FedEx - LSC2004-ADBA-GROUP 1

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Research and

Presentation of
the Business and
Competitive
Strategies of
FedEx
LSC 2004 - Warehousing and Distribution Assignment
LSC2004-ADBA-GROUP 1

Team Members
Ibrahim eshaq FT 230167
Lorans FT 230753

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Acknowledgement !

We are thanks to ________________ for plays a


crucial role in providing guidance, resources, and
support to enhance our learning experiences,
contributing significantly to this case study and
academic success. ​

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Content
1. Introduction

2. Management

3. Financial Report

4. Current and Future Strategies

5. Other Strategies

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Frederick W. Smith

Introduction
FedEx Corporation, founded in 1971 by Frederick W. Smith, is a global courier delivery services company
headquartered in Memphis, Tennessee. Known for pioneering overnight shipping and developing a real-time
tracking system, FedEx has become a leader in the logistics and transportation industry. This research examines
FedEx's business and competitive strategies, focusing on its management structure, financial performance, and
strategic initiatives.

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Commitment to Innovation and Sustainability

FedEx has established itself as a leader in the logistics and transportation industry not only through its
operational excellence but also through its strong commitment to innovation and sustainability. This
commitment is evident in several key areas :

Technological Advancement

Automation and Robotics

Artificial Intelligence (AI)

Real-Time Data Analytics

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Commitment to Innovation and Sustainability

FedEx has established itself as a leader in the logistics and transportation industry not only through its
operational excellence but also through its strong commitment to innovation and sustainability. This
commitment is evident in several key areas :

Environmental Initiatives

Carbon Neutrality Commitment

Fuel Efficiency Programs

Eco-Friendly Packaging Solutions

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Commitment to Innovation and Sustainability

FedEx has established itself as a leader in the logistics and transportation industry not only through its
operational excellence but also through its strong commitment to innovation and sustainability. This
commitment is evident in several key areas :

Innovation in Service Offerings

E-commerce Solutions

Customized Logistics Services

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Management
FedEx’s management structure is designed to support its vast,
global operations. Key executives include:

•Frederick W. Smith - Chairman and CEO


•Raj Subramaniam - President and COO
•Alan B. Graf, Jr. - EVP and CFO

FedEx operates through various business segments, each with


its own management team:
databahn. (2020).
1.FedEx Express: Handles international and domestic express
delivery.
2.FedEx Ground: Focuses on ground delivery services.
3.FedEx Freight: Provides less-than-truckload (LTL) freight
services.
4.FedEx Services: Offers sales, marketing, IT, communications,
customer service, and other back-office support.

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Financial Report
FedEx’s financial performance has been robust, reflecting its
strong market position and operational efficiency. Key
financial metrics include:

Revenue: FedEx's revenue has consistently grown, reaching


$93.5 billion in FY2023.

Net Income: The net income for FY2023 was $4.3 billion,
indicating healthy profitability.

Earnings per Share (EPS): The EPS was $16.85, showcasing its
profitability per share.

Operating Margin: The operating margin stood at 7.8%,


reflecting operational efficiency.

FedEx (2023) 10
Current and Future Strategies of FedEx
Current Strategies
Technology and Innovation
• Automation and Robotics
• Artificial Intelligence (AI)
• Autonomous Delivery Solutions

Sustainability Initiatives
• Carbon Neutral Operations
• Eco-Friendly Packaging

E-commerce Focus
• Enhanced E-commerce Solutions
• Partnerships with E-commerce Platforms

Global Expansion
• Emerging Markets
• Strengthening International Network

Customer Experience Enhancement


• Real-Time Tracking and Transparency
• Customized Solutions
Anon, (2023).
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Current and Future Strategies of FedEx
Future Strategies
Advanced Digital Transformation
• Blockchain Technology
• IoT Integration

Expanding Logistics Capabilities


• Supply Chain Solutions
• Cold Chain Logistics

Workforce Development
• Employee Training and Development
IEEE Innovation at Work. (2018) • Diversity and Inclusion

