Part 2: SWOT Analysis
Jeff Schmid, Laura Sefchick, Chelsea Smith,
Chelsey Starson, Paul Stroncek, Joe Tanner.
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Founded in 1985 as RPS; rebranded as FedEx Ground
in 2000.
Specializes in cost-effective, small-package shipping,
offering dependable business-to-business delivery or
convenient residential service through FedEx Home
Delivery and FedEx SmartPost.
Headquarters is here in Pittsburgh, Pa which
increases job rates and stimulates the local economy.
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Workforce: More than 67,000 team members
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Ground Fleet: More than 22,000 motorized vehicles
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Daily Average: More than 3.5 million packages
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Services all throughout the United States and Canada.
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Operating Facilities: 32 ground hubs and over 500
pickup/delivery stations. 25 FedEx SmartPost
distribution centers
Dropoff Locations: 674 FedEx World Service Centers
1,783 FedEx Office locations
6,732 FedEx Authorized
ShipCenters® and
Alliance Partners
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FedEx Ground: U.S.
Provides 100-percent coverage to every business address in
the United States, with small-package delivery in one to five
business days in the continental U.S. and in three to seven
business days to Alaska and Hawaii.
FedEx Ground: International
Provides 100-percent coverage to every business address in
Canada, with small-package delivery in 2 to 7 days.
FedEx Home Delivery
Dedicated to residential customers, serves virtually 100
percent of the U.S. population. This residential-only
network provides guaranteed delivery options of delivery in
evenings, on Saturdays and even by appointment.
http://news.van.fedex.com/fedexgroundoverview
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FedEx Ground is faster to more locations than
UPS Ground.
Improved transit times for more than half of
the city-to-city shipping lanes so that
shipments can be delivered sooner, be more
competitive, and improve customer satisfaction
and save money.
http://www.fedex.com/us/fedex/shippingservices/package/ground.html
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Economical - With the most cost- effective rates for
ground shipping.
Comprehensive - We offer delivery to every address in
the 48 contiguous U.S. states within 1 to 5 business days
based on the distance to the destination (delivery to
Alaska and Hawaii in 3 to 7 business days).
Easy to track - Options for tracking the status of your
shipments.
Reliable - FedEx Ground service in the U.S. is supported
by a money-back guarantee.
* If your package does not arrive by the end of the
scheduled delivery day, FedEx Ground will credit or
refund the shipping charges.
http://fedex.com/grd/maps/MapEntry.do
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FedEx as a whole is extremely dedicated to its
customers.
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They strive to have superb customer service; they
push this first and foremost with their employees.
Since FedEx Ground specializes in the shipping
of small packages, our target market will be the
residential customers.
http://about.fedex.designcdt.com/our_company/company_
information/fedex_ground
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With FedEx Ground Multiweight® you can enjoy
pricing based on the combined weight of
packages being shipped in the same day to same
location or at least 150 lbs, which is convenient
and cost-effective.
FedEx Ground also enables customers to pay for
shipments, bill the recipients or a third party or
pay for all inbound shipments using FedEx
Ground® COLLECT
Service Details
FedEx Ground Multiweight®: bulk ground shipments
Service Description
Ideal for multiple-package shipments weighing 200 lbs. or more moving as one unit to
the same destination on the same day. This pricing option allows you to combine
packages for a multiweight rate. Pricing is based on the combined weight of your
packages.
Delivery Times
Door-to-door delivery in 1–5 business days, depending on distance to the destination.
Delivery to Alaska and Hawaii in 3–7 business days.
Service Days
Monday–Friday.
Delivery Area
Available throughout all 50 states.
Package Size and Weight
Multiple-piece shipments with a total weight of 200 lbs. or more can qualify.
Average package weight should be 15–25 lbs.
Up to 150 lbs. per package, 108" in length, 165" in length plus girth (L+2W+2H).
Additional Information
Service includes inside delivery and up to three delivery attempts.
Shrinkwrapping or palletizing shipments is not required.
Packages are processed like any other FedEx Ground® shipment.
Contract pricing is required.
How to Use
To see if you qualify, contact your FedEx account executive.
FedEx Network
FedEx Ground
http://www.fedex.com/us/fedex/shippingservices/package/ground.html
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Adults in Western Pennsylvania
Focusing on metropolitan areas, especially Pittsburgh.
Since FedEx Ground originated near Pittsburgh, they have
a special bond with the city. They have also helped out in
different ways:
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In 2009, when the Steelers were going to the Super Bowl, FedEx
Ground collected Terrible Towels at the rally to send to troops
overseas.
FedEx Ground also donated $5,000 to the Children’s Hospital of
Pittsburgh.
Around the same time, they also donated $250,000 to local children’s
hospitals around the country in recognition of the FedEx Air &
Ground NFL Players of the Week Award winners.
