About The Business And Operations Of Fedex - Research Paper Example

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FedEx The following is a research paper about the business and operations of FedEx. FedEx, renamed from Federal Express in 2000, is a logistics and courier service company that has operations in over 220 countries. Established in 1973 in Tennessee, FedEx has gained business and market penetration all across the world and is one of the main players in the logistics industry…
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Research Paper About The Business And Operations Of Fedex
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Download file to see previous pages In addition to that, FedEx bought Kinko’s in 2004 and rebranded the offering into FedEx Office. With this brand, the company provides office supplies and printing services to consumers including computer use products, USBs, paper, business and greeting cards, stationery, mailing boxes and supplies, etc. b. Role of technology FedEx uses topnotch technology and MIS in everyday business that allows tracking of big and small packages across the globe. With the most advanced telecommunications and computer networks in place, a customer is able to log into the FedEx online website and track the exact location of the shipment and have an accurate understanding of when the product will reach destination. FedEx also offers FedEx Ship Manager at fedex.com, FedEx WorldTM Shipping Software and well staffed call centers (fedex.com) for the help of customers in tracking their shipments. In addition to that, FedEx utilizes advanced software and programs to assist employees in their everyday work and to be more efficient. For corporate clients, the company has innovative products such as Critical Inventory Logistics service through FedEx Supply Chain. c. Product life cycle FedEx is a mature company that has been in business since 1973. FedEx is in the maturity stage, as shown in the diagram1. However, the company has managed through innovation, new product development, increased customer outreach and efficient business practices to expand this cycle with higher sales volume. d. Price elasticities The logistics industry is highly competitive with not only international players such as DHL, FedEx and Maersk but also an abundance of local (domestic) players in various countries. This means high price elasticity for some of FedEx products. In the U.S. market alone, the two biggest players are UPS and FedEx and customers switch between the two based on the product and service prices. e. Substitute products and service The logistics industry is directly related to businesses and consumer demand for their products. A logistics company is run on a huge investment and requires use of infrastructure. The occurrence of FedEx substitutes is limited to competition such as UPS and DHL; there are no real substitute options for logistics companies that can service the customer need satisfactorily. Market trends Economic activity has a direct impact on the demand for logistics and transport. The logistics industry sees a boom when economies are robust and active: businesses have consumer demand for their products and the timely delivery of the products is based on the performance of the transport company. Conversely, a slow or bad economy shows a sluggish demand for logistics services. The economic downturn of 2007 impacted the logistics industry in a negative way. With a recessing global economy, trade slowdown and conservative consumer demand, logistics industry also faced scarce demand. a. Consumer behavior FedEx has individual customers as well as business or corporate customers. Both types of consumers have a few definite needs. They want specialized, customized products that target their specific needs. While creating a customized product for a corporate customer is more feasible and cost effective than creating one ...Download file to see next pagesRead More
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