Running head: PUBLIX SUPER MARKETS1

Publix Super Markets, Inc. Achieving Customer Intimacy

PUBLIX SUPER MARKETS

Table of Contents Cover page. Page 1 Table of Contents.. Page 2 Introduction.... Page 3 Macroenvironmental Factors Technology..Page 4 Macroenvironmental Factors Natural/Physical..............................................Page 6 Market Factors..Page 6 ConclusionPage 8 References.Page 9 Grading Rubric.Page 10

PUBLIX SUPER MARKETS Introduction Publix was founded in 1930 in New Haven, Florida by George W. Jenkins.

Currently there are 1,048 Publix supermarkets; more than two-thirds of these stores are located in Florida, however, Publix also operates in Alabama, Georgia, South Carolina and Tennessee. Despite only having stores in these few states, Publix is the countries fourth largest grocer (http://money.cnn.com/magazines/fortune/bestcompanies/2012/snapshots/78.html). Furthermore, it is the largest employee owned company in the nation, with employees owning about 30% of the company. Today the company is still owned by the Jenkins family, and they employ more than 151,000 people (http://www.publix.com/about/FactsAndFigures.do). Rather than emphasizing on price, Publix focuses on customer service and portraying a family friendly image. Publixs mission is to be the premier quality food retailer in the world. They also commit to being focused on customer value, being intolerant of waste, valuing their associates, making sure they devote the highest standards to stockholders, and finally being responsible citizens of the communities they reside in (http://www.publix.com/about/MissionStatement.do). Taking this route, rather than focusing on providing the lowest cost, has led them to grow quicker than rivals such as Winn-Dixie (http://biz.yahoo.com/ic/40/40378.html).

PUBLIX SUPER MARKETS Macroenvironmental Factors Technology Technology is a critical aspect in any organization, and must be constantly monitored and evaluated. Furthermore, the rate in which technology is improving and

accelerating is exponential. With this said, in order for FedEx to remain successful and have that competitive edge, they must use the most effective and efficient technology in their processes. Innovation is extremely important to FedEx, and it is instilled in their company culture and business strategy (http://about.van.fedex.com/). It is evident that the company does a good job at enforcing this idea, because even their workers who make just above minimum wage, have been seen sprinting between work stations loading the packages as fast as they can believing the idea that time is money (Johnson, n.d.). With FedEx promising overnight delivery, and delivering more than four million express air packages daily, they need to make sure they are using the best and latest technology out there. FedEx is so successful in their innovation due FedEx Innovation, which is a team whose purpose is to identify and pursue customer needs as well as the latest technologies that could help the business. This team has long-term goals of increasing revenue as well as creating a strategic advantage with the use of the most innovative technology, which will mold the companys culture, processes, and thinking both nationally and internationally. Secondly, FedEx uses software called SenseAware, which is a sensor based logistic service which allows customers to monitor their shipments almost in real time - finding out information such as temperature, location and exposure to light. Thirdly, at the University of Memphis, FedEx has the FedEx Institute of Technology. Here business, science, and the

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industry comes together to further advance research. Not only is this facility suitable for conferences, training, retreats and conferences, but also they perform research on topics of artificial intelligence, biotechnology, geospatial analysis, multimedia arts and nanotechnology (http://about.van.fedex.com/). Macroenvironmental Factors Natural/Physical FedEx currently has a fleet of 692 aircraft and more than 90,000 motorized vehicles which deliver more than 8.5 million shipments daily to more than 220 countries and territories. With such a tremendous amount of air and land movement, one can only question their environmental impact. FedEx works with many suppliers and contractors to understand these environmental impacts and how they can be minimized. Firstly, FedEx begins their green strategy within their offices and retail locations. They use electric energy for their in house daily activities, as well as natural has and fuel oil. Teaming up with the Environmental Protection Agency Energy Star, the company has also been able to reduce energy consumption by 93% by developing a custom-facility lighting solution, installing compact fluorescent bulbs. Furthermore, the company began a program called Be a Watt Watcher. Additionally, FedEx seeks other conservation efforts in renewable power (solar and green power) sources to power their fleet. Finally, they are active in the recycling and packaging program, making sure to use as much recyclable goods as possible, and reducing as much wastes as possible. Moving from their facilities to their fleet, it is only imaginable how much fuel must be used in operations. FedEx has successfully been able to adjust their fleet and optimize routes, which has resulted in a 16.1% decrease of total fleet miles per gallon since 2005.

