CASE STUDY

Case Study: Fedex and BP



Case Study: Fedex and BP

Case 1: Fedex

Answer 1

Over the last ten years, FedEx has done extremely well in terms of growth and development. The company has been able to expand extensively and has experienced a growth in their consumer base on account of this expansion. FedEx has continued to deliver the same nature of service to its consumers that it has been delivering to them from the day of its inception.

If FedEx's strategy was to be examined in order to determine the fundamentals that have allowed FedEx to expand over time and reach the point of success at which it stands today, then it can be observed from the details given above that the fundamental strategy followed by FedEx over the last few years appears to be based on intensive acquisition of companies already present in the industry. This acquisition, in relation with the nature of FedEx's operations is present on a global scale, and is exercised around the world in order to increase the channels through which FedEx can reach customers and the options through which customers can send their parcels around the world. FedEx's strategy appears to be similar to that of a 'blanket strategy' in which FedEx is seeking out the establishment of a monopoly in the industry on a global scale.

FedEx is not setting up operations from scratch and is acquiring operations that are already present and running. Then, FedEx rebrands those operations to fit them into FedEx's organizational structure and to run them in accordance with the fundamentals that FedEx exercises for success in business.

However, when studying FedEx's strategic decisions, it is easy to get sidelined and forget the essence of FedEx's growth. The reason behind the implementation of the acquisition strategies mentioned above is to become a premier delivery service that consumers can rely upon to deliver parcels overnight in a safe and timely fashion. FedEx allows for the frequent creation and acknowledgment of ideas in order to implement strategies that are on the cutting-edge of innovation. The implementation of such strategies enables FedEx to collect ideas from whichever source they come, and implement them on an organization-wide scale.

Answer 2

Major SWOT Considerations in FedEx's Attempt

Strength

Strong brand image; Sixth on list of the Fortune 500; Strong revenue growth; Large scale operations; Superior product performance Vs competitors; Management is committed and confidence.

 Weakness

Declining operating; Efficiency and weak returns; Dependence on ...