This article discusses the various strategies of Fedex, including their generic, operation, and diversified strategies, as well as their international moves and CSR initiatives. Fedex's strategies of synergy and diversification help it to get an edge over the business condition and provide competence to serve worldwide. The global CSR initiative speaks of the company's concern about the world and society at large.
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IntroductionTo serve as the parent holding company of freight, Fedex express, fedex was taken inas 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 robustand 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 ofhis 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 2011Diversified Strategy:Fedex also has diversified strategies for Fedex Express, Fedex Ground , Fedex FreightFedex 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 engineeringServe more than the customer expectations
Excel in executionMake an operation model that is flexibleSuperieority in line hauling.The company also aims at providing superior service by way of innovationThe 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 AutomationLeading 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 upand deliveries.Manage yields The service is focussed to put in the right network the right package to match the yieldof the service. Expanding the networkThe company always invest in expanding network to capacitate itself towards the wayof growth.Strategies of Fedex freight is also encoded and diversified .The strategy for Fedex freight is to provide superior service and options to the customerThe time and convenience of the customer is important and that is why the unit continues to search for opportunities to save customer’s timeAs a consequence the time of commuting differs greatly from other freight services ofthe market. The motive is to improve the speed of the freightFreight continues to improve transit times in the U.S and across North American international borders We focus on simplicity, consistency and reliabilityThe services invest on technology and automationThe company is automating plenty of their transactions The efficiency is improved by curtailing the non-value added systems and process.
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