2. History of Cargo
Indian Aviation Industry is one of the fastest
growing airline industries in the world.
The history of Indian Aviation Industry started in
December 1912 with its first domestic air route
between Karachi and Delhi.
It was opened by the Indian Air Services in
collaboration with the UK based Imperial
Airways as an extension of London-Karachi flight
of the Imperial Airways.
3.
FedEx Corporation is an import/export company,
incorporated October 2, 1997 in Delaware.
Founded in January 1998 with the acquisition of Caliber
System Inc. by Federal Express.
In January 2000, FDX Corporation changed its name to
FedEx Corporation and re-branded all of its subsidiaries.
Called FedEx Corporate Services, was formed to
centralize the sales, marketing, and customer service for
all of the subsidiaries.
4.
FedEx Corp. (NYSE: FDX) provides customers and
businesses worldwide with a broad portfolio of
transportation, e-commerce and business services.
With annual revenues of $45 billion, the company offers
integrated business applications through operating
companies competing collectively and managed
collaboratively, under the respected FedEx brand.
6.
To produce superior financial returns for its shareowners by
providing high value-added logistics, transportation and related
business services through focused operating companies.
Customer requirements will be met in the highest quality
manner appropriate to each market segment served.
FedEx will strive to develop mutually rewarding relationships
with its employees, partners and suppliers.
Safety will be the first consideration in all operations. Corporate
activities will be conducted to the highest ethical and professional
standards.
8.
Who is the target market ?
“Anyone who needs to send something anywhere in the world.
Whether it’s the one and only package you'll ever ship in your
life or you have 1000 packages to ship every day.”
11.
SWOT Analysis
Strength
1. Network in more than 220 countries
2. Innovative technology n strong IT systems support
3. Federal Express has an established a brand name, a complex and
well supported infrastructure in their home markets
4. More than three decades of experience in logistics services
Weakness
1. Since this is a competitive segment, the market share growth is limited
2. Strong price competition would mean little or no margin
Opportunity
1.Challenging competitors through mergers and acquisitions
2.Local competitors with poor service & products
3. Use of e-commerce
4. New routes yet to be tapped.
5. Growing market in china
Threats
1. Rising fuel prices could impact company’s profit
2. Varying market demand
3. Vulnerable to increasing reach by major competitors
12.
United Parcel Service
Founded in 1907, UPS is the world's largest package
delivery company and a leading global provider of
specialized transportation and logistics services.
DHL
DHL is part of the world's leading postal and logistics
Group, Deutsche Post DHL
13.
POLITICAL
- Being an international company, FedEx
interacts with various nations around the
world that don't enforce tough trade
regulations, granting them the privilege of
getting better international services.
- Some other political factors of concern are
political stability, industrial limitations and
business standards.
- FedEx is successful in serving the world
because it strictly abides by all relevant laws.
ECONOMIC
- Inflation, exchange rates and interest rates are
economic factors taken into consideration, for
they have the potential to distress consumers.
- Depression in the market affects the financial
assets of the company. It's both a positive and
a negative for FedEx that it provides services
around the world, since it must respond to
varying economic factors as a result.
- FedEx must be flexible with its charges, basing
them on the economic status of each country it
serves.
SOCIAL
- Social factors that affect an organization are
population and educational perspective of the
international and macro-economical society. These
pertain to decisions organizations make to meet
the needs and demands of a specified number of
consumers in certain countries.
- Populated countries are favorable to FedEx
because they have more consumers who require
their services.
- Global organization expansion is influenced by
countries with high literacy rates, something that's
certainly a driver for FedEx.
TECHNOLOGICAL
- FedEx, like other organizations, is successful
primarily due to the advancement in technology.
- The company took the expansion of the Internet
to its full advantage by providing electronic
services to customers anywhere in the world.
- With this technology, consumers can check the
status of their transactions with just a few mouse
clicks. –
- FedEx is able to communicate with the world
through e-commerce, another innovation for
business-to-business transactions.
14. Rank Airline 2012
1 FedEx Express 16,108
2 UPS Airlines 10,416
3 Emirates Sky Cargo 9,319
4 Cathay Pacific Cargo 8,433
5 Korean Air Cargo 8,144
6 Lufthansa Cargo 7,175
7 Singapore Airlines Cargo 6,694
8 British Airways World Cargo 4,732
9 China Airlines Cargo 4,538
10 EVA Air Cargo 4,470
17.
FedEx is attempting to fulfill two of its major goals simultaneously:
100 % customer service and 0 % downtime
18.
New Entrants
LOW to MODERATE
Existing Rivals
HIGH
- FedEx, UPS, DHL
Buyers’ Power
HIGH
large buyers
low switching cost
Supplier’s Power
LOW
Substitute Products
LOW
- Shipping - commodity
19. Business Level Strategy
Corporate Level Strategy
Efficiency of Staff Functions and Processes
Modernizing Air Fleet
Domestic Transformation
International Profit Improvement
Targeted Growth and Yield Management
Offer Superior Service through Innovation
Invest in Technology and Automation
Manage Yields
Expand the Network
Improve Speed
Become the Most Profitable LTL Carrier
Horizontal & Vertical Strategy
20.
Channels are the means through which a company
reaches or provides a product or service to
customers.
FedEx purchased Kinko's in 2004 to provide new
business services and to expand FedEx shipping
options at Kinko's 1,200 retail stores.
Each package is taken to a local FedEx office, where
it is trucked to the nearest airport.
21. The package is flown to one of the company's
distribution "hubs" for sorting and then flown to the
airport nearest its destination.
The package is then trucked to another FedEx office,
where a courier picks it up and hand-delivers it to the
correct recipient.
Create superior multichannel customer experiences.
Establish a holistic view of customer-channel dynamics.
Product and channel capability alignment.
23.
FedEx services are priced using a zone system in
which the distance a package must travel to reach its
final destination determines the price.
FedEx offers FedEx Same Day Delivery for $173 for
packages up to 25 pounds.
FedEx Ground rates vary widely by package weight
and shipping zone.
24.
Attaining a competitive advantage in package
delivery business appears to be a challenging task.
The main reason is that it is an easy-to- duplicate
business both for the competitors and any new
entrants. This is obvious in FedEx's case: the
company always has distinguished itself through
technologically advanced services, expanding in
many places and new products over other
competitors, especially UPS.
25.
FedEx has an "excellence" advantage over UPS
through its dedicated employees and satisfied
customers. Employee participation has given FedEx
the reputation as an exceptional place to work while
UPS suffers from history of union labor strikes and
service disruptions. In addition, FedEx's customer
focused philosophy continues to benefit market-
share as UPS has experienced lower than expected
customer satisfaction. Although UPS has achieved a
better financial performance and started re-
engineering its efforts to remain competitive into the
future, we can say that, for now FedEx has achieved
a model of business excellence.
