FedEx Company Competitive Advantages - Research Paper Example

Methodology

In this research study the methodology used is quantitative research method where survey and customer data base survey will be conducted to collect data from the participants. A quantitative research method emphasis on objective of the research question and deals with logic, number and objective stance. The quantitative research method is a scientific way of understanding a problem and acquiring data from a sample population to arrive at an outcome. The purpose of this study is to determine the various business strategy that can be employed to gain competitive advantage for the company. Primarily, in the research design section, the definition will be laid out regarding the type of research design, the sample population, the procedures and instrument used.

Research Design

To conduct primary research, a survey research design is used to investigate upon the research problem with help of qualified people in the company. More specifically the research design will address the research question which is relevant to this research study. The research problem which is being assessed in this paper is “What are the business strategies that can be used by the company to gain competitive advantage”?

Data Collection Method and Tools

Data collection is an important phase in research process and it can be performed in various ways. In this research both primary and secondary research is used to acquire data and in this manner the research can be more productive. Primary research will include preparing and

distributing a questionnaire or interviewing people with a prepared set of questions. Primary research is a research method by which the opinions and statements of people can be attained face to face and is more credible and instantaneous. It can be conducted through surveys, observation and interviews. Primary research is designed to meet the specific needs of the researcher and can deliver specific result. Unlike other kind of research, the primary research aims to answer question which is relative to the specific company for which the research is being done and for the same purpose the research can be subject oriented. Unlike primary research, secondary research is a form of research where information is collected from organization which does not involve face to face interaction.

This research used survey as part of primary research where data collection acts as a tool for u questionnaire. The questionnaire is constructed with various questions pertaining to research question and would attempt to identify the participants opinion, feeling and emotions regarding the subject. The use of questionnaires will be effective in terms of gathering a large amount of data (Neuman, 2011). The main advantage of survey is that the researcher and the participant meet face to face and this offer a personal and direct contact between the two parties and will reduce non – response rates. However, the researcher needs to be skilled to carry out the survey successfully and the necessary steps should be taken to not deviate from the research purpose of the paper. As a part of data collection, the semi – structured questionnaire which will be utilized as a guide to research. For this purpose, certain questions will be constructed to get assistance towards the compliance of research objectives. The questionnaire design is in adherence to the subjectivity of the research.

The design of the questionnaire will have three elements to be considered;

•Understanding the questions to be asked.

•Selecting the nature of question to be asked and how the wording is structured.

•Designing the questionnaire layout.

The questionnaire will incorporate 10 questions which will include both open and closed questions. The questions will primarily cover the employment status of the individual, and their opinion regarding the business strategy of the company. Additionally, as part of secondary research the customer data base of the Fedex company will be utilized.

Sample Selection

The participants for the primary research are selected considering the research objectives. As the sample population, individuals were chosen from the company who could impart their opinion regarding the competitive strategy of the company. The sample population were individuals who were employees at the company and were selected based on their employment status. In this dimension, huge information can be obtained from the sample, as argued by Saunders, Lewis, and Thornhill (2012). Bryman and Bell (2011) adds that it may sometimes lead to represent biases in opinions of the respondent who were like the context of the population for conducting this research. Around 35 employees were questioned as the part of the survey. All of them were executive managers and senior managers who have understanding on the production, marketing and sales activities of the company. In case of secondary research 20 customers were selected from data base and their demographics and response on the company’s service were analyzed.

Data Analysis and Findings

Data analysis is conducted depending upon the data collected with the help of surveys and customer data base. The data was collected and then processed in response to the research problem addressed in the research study. The data collection ad data analysis was influenced by the need to acquire knowledge regarding the business strategy needed to attain competitive advantage. The data collected from the respondents is both analytically and systematically evaluated using statistical methodological tools. The data is evaluated in terms of graphical representation and numerical form to interpret the information needed to address the research objectives. Each analysis is compared with the existing principles - discussed in the literature review - to formulate concrete conclusion and findings in the most effective manner.

Questionnaire Response Rate

The overall questionnaire response rate was 90 %(31/35) out of which 97% was valid and 3% was invalid.

