Fedex Business Model And Competitor Also
-
Upload
shantam-vaish -
Category
Marketing
-
view
377 -
download
1
Transcript of Fedex Business Model And Competitor Also
![Page 1: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/1.jpg)
Business Model
Presented By:- Shantam Vaish
![Page 2: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/2.jpg)
Coverage• Brief History• About FedEx• What Is FedEx’s Business Model• Logistics System• Success Mantra• SWOT
![Page 3: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/3.jpg)
FedEx: A Concept that Blossomed into an Industry
• FedEx (FDX) was the brainchild of Frederick W. Smith in 1965. An economics student at Yale University, Smith wrote a term paper in which he came up with the idea for an overnight delivery service.
![Page 4: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/4.jpg)
CEO
![Page 5: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/5.jpg)
![Page 6: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/6.jpg)
About FedEx
• Founded by Frederick W. Smith in 1971.• Headquarters located in Memphis,
Tennessee.• Daily Volume of more than 7.5 million
shipments• Workforce of more than 3,25,000 team
members worldwide• Revenue of $47.45 billion for year 2015
![Page 7: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/7.jpg)
What Is FedEx’s Business Model?
• FedEx creates value by offering “high-value added” package delivery to over 220 countries.
• The business model can best be summed-up in the company’s early slogan: When it absolutely, positively has to be there overnight.
• With 652 aircraft (the world’s largest freight airline) moving over 4 million packages per day, FedEx guarantees speed with a reliability of greater than 99%
![Page 8: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/8.jpg)
Cont...
• FedEx provides a portfolio of transportation, e-commerce, and business services through wholly owned subsidiaries. In the same year, Fortune ranked the company 12th for the “world’s most admired companies” for the 14th consecutive year.
![Page 9: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/9.jpg)
![Page 10: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/10.jpg)
Logistics System
![Page 11: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/11.jpg)
![Page 12: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/12.jpg)
![Page 13: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/13.jpg)
Old Supply Chain
![Page 14: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/14.jpg)
New Supply Chain
![Page 15: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/15.jpg)
Service
• Review and analysis of supply chain
• Order administration
• Shipment planning and management
• Freight bill audit and payment
• Invoice and report generation
![Page 16: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/16.jpg)
Competitor
![Page 17: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/17.jpg)
UPS History
• Started in 1907 by 19 year-old Jim Casey then called American Messenger Company.
• Became Unite Parcel Service of America in 1929 and began shipping packages on commercial airliners.
![Page 18: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/18.jpg)
Fedex
• 50,000 Delivery Trucks
• 625 Cargo Planes
• 325,000 Employees
• $47.45 Billion USD
UPS
• 88,000 Ground Trucks
• 583 Planes
• 360,000 Employees
• 58.36 billion USD
![Page 19: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/19.jpg)
The Competition
• Price competition
• Information Technology
• Service Expansion
• Logistic Serviceshttp://fitsmallbusiness.com/fedex-vs-ups-vs-usps/
![Page 20: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/20.jpg)
![Page 21: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/21.jpg)
Success Mantra
COSMOSIt is a computerized package tracking system that monitors every phase of delivery cycle at Federal Express
![Page 22: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/22.jpg)
Hub & Spoke
It is a centralized integrated logistics system designed to keep cost down. Hub and Spoke distribution centers receive products from many different origins, consolidated the products and send them directly to destination.
![Page 23: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/23.jpg)
GOC
FedEx has control centers in London, Paris, Toronto & Hong Kong but much of the action happens in GOC of Memphis, Tennessee in a room filled with hundred of computers screens, videos & busy people.
24 hours a day, 365 days in a year they monitor system for potential disruption any problems from a jet fuel supply issues in Asia to a volcano in the Alaskan Island to earthquake in Europe.
In urgent situation the GOC has the authority to act fast & make crucial decision.
![Page 24: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/24.jpg)
SWOTStrength
• Network in more than 220 countries and more than 3,25,000 employees worldwide
• Best use of technology• Dependable knowledge in
the delivery business.• High investment in IT
systems• More than three decades of
experience in logistics services
Weakness
• More dependence on US market
• Since this is a competitive segment, the market share growth is limited
• Less competitive ground shipping
![Page 25: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/25.jpg)
Opportunities
• To use cooperative strategies
• Challenging competitors through mergers and acquisitions
• Local competitors with poor service & products
• Acquire smaller companies to increase market share
Threats
• Rising fuel prices could impact company’s profit
• Varying market demand
• Vulnerable to increasing reach by major competitors.
![Page 26: Fedex Business Model And Competitor Also](https://reader034.fdocuments.us/reader034/viewer/2022042907/587860451a28ab18098b6163/html5/thumbnails/26.jpg)