 They chose these winners by noticing who represents the same
speed, precision and teamwork that their customers have come to
expect from all aspects of FedEx.
Suburbs of Pittsburgh, as well as densely populated
residential areas, would be where our marketing needs to
hit.
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Our target market will be adults between the
ages of 30 and 60, our main focus being on
Generation X (those born between the years of
1964 and 1979.)
Both men and women
Household Income of $30K to $130K annually
College Graduates
Established, or plan to establish, families
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Many of those in Generation X are busy, careerdriven individuals who are settled down.
They tend to look for good service along with
convenience and efficiency.
Our target market is social
Our target market is motivated, both in their
family lives and their careers.
They are responsible, and search for the best
things within their reach.
They want the best for both their family and
themselves.
http://60secondmarketer.com/blog/2010/07/12/how-to-use-the-magazine-rack-test-toget-a-psychographic-profile-of-your-customer/
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Our target market is sociable and enjoys communicating. And
even though social media is their growing source of
communication with friends and family, they still need shipping
services when sending packages.
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They will stay away from places that present them with poor services.
If we don’t already have their brand loyalty, this gives us the
opportunity to leave them with a great impression; also, it allows them
to keep us as their primary shipping company.
When they are satisfied with a service or good, they will
continue to return until they have a reason not to.
Although they want good service, they usually won’t pay more
than they have to in order to get it.
They ship packages to loved ones in different states and
countries.
They also ship gifts to those that they may not be able to see
often.
They have packages delivered to them through online shipping.
They also work for companies that require shipping services.
http://www.helium.com/items/1904257-find-customersbased-on-demographics-and-psychographics
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Definition: the benefit the customer will receive
if and/or when they buy or use your product.
All specific value propositions derive from just
4 root types of value proposition:
1. Our product is unique
2. We have the lowest prices
3. We make things easier for you
4. We take ownership of a problem
http://www.expertprogrammanagement.com/2011/02/value-proposition-examples/
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FedEx uses the root of "we make things easier
for you."
FedEx has the value proposition that it doesn’t
just offer fast delivery; it offers guaranteed
delivery by a specific time.
This guarantee makes life much easier for its
customers by letting them know the exact day
and time that they will be able to receive their
package.
http://www.expertprogrammanagement.com/2011/02/value-proposition-examples/
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SWOT is the acronym for Strengths,
Weaknesses, Opportunities and Threats. It is a
4-box model used to show the risk and
opportunities for any company across the value
chain. It is easy to use and looks into the
internal and external factors of an issue of the
company.
Strengths:
Weaknesses:
•World-wide service
•FedEx Office Stores
•Name recognition
•Experts in logistics
•Slow Rural Deliveries
•Fewer store locations in rural areas
•Website hard to navigate
Opportunities:
Threats:
•More internet buyers
•More internet shippers
•UPS
•USPS
•Freight carriers
http://www.wikiswot.com/swot.htm
This map shows the
service schedules in
business days as of
January, 2011 for
FedEx Ground
shipments.
http://fedex.com/grd/maps/MapEntry.do
Rates shown are not inclusive of any surcharges or accessorial fees (ie. Fuel
surcharge, residential surcharge, delivery area surcharge, etc.) Carrier rates are based
upon current published UPS and FedEx rate schedules.
Weight
Zone 2
Zone 3
Zone 4
Zone 5
Zone 6
Zone 7
Zone 8
Letter
n/a
n/a
n/a
n/a
n/a
n/a
n/a
1 lb.
5.17%
5.40%
5.51%
5.75%
6.04%
6.12%
6.22%
2 lb.
5.37%
5.72%
6.22%
6.34%
6.75%
6.89%
7.13%
3 lb.
5.45%
5.97%
6.53%
6.73%
7.15%
7.36%
7.88%
4 lb.
5.58%
6.16%
6.86%
7.17%
7.53%
7.85%
8.44%
5 lb.
5.79%
6.25%
7.15%
7.46%
7.83%
8.20%
8.91%
10 lb.
6.86%
7.05%
7.87%
8.40%
9.00%
10.17%
11.28%
20 lb.
8.39%
9.42%
9.89%
11.37%
14.15%
16.70%
19.21%
25 lb.
9.35%
10.86%
11.57%
13.56%
17.09%
20.02%
23.42%
30 lb.
10.45%
12.16%
13.36%
15.68%
20.06%
23.23%
27.59%
40 lb.
12.12%
14.89%
16.77%
20.06%
25.66%
29.80%
34.99%
50 lb.
13.67%
17.12%
19.82%
24.15%
30.07%
36.24%
41.04%
60 lb.
