MARKETING STRATEGIES OF FEDEX

Marketing Strategies of FedEx



ABSTRACT

The marketing strategies are of great importance for the company's overall performance. It is imperative for the organization to evolve their marketing strategies with the passage of time. The marketing strategies are based on various features. They can be easily interpreted by the researchers by taking into account SWOT and other such analysis. It has been observed that the promotion plays an important role in the marketing strategies of the company and have worked well for increasing the sales of the organizations. Transporting packaged commodities from one place to another is an operation that occurs daily. Millions of shipments ranging in different sizes, weights, and shapes are being delivered manually and/or mechanically. Different modes of transportation such as truck, rail, air, and sea have been employed by carrier companies to fulfill people and companies' need. Service commitments include rapid and efficient movement of shipments, reliable and cost-effective services. However, with the increasing number of goods that are shipped and handled, the logistical networks are rather complex. Federal Express (FedEx) started its business in 1971, processes approximately 3.5 million packages on a daily basis (FedEx Facts, 2008). Its worldwide headquarters is located in Memphis, Tennessee. FedEx has been successful in the air transportation sector, serving millions of customers in over 220 countries. It is one of the major private U.S. companies offering a one-class service for door-to-door shipment of small parcel packages

PART 1: INTRODUCTION

Transporting packaged commodities from one place to another is an operation that occurs daily. Millions of shipments ranging in different sizes, weights, and shapes are being delivered manually and/or mechanically. Different modes of transportation such as truck, rail, air, and sea have been employed by carrier companies to fulfill people and companies' need. Service commitments include rapid and efficient movement of shipments, reliable and cost-effective services. However, with the increasing number of goods that are shipped and handled, the logistical networks are rather complex. Federal Express (FedEx) started its business in 1971, processes approximately 3.5 million packages on a daily basis (FedEx Facts, 2008). Its worldwide headquarters is located in Memphis, Tennessee. FedEx has been successful in the air transportation sector, serving millions of customers in over 220 countries. It is one of the major private U.S. companies offering a one-class service for door-to-door shipment of small parcel packages (Cheema, 1995).

Priority overnight service uses a global air-and-ground network system to speed up delivery of time-sensitive shipments. FedEx has 15 global hubs in its hub-and-spoke system: 8 in the United States, 3 in Europe, 3 in Japan and Philippines, and 1 in the Middle East. The hubs are categorized into national hubs, regional hubs or mini-hubs. The hub in Memphis is the only “super hub” in the network because it sorts the most packages and has the greatest reach to various destinations (Singh, 2007).

The global strategy of the Federal Express is the most appropriated one for the company as it has pushed the standardization to its ...