FedEx – Case Study- structural transformation through E-business
Introduction
Priorities of business organisations have changed over time. In the past, companies were focused on competing with rival businesses through efficient production. At present, most companied have realised the value of yet another asset as a unique competitive advantage: the customers. Considering that competition in various business sectors have been continuously increasing, operators have developed several means of acquiring loyal patrons; not only does this strategy helps in supporting the sales of the business but, this also facilitates the establishment of a good company image. Being the main source of profit of several businesses, companies have then attempted through different tactics on how to meet the needs and satisfaction of their respective customers.
The growing recognition of the significance of information technology to business success gave rise to what is now commonly referred to e-busines. In line with the structural transformation of Fedex the context of classical and evolutionary school of thoughts should not be regarded.
Analysis
The classical school of approach, typified by Michael Porter, is based on the comprehension that business approach is created by means of deliberate processes and seeks the long term maximization of the profit of the industry. It is saidt that Mastery of the internal and external environments are the hallmarks of successful approach. Pn the other hand, rhe evolutionist school have noted that the profit seeking goal is still important but the management should be very pessimistic about the ability of companies to formulate really effective strategies.
FedEx Corporation was established by Frederick W. Smith in 1973 as an entirely new concept in package delivery an overnight air delivery service. FedEx was the pioneer of the express transportation and logistics industry. In addition, FedEx is also regarded as one of the world’s leading transportation companies that focus on the transportation of parcels and packages worldwide. The following are the core, supplementary and facilitating services provided by FedEx:
- Overnight package delivery
- Worldwide express delivery
- Ground small parcel delivery
- Freight delivery, and
- Customs brokerage.
These services are being offered in a quality manner to satisfy their customers. Because FedEx has been able to expand their services internationally, the industry also provides different products and services to their customers in the international market like in Asia-Pacific. The products and services provided by FedEx in Australia and New Zealand include FedEx International Priority (IP), International Priority Freight Services and FedEx Packaging.
Accordingly, strategic development of FedEx was actually based by the school of thoughts of Whittihgton. Technology plays a very important role in delivery of the FedEx service. The FedEx Corporation has made enormous strides in technology and is setting the industry standard for efficiency and customer service. FedEx has sought technological advances in response to customer needs, and has excelled in anticipating and projecting demands of an environment that would depend and thrive on information.
The technology FedEx has developed enables customers and support personnel to have wireless access to essential are information system’s networks anytime and anywhere. FedEx was the first to integrate wireless technology more than two decades ago, and continues to develop and lead the industry in developing innovative wireless solutions. FedEx has long been in the forefront in recognizing the potential of the Internet to provide fast, easy, and convenient service options for its customers.
The services of company are hard to differentiate. In order to widen their gap to other competing companies, FedEx implemented e-business applications so as to improve the level of customer satisfaction as well as their overall transactions with the clients. The e-business system developed by FedEx involves a web or call center service where the company can easily be informed of the status of the packages delivered. The e-business technique of FedEx is also based on expanding customer perception. Here, the company installed an online service to enable customers to track down their packages. The company also put up an automated voice response system for answering and addressing customer queries. FedEx also trained call center representatives to operate real-time customer service delivery. Through these efforts, both companies were able to achieve considerable increase in customer satisfaction level. Based on 2002 FedEx achieved an 82% rate (Maselli 2002).
The ability to track a package was already available within the company through the use of technology. FedEx was the first transportation company to use barcodes on their packages. In 1979 the couriers were the first to use SuperTracker hand-held computers. The DADS (Digitally Assisted Dispatch System) was implemented in 1980. This allowed packages to be scanned at the point of pick-up, and was the first instance of a transport company using computers in their vans.
In 1981 the COSMOS (Customer Operations Master On-Line System) was implemented. This was one of the first centralized computer systems of its type. Based at the GOC (Global Operations System) in Memphis, the COSMOS system manages all aspects of the company, from pick-ups, vehicles, routes, packages and even weather conditions. The combination of all of these cutting edge technologies means that a package can be tracked, by the customer, in real-time from pick-up to delivery, anywhere on the globe.
Reference
FedEx (2002). About FedEx: FedEx Attributes Success to People-first Philosophy (online). Available at [http://www.fedex.com]. Accessed. June 21, 2010.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment