FedEx Corporation, also renamed FDX Corporation, is well recognized as a global logistic service company, which is the largest provider of transportation, e-commerce, and supply chain management all over the world. It is a United States-based company since 1978 to current successive way. The company has been continuing its contribution by offering integrated business applications from beginning to end of working companies beneath the banner of FedEx itself, which are:
- FedEx Express: Has been established as a high-speed transportation company;
- FedEx Ground: This Brand is the contributor of small package ground delivery;
- FedEx Freight: This Brand Provider of regional less than truckload freight services;
- FedEx Custom Critical: This Brand Provider of expedited and time critical shipments;
- At the same time it has this Brands for example FedEx Trade Networks, FedEx LTL, FedEx Freight National and so on (FedEx Corporation, 11)].
These companies are operating successfully with the help of 290,000 employees who are admired and trusted by their employers. The employees are assuring the customers and communities about their ethical and professional standards to confirm the safety of goods and services delivered to desire places. It earns USD 25 billion as annual revenue by providing its services to customers, in 2008, the revenue is stand at US$ 37.953 billion. It can succeed in its revenue by supporting 100 million electronic transactions and 5 million shipments delivered every day for more than a decade. However, the transaction process is becoming more complex day by day, because customers are connecting with FedEx by using different routes and protocols [FedEx Corporation (2008)].
FedEx’s Capabilities and Core Competencies
Capabilities are referred to as the resources are used to integrate achieving specific tasks or a set of tasks. FedEx capabilities can be determined by analyzing tangible and intangible resources to develop and use capabilities according to the core competencies of FedEx [FedEx Corporation (2008)].
- Tangible Resources of FedEx:
When the borrowing capacity and physical resources of any firm is visible, this has the written statements of its value in the financial statements.
As FedEx is a service-oriented corporation, the maintenance of services, relationship with customers, and effective management for proper services delivery are dependent on the human resources of FedEx. The employees’ experiences, proper skills and knowledge, trustworthiness about delivering goods, and proper practice of trading and its knowledge are important for human resources.
The continuous changes in technology and factors related to innovation are important intangible resources to keep differences from competitive firms. Another reason, which holds the reputation of FedEx, is to keep good customer relationships with timely and trustworthy services, which can build customers’ reliability towards FedEx.
- Resources and capabilities of FedEx to maintain competitive advantages:
With the proper tangible and intangible resources, FedEx can protect its services from competitive advantages, which is referred as FedEx’s capabilities to keep itself in the domestic and global market.
The following figure is helpful to show the resources and capabilities according to competitive advantages:
The competitive advantage of FedEx through capacity enhancement is also able to increase the capability to regional distribution. FedEx uses the newly developed concept of Trade Port through establishing amenities in the Trade Ports. This Trade port facility occupies about 40,000 square meters through which FedEx becomes able to maximize its service-providing capacity.
Another capacity increase option is the state-of-the-art facility, which is the use of wireless technology. This incorporates data accuracy and real-time communication, which brings a boost in productivity as a result (FedEx Corporation 1).
Performance Implications of Fed-Ex:
In the performances implications, FedEx has to compare its competitive advantages according to implications in the market. There are mainly four factors, which used to measure the core competencies of the firm in the real world, shown in the figure given below:
- Valuable: Hitt, M, Ireland D, Hoskisson, R., (2004) argued that valuable capabilities are allowing the company to exploit opportunities and to neutralize threats in its external environments. From FedEx, the tangible and intangible sources are analyzed with this core competency, the term value in the table;
- Rare: Hitt, M, Ireland D, Hoskisson, R., (2004) also added that rare capabilities indicate few competitors can posses the resources or capabilities of the firm. In FedEx, tangible and intangible resources are analyzing with this core competency to enable the performance implications of competitive advantages in the market.
- Difficult to Imitate: Costly in difficult to imitate capabilities are the capabilities that other competitive firms can not easily imitate the strategy or other steps taken by the firm’s in the development process of brand or products and services. In FedEx, the resources of it are compared with this capability competency in competitive market.
