The ability to keep up with E-businesses will depend on how well a company can keep up with new emerging technologies. On January 19, 2000, Fedex announced a new branding strategy that resulted in change of company's name to "Fedex Corporation" and extended this Fedex name to four of its five subsidiary companies. Fedex's strategy was to take advantage of its brand image, name that customers have counted on for reliable service and cutting edge technology. The new organization is geared to help businesses of all sizes in achieving their goals.
Fedex's strategy was to capitalize on growth of E-business and aimed at integrating its physical transportation with its virtual information infrastructures to create a large matrix of systems that meets needs of businesses ranging from transportation services to complete supply chain management solutions. (Lockamy and Khurana, 2005, 54-90) The process of building systems and technology infrastructure was first step in transformation. This was done by announcement of January 2000 restructuring, which would cost approximately US$100 million over next three years. (Lockamy and Khurana, 2005, 54-90)
An excellent strategy matter for a large organisation, this would enable them to pursue competitive strategies of cost reductions, resulting in an aim of a "better ability to meet customer needs and increase their competitive leverage". (Johnson and Scoles: 2006) To achieve this strategic intent, Firms would to need adopt an operational strategy of reducing wasteful production in order to increase sales and market share. The strategy that firms is following after its review of focus is one which aims to be differentiated across several markets, both geographically and product based, and to achieve world-class dominance in their key markets.
They have continued their corporate level global strategy and have developed encompassing production, development and marketing operations in each of major microelectronics market in world. De Wit and Meyer suggest that firms have to "achieve enough power to counterbalance demands of suppliers and buyers, to outperform rival producers, to discourage new firms from entering market and fend off threat of substitute products". Ford hopes to meet its objectives by having that power in each market and by being close to each major market enabling it to be responsive to their needs.
In addition, Ford has chosen to resizing company to match current market realities, dropping some unprofitable and inefficient models, consolidating production lines, and shutting factories and cutting jobs. For example Ford has chosen this strategy in response to market demands in which it operates. The industry in which it operates is one upon which nearly all other industries depend due to advances in technology, and have stringent requirements for innovation and quality. They are at beginning of supply chain and are of strategic importance to their customers.
Therefore, they realise importance of a reliable and diverse source of supply to this industry; one which will work closely with its customers and one which has capacity to be innovative in response to constant changes; hence Ford mission statement - We collaborate with others to revolutionize our core business processes and to stay ahead of our rapidly changing industry.. At Ford Motor Company, we forge partnerships to better connect with our customers. Together, companies like yours and ours can offer digitally a broad range of innovative products and services.
We carefully select those alliance opportunities that enable us to deliver better ideas into marketplace in new and exciting ways. (Lockamy and Khurana, 2005, 54-90) Competitive advantage through competitive strategy options; price based, differentiation based or focus strategies. (De Wit and Meyer: 2002) they suggest strategy can be based on price, features, bundling, quality, availability, image, and relations. Firms have to determine what buyers find important. Porter (cited in De Wit & Meyer) suggests that firms must chose between lower cost and differentiation. He says you cannot do both.
Global The international market place is by far company's most prominent growth opportunity. The Fedex global story began with growth of Fedex Express, which today covers more than 210 countries with quick, reliable express transportation. Fedex has been a leader in global economy, offering customers more choices and more places. The family of companies representing Fedex operates hubs all over world, giving customers limitless opportunities to expand their customer base. Each member of Fedex family also offers targeted transportation and information solutions in following international locations:
Fedex technology enables customers, couriers and contract delivery personnel to wirelessly access company's information systems networks anytime, anywhere. In fact, Fedex was first transportation company to embrace wireless technology more than two decades ago, and continues to be a leader in use of innovative wireless solutions. Customers can access package tracking and drop-off location data for Fedex Express, Fedex Ground and Fedex Home Delivery via Web-enabled devices such as WAP phones, Personal Digital Assistants and pagers.