Reliability Statistics

Cronbach's Alpha

N of Items

.977

10

Table 1: Reliability Statistics

The Cronbach Alpha test was used to check the reliability of the instrument. Cronbach Alpha is used to check the measure of internal consistency where in a set of items as a group is tested. To be excellent, the Cronbach Alpha needs to have a value greater than 0.9. With this research study, the set of instruments used is evaluated to understand its reliability. The reliability test is used to measure the consistency of the research instrument. This helps in understanding whether the instrument used for gathering data is reliable or not. The instrument used in this study is the questionnaire and reliability of each question are evaluated. The results of the Cronbach Alpha test show that the value is 0.977. This shows that the scale used for gathering primary data is reliable and have an excellent score.

Demographic Information

Fig 1: Employment Status

Figure 1 shows that almost 10 of the respondents out of 35 were executives and 25 of them were senior managers. With this result, the characteristics of the population selected can be analyzed.

Fig 2: Business Strategy to gain Competitive Advantage

Figure 2 shows that almost 18 respondents approved that the business strategy used to gain competitive advantage is service differentiation while 15 of them commented that cost leadership is the business strategy used for the same. Rest 2 of the respondents asserted that company follows technology based strategy.

Fig 3: Differentiation Strategy Efficiency

From the fig 3 it can be observed that 18 of the participants commented that the differentiation strategy the company is efficient while 15 of them commented that it is not efficient.

Fig 4: Frequency in Use Innovation & Creativity

With the fig 4; it can be observed that 33 respondents favor innovation and creativity based strategy while 2 of them are against it.

Fig 5: Belief in Service Differentiation

From the fig 5 it can be observed that 28 respondents among 35 believe in service differentiation as a business strategy to improve competitive advantage while 7 of them are against it.

Fig 6; Use of Cost Leadership

From the fig 6 it can be detected that 4 respondents confirm the use of cost leadership as a business strategy to improve competitive advantage while 31 of them denied the use of the same.

Fig 7: Company as a Low- Cost Producer

From the Fig;7 it can be understood that 34 respondents agreed that the company is a low – cost producer while 4 of them agreed the company is not low -cost producer.

The question 8 was an open -ended question and all the respondents agreed that technology based strategy is highly efficient in gaining competitive advantage.

Fig 8: View on Innovation and Information Strategy

From Fig 8 it can be understood that majority of the people consider innovation and information strategy as good while 6 of them consider it to be extremely good.

Fig 9; Effectiveness of Performance Efficiency Strategy

From the fig;9 it can be figured out that around 33 respondents think that performance efficient strategy is useful in gaining competitive advantage while 2 of them responded that they did not believe in performance efficient strategy useful in gaining competitive advantage.

Relationship Analysis

The relationship analysis is conducted with the help of Cronbach’s alpha co – efficient analysis

Cronbach's alpha =

0.582169

SEM =

1.36981

SEM (alternative formula) =

1.36981

SEM* =

1.46213

The co – efficient reliability for Cronbach alpha ranges from 0 to 1 and α coefficients that are less than 0.5 is not acceptable. From our statistical analysis we can find that the Cronbach’s alpha is 0.582 which means it our questionnaire is reliable and can be used to assess the research problem. The Cronbach’s alpha suggests that all items in the questionnaire are correlated to each other. Also, the SEM (Standard Error Mean) shows 1.46 which means there is less error in the sample population.

Appendice

Questionnaire

1.What is your employment status?

ExecutiveSenior Manager

2.What is the main business strategy of the company to acquire competitive advantage?

Service DifferentiationCost leadership

Technology based Strategy

3.Is the company efficient in practicing differentiation strategy?

YesNo

4.Does the company apply innovation and creativity as a differentiation strategy?

Not Often More Often Less Often

5.As a manager do you believe in service differentiation?

Yes No

6.Is cost leadership an integral part of the business strategy?

Yes No

7.Is the company a low -cost producer in the industry?

Yes No

8.What is your view on technology based strategy to improve business advantage?

…………………………………………………………………………..

9.What is your view on Innovation and Information based strategy to enhance competitive advantage.

GoodNoVery Good

10.Do you think performance efficiency strategy can gain competitive advantage for the company in future?

Yes No