx has proven to have high levels of expertise, speed, accessibility and experience.
Services by FedEx are better as the customers can reach the customer care services fast and have a quick response to their problems and queries. With the leadership FedEx is enjoying, it can be able to enjoy its advantage over major competitors. The customer base is still strong, and the positive image sustains the company amidst turbulent moments. Level of technology used by the company can also sustain it and enable it to change with future technological advancements (Birla n.p). In addition, the strategic structure of the company is stable with sound and sustainable policies. However, the company can face a few crises in the future. Increased competition from UPS as it focuses on restructuring and reestablish as the market leader poses a threat to FedEx. UPS has also adopted an internet tracking system similar to FedEx, and this is a sign of the technological improvement that is being undertaken by UPS.
Contract delivery is also facing some legal hurdles. Litigation and court cases may put the company in the wrong picture among its customers who may refrain from hiring its services. To prepare for these crises, the company can implement. The strategies include each level of the firm such as corporate, Business Unit and Functional Unit (Parnell, p. 106). At the corporate level, some of the options include growth of the business structure at both internal and external levels, ensuring stability within the organization and departments and retrenchment to reduce overhead costs. Retrenchment can also be done to reduce the legal implications of the contract employees. The business unit can also benefit from a few changes in the level of business outreach.
4. Expanding services to China provide FedEx is one of the best ways to boost the growth of the company. Growth is good for a company as it creates new opportunities for the company to venture in and offers challenges of a new market. However, understanding this new market can pose significant challenges such as the difference in cultures. Aggressive movement into China will also increase income for the company. The Chinese market supports the company’s one-day delivery services. Just like the American market, China is also in need of fast and efficient delivery services. China is rapidly becoming integrated into the world market and therefore, FedEx needs to provide these services.
Parnell, John A. Strategic Management: Theory and Practice. Cincinnati, OH: Atomic Dog Pub, 2004. Print.
Birla, Madan. Fedex Delivers: How the World’s Leading Shipping Company Keeps Innovating and Outperforming the Competition. Hoboken, N.J: John Wiley & Sons, 2005. Print.
Bowen, J.T. “A Spatial Analysis of Fedex and Ups: Hubs, Spokes, and Network Structure.” Journal of Transport Geography. 24 (2012): 419-431. Print.