Executive Summary
FedEx Corporation, a global courier company with a wide portfolio of transportation, business and logistics services, was started as FedEx Express – to deliver packages quickly using the air transport system. Over the years, FedEx, with a vision to provide world-class, quality, reliable and safe services and innovative solutions to its customers, has developed a strong infrastructure and has emerged into shipping regions worldwide. Since its inception, they have stuck to the values of loyalty, responsibility, and integrity, setting new example in the shipping and transportation industry.
With employees driven by the Purple Promise, satisfying the customers’ needs is the most important commitment at the heart of the company. The People-Service-Profit …show more content…
10.4 % 13.58 % 62.49 %
C.H. ROBINSON WORLDWIDE, INC. 14.82 % 27.24 % 43.75 %
Expeditors International 12.24 % 17.83 % 18.42 %
Table 1.2 Management Effectiveness FedEx Vs Competitors
As can be seen from Table 1.1 and Figure 1.1, the Return on Equity is same as the Industry and Sector Average. Also, Table 1.2 shows that FedEx’s R-o-E, R-o-I and R-o-A is less than that of the competitors. Therefore, FedEx does not appear to have gained a competitive advantage in transport and logistics industry.
Competitive Advantage
Infrastructure
In 2003 alone, FedEx invested over $1.5 billion in capital to have a worldwide infrastructure of airplanes, hubs and trucks. With infrastructure like Hybrid Electric Vehicles, worldwide connectivity, aircrafts with higher payload capacities and more fuel efficiency, hubs, distribution centers etc., it is difficult for any competitor to imitate.
Quality
FedEx promotes a culture of Quality which has given the company a competitive edge. They have programs like Quality-Driven Management to check the quality standards.
FedEx Corporation, a global courier company with a wide portfolio of transportation, business and logistics services, was started as FedEx Express – to deliver packages quickly using the air transport system. Over the years, FedEx, with a vision to provide world-class, quality, reliable and safe services and innovative solutions to its customers, has developed a strong infrastructure and has emerged into shipping regions worldwide. Since its inception, they have stuck to the values of loyalty, responsibility, and integrity, setting new example in the shipping and transportation industry.
With employees driven by the Purple Promise, satisfying the customers’ needs is the most important commitment at the heart of the company. The People-Service-Profit …show more content…
10.4 % 13.58 % 62.49 %
C.H. ROBINSON WORLDWIDE, INC. 14.82 % 27.24 % 43.75 %
Expeditors International 12.24 % 17.83 % 18.42 %
Table 1.2 Management Effectiveness FedEx Vs Competitors
As can be seen from Table 1.1 and Figure 1.1, the Return on Equity is same as the Industry and Sector Average. Also, Table 1.2 shows that FedEx’s R-o-E, R-o-I and R-o-A is less than that of the competitors. Therefore, FedEx does not appear to have gained a competitive advantage in transport and logistics industry.
Competitive Advantage
Infrastructure
In 2003 alone, FedEx invested over $1.5 billion in capital to have a worldwide infrastructure of airplanes, hubs and trucks. With infrastructure like Hybrid Electric Vehicles, worldwide connectivity, aircrafts with higher payload capacities and more fuel efficiency, hubs, distribution centers etc., it is difficult for any competitor to imitate.
Quality
FedEx promotes a culture of Quality which has given the company a competitive edge. They have programs like Quality-Driven Management to check the quality standards.