Fedex - Structural Transformation Through E-Business Essays

2381 Words Aug 31st, 2008 10 Pages
"Don't panic"
"whatever it takes"
"When it absolutely, positively has to get there overnight."
"Relax, it's FedEx"
"FedEx, a growing 21 billion dollar enterprise in the 21st century, remain the world largest cargo airline, connecting 90% of the world Gross Domestic Product."
(David Bronczek, President and CEO of FedEx Express, 2007)

FedEx - a company with its people that promised to pick up shipments when called, deliver new packaging materials when needed, get any goods to their destinations by a guaranteed time or even at a guaranteed range of temperature, and charge us a reasonable price to do so.

FedEx is a new-economy company, or we can say that FedEx is a service sector asset based economy company. The
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Acquisition was further accelerated in the 1990s as the company bought routes in China from Evergreen International, created a $16 billion logistics and distribution infrastructure by acquiring Caliber System, and bought RPS to eventually relaunch as FedEx Ground.
Since 1998, FedEx initiated its outsourcing activities and decided to focus on value-added context services, such as online package tracking and logistics outsourcing, and leave the "driving" to other companies. Nevertheless, the business processes of FedEx and these new partners will still be seamlessly meshed via the Internet. Thus, FedEx acts as the new platform for wealth creation and the e-business web, under a system constituting suppliers, distributors, service providers, infrastructure providers and customers that use the Net as the basis for business communications and transactions. FedEx is the one who choreographs the e-business activity, and it is also the one who gain the most profits out of it. But the other participants, contributing according to their core competencies are still essential.

While e-business, globalization, internationalization is the challenges FedEx need to face externally, FedEx is facing problem in aligning its internal organization structure. Re-organisation was initiated, which in the means incorporated the e-business strategy as its new business model. Initially the efforts

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