Ezgi Öztörün Onur Okut Agenda A About FedEx Information About Company Establishment Industry Development FedEx Innovations timeline Competitor Analysis B Structural Transformation Through E Business ID: 735031
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Slide1
Structural Transformation Through E- Business
Ezgi
Öztörün
Onur
OkutSlide2
Agenda
A) About FedEx
Information
About
Company EstablishmentIndustry Development- FedEx Innovations (timeline)Competitor AnalysisB) Structural Transformation Through E- BusinessFedEx ProblemImpacts of E-Business on the IndustryAs of January 2000 Announcement - New Implemented StructureC) Between 2000 - 2010 FedExEvaluation of 2000 AnnouncementsPost - Implementation StrategiesD) Final Comments & Questions and Answer SessionSlide3
A) About FedEx
1)
Information About
Company
EstablishmentBegan operation as a customs broker in Niagara Falls, N.Y. (1903)Frederick W. Smith - Federal Express in June 1971 Officially began operations on April 17th, 1973 - the modern air/ground express industry was born “Since its inception in 1973, Federal Express Corporation has transformed itself from an express company to a global logistics and supply-chain management company.”Slide4
A) About FedEx
2)
Industry Development- FedEx Innovations
a) The Express Transportation and Logistics Industry 3 main trends: The globalisation of businesses Advances in information technology and the application of new technology to generate process efficiencies
The changing market demand for more value-added servicesSlide5
The breakthough for the
industry
!
Slide6
A) About FedEx
With the advent of IT, express transportation became an aggregation of two
main functions: The physical delivery of parcelsThe management and utilization of the flow of information pertaining to the physical deliverySlide7
A) About FedEx
2)
Industry Development- FedEx Innovations
b) The FedEx Innovations (timeline) 1979 COSMOS (Customer Oriented Services and Management Operating System) 1984 PowerShip1985 Bar-code Labelling1994 FedEx Website1996 FedEx interNetShip1999 Partnership with NetScapeSlide8
A) About FedEx
3) Competitor Analysis
To competitiveness of transportation companies depended upon
3 factors:Their global network of distribution centersTheir ability to delivery wherever their customers conducted businessSpeed- in order to avoid from the effects of rising inflation and global competition The 4 leading companies - UPS,TNT,DHL and FedEx- held more than %90 of the worldwide marketSlide9
A) About FedEx
S
WOT AnalysisSlide10
“Although FedEx pioneered the Web-based package-tracking system such systems became the industry norm rather than a competitive advantage”
Slide11
B) Structural Transformation
Through E- Business
1)
FedEx Problem
After the acquisition of Calibar Systems Inc. in 1998Compatibility problem between Caliber and FedEx’s logistics UPS’s competitive advantage FedEx- confused customers Effects of rising fuel prices in 1999 Pressure to re-think its business strategy and its supply-chain channelsSlide12
B) Structural Transformation
Through E- Business
2) Impacts of
E-Business on the Industry The effects of the internet on express transportation and logistics market was twofold:Opportunities in logistics management
-
using the internet through engineer their supply chain
.
(Integration with customer supply chains was the key)
The express transportation needs presented enourmous opportunities for companies such as FedEx.
(G
rowth in e-tailing and business to business (B2B) e-commerce) Slide13
By integrating these e-business trends, FedEx renovated its structure to get rid of duality problems in supply–chain organizationsSlide14
B) Structural Transformation
Through E- Business
A new branding strategy-extending the FedEx brand to four of its subsidiary companies:FedEx Express (formerly Federal Express)FedEx Ground (formerly RPS)FedEx Custom Critical (formerly Roberts Express)FedEx Logistics (formerly Caliber Logistics)Viking Freight (no change in 2000 however changed in 2002 and became FedEx Freight)3) As of January 2000 Announcement - New Implemented StructureSlide15
B) Structural Transformation
Through E- Business
At the end of 1999
January 2000 ReorganizationSlide16
B) Structural Transformation
Through E- Business
Introduction of a new low-cost residential delivery service
- FedEx Home Delivery Changes for B2B solutionsGrowth in consumer e-commerce (B2C e-tailing) Slide17
Was the January restructuring going to bring the harvest?Slide18
C) Between 2000 - 2010 FedEx
1)
Evaluation of 2000 Announcements
Did it provide the right ingredients to achieve the objectives of creating value for FedEx customers while at the same time improving profitability for FedEx?Return on Sales RatioSlide19
C) Between 2000 - 2010 FedEx
1)
Evaluation of 2000 Announcements
Sales Volume - Revenue
In short term, new transformation of e-business and January 2000 announcements did not have a great impact on the profitability.Slide20
C) Between 2000 - 2010 FedEx
2)
Post - Implementation Strategies
Given the speed at which technology and the marketplace were changing, would the new organization structure be adaptable to the FedEx’s business? Restructuring of some of the subsidiaries such as Viking Freight and Home Delivery Services via B2C e-commerce modal completed in 2002 After the restructuring process completed, the FedEx Corp. preferred to grow with the acquisitions. Slide21
D) Final Comments
The primary reason for the transformation in 2000 was the result of acquisition strategy.
FedE
x
, however, grew after 2003 with acquisitions. We believed that this acquisition oriented strategy can create new compatibility problems again and affect FedEx’s performance negatively in long-run. The adaptation problems of FedEx can easily be solved if our expectations will realize. FedEx implemented an integrated system(like FedEx Corp.) The acquisition strategy should always be complemented with integration strategy.The problems in supply-chain of FedEx was solved with the support of internet technology. Since 2000 transformations, FedEx renovated itself with e-commerce applications such that B2C was a new idea for FedEx, unlike its competitor –UPS.Slide22
D)
Questions and Answers
In 2000, FedEx did not only combine its subsidiaries but also transform its supply chain systems. What factors gave rise to the
structural transformation
of FedEx? Fill in the blanks: ______became of significance to achieve competitiveness, not only for the transportation companies but also for their in ____________________industry. True or False? After the 2000 implementations, FedEx did not anticipate to meet needs of businesses specializing in B2C e-tailing.
Speed
The
internet
forced the company to consolidate its supply chain systems and solutions as
customers demanded global solutions
.
C
ustomers
were
confused
because of decentralized structure of FedEx. Integration with customer supply chains was the key.
customers
express transportation
FalseSlide23
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