Competition

The competition in the package delivery service is very global. FedEx Corporation's number one competitor is UPS (United Postal Service), but also competes with DHL, USPS (United States Postal Service) and a host of other smaller companies at home and abroad. Competition is not becoming more global due to the fact that companies are merging and the industry is consolidating. FedEx must make enormous investments in hubs, air and ground fleets, and trucking technology to stay on top of the competition. They try to stick out from their competitors by offering better quality shipping service. They continue to offer faster deliveries and expand their global network.

FedEx- Cost Leadership or Differentiation

All corporation are constantly thinking about the different types of business-level strategy to help their business gain competitive advantage. FedEx has more of a differentiation strategy than a cost leadership. Cost leadership strategy is a set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors. UPS is generally cheaper than FedEx. In this industry customers are very price sensitive. They are willing to go to the producer who will provide at the cheapest cost. FedEx is much more differentiated from its competitors on a global aspect. They stand at the top as far a global express delivery is concerned. FedEx offers the most support, money back guarantee, and the capability to pick up packages from the customers home. The also have differentiation in quality. They have spent a large amount of capital on their logistic and operations for its transportation system. This assures smooth coordination and deliveries which results in high levels of quality service.

FedEx Sees Disruption Due to the Harsh Weather

FedEx said the company's Memphis hub and flight operations experienced disruptions due to the winter weather storm that rolled through Memphis Monday night. Although they still had staff on the ground and operating, there are some packages that might be delayed. According to FedEx, they have suspended "money-back guarantee for U.S. packages and shipments inbound into the U.S. from international locations with a delivery commitment of Tuesday, Feb. 9, 2010," consistent with the provisions of the FedEx Service Guide. Logistic company's such as FedEx and UPS can see substantial losses in revenue due to the implements of bad weather. It is hard to deliver packages on icy roads and this causes FedEx to shut down operation in the areas that are not safe. Washington D.C. was hit hard by the winter storm and a FedEx spokesmen said, " we will hold the packages until they can be delivered." A good thing is that FedEx has been recently trading up nearly 3.5% at $79.22.

Federal Express: Business Summary

This is just a basic business summary of what we do and specialize in at Federal Express located in Memphis, TN. FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage, and ocean and air cargo distribution; customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports; and international trade advisory services, including assistance with the customs-trade partnership against terrorism program, as well as publishes customs duty and tax information in various customs areas. The FedEx Ground segment provides business and residential ground package delivery services. It primarily serves customers in the small-package market in North America. The FedEx Freight segment offers less-than-truckload freight services, as well as shipment carrier services. The FedEx Services segment provides sales, marketing, information technology support, and customer service support; document solutions and business services, as well as provides access to copying and digital printing, professional finishing, document creation, signs and graphics, direct mail, Web-based printing, Internet access, computer rentals, videoconferencing, and a range of day-definite ground shipping and time-definite global express shipping services; and supply chain solutions, including critical inventory logistics, transportation management, fulfillment, and fleet services. (finance.yahoo.com/q/pr?s=FDX)