4 to 90 in year 2008 strategy recommendation business

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Unformatted text preview: der in express delivery and supply chain industry before year 2020 ♦ Mission – To provide quick, reliable delivery of packages/documents and integrated supply chain management services through innovative technology, efficient operation, and wellestablished global network at competitive prices Vision, Mission & Objective ♦ Objective – To increase the current revenue of US$21 billion to US$45 billion and the operating margin of 6.4% to 9.0% in year 2008 Strategy Recommendation ♦ Business Level – Integrated Cost Leadership and Differentiation Strategy • • • • • • Global key account management Key partnerships with major customers Advance IT devices providing real-time information Continuous innovations and first mover advantages FedEx Online Continuous improvement of organizational operation and cost reduction program – E.g. Spent US$1.1 billion in 2002 for purchase of fuel – Purchasing policy of 2-3 suppliers or use fuel saving vehicles Strategy Recommendation ♦ Business Level – Market Penetration Strategy • Increase market share by aggressively targeting at fast developing countries like China and member countries of AFTA • Reduce its dependence on US market sales (more than 60%) • Reduce the risk of fierce competition with UPS in US market Strategy Recommendation ♦ Corporate Level – Restructuring Strategy • Optimize FedEx Express and FedEx Ground’s operation – Consist more than 80% of total sales for FedEx – E.g. same pic...
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