Fedex Competitors Analysis and Customer Retention Strategies

Fedex Competitors Analysis and Customer Retention Strategies Introduction It is apparent from FedEx Corporation’s (FedEx) track record of success; it is clearly a leader in the industry. Ranked the world’s #1 express transportation company with 3 million packages delivered daily, FedEx surely knows what it is doing to keep the business growing and prosperous (Williams 2005). However, like most businesses these days, there are always trials and tribulations. Important decisions must be made everyday, it is critical that quick thinking and a clearly defined method of operations management must be followed to keep things running smoothly. Of course, the true test to whether or not a solid operations management flow is in place is how the company is able to deal with the unexpected. This brief will examine who makes up FedEx’s complete customer base and how the company attempts to satisfy and retain its customers. As well, the risks taken in day to day business will be evaluated coupled with the manner FedEx is able to manage the chances it must often take. Another item for discussion is the impact of sudden demand for the industry and specifically for FedEx. Finally, FedEx’s top competitors will be studied, weighing strengths and weaknesses of each company. An evaluation will be presented as to how FedEx would fair if one of its main competitors would try to win a valued client based on the strength and weaknesses outlined. The Customers As with most successful businesses, FedEx is aware that it has a variety of different customers, including internal and external. Both external and internal customers need to be satisfied with the performance of the company to keep things on track. Reviewing the importance of both external and internal customers is critical. The internal customer for FedEx is obviously its own employees. 250,000 strong in 2005 with a 27 percent growth rate from 2004 shows that FedEx is growing quickly (Williams, 2005) and that type of growth needs to be managed appropriately. To maintain employee satisfaction, FedEx offers a competitive salary, fair working conditions, and the ability to â€Å"climb the corporate ladder† if desired. Employees boast of their success at FedEx and their true delight at working for this company throughout the company website (Fed Ex Company Website 2005). Externally, there a few more customers to consider including corporate, consumer, shareholders and stakeholders. Corporate clients, including Dell and Hewlett Packard, expect their products to be delivered on time and in good condition. As well, consumer clients expect to receive their products on time and in good condition. Shareholders, since FedEx is a public company, expect profits to be up and costs to be down. Finally, stakeholders are those people affected by the corporate actions of FedEx. Are its operations interfering with something in the community? Are its airplanes breaking noise ordinances? The bottom line is that the customers for FedEx are many and their needs are different so FedEx must consider the management of its operations from many angles. The risks There are many risks that one of FedEx’s packages not to arrive at its intended destination on time including unexpected volumes, weather, misrouting, and bottlenecks at customs. Luckily, FedEx has put into place the appropriate controls to prevent a delay of any package. As mentioned earlier, in efforts to prevent the loss of clients, FedEx has adopted policies and practices that have proven successful. To address the issue of unexpected volumes and weather problems, FedEx has built in quite a bit of redundancy into its systems. Its contingency planning is superior with proactive monitoring of weather and air traffic. As well, managers stay in close communication each day to plan, always staying one step ahead of the game. Additionally, FedEx actually has multiple hubs across the world in the case that packages need to be redirected. The automation of the sorting process keeps packages that are misrouted to a bare minimum. Packages that need special customs attention are also proactively reported to local authorities so there is minimal opportunity for those packages to slow the process. Even with these modern forms of automation in place, FedEx still prides itself on providing a human touch and treating each package as a â€Å"golden package†(FedEx Company Website 2005). Of course, if packages are delayed or do not ship to the accurate address, the company runs the risk of losing clients. Corporate clients can decide to take their contracts elsewhere and consumers will lose their feelings of loyalty if FedEx does not deliver the service it promised. FedEx’s philosophy of â€Å"Absolutely, Positively, Whatever it takes† (FedEx Company Website 2005) as discussed on its website is a direct reflection of what FedEx is willing to do to get the job done. In the unfortunate case where something goes awry with a package, FedEx also wants it customers to know there is a place to go for help and someone available at the end of the line to help work through issues. Indeed, FedEx offers many online tools to track packages as well as a phone number with live support staff 24 hours a day, 7 days a week, 365 days a year (FedEx Company Website 2005). The effects of sudden demand The effects of an unexpected and sudden demand increase can be challenging for any company. In not managed correctly, a myriad of problems can result in the express service industry. This is a direct result of the company not being able to inventory products when the demand arises (Melnyk Denzler 1996 p.447). Specific issues that can arise when sudden demand occurs include late shipments, incorrect shipments, bottlenecks, scheduling