FedEx Q4

Q4
What are the factors that put pressure on FedEx to consolidate its operation, while remaining customer-focused?

1. Intense competition in the transportation / express delivery time

• US domestic market growth volume was slowing down

2. The Internet Market and e-Tailing

• Changed the basis for competition for most business

3. Increasing fuel price

• Large portion of variable cost
• Fluctuate -> hard to control
• Affect operating cost

4. Customer ware confused & Minimizing duplication of works

• Multiple brands under FedEx umbrella
• Separate sale force with directed cooperation
• Multiple invoices and account numbers

References:

FedEx PDF

http://www.strategicmanagementinsight.com/mission-statements/fedex-mission-statement.html