Fedex Corporation

FedEx Corporation 1

FedEx Corporation

Brenda R. Thompson

Managerial Accounting

BUS 630

Instructor: Isabel Wan

FedEx Corporation 2

FedEx’s strategy for success in the market place relies on a combination of customer intimacy, operational excellence and product leadership customer value proposition. Noreen, Brewer and Garrison (2008) describe companies who adopt customer intimacy as companies who attract customers by understanding and responding to individual needs better than competitors. Companies that rely on operational excellence deliver products or services quicker, more conveniently and at prices lower than competitions. Companies that pursue product leadership customer value proposition tell their customers to choose them because they deliver a higher quality product than their competitors (Noreen, Brewer and Garrison, 2008, p. 4)

It is also evident that FedEx rely on customer intimacy and operational excellence as stated in their 2005 Form 10-K, because they provide their customers with convenient, seamless access to their entire portfolio of integrated business solutions. The corporation is also pursuing a number of initiatives to continue to enhance the FedEx customer experience, including improving the capabilities of their sales professionals. For instance FedEx has a One Call program where they assign a single customer service agent to handle virtually all issues of a customer’s account. Other evidence of customer intimacy is found in the statement, “that each of FedEx’s business segments operates independently because this strategy allows each segment to anticipate and respond to customer demands.” There is evidence of operational excellence in which the company has remained the industry leader, providing rapid, reliable, time-definite delivery of packages, documents and freight to more than 220 countries and territories, and customs-cleared service with a money back guarantee.

Product leadership customer value proposition is...