difficulties, cost increases, and capacity issues. Externally, late or incorrect shipments affect the customer relationship and have a negative impact on future business. Internally, bottlenecks can cause major issues in making shipment deadlines. In addition, without appropriate notice, staffing can be off and there can be inadequate human resources available to meet the unexpected demand. Directly, if staff needs to be scheduled at the last minute, there is a good chance that overtime wages will be required and costs can skyrocket. Finally, capacity issues are created by the unexpected demand and lack of equipment to actually transport the additional packages. Overall, to regulate unexpected demand, the operations manager needs to focus on mastery of forecasting coupled with having a flexible base of resources (Melnyk Denzler 1996 p.448). Luckily, FedEx is well positioned with its contingency plans. Like David Rebholz, executive vice-president of FedEx’s US operations and systems states â€Å"Ninety percent of the package flow is predictable – but that other 10 percent can really throw you†. All FedEx, like any other company, can do is have the procedures in place to manage that 90 percent perfectly and have the contingency plans to deal with the other 10 percent when it happens. The Competition According to a recent article in the World Trade publication (The Big Three: UPS, FEDEX and DHL 2005 p.20), FedEx, UPS, and DHL are referred to as â€Å"the big three† in the express service industry. Another formidable competitor in this market space is TNT Logistics. To consider what type of threat each one of these competitors may pose to FedEx, it is important to review each of its competitor’s strengths and weaknesses as well as their market positions. Specifically, it is important to analyze each company’s history, leadership, market presence, and potential for future growth. UPS History The United Parcel Service (UPS) began in 1907 as the American Messenger Company and has continued to grow and flourish every since (UPS Company Website 2005). The company’s ability to continually reinvent themselves to fit the markets needs has kept them at the top of its game. Leadership Michael Eskew, the current Chairman and CEO for UPS, has been at the helm in his current post since 2003. Although relatively new in this leadership role, he has served with the company since 1972 as a faithful and forward thinking employee. Ninety percent of the company is owned by managers, employees, founders, and families. This ensures that those with a vested interested in the company are represented from the front lines to upper management (UPS Company Website 2005). Market Presence UPS has established itself as the largest package delivery company in the world. To grow its express delivery services, it recently purchased Overnight and is also committed to provide its customers a full line of supply chain management services. Potential for future growth As mentioned, UPS has a strong history of positioning itself for growth during times of change and shifts in the marketplace. Last year, employee growth was 8.2% and Net Sales Growth was 9.2% (Williams, 2005). DHL History Thirty Five years ago in 1969, DHL Worldwide Network took shape as the â€Å"low cost delivery service† as it entered the marketplace and attempted to carve a niche for itself as the low cost provider. Since then, the company has been working hard to gain new customers and convince them that with lower costs, quality need not be sacrificed (Hannon 2005). From the start, DHL has committed itself to providing what it customers need. As early as the 1970s, the company realized that the globalization of trade was playing a key factor in the current business climate and adapted itself to be able to provide the services required for success in the international arena. Leadership Dr. Klaus Zumwinkel, current Chairman of the Board, is leading the way to establish DHL as a premier service with the highest quality at competitive prices (DHL Company Website 2005). Market Presence Ranked as the world leader in cross border express deliveries, DHL is spreading its wings to capture even more of the delivery services market. Setting its sights on winning more of the ground delivery business, it recently acquired Airborne. In addition, DHL seems to be stepping it up a notch in focusing on its human touch for customers as Karen Johns reports, â€Å"customers say we are much more responsive, flexible and human to deal with (Hein 2005).† Potential for future growth Another company that seems positioned as ready for growth, DHLs net sales grew by 21.6 percent last year while the employee count grew by 7% (Williams 2005). TNT History Thomas Nationwide Transport (TNT) began back in 1946 as the first express delivery service. In the 80s, the company began to offer more logistical services as they understood the market demand for it. In the 90s, the company also began to offer supply chain solutions and looked to establish themselves as innovators in the total supply chain arena (TNT Company Website 2005). Leadership Dave Kulik, Group Managing Director, is at the forefront of leading the company with new ideas in the supply chain and express delivery services industry. Leadership in the company seems to embrace advancement from within and reflects a true commitment to employee growth through many initiatives, including â€Å"Investors in People† ( TNT Company Website 2005). Market Presence Although TNT offers only about 1/6 the sales numbers of its major competitors like DHL, UPS, and Fed Ex, their customer list is impressive. A key to TNTs focused success is the targeting of specific industries. Their client list includes big users such as BMW, GM, and Proctor and Gamble (TNT Company Website 2005). Potential