led ex ls one of Lhe leadlng loglsLlc company offerlng dlfferenL ranges of servlces such as

LransporLaLlon and dellvery of goods and provldlng servlces such as shlpmenL ShlpmenL ls ollgopoly
lndusLry where Lhere are fewer compeLlLors Servlce lndusLry of shlpplng ls caLegorlzed lnLo maLure
sLage ln Lhe llfe cycle of lndusLry ln Lhls lndusLry less number compeLlLors Lo fed ex such as uSS
uPL and uS AL Lhe same each and every company has Lhelr own brand ldenLlLy and also loyal
cusLomer and Lhey are offerlng unlque servlces wlLh low cosL and also due Lo scale of economles
companles offerlng very low cosL and exLenslve servlce Lo cusLomer such LhaL enLry for Lhe new
compeLlLor ls very hard due Lo Lhe barrler of enLrles uue Lo huge amounL of compeLlLlon beLween
Lhese companles and also demandlng consLanLly decrease such LhaL LhreaL of rlvalry ls very hlgh
such LhaL companles are golng for war ln prlce Lo geL prlce leadershlp
I|ve Iorces of porters
led ex ls one of Lhe global loglsLlcs company lL has wlde operaLlons and ln slx vlLal group such as fed
ex ground and fed ex express led ex ls one of global largesL group ln offerlng dlfferenL dellvery
servlce by ground and also lL also oLher shlpplng servlces such as supply chaln managemenL servlces
and also ecommerce undersLandlng dlfferenL elemenLs LhaL creaLlng compeLlLlon ln LhaL lndusLry ls
Lhe lnlLlal sLep for developlng a sLraLegy ln Lhe followlng secLlon lllusLraLlon of porLers flve forces
analysls for fed ex
1hreaL of new enLry
uue Lo dlfferenL barrlers for enLry for new company ls very hard such LhaL LhreaL of new enLry for
fed ex ls very low Cne of Lhe vlLal enLry barrler ln Lhls lndusLry ls flxed cosL lncurred ls very hlgh for
seLup buslness ln global LransporLaLlon such as collecLlon offlces and vehlcle for LransporLaLlon and
oLher lnLernaLlonal LransporL such as alr fleeLs and shlpplng cosL LsLabllshed companles can Lake
advanLage ln Lerms of economles of scales Lhey wlll less prlce as compare Lo Lhe new company uue
Lo ollgopoly naLure of buslness enLry of new compeLlLor ls very hard
Intensity oI competition Irom rivalry
In global logistic industry intensity oI competition Irom rivalry is very high. In transportation
industry competition between the players who are established is very high to get the market
leadership such as huge competition between ups and Ied ex. Such that Ied ex is regularly
changing and innovating to capture the market and oIIering best services at very low price
and also giving wide options by integrating technology such as online tracking and also other
beneIits to the customers. Such that Ied ex has intensity oI competition Irom rivalries is high
Buyers Power of bargaining
ln shlpplng lndusLry buyer power of bargalnlng ls hlgh lf buyer ls noL saLlsfled wlLh Lhe one shlpplng
agency Lhey can easlly swlLch Lo Lhe oLher company Such LhaL swlLchlng cosL ls very low 8uyer has
dlfferenL opLlons such LhaL Lhey can swlfL one company Lo oLher companles whlch are offerlng good
servlce and low cosL and lnnovaLlon ln Lhe servlces such as onllne Lracklng And also cerLaln
mulLlnaLlonal companles such as l8M Lhelr bargalnlng power ls very hlgh and due Lo Lhe large
amounL of goods was LransporLed by LhaL company such LhaL Lhey choose company whlch offer less
cosL and hlgh quallLy of servlce Such LhaL bargalnlng power of buyers of led ex ls very hlgh
pp||er barga|n|ng power
ower of suppller ln Lhe suppller ls conslderably low and such as shlpplng servlce provlder mlghL
affecL due Lo Lhe prlces of Lhe oLher suppllers such as maLerlal for packlng and oLher goods 1hls ls
because Lhey buy ln large quanLlLles and can Lurn Lo dlfferenL suppllers easlly Such LhaL baergalng
power of Lhe suppller ls low for Lhe fed ex
%reat of substitutes in terms of products and substitutes
ln shlpplng lndusLry LhreaL of subsLlLuLes are very less 1hese suppller servlces are almosL slmllar Lo
commodlLles such LhaL subsLlLuLlon or replacemenL wlLh slmllar or oLher servlces ls very dlfflculL
now a day's some buslness had sLrong presence ln Lhe onllne buL Lhey are faclng dlfferenL physlcal
challenges ln producL dellverlng Lo Lhelr cusLomers' such LhaL for fed ex servlces LhreaLs of
subsLlLuLes ls low









leJx cotpototloo pottet flve fotces

value chaln analysls of fed ex
8y uslng Lechnlques porLers value analysls LhaL can help markeLers for analysls cerLaln facLors whlch
can be useful for achlevlng compeLlLlve edge over Lhe oLher compeLlLors and creaLlng value Lo Lhelr
cusLomer s
ln Lhe loglsLlcs of lnbound Lhe acLlvlLles whlch are prlmary such as schedullng relaLed Lo
LransporLaLlon recelvlng conLrol of lnvenLory and sLorage lor acLlvlLles relaLed Lo lnbound loglsLlc
fed ex has cerLaln appllcaLlon and sysLem varlous appllcaLlon whlch are used by led Lx for lnbound
loglsLlcs such as CCS (CusLoms Clearance SysLem) lMl(lnvenLory ManagemenL SysLem) 1MS
(1ransporL ManagemenL SysLem) ClvS (Clobal lnvenLory vlslblllLy SysLem) and WMS
(Warehouse ManagemenL) AcLlvlLles relaLed Lo LoglsLlcs ln ouLbound such as dlsLrlbuLlon
dellvery and warehouslng and oLher servlces led ex lmplemenLs cerLaln sysLems relaLed Lo
lnformaLlon Lechnology for ouLbound loglsLlcs such as 1ransporL opLlmlsaLlon sysLem MulLl
shlp cusLomer clearance sysLem lMl and ClvS Whereas for Lhe manufacLure secLlon also
fed ex successfully lmplemenL cerLaln sysLem relaLed Lo lnformaLlon Lechnology such as #!
(enterprise resource planning) managemenL order sysLem of led Lx segmenL relaLed Lo
Supplier's Power

