Fedex

Content

Executive Summary --------------------------------------------------------------------------------------------------3

1. Success in Meeting Critical Success Factors in Freight Sector -----------------------------------4-5

A. Survival and Growth during Economic Recession --------------------------------------------------4

B. Further Expansion and Market Entry -------------------------------------------------------------------5

2. Generic Strategy Choices -----------------------------------------------------------------------------------5-6

3. Key Resources and Capabilities ---------------------------------------------------------------------------6-7

4. Sustainability, Feasibility, and Acceptability ------------------------------------------------------------7-8

Appendix ------------------------------------------------------------------------------------------------------------9-12

References -------------------------------------------------------------------------------------------------------13-14

Executive Summary

1. Success in Meeting Critical Success Factors in Freight Sector

There are two groups of critical success factors identified in the freight sector at this time, including surviving and growing during the economic recession and entry into new markets.

A. Survival and Growth during Economic Recession

Under current economic conditions, one of the major success factors is simple survival without significant economic losses (see Figure 1). This has been a significant factor from 2008 to the present day. On this front, FedEx has performed well enough, despite falling business associated with reduction in shipments associated with production drops. Its 2008 annual report indicated a reduced, but still positive, rate of profit at $1,125 million, with an operating margin of 5.5% (FedEx, 2008). In 2009, these figures were reduced to $98 million, with an operating margin of 2.2% (FedEx, 2009). In 2010, these results...