Sustainability and Corporate Responsibility


• Renewable Energy Investments
• Community Engagement

Strategic Acquisitions and Partnerships


• Targeted Acquisitions
• Collaborative Partnerships
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Other Strategies of FedEx
1. Customer Experience

Personalized • Flexible Delivery Choices


Delivery • FedEx Delivery Manager
Options

Real-Time • Enhanced Tracking Systems


Delivery • Mobile Accessibility
Tracking

Improving • 24/7 Customer Service


Customer • Customer Feedback
Support Integration
FedEx. (n.d.).

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Other Strategies of FedEx
2. Strategic Acquisitions

Enhancing • TNT Express Acquisition


Global Network • Specialized Logistics Providers
Capabilities

Integration and • Operational Integration


Synergies • Expanding Service Portfolio

Berman, J. (n.d.).

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Other Strategies of FedEx
3. Cost Management

Efficiency • Operational Optimization


Improvements • Lean Management Practices

Technology • Automation and Robotics


Investments • Data Analytics

Vendor and • Negotiating Better Terms


Supplier • Supplier Diversification
Management

Energy • Fuel Management Programs


Efficiency • Renewable Energy Adoption

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VideO

jnjtiger (2010). Strategic Marketing - Fedex Case Study. [online] YouTube. Available at: https://www.youtube.com/watch?v=B2rF3cTg0Mc [Accessed 13 Jun. 2024]. 16
Conclusion
By focusing on enhancing customer experience, pursuing strategic acquisitions, and implementing robust cost
management measures, FedEx ensures its continued growth and competitiveness in the global logistics industry.
These additional strategies complement FedEx’s core initiatives, driving innovation, efficiency, and customer
satisfaction while positioning the company for long-term success.

Implementing Robust Cost Management Measures

Technological Innovation

Sustainability Initiatives

Global Expansion and Market Diversification

Comprehensive Logistics Solutions

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Reference
• FedEx (2022). FedEx - FedEx - Annual Reports. [online] Fedex.com. Available at:
https://investors.fedex.com/financial-information/annual-reports/default.aspx [Accessed 13 June 2024].

• Fedex (2023). FedEx | Tracking, Shipping, and Locations. [online] Fedex.com. Available at:
https://www.fedex.com/en-us/home.html [Accessed 12 June 2024].

• FedEx (2023). Overview of company | FedEx. [online] investors.fedex.com. Available at:


https://investors.fedex.com/company-overview/overview-of-company/default.aspx [Accessed 13 June 2024].

• ResearchGate. (n.d.). (PDF) Logistics and supply chain management: The importance of integration for business
processes. [online] Available at:
https://www.researchgate.net/publication/322552669_Logistics_and_supply_chain_management_The_import
ance_of_integration_for_business_processes
[Accessed 14 June 2024].

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Reference
• FedEx Newsroom. (n.d.). About FedEx - Home. [online] Available at: https://newsroom.fedex.com/ [Accessed 13
June 2024].

• Supply Chain Dive. (n.d.). FedEx charges ahead with Network 2.0, rolling out to dozens more locations in 2024.
[online] Available at:
https://www.supplychaindive.com/news/fedex-express-ground-network-consolidation-q3-2024-earnings/7110
11/
[Accessed 14 June 2024].

• Kulisch, E. (2024). FedEx fleet restructure poses threat to freighter operators. [online] Freight Waves. Available
at: https://www.freightwaves.com/news/fedex-fleet-restructure-poses-threat-to-freighter-operators [Accessed
14 June 2024].

• www.intelligentaudit.com. (n.d.). Parcel Shipping: The Ups and Downs of FedEx’s Bold Consolidation Plan.
[online] Available at:
https://www.intelligentaudit.com/blog/fedexs-bold-move-what-does-consolidation-mean-for-parcel-shippers
[Accessed 14 June 2024].
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Thanks
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