Marketing Essay – FedEx Corporation

Fed acquired Kink in 2004 for $2. 4 billion, expandinning its presence among small and midsized subscriber linees that have long been Kinks main customer sensual. Fed Chairman stated it was supremely logical for them to offer arrives to the whitewalls and office segment that are analogous to what they offer their corporate customer base (Deutsche, 2003). Fed has a more defined white-collar customer base, mainly consisting of fast-cycle logistics shippers seeking time-definite morning deliveries (Richer, 2009).Their work will meet demands for time-definite morning deliveries to wholesalers, (ibid. ) manufacturing businesses, retail stores, and high-value goods. 10 Recommendations Although Fed has been successful in moving into the outside(a) arena, it still does not have a competitive advantage in the shipping industry. Its chief competitor, UPS, controls the terms shipping market (see Appendix A), guaranteeing them a large portion of the domestic market administer.Fed should ma intain a controlling stake in the express delivery market while increasing their market share in domestic ground delivery, by further differentiating itself from UPS through innovation and service offerings. Securing more business partnerships, even at slightly lower margins, will help develop brand loyalty. This is especially legitimate of long-term contracts with large firms. Studies predict the supranational package market will grow by 5-6% in the coming ears, nearly double the expected annual growth in world GAP (Waistlines, 2014).Fed should forever invest capital in Asia, whilst penetrating into foreign markets by partnering with local carriers. This will give them worth(predicate) insight into a relatively foreign and unknown market. Acquiring smaller shipping companies, such as Excel (I-J) or Suppose (France) also increases their international reach. Fed could seek alternative energy sources to shrivel up their operate be. Investing in solar power or bio-fuels could he lp counter additional costs due to increased fuel prices.Fed should utilize economic aircrafts to increase their carrying capacity, thereby reducing the number of operating planes. Lastly, by forging strategic alliances with embrocate and gas suppliers, they could bargain for discounts, whilst curtailing the negative effects associated with volatile oil supplies. Looking forward, Fed has positioned itself for growth opportunities in the domestic and international arena. It has exhibited an exceptional track record of international expansion and good financial restraints during times of easy credit, proving it can operate successfully even in a tough economic climate.