Fedex Corporation

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KELOMPOK 2

Calvin Jonathan (115200255)


Angeline (915190007)
Thessalonica Shera (915190008)
Fitz Geraldo (915190018)
Yorita (915190021)
Brigitta Pricilia (915190023)
Jazzy Tiara Femisyah (915190027)
One of the largest express freight
delivery companies

1971

52.000 drop off locations

700 aircrafts 62.000 vehicles

More than 220.000 employees

Fredrick W. Smith
FedEx Express, FedEx Freight, and
FedEx Ground
VISION
"Leading The Way"

MISSION
Creating E-business and logistics operations where Expand national and international markets in search
customers can ship and check goods and so on at of profit from new markets and to obtain cheap
the same time. resources.
Provide a business-to-business market. Generate high financial returns for shareholders by
Cooperate with local and international companies providing supply chain, transportation, business, and
that provide transportation services to various information services related to high added value
businesses. through focused company operations.
IMPROVED MISSION
Fedex has a mission to make it easier for everyone who wants to send goods around
the world, with E-business technology and various fields of transportation. Fedex has
spread across America (nationally) and all over the world and Fedex has built a good
brand and quality and reputation. Fedex generates high financial returns for
shareholders by providing supply chain, transportation, business, and information
services related to high added value through a focused operating company. Customers
can make deliveries and check goods and so on at the same time on the Fedex website,
Fedex also pays attention to the comfort and safety of employees.

1. Market 2. Product & Service 3. Markets 4. Technology 5. Concern for survival, Growth & profitability
6. Philosophy 7. Self-concept 8. Concern for public image 9. Concern for employee
Residential customers

Commercial customers

MARKET
SEGMENTATION Corporate clients

Government and public


customers
ORGANIZATIONAL STRUCTURE
Frederick Smith -
Chairman and CEO

Robert Carter - President and


Chief Information Officer

Alan Graf, Jr. T. Michael Glen - Christine David William Henry Michael David Brinks - Juan Cento - Lisa Lisson -
- Excutive VP Executive VP Richards - Bronczek - Logue - Maier - Ducker - FedEx Express FedEx Express FedEx Express
and Chief Market Executive FedEx FedEx FedEx FedEx President President Latin President
Financial Development and VP and Express Freight Ground Express Europe, Middle America and Canada
Officer Corporate General President President President President and East, Indian Caribbean
Communication Counsel and CEO and CEO and CEO CEO Subcontinent,
and International and Africa
Secretary
PRODUCT
LINE
BUSINESS SEGMENT
FedEx Express invented express transportation and remains a global industry leader,
providing fast, reliable, and on-time delivery to over 220 countries and territories.

FedEx Ground provides low-cost daily service to any business address in the U.S
and Canada.

FedEx Freight is North America's leading provider of less-than-truckload (LTL) freight


services across all haulage distances to business and residence.
COMPETITORS
PORTER'S FIVE Threat Of New Entrants
FORCES LOW
ANALYSIS

Rivalry Among
Bargaining Power Of Suppliers Bargaining Power Of Buyers
Competitors
LOW HIGH
LOW

Threat Of New Subtitutes

LOW
BUSINESS MODEL
CANVAS
Key Partners + Key Activities + Value Propositions + Customer Customer
Relationship + Segments -
Supplier and vendor FedEx Express Global reach
partners- tools, tech, FedEx Ground Reliable and efficient Social media Residential
goods supplier and FedEx Freight services Contact - phone and customers
service New technology mail Commercial
Distribution and Multiple option of Website support customers
channel partners - delivery Government and
Key Resources - Channels + public customers
independent agent
and 3rd party drop Physical service Website
offs Infrastructure FedEx office locations
Strategic and alliance FedEx staff
partners - company
collab, shared
resources

Cost Structure - Revenue Streams +


Physical infrastructure Fees of package delivery and Freight services
IT and communication Commercial trade and supply chain
Partnership and employee salaries
PORTER'S GENERIC STRATEGY
GENERIC STRATEGIES
Cost Leadership Differentiation Focus

Type 1
Large .....
SIZE OF MARKET

Type 2

Type 4
Small ..... Type 3
Type 5
SWOT ANALYSIS
STRENGTHS WEAKNESSES
1. Strong market position 1. Delivery staff need training
2. Range of service 2. Overdependence in US
3. High operating income in 2014 3. Cost of infrastructure in expanding international
4. High revenues in the Less than Truck Load (LTL) market
5. Definite delivery
6. Top customer satisfaction rates

