Fedex Corporation

FedEx Corporation

David A. Horvath

BUS 630 – Managerial Accounting

Oscar Lewis

May 28, 2012

FedEx Corporation

* What is FedEx’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion?

FedEx’s strategy for success in the market place depends on a blend of customer familiarity, operational superiority and product leadership customer value proposition. Evidence of customer intimacy and operational superiority 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 One Call program, we assign a single customer service agent to handle virtually all issues of a customer’s account. (FedEx, p. 4, 2005)” Additional evidence of customer familiarity 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. Further evidence of operational superiority is in FedEx’s 10-K where they state they are leader in reliable rapid global delivery of packages, documents and freight and further specialized services such as customs-clearance with a money back guarantee. Proof of product leadership customer value proposition is found in FedEx’s statement saying “We believe that seamless information integration is critical to obtain business synergies from multiple operating units. For example, our Web site, fedex.com, provides a single point of contact for our customers to access FedEx Express, FedEx Ground and FedEx Freight shipment tracking, customer service and invoicing information and FedEx Kinko’s office and...