for future growth Although TNT appears to be flexible in adding new products and services to offer its client base, it does not seem to be as aggressive in earning additional market segments as some of its competitors. However, for the last six years, the company has recorded 22% revenue growth each year (TNT Company Website 2005). In addition, back in 2004, TNT launched a $115 billion, six-year improvement program to keep its business up to speed (Keane 2004). FedEx History Frederick W Smith had the vision for FedEx while attending Yale back in 1965. His dream became a reality in 1973 when the company first became incorporated (Journal of Business Strategy 1988, pp.15-21). Leadership FedEx’s original founder is still the CEO, Chairman, and President of the company. Since the beginning, Smith has positioned FedEx as the industry standard setter and has given all others a bar to reach for in terms of overall performance. Market Presence FedEx is the #1 express transportation company in the world and continues to grow and diversify. Its recent purchase of Kinko’s has helped to expand its retail presence as well as the supply chain management services it can provide to its customers. Potential for future growth FedEx has enjoyed exponential growth each year since the beginning and has always been able to manage the growth with ease. Last year alone, FedEx supported an 18.8% boost in sales and a jump in employees of 27.7% (Williams 2005). How does FedEx measure against the Competition? After review of FedEx and its main competitors, it is interesting to consider what may happen if one of its competitors would try to win clients from its customer base. Cleary, FedEx is a strong player in its field but the competition is fierce. In a competitive bid against its foes, FedEx would need to go on the offense, highlighting all of its attributes that make it stand out above and beyond. The best sales pitch is always a positive one, focusing on your company’s strengths rather than bad mouthing the competition. In an effort to keep important client relationships, FedEx could highlight the following: It’s original visionary and founder is still at the helm and directing the company that is still considered the industry standard setter. FedEx is the #1 express transportation company with sales revenue growth of 18.8% over last year, and net income growth 72.9% over last year (Williams 2005). FedEx’s commitment to do â€Å"Absolutely, Positively Whatever it takes† to keep the customer satisfied. It’s positive track record in the industry and ability to adapt to meet the growing needs of its client base (i.e. the purchase of Kinko’s). The commitment FedEx has to not only deliver on time but to treat each package like a â€Å"golden package†. In the case that questions arise regarding a delivery, there is always live support staff ready and available to field phone calls from consumers. Of course, packages can always be tracked on line. A competitive price offered for a competitive service with high quality standards. It appears that FedEx and UPS are both making plays to meet the end customer’s needs from both ends of the spectrum. FedEx got its start with the idea to guarantee delivery of overnight packages anywhere in the US. UPS, however, ramped up as a company focusing on ground deliveries. Both now are trying to get a piece of the other’s pie, and both are attempting to do it through acquisitions (DNS Retailing Today 2005, pp35-37). Many analysts and recent articles have placed FedEx and UPS in a direct competition for each others market space. In the article â€Å"Can FedEx Deliver More Than UPS?†, it is reported that both companies are projected to do very well but there is a belief that FedEx will do better (Tsao 2005). Specifically, the more positive outlook for FedEx has much to do with their expansion into ground deliveries where margins are higher. Conversely for UPS, it is looking to expand into a market with lower margins. Conclusion After review of FedEx’s specific customer base, the risks that it takes, the problems of sudden demand, its rivals, and a possible scenario of stolen customers, it is evident that FedEx is well positioned for success in the future. Existing competition in the marketplace will continue to put pressure on FedEx to provide high levels of service at a competitive rate. Overall, Fed Ex is well positioned to serve as an industry leader. References DHL Company Website 2005, http://www.dhl.com. ‘Federal Express Spreads its Wings’ 1988, Journal of Business Strategy, vol.9, issue 4, pp.15-21. Retrieved on October 28, 2005 from Business Source Premier Database. ‘FedEx and UPS deliver much more than mail’ 2005, DSN Retailing Today, vol.44, issue 10, pp.35-37. Retrieved on October 28, 2005 from Business Source Premier Database. FedEx Company Website 2005, http://www.fedex.com. Hannon, D 2005, ‘DHL to focus on quality, not low-cost in US market’, Purchasing, vol.134, issue 12, p.113. Retrieved October 28, 2005 from Business Source Premier Database. Hein, K 2005, ‘DHL Delivers Message: We’ll Serve You Better’, Brandweek, vol. 46, issue 32, p.4. Retrieved on October 28, 2005 from Business Source Premier Database. Keane, A 2004 ‘TNT Express Growing Plans’, Traffic World, vol. 268, issue 26, p.30. Retrieved on October 28, 2005 from Business Source Premier Database. Melnyk, S Denzler, D 1996, Operations Management; A Value-Driven Approach, William Schoof. Slack, N Chamber, S Johnston, R 2004, Operations Management, 4th Edition, Prentice Hall. Terrill, C Middlebrooks, A 2000, Market Leadership Strategies for Service Companies, NTC Business Books, Lincolnwood, IL. ‘The Big Three:UPS, FEDEX and DHL’ 2005, World Trade, vol.18, issue 8, p.20. Retrieved October 28, 2005 from Business Source Premier Database. TNT Company website 2005, http://www.tntlogistics.nl. Tsao, A 2004 ‘Can FedEx Deliver More Than UPS?’, Business Week Online, 9/10/2004. Retrieved October 28, 2005 from Business Source Premier Database. UPS Company Website 2005, http://www.ups.com. Williams, R 2005, ‘Hoovers DHL Worldwide Network S.A./N.V Corporation Overview’. Retrieved October 28, 2005 from http://www.hoovers.com/dhl. Williams, R 2005, ‘Hoovers Fed Ex Corporation Overview’. Retrieved October 28, 2005 from http://www.hoovers.com/fedex. Williams, R 2005, ‘Hoovers TNT Logistics Holdings B.V. Overview’. Retrieved October 28, 2005 from http://www.hoovers.com/tnt-logistics. Williams, R 2005, ‘Hoovers United Parcel Service, Inc. Overview’. Retrieved October 28, 2005 from http://www.hoovers.com/ups.

Differences Between Associate Degree Nurse and Baccalaureate Degree Nurse Essay

There are several benefits of having a baccalaureate-degree (BSN) over the associate’s degree (ADN). In this essay, I will discuss how effective communication can be further developed when obtaining the BSN. Next, I will talk about how a BSN can create a more highly qualified nursing workforce. Lastly, it will be explained that getting a BSN will create better career and higher education opportunities. EFFECTIVE COMMUNICATION â€Å"Communication is central to human interaction. Without it, people cannot relate to those around them, make their needs and concerns known or make sense of what is happening to them. One of the most basic goals for nursing staff is that their patients and clients and those who care for them experience effective communication†, (Wallis, 2011, p. 35). Effective communication can be further developed by obtaining a BSN and can ultimately lead you to be a better nurse, leader, and professional. Being a nurse of any level, you are communicating important information regarding the patient. If your report is not thorough, you may miss vital pieces of information pertaining to your patients care. It will build a more trusting relationship between your patients, co-workers and supervisors. HIGHLY QUALIFIED NURSING WORKFORCE BSN level nurses will provide a better program than the ADN level nurses with their increase level of critical thinking and using evidence based practice. â€Å"The American Association of Colleges of Nursing (AACN), the national voice for baccalaureate and graduate nursing programs, believes that education has a significant impact on the knowledge and competencies of the nurse clinician, as it does for all healthcare providers† (Fact Sheet, 2012, p. 1). The BSN increases knowledge in psychology, science, sociology, and management. The BSN applies the knowledge that they have learned. With the increase of knowledge in management, they will be able to prioritize and organize the workload of the patients. With the increase of science they will have a better understanding of how the body works and use critical care assessments of the patient with evidence based practice. This will improve patient safety and the care of the patient. The BSN nurses will be more educated in the differences in patient’s culture and way of thinking due to their increase in psychology and sociology. BSN level will have better outcomes for the patient thus leading to lower mortality rates. â€Å"In the October 2012 issue of Medical Care, researchers from the University of Pennsylvania found that surgical patients in Magnet hospitals had 14% lower odds of inpatient death within 30 days, and 12% lower odds of failure-to-rescue compared with patients cared for in non-Magnet hospitals. The study authors conclude that these better outcomes were attributed in large part to investments in highly qualified and educated nurses, including a higher proportion of baccalaureate prepared nurses† (Fact Sheet, 2012, p. 1). As an example of a patient care situation, two men came into the ER with gunshot wounds, one to the leg and the other to the abdomen. The ADN nurse went straight to the man with the abdomen gunshot, not noticing the man with a gunshot wound to the leg was not breathing. The bullet had hit his popliteal artery; therefore he had lost too much blood to survive. The nurse should have done her quick assessment correctly as evidence based practice has shown. This goes to show that using critical care thinking and evidence based theory not only end in better outcomes but also can saves patients lives. HIGHER EDUCATION OPPORTUNITIES A BSN degree is essential if you want to move to a leadership or management role. Leadership skills are essential when you are a charge nurse, on a committee or in administration. A BSN education will provide you with confidence to excel in these settings. â€Å"The nation’s Magnet hospitals, which are recognized for nursing excellence and superior patient outcomes, have moved to require all nurse managers and nurse leaders to hold a baccalaureate or graduate degree in nursing by 2013. Settings applying for Magnet designation must also show what plans are in place to achieve the IOM recommendation of having an 80% baccalaureate prepared RN workforce by 2020† (Fact Sheet, 2012, p. 3). One more advantage of baccalaureate-degree program is that it is a bridge for master’s degree level. CONCLUSION BSN level nurses will provide a better program than the ADN level nurses. Critical thinking, communication, and leading are imperative to the nursing career. â€Å"Professionalism, ethical decision making, accountability, critical thinking, and effective communication are emphasized. This is achieved through the application of liberal arts constructs, science, health and nursing theories, and the values of the Christian faith within the scope of nursing knowledge and evidence-based practice† (Philosophy, p. 1). Education is the key for success and better outcome of patients.