Potential Competitors

Substitute Products

uyers' Power

large buyers
Existing Rivals

supporL has been supporLed by Lhe cerLaln sysLem such as L8 lMl ClvS and whereas ln
order managemenL fed ex lnLegraLed cerLaln sysLem of lMl for generaLlng lnvolce for Lhe
cusLomer such LhaL provldlng more convlnce for Lhem Whereas acLlvlLles relaLed Lo supporL
ledLx procllvlLy to solution oI system, IT and also based upon solution oI business. Fedx
also setup Iacility oI research Ior supply chain management in which continuously research
done on the Iacilities and system which are better Ior the customers. Fed ex is rapidly going
research Ior cost eIIective manner and oIIering best service in less price Ior customers.
Whereas service segment oI Fedx is hold by the H# people. mployees oI Ied ex has
extensive training and also special development programmes Ior developing skills and also
special training Ior giving excellent services to their customers and their clients.
Core competences and dynamic abilities oI Fedx:
Fed ex value chain can be seen Irom starting oI the pick up Irom the customer. Fed ex
provide a certain service Ior the customer iI customer did not received their parcel or any
other packages at the time mentioned, they are oIIering money back to the customer. That is
one oI core competence oI Fedx which can increase competitive advantage over the other
competitors. Due to wide range oI operation whole over the world and technology integration
while increases eIIiciency in delivering goods at the expected time. Fed ex is continuously
changing in terms oI technology integration Ior the internal operation and external operations.
Fedx expert in delivering the good at exact time and delivering Iast such as certain high
value parts and other equipments which help Ior the manuIacturing and also providing
delivering end product Ior the customers. Fed ex is enormously adding value to the business
by delivering high value parts and good to their customers. Fed ex is best placed company
which assisting customer in internet based strategy Ior supply chain.
IedLx Corporat|on
led ex corporaLlon sLraLegy aL Lhe buslness level can be undersLand by knowlng ln whaL secLor LhaL
company operaLlng and also ln whlch poslLlon aL presenL company ls operaLlng ledLx CorporaLlon
aL presenL lL ls amalgamaLlon of 6 dlfferenL companles such as ledLx 1rade neLworks ledLx ground
ledLx CusLom CrlLlcal ledLx Lxpress ledLx Servlces and ledLx lrelghL Lach and every company ln
dlfferenL secLor relaLed Lo LransporLaLlon servlce and LhaL wlll Lallor of servlce of ledLx lnLo besL flL
for need of cusLomers ledLx CorporaLlon ls parenLal company for all Lhese companles whlch
provlde leadershlp ln sLraLeglc and also accounLablllLy for flnance for all Lhe buslness Model of
buslness operaLlng of ledLx ls lndependenL operaLlon of each buslness and collecLlvely compeLlLlon
wlLh Lhe oLher compeLlLors

CorporaLe soclal responslblllLy of fed ex
ledLx ls Lop loglsLlc company whlch ls movlng Loward Lhe 2020 clLlzenshlp of global LhaL vlLal
supporL for Lhe 290 Lhousand members of global Leam by varlous lnvesLmenLs whlch are smarL
ledLx ls dedlcaLed for concernlng Lhe world resourcefully and responslbly ledLx ls commlLLed for
decreaslng emlsslon of alrcrafL lnLenslLy 20 percenL ln nexL Len years and also lncrease ln Lhe
efflclency of express vehlcle by LwenLy percenL and also expandlng ln onslLe generaLlon of
energy and also procuremenL of credlLs of energy renewable ledLx ls focuslng on Lhe goal
whlch ls amblLlous Lhrough earLh smarL and dedlcaLe Lo lessen Lhe envlronmenLal lmpacL
LarLhSmarL ls planned ln order Lo lnnovaLlon encourage whlch makes Lhe buslness how
buslness ls operaLlng more envlronmenLally economlcally and also eco frlendly led ex ls
worklng closely on envlronmenLal lssues ln each and every aspecLs such as fuel and worklng
wlLh Lhe suppllers and also wlLh Lhe oLher economlcally lssues ln Lerms of fuel consumpLlon
fed ex ls speclally educaLlng employee abouL Lhe fuel savlng led ex ls worklng for decrease
Lhe carbon emlsslon by 20 percenL by 2020 ledLx ls also concenLraLe abouL Lhe resources
of maLerlals and recycllng of papers cardboard and oLher plasLlc subsLance used by Lhe
ledLx decreaslng Lhe wasLe and recycllng of oLher wasLe ledLx recycled almosL 413
mllllon pound of wasLe was recycled ln 2010 CerLaln oLher programmes relaLed for
collecLlng wasLe oll glass and oLher equlpmenLs led ex ls also mlnlmlslng Lhe wasLe and
Lhey are uslng all Lhe resources whlch can be recycled and Lhey are decreaslng wasLe ln
packlng ledLx ls conslderable ln decreaslng polluLlon ln Lerm of nolse Lhey are worklng on
reduclng on nolse klL Lechnology for decreaslng nolse ln 8oelng alrplane