STRATEGIC MANAGEMENT

Strategic Management

Table of Contents

Strategic Management3

Question 1:3

Introduction3

FedEx Overview3

Business Model Objective4

Three Key Measures4

Customer-value creation4

Performance support5

Business goal alignment6

Environmental Analysis6

Industry Analysis6

Current Offerings12

Virtual Order process13

Value Analysis13

Conclusions and Recommendation15

Increase in price and information competitiveness15

Development of e-community model16

Include 'Price-Calculator' function16

Keep the website simple and easy to use16

Question 2:18

Introduction18

Analysis18

Question 3:22

Lessons for management23

General lessons24

Specific lessons26

References32

Strategic Management

Question 1:

Introduction

There are many uncertainties factors that could influence a well-known business to go into a bad position as threat of new entrants or economic crisis etc. Therefore, every company or organization is required to have a considerable plan to prepare for its future.

The purpose of this report is to outline the performance, strategies and competitiveness of FedEx Corporation. This report is provided a brief summary of what is the company strategy.

As the report developed, there will be a section discussing about the environmental analysis which includes the SWOT analysis, Porter's Five-Forces Model, as well as the market analysis which includes the company website analysis and the value chain. This report also outlines the company's three key measures, value analysis, and component measures for appraising the business model of the company. Lastly, recommendations are suggested for the company to implement so that it can improve e-business performance and remain competitive in the industry.

FedEx Overview

FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $26 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 240,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities.

Business Model Objective

FedEx business model is business-to-business (B2B) where it performs the strategy of attracting new business from small and medium-sized customers, create new revenue streams, expand the high-margin international business, capitalize on e-commerce and provide meaningful supply chain solutions for businesses.

It main e-business models are e-informediary and e-brokerage. FedEx's website provides various kind of information about their products and services. For example, it allows customers to track their progress of the parcel providing with information of the parcel condition by using the Tracker tool from the website. For e-brokerage model, it acts as a broker carrier helping businesses to ship their products internationally. For example, FedEx and Hewlett-Packard created a supply chain solution that eliminates the shelf entirely, shipping HP's industry-leading notebook PCs direct from manufacturing facilities in China to homes and businesses throughout North America in only two or three working days (FedEx Annual Year Report 2004, pp.16).

Three Key Measures

There are three measurement concepts broadly applied at FedEx: customer-value creation, performance support, and business-goal alignment. (Threat, 1997, pp.16)

Customer-value creation

Threat (1997) has explained that FedEx listens to customers and creates services and technology to fulfill core needs. In 1970s, FedEx embraced the overnight services. The extensive FedEx tracking capability was conceived to meet its customers' needs about critical shipments required access to more ...