Question

Recommended Strategy selection for FedEx with

• Strategy description with key factors
• Tangible / Measurable outcomes
• Impact and risk assessment

Answer 1

FedEx provides a collection of widespread services like Business Services , e-business ,transportation etc. It is among the top four Logistic companies the world who are currently operating in various locations around worldwide. Firstly was an Express delivery. After that transform self into a global Logistic and supply chain management company. The strategy selection of FedEx is based on porter's five forces which are :

1. Threat of entry of new competitors in the industry: There is a high barrier of new entrants to come as it is very expensive and time consuming to start any major shipping company like FedEx competition. And there are many rules and international regulations which don't allow new competitors to enter easily.
2. Supplies bargaining power: It is very tough conveyance the suppliers .FedEx always ensure that they have the best supplier. And the system helps both sides to strengthen their business.
3. Rivalry firms : rivalry firms of FedEx are DHL, First Flight etc. They also perform the same work Which FedEx perform.
4. Bargaining power of buyers: customers usually go with that firm who provide best services and quick delivery and they are ready to pay for it.
5. Threats of substitute product or services: The threat of substitute is very less in this industry. As there are many means of cargo transportation like Airways ,Roadways, trains. These Industries usually use Airways as they delivere product at a very high speed.

Advantage of FedEx Corporation:

1. FedEx has reduced distances which made the word smaller for their customers, now you can send any of your product from one country to another country where your loved one lives.
2. FedEx e business creates value for customers.

Disadvantages of FedEx Corporation:

1. There charges are very high.
2. Economically weaker person cannot afford FedEx Corporation services.

Risk assessment : Organisation perform the risk assessment to measure the amount of risk that could impact your organisation. FedEx follows all the guidelines in policies that are governed by the process by which company manages exposure to risk. Almost every company of any business faces with some risk in their business. Risk with disaster is one of the major risk.