Business Strategy

Competitor strategy

“The FedEx strategy is to compete collectively, operate collaboratively and innovate digitally provides a competitive advantage for our company. Our broad portfolio of services allows us to meet the needs of our customers, most of whom use services from two or more of our operating companies. FedEx Ground is a low-cost shipping service that delivers to businesses and is faster to more locations than UPS Ground.”

Porter's Five Forces

Every business should utilize the model used to evaluate an industry structure which is the Porter’s Five Forces Model. According to Michael E. Porter,  of Harvard University, this tool helps determine companies that are the best fit for long term investment. The Five Competitive Forces include, Bargaining power of Customers, Threat of Substitutions, Bargaining Power of Suppliers, Threat of New Entrants, Rivalry of Existing Firms. Its meaningful to use the Five Forces Analysis to evaluate FedEx Ground and the findings are that FedEx is in a healthy and strong position within its industry.

 Starting with Bargaining Power of Customers- customers can force businesses to lower prices, improve quality or offer additional services and discounts on their products. FedEx ground has a large customer base, courier contracts with businesses and  pricing is competitive (force strength HIGH), Threat of Substitutions- not much alternatives other than air delivery services (force strength LOW) Bargaining Power of Suppliers-  describes the immense pressure suppliers can put on businesses by increasing costs,, offering low quality items, or even removing the ease of availability of their products.  Bargaining Power of Suppliers in logistics is low because of its types of products and services (force strength LOW) Threat of New Entrants- refers to the lack of difficulty new companies may  face when entering the market. FedEx and FedEx Ground have a  strong brand image/reputation, loyal customer base, strong marketing strategies and offers wide variety of services and options(force strength HIGH) Rivalry of Existing Firms-  shows the intensity of rivalry among existing firms, within an industry that puts pressure on one another in an attempt to steal the others market share. Amazon-drone delivery, UPS Ground (force strength MEDIUM) .

The FedEx strategy is to compete collectively, operate collaboratively and innovate digitally provides a competitive advantage for our company. Our broad portfolio of services allows us to meet the needs of our customers, most of whom use services from two or more of our operating companies. FedEx Ground is a low-cost shipping service that delivers to businesses and is faster to more locations than UPS Ground. FedEx Ground addresses the threats from the five forces in several ways. 

Starting with offering, WORLDWIDE COVERAGE where individuals can send small, big, express and less urgent shipments to over 220 countries and areas. Also, FREE PACKAGING, where envelopes or boxes are for free by signing up for and opening an account. SMART TOOLS allows users to be in control of real-time tracking updates flexible delivery options, and individuals decide exactly how to ship. Importantly, FedEx offers, SPEEDY CUSTOMS CLEARANCE by offering paperwork tips and guidance on what to expect, your shipment will be ready to get through customs swiftly. Shipping/transit time. Delivery within the contiguous U.S. takes 1–5 business days. Shipping to and from Alaska and Hawaii requires 3–7 business days. Weight limit and maximum package size. Packages up to 150 lbs., 108" in length, and 165" in length plus girth (L+2W+2H) can be shipped. Delivery area FedEx Ground delivers throughout all 50 states to all U.S. business addresses. FedEx International Ground® ships between the U.S. and Canada, and within Canada. Fast, reliable delivery the very next day with FedEx Overnight Cost-effective, time-specific delivery in 2 days with FedEx 2Day®Cost-effective delivery in 3 days with FedEx Express Saver international delivery in 1 to 3 days with FedEx International Priority. All of these systems allow for an increase in support and ease of availability and use for clients and employees.