Strategic Analysis of FedEx Corporation: Business Model & Strategy

This report offers a strategic analysis of FedEx Corporation, examining its business model, vision, and mission statements. It delves into the company's competitive advantages, focusing on its virtual information infrastructure and its role in maintaining customer relationships. The report also evaluates FedEx's winning strategy through the three tests: competitive advantage, goodness of fit, and performance. The analysis covers various aspects of FedEx's operations, including its business segments (Express, Ground, Freight, and Services) and how they contribute to the organization's objectives. The report concludes that FedEx's corporate strategies, including its mission and vision, are effective in achieving sustainable competitive advantages within the logistics industry.

Running Head: Strategic Management
Strategic Management
[Document subtitle]

Strategic Management 1
Table of Contents
Introduction......................................................................................................................................1
FedEx Corporation...........................................................................................................................1
Business Model of FedEx Corporation............................................................................................1
Vision and Mission Statement.........................................................................................................3
Objective evidence to support sustainable competitive Advantages...............................................4
The three tests of a Winning Strategy..............................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Strategic Management 2
Introduction
In this paper, a strategic analysis of FedEx Corporation has been performed to evaluate the
efficiency of its business strategies and determined vision and mission statements. This paper
has been covered the business model, vision, mission statement, and objective evidence prepared
on the basis of three tests of a winning strategy. All these information will help the target
audience in getting significant knowledge about FedEx working structure and its behavior
towards its target market.
FedEx Corporation
FedEx is considered as an international organization that offers services to businesses and
consumers worldwide. The company headquarter is situated in Memphis, Tennessee. It is a
parent organization that offers logistical and strategic support to a large range of operation
divisions ("Company FedEx | Cleverism.com," 2017). Nowadays, it is known as the FedEx
Express. Furthermore, it can be said that the company is operating more than 14 small planes and
offered its services to 25 U.S cities with the delivery of 186 packages. It has obtained its
competitive advantage within the logistics industry of U.S due to its concentrated business
structure and well- maintained customer experiences.
Business Model of FedEx Corporation
The FedEx Corporation has divided its business model into five different segments. These five
different segments are known as FedEx Express, TNT Express, FedEx Ground, FedEx Freight,
and FedEx Services. All of these business segments contributed towards the accomplishment of
the organizational objectives in a significant manner.

Strategic Management 3
FedEx Express: This business segment is engaged in offering the international time-definite
delivery services, technology, and supply chain solutions to target operating units.
TNT Express: It is the combination of activities like transportation, freight transportation
services, business to business customers, and small package ground delivery ("About FedEx |
About FedEx," 2016).
FedEx Ground: It manages the operations and activities like offer small package ground
delivery services to residential customers and business houses across the Canada and US.
FedEx Freight: It is engaged in offering the freight services across all lengths of a haul to
customers across the Rico, US, Canada, and the Virgin Islands.
FedEx Services: This business segment of FedEx Corporation is responsible for the
management of sale, marketing, communications, back-office, and technology functions that
support the operations of the other FedEx organizations.
The below-mentioned figure is defining the effective business model of FedEx Corporation:

Strategic Management 4
("CSR Policy Statements - About FedEx", 2018)
This figure has completely explained the working structure and behavior of each business
segment and how they are aligned with the ultimate objectives of the organization.
Vision and Mission Statement
The mission and vision statement determined by its stakeholders serves as a guidebook for its
success. It is because both statements lead the company in a right direction. Apart from this, they
also helped the company in utilizing the available resources and avoid unnecessary mistakes to

