Fedex

FedEx

Jose Mares

BUS 630 Managerial Accounting

1) What is FedEx’s Strategy for success in the market place? Does the company rely primarily on a customer intimacy, operational excellence or product leadership customer value proposition? What evidence supports your conclusion?

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, (2011) describes companies who adopt customer intimacy as companies who attract customers by understanding and responding to individual needs better than [the] competitors (Noreen, 2011 p. 4). Companies that rely on operational excellence deliver products or services faster, more conveniently and at prices lower than competitors (Noreen, 2011. p. 4). 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, 2011. p. 4)

Evidence of customer intimacy and operational excellence is found in FedEx’s 2005 Form 10-K which states “to provide our customers with convenient, seamless access to our entire portfolio of integrated business solutions. We are pursuing a number of initiatives to continue to enhance the FedEx customer experience, including improving the capabilities of our sales professionals. For instance, through our FedEx OneCall program, we assign a single customer service agent to handle virtually all issues of a customer’s account” (FedEx Form 10-K 2005, p. 4). 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 (FedEx Form 10-K 2005, p. 4).

Additional evidence of operational excellence is in FedEx’s 10-K where they state they are leader in reliable rapid global delivery of packages, documents and freight and...