- Difficult to Substitute: This capability is identified as a capability, where the firm’s any strategic decisions do not have any other substitutes comparing with market availability. However, from company profile it can be said that FedEx is analyzing this capability as a competency of tangible as well as intangible resources (FedEx Corporation).
According to this table, it is seen that, there are two main sustainable competitive advantages, which are:
- Superior Brand Name
- Appropriate Managerial Decisions.
However, as a largest provider of delivery services, FedEx has to have more sustainable competitive advantages in the market to satisfy customers.
The 2008 financials of FedEx
The performances of FedEx would be judged properly by allocating the financial performances of 2008, which is most recent period’s financial data available. The revenue, net income and stock price of FedEx are shown in a graph given below:
From the financial data of 2008 of FedEx, it is seen that, the revenue generated by FedEx is high, but the income is not so high, as the operating and administrative expenses are higher in FedEx. The price of stock is stable comparing with net income and revenues (FedEx Corporation).
Core Values and Code of Conduct of Fed Ex
Core Values of FedEx
The main core value of FedEx is considered as “Safety”. Some other core values of FedEx is listed and described in below:
– Alignment and Accountability:
kinkos.co.uk (2009) argued that FedEx is concerning its actions as responsibilities, and it is supporting business decisions by experienced customers and good judgment of managers.
– Customers Services Excellences:
FedEx has committed to satisfying customers’ needs that are made in providing services, as they want.
FedEx is acting as honest and integrated into its services to customers, not to compromise with the truth or reality of related factors of services.
– Communities and Environment:
Gentry, C., (1998) argued that FedEx is concerning with helping and improving communities of employees’ professional and personal spaces of life. The corporation is also considered environmental protection, recyclable products, and renewable energy to follow their code for corporate social responsibility.
Code of Conduct
FedEx is developing code of conduct and ethics complying with policies with the help of director, officer, and employees. The contractors and international service participants are performed delivery services under the brand name and implemented code of conduct of this corporation. This code of conduct is developing working knowledge according to laws and regulations according to the regions. Code of conduct is building the relationship between employer and employees of FedEx and contractors and personnel. The right of issuing this code is not contractual rights of employers or FedEx itself.
This code of FedEx is containing policy statements and key areas of business and personnel conduct. For employees, it is provided “The People Manual” and contractors are provided terms of contracts and internal policies of FedEx. The Code of Conduct is also maintaining flexible relationship between employees and employers for the betterment of good judgment and integrity of their services to potential customers.
Value Chain Analysis of Fed Ex
Value chain analysis is a tool widely used to identify some substantial strategy, which will give the company some sustainable competitive advantages.
- Inbound logistics: FedEx uses about 800 artisans who support the company to innovate uniqueness in the services. It has connection with international suppliers who ensures the lower cost among the world [FedEx Corporation (2008)].
- Operations: Its operations use the maximum level of technology and the result is the best service.
- Outbound logistics: FedEx has thousands of retailers in three countries that ensure effective outbound logistics.
- Marketing and sales: As effective marketing and sales results maximum customer satisfaction, FedEx gives proper effort to this.
- Service: In the time of rendering the service and in after the service, FedEx gives intensive care.
- Procurement: FedEx has the efficient procurement department who ensures the purchase of the highest quality of goods in lowest price [FedEx Corporation (2000)].
- Human resource management: In all ways of hiring, training, evaluating, motivating and rewarding FedEx uses standardize procedures.
- Technology development: FedEx always eagerly use innovative and unique technologies.
- Firm Infrastructure: Its management innovate different strategies to plan and control the operation.
- FedEx Corporation, FedEx., Web.
- FedEx Corporation, FedEx Code of Business Conduct & Ethics.
- FedEx Corporation, FedEx Innovation.
- FedEx Corporation, FedEx Announces Next Generation of Electronic Shipping Services.
- FedEx Corporation, FedEx® Speeds Ahead to Transport Industry Success.
- Gentry, Connie, FedEx APIs Create Cinderella Success Stories.
- Hitt Michael, Ireland Duane, Hoskisson Robert, Strategic management: competitiveness and globalization : concepts & cases, 8th edition. Web.
- kinkos.co.uk, Mission & Core Values.