Global Challenges Facing FedEx Corporation
FedEx is one of the leading global express freight delivery companies. This company has exposed itself to more opportunities in its expansion to international markets. However, it has also faced some challenges relating to multinational business operations. One of the opportunities the business has faced is an increase in earnings due to the increasing demand for air freight services (David & David, 2017). People are looking for faster modes of freight delivery, creating an increased demand for the kinds of services offered by FedEx. The international market has, however, exposed the business to more pollution. The company is facing sustainability challenges having 700 fleets of aircraft and over 60,000 trucks that significantly increase the business’s emissions (David & David, 2017). The business has also been exposed to increased competition from other major express freight companies as well as local businesses in the local areas within which their business is located.
FedEx has taken several actions to capitalize on the opportunities of the international market and minimize the threats. First, this business has set up new hubs in international locations to minimize the movement of its cargo (David & David, 2017). This helps the business to manage faster deliveries and minimize pollution. There is also a potential opportunity for using natural gas-powered trucks to enhance the business’s sustainability goals. FedEx has also created more opportunities through its segmentation strategy. The company has three main segments, FedEx Ground, FedEx Freight, and FedEx Express, which target different segments of customers. The Express segment is the option created to cater to international customers, thus making it easier for the business to make faster deliveries.
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases. Pearson.
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[u03d1] Unit 03 Discussion 1
Global Challenges Facing FedEx Corporation – 2015
Using the information in the text on the global challenges faced by multi-national corporations, and the case study on the FedEx Corporation, discuss how FedEx is responding to the threats and opportunities of doing business globally. What seems to be working and what is missing? Post your two-paragraph summary. Be sure to revisit the courseroom after your initial post and respond to the postings of at least two other learners.
You might also search the Capella library or go to the FedEx Web site (linked in the Resources) for information relative to global presence.
- Discussion Participation Scoring Guide. Percentage of Course Grade 30%
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