Between (6-8) towards Way of Growth: Strategies and Expansion of FedEx Freight

Fedex, a freight forwarding business, has diversified strategies for growth, including acquisitions and investments in technology and automation. The company aims to provide superior service and options to customers, prioritizing their time and convenience. Fedex has expanded its global reach through various acquisitions since 1984, with a presence in over 220 countries. Additionally, the company has robust Corporate Social Responsibility initiatives in place, focusing on charitable giving, sustainable transportation, employment pathways, road safety, and global entrepreneurship.

Introduction
To serve as the parent holding company of freight, Fedex express, fedex was taken in
as the parent company in 1997. Fedex corporate services Inc is the parent company that
provide strategic decisions to Fedex express. Fedex struggles to provide the best customer
experience and increase the brand value through satisfaction of customers by the integrated
corporate strategies.
Strategies:
Generic Strategy:
Fedex had initiated a number of solutions to enhance the customer satisfaction.
Example may be given on the one call solution launched by Fedex in 2006 that gave
customers the option to choose from the mix of air and shipping and surface available from
Express, Freight and Custom services choosing from a variety according to their need and
convenience. Based on the delivery and pickup requirements customers can choose from a
broad range of services and this is based on the time bound activity and the characteristic of
the product being shipped. The technology is also upto date and modern which facilitates
customers to use their options through call or through portal and track their shipments, order
and pay as per their convenience. The services are extremely automated and are coordinated
and have cohesion throughout the organisation. The information systems are extremely robust
and provide end to end solution with the customer. Fedex.com provides end to end solution
for air, surface and sea and the customer is easily led though instructions to choose options of
his services.
Fedex manages business portfolio as a whole in the best interest of the organisation
and not as parts. Collaboration has paid its incentives in Fedex being managed
comprehensively in retail, business investment, maintaining customer portfolio, sharing of
information, investment opportunities and expansion. It has also helped the integrated
information technology of the business.
For each Fedex company decision is made to optimise the cash flow and make
prudent investment to help grow the business into a robust earning and service oriented
opportunity organisation. Each segment enjoys the autonomy to focus best in the sectors of
market in which it is best suited to work and has expertise. According to location and

customer needs, the company’s sectors are allocated with unique structure , policies and
culture to serve the customers of different region adequately and deftly.
Fedex Operation Strategy:
The operation strategy of Fedex is a mix of collaborative and regional impetus to
encash the collective gains like asset allocation, cash flow, investment and technology, the
shared resources ; as well as mobilise the regional variation and expertise to encash the local
market and tap and satisfy the local consumers. Fedex strategy is “Operate independently,
compete collectively, manage collaboratively” and this has done the wonder in terms of
operation. Fedex’s collective competition has given it the strength to increase the flights,
purchase aircrafts, increase networking and increase the international customer base. Fedex
increased capacity and introduced services to and fro from Europe to Asia. This kind of
increase in the services and quatum leap in case of capacity has been possible because of the
collaborative effort of the company.
The network capacity at the Fedex Ground and Fedex Freight company has increased
from 2011
Diversified Strategy:
Fedex also has diversified strategies for Fedex Express, Fedex Ground , Fedex Freight
Fedex express strategy is to aim at the profitability and long term sustenance of the
business The goal of Fedex Express is to improve profit by 1.2 to 1.5 billion dollars for
financial year 2020 over financial year 2017.
Fedex ground strategy is to leverage the potential of the business and optimise
growth by following the seven core values of the company segment that includes:
 Imbibing a culture that is low cost
 Induce innovation in automation and technology
 Foster excellence in engineering
 Serve more than the customer expectations

 Excel in execution
 Make an operation model that is flexible
 Superieority in line hauling.
The company also aims at providing superior service by way of innovation
 The unit has built a better ground service and provides faster service to ground
locations than UPS ground.
 The company overlooks increasing the effectivity of speed , quality and reliability of
services by diminishing transit time.
The company invests in technology and Automation
 Leading technology in ground industy makes the automation of the flow of packages,
better tracking and less of handling.
 Advanced address technology and mapping has improved the capacity to plan pick up
and deliveries.
Manage yields
 The service is focussed to put in the right network the right package to match the yield
of the service.
Expanding the network
 The company always invest in expanding network to capacitate itself towards the way
of growth.
Strategies of Fedex freight is also encoded and diversified .
The strategy for Fedex freight is to provide superior service and options to the customer
 The time and convenience of the customer is important and that is why the unit
continues to search for opportunities to save customer’s time
 As a consequence the time of commuting differs greatly from other freight services of
the market.
The motive is to improve the speed of the freight
 Freight continues to improve transit times in the U.S and across North American
international borders
 We focus on simplicity, consistency and reliability
The services invest on technology and automation
 The company is automating plenty of their transactions
 The efficiency is improved by curtailing the non-value added systems and process.

