Corporate Level Strategy

FedEx is made up of six independent business units: FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks, and FedEx Services, each compete in different sectors of the transportation industry in order to tailor the entire FedEx service to best fit each customers needs.The business model that is followed at FedEx Corporation is "Operate independently, compete collectively." The vertical integration strategy is very aggressive for FedEx. Due to the amount of infrastructure they have, their competitive position is extremely strong. FedEx has great control over the over most of the distribution channels for their service. Although their vertical integration strategy is aggressive, FedEx still buy from independent suppliers and company owned suppliers. Most of these independent suppliers provide maintenance services to the air crafts, facilities, and ground vehicle support equipment.