Register to read the introduction…
To some of FedEx’s major resources, that distinguish their operations from their competitors, undeniably belongs to their aircraft fleet. We can observe the extent of this distinction by comparing FedEx to one of their major competitors, UPS. Fed Ex is a younger company (FedEx Express was founded in 1971[ix]) in comparison to UPS , which was founded in 1907. Still FedEx Corp was able to establish an air fleet of 638 aircrafts.[x] Even when we add their 319-chartered aircrafts to UPS’s air fleet, UPS still falls way below FedEx in respect to this type of resource. It is not difficult to distinguish the barriers to imitate this kind of distinctive competence. For the most part, the biggest barrier to imitate FedEx’s air fleet is the high cost of acquiring more
…show more content…
The hub is a central location where packages are sorted according to their destinations. The packages will likely pass through many hands before reaching their final destination. The packages stay at the hub until they are picked up and shipped either by truck or plane.
The package delivery is probably the greatest value creation activity for Fedex Express. The drivers of the planes and trucks must perform their activities efficiently to increase the perceived value of the service. The drivers must absolutely no matter what, get the packages to their destinations on time, and they do a good job in doing so. By meeting and exceeding the customers’ expectations value is increased with each positive result.
The final primary activity is customer service. This function is to provide after sales service and support, however, FedEx provides customer service during the use of the service by letting customers track their package while it’s in route. This creates extreme value for customers because they are able to check the status of their package at any given moment for an increased sense of …show more content…
Fill in the Blanks
This is what FedEx does well enough to give them second place in the express delivery industry. Some fill-in-the-blanks strategies they may want to consider include increasing their ground delivery capabilities. This is an area that UPS has an advantage in. With FedEx’s commitment to service, it seems unfitting to be falling short in ground service. Creating the strongest air fleet in the business has not enabled them to overtake UPS. Holding on to that edge while expanding their ground capabilities could give them better leverage in that service sector. FedEx may also want to consider appealing to customers through a variety of creative and recyclable packaging. Using themed packages for birthdays, themes, or holidays may sway some customers with a more personable product. Also, using and encouraging recycled materials may save on material costs and show the public a concern for the environment.
H. White
The hub is a central location where packages are sorted according to their destinations. The packages will likely pass through many hands before reaching their final destination. The packages stay at the hub until they are picked up and shipped either by truck or plane.
The package delivery is probably the greatest value creation activity for Fedex Express. The drivers of the planes and trucks must perform their activities efficiently to increase the perceived value of the service. The drivers must absolutely no matter what, get the packages to their destinations on time, and they do a good job in doing so. By meeting and exceeding the customers’ expectations value is increased with each positive result.
The final primary activity is customer service. This function is to provide after sales service and support, however, FedEx provides customer service during the use of the service by letting customers track their package while it’s in route. This creates extreme value for customers because they are able to check the status of their package at any given moment for an increased sense of …show more content…
Fill in the Blanks
This is what FedEx does well enough to give them second place in the express delivery industry. Some fill-in-the-blanks strategies they may want to consider include increasing their ground delivery capabilities. This is an area that UPS has an advantage in. With FedEx’s commitment to service, it seems unfitting to be falling short in ground service. Creating the strongest air fleet in the business has not enabled them to overtake UPS. Holding on to that edge while expanding their ground capabilities could give them better leverage in that service sector. FedEx may also want to consider appealing to customers through a variety of creative and recyclable packaging. Using themed packages for birthdays, themes, or holidays may sway some customers with a more personable product. Also, using and encouraging recycled materials may save on material costs and show the public a concern for the environment.
H. White