Strategic Management 5
gain a strategic competitive advantage over competitors. The below-mentioned is vision and
mission statement of organization that make it different from its competitors:
Mission
The mission of the FedEx Corporation is to offer a wide variety of supply chain solutions and
package delivery functions, with a view to offer reliable and effective logistics services to
institutional, commercial, industrial, global, and residential customers ("FedEx - FedEx -
Mission & Goals," 2016).
Vision
The vision of the FedEx Corporation is to make it possible for business houses and individuals to
collaborate and connect with each other, no matter where they are in the world.
Objective evidence to support sustainable competitive Advantages
The FedEx Corporation has adopted a large range of strategies to gain sustainable competitive
advantages over its competitors. Due to the presence of sustainable competitive strategies, the
company able to produce good outcomes with reliable customer services. The following is the
objective evidence or strategy that support its sustainable competitive advantage over
competitors:
Presence of Virtual Information Infrastructure
The foremost and important strategy of the FedEx Corporation is to use the virtual information
infrastructure to gain a competitive advantage over existing customers. The use of virtual
information infrastructure strategy served as a backbone for the FedEx Corporation which is
highly responsible for its access to competitors ("Corporate Strategy of FedEx Corporation,"

Strategic Management 6
2015). On the basis of the virtual information infrastructure, the FedEx is engaged in maintaining
a healthy relationship with its direct or indirect customers. Apart from this, it can also say that
the company uses this corporate strategy to close the gaps between the seller and consumer.
The three tests of a Winning Strategy
The winning strategy adopted by the organization is the use of virtual information infrastructure.
This strategy is completely compatible to resolve the company problems and bring a sustainable
competitive advantage over existing competitors. The efficiency of FedEx Corporation winning
strategy can understand with below-mentioned tests:
The Competitive Advantage Test
It is right to say that the use of virtual information infrastructure brings a sustainable competitive
advantage for the FedEx Corporation. It is because the strategy is highly engaged in the
development of information technology and system innovations with which the organization can
differentiate its functioning from its competitors (Parmenter, 2015).
The Goodness of Fit Test
Apart from this, it can also say that the use of virtual information infrastructure strategy is
completely suited to the external and internal factors of the organization. It is because this
strategy is highly engaged in technological innovations. Therefore, as a member of logistics
industry, the technology is a key factor of focus for each company.
The Performance Test
Moreover, it is right to say that the strategy of virtual information infrastructure is completely
engaged in boosting the company performance (Tan, 2016). It does not only enhance the

Strategic Management 7
profitability but also strengthens the competitive position and image within the market. This
strategy does this through the promotion of direct and indirect relationship with potential
customers.
Therefore, on the basis of winning strategy three tests, it can be said that the corporate strategy of
FedEx is completely effective and sustainable for competitive advantage.
Conclusion
After studying all this, it can be concluded that the corporate strategies of FedEx Corporation
become the foremost factor of its strength over existing competitors. On the other hand, it can
also say that the mission and vision statement of the company is adequate and effective as per its
working and define a way of success for its future growth.

Strategic Management 8
References
About FedEx | About FedEx. (2016). Fedex.com. Retrieved 6 February 2018, from
http://www.fedex.com/in/about/
CSR Policy Statements - About FedEx. (2018). About FedEx. Retrieved 6 February 2018, from
http://about.van.fedex.com/social-responsibility/csr-policy-statements/
Corporate Strategy of Fedex Corporation. (2015). UKEssays. Retrieved 6 February 2018, from
https://www.ukessays.com/essays/business-strategy/the-corporate-strategy-of-fedex-
corporation.php
Company FedEx | Cleverism.com. (2017). Cleverism. Retrieved 6 February 2018, from
https://www.cleverism.com/company/fedex/
FedEx - FedEx - Mission & Goals. (2016). Investors.fedex.com. Retrieved 6 February 2018,
from http://investors.fedex.com/company-overview/mission-and-goals/default.aspx
Parmenter, D. (2015). Key performance indicators: developing, implementing, and using
winning KPIs. John Wiley & Sons.
Tan, C., Niculae, V., Danescu-Niculescu-Mizil, C., & Lee, L. (2016, April). Winning arguments:
Interaction dynamics and persuasion strategies in good-faith online discussions. In Proceedings
of the 25th international conference on world wide web (pp. 613-624). International World Wide
Web Conferences Steering Committee.