Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 11 pages
Data source: Published sources
Share a link:
https://casecent.re/p/66071
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
FedEx incorporated operations in the early 1970s. During this period the US package delivery business was dominated by two big organisations, the United States Postal Service (USPS) and United Parcel Services (UPS). USPS had postal monopoly and no strong incentive to provide good services. FedEx saw the gap provided, through negligence of service quality, to the high-end postal delivery market. It exploited the situation and organised to deliver packages overnight using its own aircraft. As a strategic move to build on the strength of its now famous express delivery service and create a more diversified company through various acquisitions of related businesses, it acquired the retail-focused Kinko?s. FedEx Kinko?s, the combined entity, made sense from a competitive landscape. In 2005, the company generated $2.07 billion in revenues, four times higher on a year-on-year basis. The case brings out the importance of peripheral vision by FedEx and the synergy created by the vertical integration of FedEx and Kinko?s. The case study illustrates the growth strategies adopted by FedEx to move from follower to industry leader.
About
Abstract
FedEx incorporated operations in the early 1970s. During this period the US package delivery business was dominated by two big organisations, the United States Postal Service (USPS) and United Parcel Services (UPS). USPS had postal monopoly and no strong incentive to provide good services. FedEx saw the gap provided, through negligence of service quality, to the high-end postal delivery market. It exploited the situation and organised to deliver packages overnight using its own aircraft. As a strategic move to build on the strength of its now famous express delivery service and create a more diversified company through various acquisitions of related businesses, it acquired the retail-focused Kinko?s. FedEx Kinko?s, the combined entity, made sense from a competitive landscape. In 2005, the company generated $2.07 billion in revenues, four times higher on a year-on-year basis. The case brings out the importance of peripheral vision by FedEx and the synergy created by the vertical integration of FedEx and Kinko?s. The case study illustrates the growth strategies adopted by FedEx to move from follower to industry leader.