 Efforts are on to make easy the systems to give thrust to LTL and shipments of parcel
through single interfaces.
The Unit aims at becoming the most profitable of the LTL carrier
 There is continual optimisation of freight’s design to provide greater returns.
 The unit actively manage the yields and focus on differentiating the services.
 The progress is good in terms of the support yielded to small and medium sized
businesses over the world.
Thus the diversified strategy helps to secure the company the premier position in freight
in all three units and gives them the advantageous positions over their competitors and helps
thems to perform with strength.
International moves made by the organisation
The organisation performs internationally in providing the freight services to the world and
has made acquisitions since 1984 that has enlarged its global reach. The extent of global
reach is being presented by the following chart which will help us to understand the global
reach of fedex to some extent.
Year Acquisition Overview
1984 Gelco Express
International was
acquired
Fedex expanded its base at the U.S with the
acquisition of 1gelco , a worldwide courier service
1989 Acquired Tiger
International Inc
With the annexure of tiger , Fedex became the
world’s largest all cargo airline. The acquisition
brought in the facility to route 21 countries
including a fleet of cargo aircraft – boeing 747s
and this facilitated the flight service throughout the
world
1998 Caliber System Inc Fedex created FDX Corporation and grew its
portfolio of services with the addition of ground
small package carrier
2000 Tower Group
Intenational Inc
world Tarrif Ltd
Fedex trade networks is created which is one of the
largest custom entry filers in North America
enabling fedex to reap its harvest
2001 American
Freightways Corp
Viking freight is complemented by this less than
truck load carrier serving central and eastern U.S
2004 Kinko’s Inc. With the backing of a fortune 100 corporation
1200 kinkos stores are opened by fedex to expedite
and expand business and international operations
2004 Parcel Direct is acquired and the residential
delivery portfolio is widenced it is named Fedex

Ground and then renamed Fed Ex Smartpost . The
fast growing e-tail and catalog industries seeking
low cost effective means of shipping low-weight ,
less time sensitive goods to residential customers
are best served by this unit
2006
ANC Holdings ltd
Acquiring this unit helped Fedex to do business in
the domestic market of the whole United Kingdom
directly.
2006 Watkins motor
lines
A leading provider of long haul LTL services is
acquired by fedex for 780million USD
2007 Flying Cargo
Hungary Kft
The Hungarian global participant is acquired by
Fedex giving it a wholly owned operation in one of
the dynamic market of the region
2007 Tianjin Datian
W. Group Co ltd
Fedex Corp acquired Tianjin Datian it is a joint
venture of 50 percent share from fedex of this
chinese company
2007 Prakash Air Freight
pvt ltd
The primary Indian service provider of Fedex had
been acquired by it
2011 AFL Pvt. Ltd /
Unifreight pvt ltd.
This is another acquisition in India which provided
Fedex with more robust customer base and
enhanced capabilities in India
2011 Servicos
Nacionales Mupa
Fedex expands the delivery and distribution of
logistics and warehouses in Mexico through 500
retail outlets
2012 Opec Sp.z o.o The polish courier company has been acuquired by
fedex express giving access to 12.5 million annual
shipments
2012 Tatex The premier business to business French express
transportation company was acquired it gives
yearly 19 million shipments
2012 Rapidao Cometa One of the largest logistic and transportation
company at Brazil is acquired giving access to
Latin American and Carribean region
2014 Supaswift This acquisition gives access and growth to the
south African nation
2014 Bongo
International
A leader in cross border enablement technologies
and solutions is acquired by fedex it helps
retailsers and e-tailers grow by reaching
international consumers
2015 Genco The leading logistic provider in North America is
acquired by fedex givin access to ware housing and
distribution across the continent
2016 TNT Express TNT operating in Asia Pacific and Americas is
acquired by Fedex in 2015
2017 Northwest research
Inc
A leader in inventory research and management is
acquired by Fedex in 2017
2018 P2P Mailing
Limited
This latest addition has helped Fedex acquire the
worldwide e-commerce transportation solutions for
92 million pound . P2P’s capabilities complement

and expand the Fedex portfolio of offerings
important to e-commerce market place
The above chart shows the extent of the global reach of Fedex, its capacities and
operations.
CSR :
Fedex has robust Corporate Social Responsibilities in place. Charitable giving for
greater cause has been imbibed as Corporate social responsibility of the company.
Fedex commits itself to actively support the communities served through strategic
investment of the people, the network and the resources . There are two types foc
contributions to U.S based or Canadian based organisations which serve for greater human
causes . But before making contribution Fedex serves its business number registrations
By 2020 Fedex has a plan to invest more than 200million USD to communities to create
opportunities and bring in positive change around the world to show that Fedex cares for the
good causes . There are five pillars to strategic investment for these good cause
 Delivering for Good
Lending support to disaster prone areas in time of exigencies through critical mission by
means of logistic and global network
 Sustainable transportation
To innovate in existing solutions and new ideas to reduce congestion, improve movement,
decrease pollution in communities worldwide
 Employment pathways
The networking for young adults and connecting them through career training and
population skills and to provide opportunity in the fields of technology and logistics
 Road Safety
Alleviating the safety expertise to reduce road crash fatalities by improving road
conditions and improving road conditions by educating pedestrians and drivers
worldwide.
 Global Entrepreneurship

Helping the entrepreneurship from women and minority owned small business globally
through training and deployment of resources is the last but not the least criteria of getting
affiliated for grants of the Fedex CSR.
From the above reviews we see that Fedex Is a freight forwarding business which is growing
globally through its various extension and acquisition plans. It’s strategies of synergy as well
as diversification help it to get an edge over the business condition and helps to provide it
competence to serve world- wide. The global CSR initiative speaks of the company’s concern
about the world and the society at large but it is time that the company takes its CSR our of
the shell of U.S and Canada and starts its initiative globally to help people live a better and
valued life.