Business Model of FedEx Corporation
FedEx Express: This business segment is engaged in offering the international time-definite delivery services, technology, and supply chain solutions to target operating units.
TNT Express: It is the combination of activities like transportation, freight transportation services, business to business customers, and small package ground delivery ("About FedEx | About FedEx," 2016).
FedEx Ground: It manages the operations and activities like offer small package ground delivery services to residential customers and business houses across the Canada and US.
FedEx Freight: It is engaged in offering the freight services across all lengths of a haul to customers across the Rico, US, Canada, and the Virgin Islands.
FedEx Services: This business segment of FedEx Corporation is responsible for the management of sale, marketing, communications, back-office, and technology functions that support the operations of the other FedEx organizations.
This figure has completely explained the working structure and behavior of each business segment and how they are aligned with the ultimate objectives of the organization.
Vision and Mission Statement
Objective evidence to support sustainable competitive Advantages
The FedEx Corporation has adopted a large range of strategies to gain sustainable competitive advantages over its competitors. Due to the presence of sustainable competitive strategies, the company able to produce good outcomes with reliable customer services. The following is the objective evidence or strategy that support its sustainable
competitive advantage over competitors:
The foremost and important strategy of the FedEx Corporation is to use the virtual information infrastructure to gain a competitive advantage over existing customers. The use of virtual information infrastructure strategy served as a backbone for the FedEx Corporation which is highly responsible for its access to competitors ("Corporate Strategy of FedEx Corporation," 2015). On the basis of the virtual information infrastructure, the FedEx is engaged in maintaining a healthy relationship with its direct or indirect customers. Apart from this, it can also say that the company uses this corporate strategy to close the gaps between the seller and consumer.
The three tests of a Winning Strategy
The Competitive Advantage Test
The Goodness of Fit Test
Apart from this, it can also say that the use of virtual information infrastructure strategy is completely suited to the external and internal factors of the organization. It is because this strategy is highly engaged in technological innovations. Therefore, as a member of logistics industry, the technology is a key factor of focus for each company.
The Performance Test
Moreover, it is right to say that the strategy of virtual information infrastructure is completely engaged in boosting the company performance (Tan, 2016). It does not only enhance the profitability but also strengthens the competitive position and image within the market. This strategy does this through the promotion of direct and indirect relationship with potential customers.
Therefore, on the basis of winning strategy three tests, it can be said that the corporate strategy of FedEx is completely effective and sustainable for competitive advantage.
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