FedEx has transformed from a term paper to a $45 billion company through strategic use of technology and e-business. As a major player in logistics, FedEx faces competitive pressures from rivals but maintains advantages through brand equity and continual adoption of new technologies to integrate information sharing and provide automated services to customers. FedEx was an early adopter of technologies like COSMOS and the internet to improve customer service and reduce costs.

2. FedEx
Structural transformation
through e-business

3. What is Logistics?

4. Major Players

5. Porter’s Five Force Analysis
Supplier Power
New Entrants
Substitutes
Buyer PowerCompetitive Rivalry
• Alternative for Fuel- rising
fuel prices are often passed
on.
• large pool of suppliers exists-
suppliers have little power
over the Industry
• Entry Barriers are low,
• Brand equity of Fedex poses
highest barrier to enter.
• Buyers have multiple options
, demand for high quality
and timely service but at low
costs.
• Buyer power is high
• Low threat- Info movement
instead of fright movement
has become possible due to
better available IT
• Contracts are short term,
unless integrated
• Fixed costs are high
• Constant need to reduce
order cycles

6. • Term paper to 45 Billion Dollar Creation
• 186 to 5,000,000
• Began operations in 1973
• Uses Super tracker Computers
• First to input COSMOS (Customer Operations
Service Master On-line System) in their system
• Founder Fredrick W Smith
• Headquartered Memphis, Tennessee
About FedEX

7. Blue Ocean Strategy
• Quick to adopt new technologies in the logistics
industry
• They were successful in interconnecting and
then distributing the information.
• Businesses began to outsource supply chain
management to FedEx and this led to
partnerships.
• FedEx provided greater automation to its
customers

8. Logistics of FedEx

9. IT in FedEx
• Widespread use of Internet threw
open significant opportunities
• Existing EDI based system and decided to use a
combination of Internet and the EDI.
• Used IT to improve upon its customer service
• Integrates both old and new technology

10. IT in FedEx contd…
• Integrates Wireless Solutions, Bluetooth, and
RFID
• Use of Package Scanning and Package Tracking
• Use of Microsoft Powerpad and Bluetooth
• Adoption of Velcro Wristband RFID
transponders

11. COSMOS of FedEx

12. Short Video

13. Thank you