FedEx Case

FedEx Case

1. Federal Express’ strategy for competing in the overnight delivery industry was inventive as compared to the competition. The founder, Fred Smith, shared a vision of an express distribution service by capitalizing on the need of businesses for speed and reliability of deliveries. FedEx focused on creating a next-day service that was reliable and timely. It took losses in the first three years, but saw an increase in the years following. Also, part of the company’s strategy was to acquire their own means of transportation, technology, and warehousing. FedEx did not believe that contracting or leasing would help its quest for low costs. Recently, FedEx emphasized technology as their competitive advantage over the other delivery companies. It has embraced the Internet as an excellent way of communicating with customers one-on-one and gives them easy access to company information. Federal Express is currently using the strategy of focusing on low-cost, while pr...