Table of Contents


Introduction

            The ability to keep up with E-businesses will depend on how well a company can keep up with new emerging technologies. On January 19, 2000, Fedex announced a new branding strategy that resulted in change of company’s name to “Fedex Corporation” and extended this Fedex name to four of its five subsidiary companies. Fedex’s strategy was to take advantage of its brand image, name that customers have counted on for reliable service and cutting edge technology. The new organization is geared to help businesses of all sizes in achieving their goals.

            Fedex’s strategy was to capitalize on growth of E-business and aimed at integrating its physical transportation with its virtual information infrastructures to create a large matrix of systems that meets needs of businesses ranging from transportation services to complete supply chain management solutions. (Lockamy and Khurana, 2005, 54-90)

            The process of building systems and technology infrastructure was first step in transformation. This was done by announcement of January 2000 restructuring, which would cost approximately US$100 million over next three years. (Lockamy and Khurana, 2005, 54-90)

An excellent strategy matter for a large organisation, this would enable them to pursue competitive strategies of cost reductions, resulting in an aim of a "better ability to meet customer needs and increase their competitive leverage". (Johnson and Scoles: 2006) To achieve this strategic intent, Firms would to need adopt an operational strategy of reducing wasteful production in order to increase sales and market share.

The strategy that firms is following after its review of focus is one which aims to be differentiated across several markets, both geographically and product based, and to achieve world-class dominance in their key markets. They have continued their corporate level global strategy and have developed encompassing production, development and marketing operations in each of major microelectronics market in world. De Wit and Meyer suggest that firms have to "achieve enough power to counterbalance demands of suppliers and buyers, to outperform rival producers, to discourage new firms from entering market and fend off threat of substitute products". Ford hopes to meet its objectives by having that power in each market and by being close to each major market enabling it to be responsive to their needs. In addition, Ford has chosen to resizing company to match current market realities, dropping some unprofitable and inefficient models, consolidating production lines, and shutting factories and cutting jobs.

For example Ford has chosen this strategy in response to market demands in which it operates. The industry in which it operates is one upon which nearly all other industries depend due to advances in technology, and have stringent requirements for innovation and quality. They are at beginning of supply chain and are of strategic importance to their customers. Therefore, they realise importance of a reliable and diverse source of supply to this industry; one which will work closely with its customers and one which has capacity to be innovative in response to constant changes; hence Ford mission statement – We collaborate with others to revolutionize our core business processes and to stay ahead of our rapidly changing industry.. At Ford Motor Company, we forge partnerships to better connect with our customers. Together, companies like yours and ours can offer digitally a broad range of innovative products and services. We carefully select those alliance opportunities that enable us to deliver better ideas into marketplace in new and exciting ways. (Lockamy and Khurana, 2005, 54-90)

Competitive advantage through competitive strategy options; price based, differentiation based or focus strategies. (De Wit and Meyer: 2002) they suggest strategy can be based on price, features, bundling, quality, availability, image, and relations. Firms have to determine what buyers find important. Porter (cited in De Wit & Meyer) suggests that firms must chose between lower cost and differentiation. He says you cannot do both.

Global

            The international market place is by far company’s most prominent growth opportunity. The Fedex global story began with growth of Fedex Express, which today covers more than 210 countries with quick, reliable express transportation. Fedex has been a leader in global economy, offering customers more choices and more places. The family of companies representing Fedex operates hubs all over world, giving customers limitless opportunities to expand their customer base. Each member of Fedex family also offers targeted transportation and information solutions in following international locations:

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        Fedex Ground provides small-package ground delivery to every business address in U.S., Canada, and Puerto Rico.

        Fedex Freight provides less-than-truckload freight services to Canada, Mexico, Central and South America, and Caribbean.

        Fedex Custom Critical offers surface and air expedited solutions for door-to-door delivery of time-specific shipments in U.S., Canada, and Europe.

        Fedex Trade Networks provides global e-customs clearance in U.S. and Canada, also offers freight forwarding services that connect U.S. and Canada with Asia, Europe, Latin America and other major international regions.

        Fedex Supply Chain Services leverages global transportation and information networks of Fedex companies and their affiliates to provide ...

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