FedEx offers a range of services with respect to transportation, business services and e-commerce. The management of a broad portfolio is conducted under related brand names segregated on the functional basis (Diffen, n.d.). The industry…
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DHL has a considerable market share of around 40% of the Asian market (The Economist, 2012). FedEx accounts for the market share of around of 49% in USA as compared to around 50% by the competitor UPS. FedEx has developed the fleet and service base that has built a strong reputation of the company. For example, GPS tracking, Online Solution (FedEx, 2012a), SenseAware (Business Wire, 2014) are some of the leading services from FedEx.
The industry in which FedEx operates is highly competitive and it has low switching cost for buyers and suppliers. Also, the industry is affected by high oil prices. FedEx, with its service to the global market, has focused on building competitive edge with technological innovation and is ranked at the 91st position on the Forbes Most Valuable brands (Forbes, 2013). Competitive information technology orientation has taken the place of absolute advantage for FedEx.
Change in the global trade agreements and patterns have a direct impact on the FedEx. FedEx supports FTA for the removal of barriers from Panama, Columbia, and South Korea. Furthermore, FedEx has capitalised the growth in global demand for the Korean products where Korea in all has generated $3.8 billion in the year 2011 (FedEx, 2012b). FedEx has planned to establish logistic hub in Pudong considering the global trade patterns between China to Europe where Shanghai Pudong International Airport is to take the position of hub (FedEx, 2012b). Hence, FedEx is keenly developing the comparative advantage from the changing global trade patterns. Furthermore, the company is also directly impacted by the varying regulations from country to country. For example, FedEx launched SenseAware in different market upon receiving security clearance from the respective countries’ and related organisations (Leung, 2011). Most recently it has expanded to 14 European countries and Canada. Such strong connectivity with the movement of sensitive products has developed
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