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Business Management - Assignment Example

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The company began under the leadership of Fred Smith Jr. and has undergone a number of changes since its inception to become one of the most successful businesses in…
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Business Management
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Download file to see previous pages Strategic partnerships with other business organizations have been a key factor which has helped the company in its global expansion and dominance.
In general four blocks of competitive advantage has been identified that provides an organization to outcompete its rivals. These are efficiency, customer responsiveness, quality and innovation. These factors help a firm to achieve either lower cost or higher product differentiation which in turn provides competitive advantage. In case of Federal Express for the company to maintain its profitability above average it is integral that it continues to develop its logistics more robustly (Gendron, 2012). The development of logistics services began from the period of 80’s and all the major competitors began to provide logistics services to assist the business customers in activities like assembly operation, warehousing and distribution. This can help the organization to develop its customer responsiveness and contribute in the long term-profitability. Better logistics management can help the customers to meet their customized requirements into a standardized physical network. Two direct advantages can be derived from this firstly, the reduction of cost and secondly higher cost capacity utilization. The customers can achieve higher level of satisfaction from the better security arising from this. Therefore, it seems plausible that higher investment in the BLS Division of the company which takes care of the logistics division is likely to bring more customers for the company which in turn will help in achieving higher revenues. This strategy is better than the price cutting strategy as such behavior often induces similar responses from the competitors which may fail to provide benefits in the long-run. Also UPS one of the biggest rivals of Federal Express had focused heavily on improving its logistics services in order to retain its competitive advantage throughout 2000’s. This is perhaps one of the ...Download file to see next pagesRead More
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