College Essay Writing Samples Secrets That No One Else Knows About

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A Sad and Cruel Industry Human Trafficking Essay

Human Trafficking is the transportation, recruitment, harboring, transfer or receipt of persons, by means of threat, force or other forms of abduction, of coercion, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation. Exploitation includes, at a minimum, the exploitation of the prostitution of others or other forms of sexual exploitation, forced labor or services, slavery or practices similar to slavery, servitude or the removal of organs. It is a lucrative industry; second only to drug trafficking as the most profitable illegal industry in the world. In†¦show more content†¦This declaration is an inordinate accomplishment, but with no teeth. Many of the contributing nations in the United Nations do not apply this very commandment to their own people. Fifty seven years should not be tolerable for anyones race, or culture not to be enslaved or exploited. Half a century has gone by only to find all nations are still trying to understand what human trafficking is. Humanity has progressed vast strides only to still practice some of the most primitive crimes known to man. There is no justification for this to be taking place in 2014. There are still concerns with human trafficking that violate the very articles of the United Nations Declaration of Human Rights. A twenty one year old Philippino girl attempted to get a job in a dance troupe in Japan. On arrival her employer confiscated her visa and started her working as a hostess wearing lingerie. If Gina left the bar she would either be beaten or arrested. Gina was trapped (Shannon, 2007). Pot flew to Bangkok as a factory worker and was promised to be paid well. When she arrived her passport was taken away and she was locked up with other girls. She then continued the flight to South Korea to pick up more girls under age and then landed in Japan where she was sold to a manager to work as a prostitute and pay her debtShow MoreRelatedHuman Trafficking And Its Aspects3369 Words   |  14 Pages Human Trafficking and its Aspects Mariah Crawford English 2020 Mr. Vern Mehr Fall 2014 Imagine being called and offered a job opportunity in another state or perhaps another country. The employer promises you better housing, twice your current salary, and even offers to pay for your commute. Without thinking, you accept because the possibilities seem endless and unreal. You arrive to your new home but things don’t look as great as they were described and suddenly your new kind, charismaticRead MoreNepal s Cry That Slavery Is A Crime2239 Words   |  9 Pagespoverty and the children encounter the highest pressures. Children are being forced to work in order to help their families survive. Families are in so much debt that they need all the children working to pay back the debts. Whether or not the job is cruel or not, children still take any advantage to earn money. â€Å"Thousands of children continue to work as breadwinners for their families† (Bhandari). No matter if the child likes it or not, they are born into doing a family and forced to do what the y mustRead MoreThe Double Standards of Feminism4337 Words   |  18 Pagespolitical, social, and economic equality to men, has now far strayed from it’s true intent and more focuses on how much women can fearlessly expose their bodies with fashion and panache. It is unfortunate, indeed. The world is in a sad, pitiful state. Fashion industries take great advantage of these concepts, manipulating society by slapping on the label of feminism onto their overly exposing clothing lines. This isn’t a new uprising, however. It seems more like a cycle, when observed going backRead MoreFortitude Throughout American History2615 Words   |  11 Pagesefforts into making illegal liquor to make a lot of money very quickly. Gatsby was an entrepreneur and decided to sell liquor at the time the Eighteenth Amendment, that made all alcohol illegal, was still in effect; even if it was not in a virtuous industry. He then moved to West Egg, across the way from East Egg where all the â€Å"old money† was, and placed his house exactly in front of Daisy’s on the other side of the bay so he can see her house every day and dream about a perfect life together. He threw