5. Porterâs Five Force Analysis
Supplier Power
New Entrants
Substitutes
Buyer PowerCompetitive Rivalry
⢠Alternative for Fuel- rising
fuel prices are often passed
on.
⢠large pool of suppliers exists-
suppliers have little power
over the Industry
⢠Entry Barriers are low,
⢠Brand equity of Fedex poses
highest barrier to enter.
⢠Buyers have multiple options
, demand for high quality
and timely service but at low
costs.
⢠Buyer power is high
⢠Low threat- Info movement
instead of fright movement
has become possible due to
better available IT
⢠Contracts are short term,
unless integrated
⢠Fixed costs are high
⢠Constant need to reduce
order cycles
6. ⢠Term paper to 45 Billion Dollar Creation
⢠186 to 5,000,000
⢠Began operations in 1973
⢠Uses Super tracker Computers
⢠First to input COSMOS (Customer Operations
Service Master On-line System) in their system
⢠Founder Fredrick W Smith
⢠Headquartered Memphis, Tennessee
About FedEX
7. Blue Ocean Strategy
⢠Quick to adopt new technologies in the logistics
industry
⢠They were successful in interconnecting and
then distributing the information.
⢠Businesses began to outsource supply chain
management to FedEx and this led to
partnerships.
⢠FedEx provided greater automation to its
customers
9. IT in FedEx
⢠Widespread use of Internet threw
open significant opportunities
⢠Existing EDI based system and decided to use a
combination of Internet and the EDI.
⢠Used IT to improve upon its customer service
⢠Integrates both old and new technology
10. IT in FedEx contdâŚ
⢠Integrates Wireless Solutions, Bluetooth, and
RFID
⢠Use of Package Scanning and Package Tracking
⢠Use of Microsoft Powerpad and Bluetooth
⢠Adoption of Velcro Wristband RFID
transponders