Providing a variety of services to the consumers in the vast and growing field of courier delivery, FedEx has managed to accommodate the broadest variation in their consignments. They have been working in this industry of shipping items from on destination to another. This market of shipping goods can be easily assorted as existing in its mature stage. There a few competitors for this company including DHL, UPS, TCS etc and they have been competing against FedEx by creating a loyal bonding with their consumers and functioning at a very low fee. This is the reason why the entry threshold in this industry is so high which obstructs birth of any new competition. FedEx started as a moving company which helped movement of packages from one place to another. Now they have grown to be one of the largest transportation companies of the world today. The only reason they were able to achieve this stance was through correct analysis of the factors which were critical to succeed in this industry and then to work hard to meet those factors.
Background of FedEx
FedEx has been working on its services globally and therefore they have to comply with the rules and regulations set up for the international firms. To make sure that they are following the rules and regulations set for these firms, they make sure that they never provide any service or pick up any consignments which intersect the international laws for import and export. Just what any company in the shipping business would do, FedEx would not accept any responsibility for the expense or any loss that is conducted due to any mishap during the shipment. This includes the penalties and fines which are implemented due to the failure to comply by the rules at any side of the agreement in moving goods, whether it is import or export. (www.fedex.com).
FedEx makes its employees to function in a group with the officials of Custom of America to ensure that any items which were to be controlled or screened may not go through their movements. They have constructed and designed very particular and precise maps and rules for shipping and one of their policies is that they should have all the relevant details and information about their consumers. This ensures the discouragement of the movement of any deadly or illegal things. It is also a majorly significant part of their policy to screen different packages which they receive to shipped, to make sure that there is no dangerous or illegal thing being shipped using them. (Allan, 1997, 14).
They have constructed a global network which offers the consumers all those services which are way beyond the conventional concepts of transportation of goods. These services include service management tools and post-service support for all the consumers around the world. FedEx has been the leader in the industry of transportation which has consequently resulted in the creation of competition in the industry ...