15.10%
18.92%
21.96%
27.37%
33.58%
39.76%
46.40%
70 lb.
16.39%
20.86%
24.20%
29.35%
35.98%
41.96%
48.95%
80 lb.
23.59%
27.14%
29.39%
34.21%
41.12%
47.10%
50.71%
90 lb.
31.64%
33.50%
35.92%
40.30%
46.76%
52.43%
55.79%
100 lb.
39.32%
39.95%
42.59%
46.28%
51.90%
57.38%
61.78%
115 lb.
48.10%
48.91%
50.78%
54.05%
59.55%
65.35%
70.80%
120 lb.
50.99%
51.54%
53.49%
56.57%
62.06%
67.99%
74.05%
130 lb.
56.10%
56.94%
59.04%
61.65%
67.07%
73.23%
79.92%
140 lb.
61.32%
62.63%
64.88%
66.98%
72.42%
78.61%
86.24%
150 lb.
65.83%
68.62%
71.61%
74.32%
78.02%
84.09%
92.60%
FedEx on the Internet
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The Internet has helped to increase customer base
and FedEx illustrates the value of being able to use
the Internet for domestic and international business.
The FedEx site has great brand action by being user
friendly and catering to the user needs.
This site would also be one that has integrated with
both B2B and B2C by satisfying the needs of
individual consumers along with other businesses.
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“With customer expectations for timely delivery
rising, and its own processes ever-more
dependent on data, FedEx Ground needed to
ensure that its business systems were fast, reliable
and flexible. FedEx Ground’s systems needed to
meet ever-increasing processing demands —both
nearterm and long-term—while at the same time
supporting a business model based on speed,
efficiency and low cost.”
http://www-07.ibm.com/systems/includes/content/optimiseit/pdf/fedex_ground.pdf
FedEx Ground deployed the IBM
System i as the foundation of its
operations. With industry-leading
flexibility and resiliency, the System i
solution has been a key enabler of the
company’s ongoing transformation
efforts affecting all of its package
delivery processes.
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Flexible resource allocation and
nimble capacity growth with the
System i's virtualization
Capabilities
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Increased system availability,
ensuring greater reliability for day
to day operations
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Flexible resource allocation and nimble
capacity growth with the System i's
virtualization capabilities
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Increased system availability, ensuring
greater reliability for day to day
Operations
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High levels of integration speed for
application development, enabling
faster rollout of new capabilities
Low TCO with the System i's ease of
management and flexibility
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Being a private company they have total
freedom from the government in determining
their prices unlike USPS.
Need to keep prices low to compete with UPS.
Other variables taking into account are price of
gas, weather conditions, its destination, how
far the package must travel, and the weight.
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FedEx has a special team of salesman that go
business to business to talk about shipping needs, if
any are needed.
If a business has shipping needs FedEx will talk to
owners about what they can do to resolve all of
their shipping needs.
If a business makes shipments on a consistent basis,
FedEx will apply discounts and maybe even cut
shipping charges by some degree.
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FedEx and UPS fight for business every day. FedEx
must do whatever it can to keep prices low and be as
accurate as possible with deliveries.
FedEx has to keep in mind for pricing is whether or
not UPS is increasing or decreasing prices as well.
In order to stay ahead of UPS, FedEx must watch all
of UPS’s decisions and set prices accordantly.
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July 20, 2007 –
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Employees lent some muscle at the Pittsburgh Blues
Festival, which benefits the Greater Pittsburgh
Community Food Bank. By the end of the night, FedEx
volunteers loaded three trucks with more than 24,000
pounds of food.
http://news.van.fedex.com/node/3883
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December 19, 2006
The support of local Pittsburgh sports celebrities and
ten FedEx volunteers, more than 500 toys were
donated to the Children’s Hospital of Pittsburgh
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October 17, 2006
Hundreds of FedEx employees in the Pittsburgh area
volunteered their time as part of the company’s second
annual FedEx Cares Week. Working with the Woodlands
Foundation, volunteers donated their time and energy to
deliver new mattresses, refurbish counselor dorms and
clear land -- continuing the company’s commitment to
work collaboratively to make a difference in the
communities in which we live and work every day.
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July 30, 2009
Announced plans to install the nation’s largest
rooftop solar-electric system at its distribution hub in
Woodbridge, N.J.
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Friday February 18, 2011
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FedEx Ground has selected a 52-acre site in Norcross, Ga.,
to build a new distribution center that will complement the
operations of three existing facilities in the Atlanta area.
This article shows them building other centers to
expand. This expansion leads to even more faster
service.
Showing what & how FedEx has supported the local
area is a way of promoting FedEx Ground for
Pittsburghers; this is to further support a company
that helps supporting others.
http://markets.financialcontent.com/stocks/news/read?GUID=17287891#