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FedEx also partners with the International Air Transport Association (IATA) to educate them on how to reduce fuel consumption. The company continuously makes efforts to conserve resources, and this is apparent in the fact that they are the only transportation company to publicly call for fuel efficiency standards for their trucks. Steps that FedEx has taken to become greener include: replacing their 727s with 757s which reduce greenhouse gas emissions and lower the consumption of fuel by 47%; replacing their MD-11F fleet with wider body 777F planes; ground support equipment at certain airports have been changed from internal combustion engines to electric units which save 1 million gallons of fuel per month; operating 365 hybrid-electric trucks; and 43 all electric trucks. All of these changes listed not only help environmentally, but also the noise concerns that are being brought about by neighboring communities close to airports. FedEx commits to meeting all 3 FAA Stage 3 noise requirements, as it was the first airline to do this in 2000 (http://about.van.fedex.com/). Market Factors FedEx is as successful and in the position they are in because of their relationships that they have developed along the way. In August 2001, they began a partnership with the U.S. Postal Service, which benefited them because it gave them additional use of their air fleet. FedEx also got themselves into sponsorships such as a Simba Telecom Rally in Uganda, the Orange Bowl football game in Miami, a NASCAR Sprint Cup car, and the PGA Tours FedEx Cup. Another critical relationship that FedEx was able to establish was one with AT&T Wireless. From this relationship customers were able to track packages, which today is one critical technological aspect of FedEx. FedEx also has philanthropic relationships that include supporting the American Red Cross for over ten

PUBLIX SUPER MARKETS years (gives cash in-kind as well as provides free shipping of emergency supplies);

working closely with Safe Kids Worldwide, which helps prevent unintentional childhood injury, as well as Brake, which deals with road safety. Furthermore, as stated previously, FedEx has established relationships with environmental groups such as the International Air Transport Association (IATA), Carex (which is a group that delivers express rail in Europe, which offers the alternative energy), Environmental Protection Agency Energy, and Environmental Defense Fund (EDF), In terms of competition, FedExs biggest competitors include DHL International, TNT Express, Deutsche Post World Net and UPS. In this industry these companies compete by creating new businesses, such as FedEx Ground or UPS Overnight, and also entering new geographic markets (http://www.vessage.com/fedex.php). FedEx has been able to remain so successful in their position because while all their competitors are moving into the area of third-party logistics business, FedEx is diversifying away from their U.S business. Instead, FedEx has assembled a large fleet of ground transportation within the United States, which accounts for 22% of their total revenue (Johnson, n.d.). Furthermore, regulators affect FedEx. FedEx operating in many different countries and territories run into the issue of country regulations, and their access into these markets and airports. For instance, in 2002, FedEx and China were head to head, since China Post has a monopoly control over all international and domestic shipments that weigh less than 17 ounces. Moreover, FedEx had debates with Japan regarding the company to retain slots in their airport. However, fortunately FedEx was able to work with their competitors to mitigate these situations in their favor (Johnson, n.d.). Moreover, currently there have been more deregulations in this industry- larger air freights are now allowed to land, regional

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trucking systems have been able to reduce costs on short distance trips, and agreements between countries which have opened up new markets (http://www.vessage.com/fedex.php). Conclusion Despite the fact that in this industry, multi-market competition exists and thus rivalry is very strong, FedEx is able to lead in this market holding 35%. Not only does FedEx have the visionary leadership, but they also instill their culture, goals and views within all of their employees. The company also has been able to use the latest and most efficient technology, giving them that advantage in the package routing and delivery system. FedExs interest in the environment not only builds their reputation and respect from customers, but benefits the company by saving in costs. The relationships that FedEx has established has definitely benefited them and allowed them to be leaders in the industry. For further success in the future, and to remain in the lead, FedEx must be able to continuously monitor and analyze the latest technologies out there. In addition, they need to continue analyzing their market. Customers like to feel that they are valued by the company, and with this said FedEx needs to start differentiation and customizing services to their customer needs. Doing this they will definitely stand out from the rest of their competition, possibly earning a greater market share.

References

PUBLIX SUPER MARKETS http://about.van.fedex.com/ http://www.vessage.com/fedex.php

Johnson, J. (n.d). Case 2. FedEx Corporation a customer value funnel assessment, 1-11.