Fed Ex Marketing

In today’s economy consumer spending has drastically decreased, affecting many major markets. One market that has been heavily affected in this turmoil is FedEx Corp. The world’s second largest package shipper eliminates 900 jobs beginning this year in its freight division that typically delivers larger parcels that are roughly around 1,000 pounds. This cut is on top of an already series of cost cutting moves from FedEx that includes cutting salaries and bonuses and suspending their 401(k) match that occurred in December (WSJ, Feb 10,2009). As volumes sag in the economical downturn, the shipping industry is not immune to the hardships many of these companies face. In order to preserve the business, FedEx spokesperson Maury Lane said the cuts will help FedEx Freight “”better align with business levels” and won’t hurt customer service (WSJ, Feb 10, 2009).

FedEx Corporation was formed in January 1998, originally called FDX Corporation. In January 2000, the company went global, changing its name to FedEx Corporation (FedEx, 2009). With its many subsidiaries and acquisitions of different services, the company re-branded and integrated them into separate operating entities under the FedEx brand. These operating entities became FedEx Express, FedEx Ground, FedEx Custom Critical, FedEx Office, FedEx Freight, FedEx Trade Networks, and FedEx Services (FedEx, 2009).

Taking everything into affect around the economy, a new business model can help FedEx maintain their business level and hopefully expand the company into the world’s first largest packaging shipper. The top 3 ideas FedEx would be to cut costs by consolidation, expansion into a new country, or create focus onto a new untouched market that may efficiently broaden FedEx’s playing field.

To prevent more losses for the company, a good solution would be to consider consolidating many of the different divisions. Currently, the company has 7 main divisions. By consolidating some of the divisions into a single...