OPPORTUNITIES THREATS

1. International expanded 1. Competitors : UPS, DHL


2. Oil price falling dramatically for air freight 2. Vulnerable to increasing reach by major competition
3. International market growth 3. Macroeconomic weaknesses
4. Using autonomous drive
SWOT STRATEGY
SO STRATEGIES WO STRATEGIES

1. Expanding international outlet and service (S1, S6, O1, 1. Using autonomous delivery courier to improve customer
O3) service quality (W1, O4)
2. Using autonomous delivery courier to minimize delay 2. Expanding international outlet and service (W2, O1, O3)
time (S5, O4)

ST STRATEGIES WT STRATEGIES

1. Strengthen our market loyalty (S1, S6, T1) 1. Improve our quality services (W1, T1)
2. Acquisition competitors (S3, T2) 2. Open new stores in other region with less competitors
(W2, T2)
EXTERNAL KEY
FACTORS THREATS

OPPORTUNITIES
1. Competitors : UPS, DHL
2. Vulnerable to increasing reach by
1. International expanded major competition
2. Oil price falling dramatically for air 3. Macroeconomic weaknesses
freight
3. International market growth
4. Using autonomous drive
EFE MATRIX

Key External Factors Weight Rating Weighted Score

No Opportunities

1. International expanded 0,17 4 0,68

2. International market growth 0,16 4 0,64

3. Oil price falling dramatically for air freight 0,14 3 0,42

4. Using autonomous drive 0,12 3 0,36

Threats

1. Competitor : UPS, DHL 0,16 3 0,48

2. Vulnerable to increasing reach by major competition 0,13 2 0,26

3. Macroeconomic weaknesses 0,12 2 0,24

Total 1,00 3,08


INTERNAL KEY
FACTORS WEAKNESSES

STRENGTHS
1. Delivery staff need training
1. Strong market position 2. Overdependence in US
2. Range of service 3. Cost of infrastructure in expanding
3. High operating income in 2014 international market
4. High revenues in the Less than Truck
Load (LTL)
5. Definite delivery
6. Top customer satisfaction rates
IFE MATRIX

Key Internal Factors Weight Rating Weighted Score

No Strengths

1. Strong market position 0,15 4 0,56

2. Range of service 0,13 4 0,48

3. High operating income in 2014 0,11 4 0,44

4. Definite Delivery 0,10 3 0,27

5. Top customer satisfaction rates 0,09 3 0,24

6. High Revenues in the Less than Truck Load (LTL) 0,08 3 0,24

Weaknesses

1. Delivery staff need training 0,14 3 0,42

2. Overdependence in US 0,11 2 0,22

3. Cost of infrastructure in expanding international market 0,09 2 0,18

Total 1 3,05
IE MATRIX
THE IFE TOTAL WEIGHTED SCORES
Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
4.0 3.0 2.0 1.0

High
3.0 to 4.0

THE EFE
3.0
TOTAL
WEIGHTED
SCORES Medium
2.0 to 2.99

2.0

Low
1.0 to 1.99

1.0
COMPETITIVE
PROFILE MATRIX
No Cost Structure Weight Rating Score Rating Score Rating Score
1. Quality 0,15 3 0,45 3 0,45 3 0,45
2. Price 0,14 3 0,42 4 0,56 3 0,42
3. Corporate Branding 0,14 4 0,56 3 0,42 3 0,42
4. Advertising 0,13 4 0,52 3 0,39 3 0,39
5. Facility 0,11 4 0,44 4 0,44 3 0,33
6. Location 0,09 3 0,27 2 0,18 1 0,09
7. Customer Service 0,08 2 0,16 2 0,16 3 0,24
8. Customer Loyalty 0,06 2 0,18 3 0,27 2 0,18
9. Market Share 0,05 3 0,33 2 0,22 2 0,22
10. Global Expansion 0,05 4 0,20 3 0,15 2 0,10

Total 1 3,53 3,24 2,84


SPACE MATRIX FP

AGGRESIVE
(5 , 6.5)

CP IP

SP
Revenues and Operating Income Segment
$30,000
$2,500
$25,000
$2,000
$20,000
$1,500
$15,000
$1,000
$10,000
$500
$5,000
$0
$0 FedEX FedEX FedEX
FedEX FedEX FedEX
Express Ground Freight
Express Ground Freight

2014 Revenues 2014 Operating Income


2013 Revenues 2013 Operating Income
BCG MATRIX
Market Growth

Market Share
GRAND STRATEGY MATRIX Market Development
Market Penetration
RAPID MARKET GROWTH Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification

WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION

SLOW MARKET GROWTH


QSPM
Expansion to New Market Operation Development
Key Enternal Factors Weight AS TAS AS TAS

No Opportunities

1. International expanded 0,17 4 0,68 1 0,17

2. International market growth 0,16 3 0,48 1 0,16


3. Oil price falling dramatically for air freight 0,14 1 0,14 2 0,28

4. Using autonomous drive 0,12 1 0,12 3 0,36

Threats

1. Competitor : UPS, DHL 0,16 - - - -

2. Vulnerable to increasing reach by major competition 0,13 1 0,13 3 0,39

3. Macroeconomic weaknesses 0,12 1 0,12 4 0,48


Total 1,00 1,67 1,84
QSPM
Expansion to New Market Operation Development
Key Internal Factors Weight AS TAS AS TAS

No Strengths

1. Strong market position 0,15 4 0,60 1 0,15

2. Range of service 0,13 - - - -

3. High operating income in 2014 0,11 4 0,44 1 0,11

4. Definite delivery 0,10 4 0,40 1 0,10


5. Top customer satisfaction rates 0,09 - - - -

6. High Revenues in the Less than Truck Load (LTL) 0,08 3 0,24 1 0,08

Weakness

1. Delivery staff need training 0,14 2 0,28 4 0,56

2. Overdependence in US 0,11 1 0,11 3 0,33

3. Cost of infrastructure in expanding international market 0,09 2 0,18 3 0,27

Total 1 2,22 1,6


Total Internal & External 3,89 3,44
MATRIX ANALYSIS
SPACE BCG GRAND
STRATEGY IE MATRIX
MATRIX MATRIX MATRIX
Backward integration

Forward integration

Horizontal integration

Market penetration

Market development

Product development

Related diversification

Unrelated diversification

Divestiture
FEDEX LONG-TERM OBJECTIVE
In 2009, when the company faced a severe financial impact due to the recession, it set some long-term goals for financial
recovery. These included:
Achieve 10%+ operating margin
Increase EPS to 10%–15% per year
Grow profitable revenue
Improve cash flows
Increase ROIC
Increase returns to shareowners
Since then, the company is well on its path to achieve these goals.
FedEx forms the largest holding of 13.14% in the iShares Transportation Average ETF (IYT). Similar companies included in
the ETF are United Parcel Service (UPS), Expeditors International (EXPD), and Con-way (CNW) with 7.6%, 4.19%, and 3.19%
holdings, respectively.
WHAT NEXT 2 YEARS PROJECTION
2016
Introduced door-to-door pick-up service for dangerous goods shipped via FedEx International Priority service in Taiwan in
March. Customers no longer have to arrange separate ground transportation from/to the airport.
Launched a new international shipping service for outbound shipments in collaboration with Japan Post in Japan in
October. Japan Post will expand its U-Global Express international shipping service to U.S. destinations. and handle
collections from customers in Japan who ship to the U.S., FedEx will provide International Economy services and handle
customs clearance and shipping to final destinations in the U.S.
Launched 'My FedEx Delivery' service in Australia in December to offer customers greater flexibility to customize their
shipments by notifying customers of upcoming deliveries and allowing customers to choose from a variety of delivery
options via an online portal.
Improved delivery service for shipments entering Japan in December. FedEx will now pick up all shipments from around
the world via FedEx International Priority or International Economy to Japan and complete Customs clearance. Japan Post
will handle domestic shipments for certain packages weighing up to 30kg.
WHAT NEXT 2 YEARS PROJECTION
2017
Launched FedEx Customized Freight (FCF) in China and Thailand in January and August, respectively. This new service
enables outbound shipping worldwide and inbound shipping from the U.S. and other major Asian countries/regions that
require high-level monitoring of temperature control, package security and shipping processes.
Introducing a zero-emission electric vehicle, the Nissan e-NV200 in Japan in February. This is a move by FedEx to achieve
its goal of increasing the fuel efficiency of its fleet and reducing CO2 emissions.
Signed a memorandum of understanding with Incheon International Airport Corporation regarding the ‘Development and
Operation of the FedEx Cargo Terminal at Incheon International Airport in March. The new cargo terminal dedicated to
FedEx is scheduled for completion in 2019.
Successfully completed the acquisition of TNT Express on May 25, which means combining the power of the world's
largest air express network with Europe's unrivaled ground network and expanding the existing FedEx portfolio.
Launched FedEx Virtual Assistant in Australia, Indonesia, Malaysia, New Zealand, Philippines, Singapore and Vietnam in
June, making shipping inquiries from customers quicker and easier to service.
ANSWER

1971

Fredrick W. Smith

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