The key success factors for FedEx Ground business is technology. This is what makes a company run and ultimately makes the money for the company. Technology is important because it allows the companies to compete and be better than one another. It helps attract customers and helps to create the revenue for the companies. FedEx Ground competes in this area by having at support system and is available online for customers Marketing: Key success factor is marketing. People need to be familiar with the carrier’s names and services so they have trust in the quality of the service provided.
Also it help build the brand name, FedEx Ground offers an on time guarantee. Globalization: The more a parcel carrier is globalization; the better success it will have when it comes to international deliveries. International deliveries are costly and there are only a few carriers that can provide total global delivery services and this could be a competitive advantage. Customer service is very important, carriers need to keep the customers satisfied with the service so they continue to come back and use the service. Strategic Alternatives
Alternative #1 – Horizontal Growth/Expansion to Other Regions FedEx Ground should grow horizontally in terms of their operations by expanding their service to new regions. FedEx Ground can expand into new markets, thus gaining more market share, and ultimately achieving greater global coverage. FedEx Ground will introduce an available logistic service that is fast and low cost. Alternative #2 – Expand Home Delivery Network FedEx Ground has planned to open 63 additional FedEx home delivery terminals throughout the U. S. to expand its networks geographic reach to 80% of the U. S population.
FedEx Ground will co-locate 56 of the new FedEx Home Delivery terminals with existing FedEx Ground facilities to optimize its network. Their volumes have steadily grown and are expected to continue to grow significantly over the next year. Their option is to introduce/expand the Home Delivery network to Canada, and gain more market share. Alternative #3 – No Change Strategy FedEx Ground can continue to offer the same mix of services they do now.
FedEx Ground still holds a relatively large share of the market and has the ability to defend its position in the industry. Their current strategy is continuously making profits resulting in a great financial standing for FedEx Ground. The threat of entrants is low as well giving them a better advantage for overall success. Recommendations The global economic crisis proved that an international company like FedEx Ground should not be focused on the North American market alone, as its major competitors UPS announced profit decline of 49% as the recession cut business demand.
Analysts predict that the economic recovery in North America will not be soon as the expected U. S. GDP in2009 will drop 1. 5%. Thus, FedEx Ground should cut operational costs while maintaining its leadership in low cost ground shipping provider in North America and look for opportunities in other regions of the world. This part will attempt to introduce measures to increase market shares ; profits in N. A. market; lower operational costs; recommend regions of the world markets that FedEx Ground will see long term and short term profits.
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