Honors Program
Date of this Version
Spring 5-13-2022
Document Type
Thesis
Citation
Gomez, Luke. Strategic Audit of FedEx. Undergraduate Honors Thesis. University of Nebraska-Lincoln. May 2022.
Abstract
FedEx is a global courier and delivery service firm that was founded in 1973 by CEO and Chairman Frederick Smith. FedEx has grown tremendously since it was founded and now maintains a global presence in the industry.
FedEx now split among 6 distinct segments that fall into the FedEx Corporation umbrella: FedEx Express, FedEx Ground, FedEx Freight, FedEx Logistics, FedEx Office, and FedEx Services.
FedEx uses the capabilities of their business segments to achieve their mission statement:
“FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its team members, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.”
In order to follow through with their mission statement, FedEx has implemented a blue ocean strategy to gain competitive advantage. This means that FedEx simultaneously pursues differentiation from competitors and a price advantage. This strategy is embodied by FedEx’s commitment to reducing customer costs by leveraging their economies of scale to pass down savings to customers. Their pursuit of differentiation is fully explored through their merger/acquisition strategy and an in-depth analysis of their different business segments. Their decade-old strategy of horizontal integration has transformed the small logistics company in Memphis, TN to a global shipping and logistics powerhouse with multiple business divisions and services available in over 200 countries.
In order to assess the success of their current business strategy and FedEx’s future outlook, a strategic audit was conducted which takes into account an in-depth internal analysis, external environment analysis, competitor analysis, and deep-dive into FedEx’s corporate structure.
All of the components of the strategy, when put together, will form a complete picture of the space that FedEx takes up in their industry. Such a comprehensive report is invaluable when determining whether to invest in a company, or when formulating what approach FedEx should take in the future in their pursuit to increase their competitive advantage.
Comments
Copyright Luke Gomez 2023.