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mIndia·s current logistic market is around Rs.200 billion expected to
be double by 2012 and main drivers of this growth will be
government tax structure, infrastructure development and production
growth.

mTotal logistic spends covering primary and secondary movement to

be around 13% of India·s GDP in 09/10 as compare to 10% of USA
and 10% of Japan.

mLogistic industry in India is divided in to 2 parts mainly which is

organized and unorganized, Unorganized sector consists of 80 to 85%
and rest is being served by organized sector.

    
èºedEx is world·s largest transportation company with presence in
nearly 220 countries with over 1, 36,000 employees.

èºedEx was established in 1971 and its HQ is in Memphis which

build in 1973, USA and in India, ºedEx started in 1997. ºedEx
provides its service in which are Delhi, Mumbai, Chennai,
Bangalore, Kolkata, Hyderabad, Ahmadabad, Pune, Jaipur,
Ghaziabad, Noida and Coimbatore and ºedEx hub is Delhi,
Mumbai and Bangalore.

èBlue-Dart, jet airways and kingfisher airlines are offline vendors

of ºedEx in India while Khambatta associates does all the ground
handling works for ºedEx in India and Jinnah & associates does
custom clearance works for them.
 
 R 
‰There can be a transportation problem, mainly due to traffic jams,
blockades, poor road conditions.

‰There can be delay in flight departure due to problems like heavy

rain, snowstorm. Likewise, there can be problem due to air traffic,
signaling problem & other technical problems.

‰Sometimes, it occurs that due to delays, there is haste in

dispatching the consignment; as a result the consignment data is not
maintained properly.

‰Low level of road infrastructure and network in India doesn·t

allow ºedEx to serve bigger population in India.
 O
 
‰áery few people want to work in this industry so they are always
with less number of people.

‰When ºedEx invests in the training and developments of an

employee, ºedEx is not getting its appropriate ROI as employees
switches the company frequently.

‰ºedEx has invested largely on its personal development programs

(PDP) and it has online training development of around 600 courses
on subjects on leadership, project management etc. but the
utilization and implementation of those courses are as per the
expectation.

‰It has 360 degree performance appraisal so, it generates disputes

within the organization.
 p

 
‰ºedEx provides a high level of quality services to its customer which is
difficult for its competitors to match so, ºedEx charges higher prices for
its services than many of its competitors, so they are trying to be
differentiated in this competitive market.

‰This industry is price sensitive, so customer may not be loyal to ºedEx

just for innovative services.

‰ºedEx tries to differentiate by its aircraft fleet, its hub and packaging
system, package tracking (online), customer support functions (online)
but it is very difficult to differentiate from these factors as competitors
are also providing this level of service.

‰ It is very difficult to convince the masses that they are providing

superior services.

‰ºedEx·s pricing differs in different states as law differs in every state.

  

‰ºuel hiking is one of the biggest issue for ºedEx as it is increasing

its cost and every time fuel price increases they have to change their
pricing policy.

‰They have to maintain different storage for different kind of goods

so it also increases their costs.

‰ºedEx has to maintain its network even though that particular

network is not generating sufficient business for them.
 
 

‰India·s young population and growing middle class make it one of

the world·s most attractive Marketplaces for U.S. exporters.

‰To leverage its technology in India.

‰To leverage India-US business relationship.

‰To connect semi urban areas throughout India, this can generate
large amount of business for ºedEx. (expand its network)

‰Leveraging India for software development.

   

‰Outbound cargo from India as India is increasing its export day by

day to US, Europe and other parts of Asia.

‰Indian government has started working towards developing road

infrastructure, so ºedEx has opportunity in terms of more connectivity
to rural India.

‰Outsourcing trend in India may open opportunities of whole ´whole

supply chain networkµ in India.
 O

‰Competition in this market is very tough as DHL, Blue-Dart, UPS,
TNT and other local players are present aggressively in Indian
market.

‰This industry is price sensitive, so highest price charged by ºedEx

in industry may work as a negative point for them.

‰Non performance of commitment (due to strikes, weather etc.) may

affect the brand ºedEx in India.

‰Rising inflation will reduce the level of export and import and
domestic customer will also shift to local player to reduce the total
cost.

‰Rising fuel prices will affect the overall cost structure of the ºedEx.
  
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uLeather and garment export

uMarine product exports
uºood industry
uMachinery and equipments industry
uSmall Parcel services
uPackaging industry
uInsurance industry
uPetroleum industry and etc.
Thank You