**Unpacking FedEx’s Business Strategy: A Comprehensive Analysis**
Shipping and logistics giant, FedEx Corporation, has been a dominant player in the industry for over four decades. With a strong presence in over 220 countries, its business strategy has been successful in creating a global network, providing superior customer service, and expanding its portfolio of services. In this article, we will take a comprehensive look at FedEx’s business strategy and its success story.
The Global Network
FedEx’s success story can be traced back to the foundation of its global network. Its network comprises of over 680 aircraft, 200,000 vehicles, and 5,000 facilities worldwide. This extensive network helps FedEx achieve a competitive advantage, allowing it to deliver packages to any location across the globe efficiently. To further enhance its global reach, FedEx acquired Kinko’s, a company that specializes in binding, printing, and graphic design services, in 2004. This acquisition led to the rebranding of Kinko’s to FedEx Office, which has over 2,000 locations worldwide.
Superior Customer Service
FedEx’s business strategy revolves around superior customer service. To achieve this, the company invested in advanced technology that enables package tracking and real-time updates on delivery status. It also invested heavily in training its personnel to provide excellent customer service. FedEx has a customer experience team that handles customer complaints and feedback promptly. This approach has helped the company cultivate a loyal customer base that is willing to pay a premium for its services.
Expanding Portfolio of Services
FedEx has consistently expanded its services over the years to cater to the changing needs of consumers and businesses. These services now include more than just shipping. It has expanded into supply chain management, e-commerce, and healthcare services, among others. One notable service is FedEx Trade Networks, which provides customs brokerage, transportation management, and trade consulting. Furthermore, FedEx developed an e-commerce platform to provide seamless delivery service to online retailers, thus expanding its portfolio of services.
Conclusion
In conclusion, FedEx’s comprehensive business strategy backed by a global network, superior customer service, and an ever-expanding portfolio of services has led to its success story. FedEx has been able to establish itself as a market leader and effectively compete with the likes of UPS and DHL. The company’s understanding of its customers’ needs has been pivotal in its growth, and it will devote its energy towards maintaining this strategy to continue its success into the future.
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