Fedex couriers, contract delivery personnel and other team members use wireless data collection devices to scan bar codes on shipments. These "magic wands" are a key part of what makes it possible for you to find out where your package is in transit, whether on a Fedex Express jet speeding across Atlantic Ocean or a Fedex Ground tractor-trailer on Pennsylvania Turnpike. On average, Fedex Express and Fedex Ground packages are scanned at least a dozen times from pickup to delivery. At pickup, each package's shipping label bar code is immediately scanned to record pickup time, destination and delivery commitment.
The scanned information is uploaded to Fedex mainframe. Bar codes are scanned again at every key step of shipping process, allowing customers to follow status of their shipments throughout journey. Fedex's newest data collection device for couriers incorporates a micro radio for hands-free communication with a printer and mobile computer in courier's delivery vehicle. Called PowerPad, devices use Bluetooth wireless technology that allows them to communicate with each other within 30 feet. (Lagrossen, 2003, 109-128) Strategic Decision Making Process Most parcel carrier firms emphasize same strategic dimensions and use similar strategies.
Once common strategy that is occurring parcel carrier business is high investment in research and development in order to develop better technologies. In parcel carrier business, firms with best technology tend to have a higher market share and this can be seen as a competitive advantage. (Lagrossen, 2003, 109-128) Business Mission, Objectives and Policies of Fedex As stated above, one of key success factors in parcel business is technology. This is what makes a company run and ultimately makes money for company. Another key success factor is marketing.
People need to be familiar with carrier's names and services so they have trust in quality of service provided. The more a parcel carrier is globalization; better success it will have when it comes to international deliveries. International deliveries are costly and there are only a few carriers that can provide total global delivery services and this could be a competitive advantage. Customer service is very important, carriers need to keep customers satisfied with service so they continue to come back and use service. 1. Operations- shipping products, logistics, value chain analysis, financial analysis, handling orders, checking orders.
2. Outbound logistics- delivery of products, receiving payment. 3. Marketing & Sales- develop a positive image of company making people feel comfortable and satisfied with product. Explain core competencies. 4. Service- Concentrates on customer satisfaction, doing anything that satisfies customers. Due to fact that United States Postal Service is run and operated by US government many of financial ratios are not available for this organization that are for many of competitors. However, information that was attainable from balance sheet and income statement seemed to be extremely high.
It would probably unfair to compare these numbers to other packaging and shipping competitors since US postal service is part of government and they are including mailing service, which is not part of any of other shipping companies. (Lagrossen, 2003, 109-128) Problem Solving Process One thing that really helps US postal service add value is fact that it delivers all mail throughout United States. Pretty much everyone uses this service provided by US Postal Service giving him or her a competitive advantage over other packaging services. One thing that they believe really adds value to their business is their reliability and consistency.
The US postal service also feels that consumer values safety and security it gets with US postal service. Lastly, new development of online service part has benefit to organization too. One Market-Electronic Global Presence The globe is shrinking and Fedex will need to have a global presence through global distribution systems or lose out to those companies better able to serve global needs. Economic, technological and ecological forces intensify demands for global integration and uniformity. Geographic separation is being rendered irrelevant by explosion and convergence of communications, information, entertainment and commerce.
In a global interconnected marketplace, where boundaries, even trade regulations, are being rendered obsolete, consumers clamour for equal access to global goods and services, so that shopping is developing a consistence flavour throughout world. Major Fedex are becoming more central players in global affairs than most nations. Customers, as evidenced by exponential growth of internet commerce, are less citizens of a particular nation than belonging to universal tribe of consumers defined by needs that are becoming increasingly ubiquitous. (Lagrossen, 2003, 109-128) New Social Responsibility
Major commercial Fedex will take on increased responsibilities for education, infrastructure, community welfare and security. For example, it is commonplace for mining ventures in under-developed regions to be responsible for establishment of a community infrastructure through provision of roads, schools, medical services and employment for indigenous population. Similarly, in advanced nations, functions such as job placement, vocational training and even operating prisons-areas that seemed to be exclusive preserve of government-are increasingly being devolved to private enterprise.