Key Strategies of FedEx

In this article, we covered the key strategies of FedEx

With a great name in the United States of America and working in more than 200 countries, FedEx’s success can be attributed to the contentment of its employees and customers, as the company strives to provide high-value-added logistics, transportation, and related business services through focused operating companies in order to maximize financial returns for its shareholders. Customers can trust that their packages will arrive on time when they use FedEx. Additionally, the company’s professional work environment and competitive benefits have resulted in an army of devoted employees who are completely committed to the organization’s mission. FedEx has established itself as a brand synonymous with dependability and quality thanks to a strong emphasis on the quality of their work and a close relationship with their clients. Its continuous success can be linked to these strategies below that cross over to the global, business unit, and corporate levels of strategy;

The “S-curve” growth theory is the foundation of FedEx’s business strategy. To maintain market share and profitability, this theory contends that businesses must continuously innovate and invest in new products and services. The company uses digital innovation and collective competition to accelerate its growth, particularly in supply chain management. To enhance its operations, the company has made significant investments in the creation of new technologies. They use unique barcodes to personalize shipments for the purpose of consumer tracking and believe in automation.

It also has a website where customers can communicate with the business, voice their concerns, and track their deliveries. It has utilized the growth of the internet to its fullest extent in order to provide services to customers all over the world. Customers are able to make purchases and pay online. Also, FedEx does not view customer service as an offline, transactional activity. The company provides proactive advice to customers on how to ship their goods and manages complex transactions such as international imports, high seas sales, and transshipment by employing chatbots and online virtual assistants. FedEx is of the opinion that technology offers logistics businesses a chance to make the customer experience more convenient from beginning to end. FedEx always comes up with new ideas to meet the needs of customers. In terms of logistics and freight, FedEx is currently one of the most innovative businesses.

FedEx aimed to speed up delivery times and expand its networks worldwide. It constantly looked for new markets to gain an advantage over its rivals, so that in being the first, it would have so deeply ingrained itself in customers’ minds that when they need an urgent delivery, they only think of FedEx. The majority of people are familiar with the brand name FedEx, which connotes expedited delivery. FedEx stands out from UPS and DHL due to its strong brand name and captivating tune. Over time, FedEx has demonstrated its dependability and has the resources to grow. It has an advantage over its rivals because they are unable to replicate this. Additionally, FedEx is still the first choice of any customer looking for a logistics solution, despite the emergence of additional competitors in this market.

Differentiation strategy has also been utilized at the business unit level by FedEx as one of its key strategies. It tries to stand out from its rivals by providing services of a high standard that no other company in the industry can match. Differentiated products are more expensive for FedEx. The cost of providing high-quality services is reflected in the higher price. FedEx differentiates its product so that it can attract a larger customer base because competitors can deliver faster. This is accomplished by providing customer support, home delivery pickup, and tracking systems. FedEx goes to great lengths to distinguish itself from its rivals. The differentiation strategy is used in head-to-head competition because FedEx and UPS are in fierce competition.

FedEx strives to meet the requirements of various clients. As a result, various business units were developed to meet the requirements of various market segments in an effective and efficient manner. Each business unit competes as a whole while working independently to satisfy customers. Express transportation, ground delivery, freight forwarding, logistics, and e-commerce solutions are just a few of the many options FedEx provides. The company is able to effectively satisfy the requirements of emerging customer segments.

The global strategy of FedEx is to offer services of higher quality than those of other shipping companies. Through its own fleet of planes, stations, and vehicles, it established itself as a delivery service. It has a significant competitive advantage over businesses that rely on third parties to provide such infrastructure as a result of this. It operates in 220 nations and territories and employs over 850,000 people worldwide. It has a significant competitive advantage over rivals due to its size and scale. It makes over 3.3 million deliveries thanks to its fleet of 669 aircraft and over 43,000 vehicles. Customers can take advantage of the company’s cost-effective and efficient transportation options. Additionally, since FedEx makes extensive use of cutting-edge technology, this has made it possible for deliveries to be made across multiple continents in the shortest amount of time. FedEx manages its operations from a centralized location. 

FedEx makes a number of acquisitions to expand its business rather than making substantial investments to establish itself in new markets from scratch. It bought Northwest Research Group, a company that did inventory research and data analytics, in 2017. The company was able to expand its reach in the market research sector thanks to this acquisition. Additionally, in 2019, it strengthened its position in the freight forwarding market by acquiring Flying Cargo Group. Partnering with other businesses to gain a competitive advantage is part of the company’s collective competition strategy. The business’s reach and capabilities have grown as a result of these acquisitions.

The fact that FedEx is regarded as the industry standard for same-day delivery is not accidental. It has made a name for itself in this area thanks to effective marketing tactics, most notably by appearing in multiple feature films. Product placements by FedEx have also been very well thought out over the years, helping to alleviate customer problems and elicit the appropriate emotional responses. In addition, it creates original advertisements that are distributed across different platforms and sponsors a variety of sporting events and teams.

Although FedEx was not the first private parcel delivery service, it quickly rose to the top of the market through an excellent culture. FedEx has been meeting the demand for a dependable method of shipping packages by offering services across the nation, the world, and regionally. It has added retail locations and acquired similar businesses over the years to broaden its reach. FedEx can enter new markets by leveraging its brand position. It can position itself as the preferred option for customers in these areas by utilizing its experience and resources. Additionally, it possesses the resources necessary to expand its competitive advantages and diversify into new strategic niches. FedEx enjoys a competitive advantage thanks to its collective strategy of digital innovation, collaboration, and competition. When a customer sees the FedEx logo, they are aware that they are dealing with a business that will fulfill its commitments, regardless of the difficulties it faces.