FedEx is a global transportation, e-commerce, and supply chain management company founded in 1971. It handles over 3.3 million packages daily through air and ground services. FedEx has a strong market position in air freight and dominates ground services domestically. It faces competition from UPS and other companies. FedEx uses strategic planning and innovation to guide its goals and growth globally. Its strategies include enhancing postal services provided by the USPS and providing discounted air travel tickets to gain additional profits from its large airline fleet.

1. Rodrigo Loya Maria A. Silva Colin Green Sandra Vargas Melanie Rivera Jhael De Alba Welcome to

2. History Founded in 1971 by Frederick W. Smith. First Investment 1980’s: FedEx reached its maturing stage. First US company to reach $1 billion in revenues. FedEx handles 3.3 million packages

3. General Environment Global Provider of: - Transportation - e-commerce - supply chain management FedEx an Innovator company: - Overnight package and letter delivery - 10:30 am next day delivery - Saturday delivery service

4. Cost effective. Alternative for small packages. Distance and time are wider. When customers need it now. 24hrs. 7 days a week, including nights, weekends and holidays. Most familiar service. Handles millions of shipments. Delivers in 1 to 2 business days. Heavy weight shipments. Less than truck load (LTL) freight. 600 miles next day delivery. 1,600+ miles second day delivery. Custom brokerage. Electronic custom clearance. Speed shipments across the border.

5. External Environment Household name Competitive environment Global Presence IT advances Strong market position in air freight

6. Competitive Environment World wide presence Dominates ground services domestically High market share in the US Acquired full ownership of Mail Boxes, etc. Intense competition with FedEx

7. Competitive Environment Recent acquire of ground services Specialize in air freight deliveries Global presence Other mergers, the effects.

8. Competitive Environment Largest customer, but strong competitor Attempt injunction against the alliance

9. Internal Evaluation Management Uses strategic management in planning and meeting goals Strong in its corporate structure with low absenteeism and low turn over rates at the corporate level, by paying well and showing respect 2002 hours were reduced, with wages and benefits increasing but with profit and incentive sharing plans reduced Marketing Major advantage by being a household name Able to respond to a changing consumer environment by operating independently completely and collectively

10. Internal Evaluation Finance/Accounting Fairly strong financial position Year 2002 Highlights include large free positive cash flows, 22% increased net income and a $.05 dividend declared on common stock. Fairly weak in leveraging; incurred large amounts of debt for an expansion project. Production/Operations Industry leaders in Air Express Handles well over 3 million packages daily. Excellent ground crew & pilots 24 hour customer service

11. Internal Evaluation Research & Development Very innovative R&D team. Six year expansion plan Estimated cost of over 1.8 Billion Doubling package volume capacity 10 new distribution hubs & 23 expanded hubs Relocation or expansion of up to 300 existing facilities Expected completion in 2009 CIS Highly innovative software user and designer. Very aware of competitors programs and systems. Constant and up to date system employee training.

12. SWOT Analysis Strengths Household name Product quality Global expansion Abreast in technology Air fleet Weaknesses Employee racial discrimination Lack of ground transportation force Costly technology innovations Judgment for late deliveries Increased debt

13. SWOT Analysis Opportunities Global business growth Online consumer services Increase demand in logistics Alliance with USPS Threats Foreign competition entry into home Economic standing Online competitive advantages of rivals Gain in competition service costs

14. Strategy Formulation Strategy 1 Online subsidiary with a consumer retailer Creating a collaborative union utilizing technological strengths and online consumer industry growth to provide full consumer opportunities through the convenience of e-commerce Multiple strengths, opportunities and positive industry strength (SWOT Analysis, Space Matrix)

15. Strategy Formulation Strategy 2 Last minute discount air travel tickets available to the public in order to gain additional profits from the already existing and operating transportation system in use Major positive strength and opportunity (SWOT Analysis, Space Matrix) Travel

16. Strategy Formulation Strategy 3 Enhancing and providing existing postal services formally provided by USPS Strong opportunity and high competitive advantage (SWOT Analysis, Space Matrix) Mail

17. Evaluation of Alternatives Forward Integration Online Subsidiary With Consumer Retailer Larger companies become more profitable Ex: Wal-Mart , Target Company is equipped and able to expand in this area Leadership, technology, and equipment Use strengths and opportunities as mentioned in analysis Online consumer growth is expanding Company is abreast in technology

18. Evaluation of Alternatives Horizontal Diversification Currently operates one of the largest airlines in the world Has fleet of over 380 jets Jets have state of the art instrumentation Already employs more than 4200 skilled pilots Has some of the best air travel technology and equipment Highly capable to execute Travel

19. Evaluation of Alternatives Concentric Diversification/Horizontal Integration Opportunity from SWOT analysis Existing contract with USPS Future services to be rendered to private outside provider Capable of providing additional USPS services Mail

20. Evaluation of Alternatives Counteracting competitive strategic moves USPS recognition of lack of resources Mail

21. Strategy Implementation Strategy 3: Concentric Diversification/Horizontal Integration Additional personnel Insurance Training employee evaluations Mail

22. Strategy Implementation Service sites by way of franchise UPS and Mail Boxes, etc. Ample resources to accommodate USPS needs Expansion project can handle additional/new inflows Extra packages and mail Mail

23. Strategy Implementation Advertising TV Internet Sporting events/arenas New labeling on boxes Mail

25. Pop Quiz a. c. b. d.

26. … and remember to mail by Mail