SlideShare a Scribd company logo
1 of 52
Download to read offline
Grand Project Report- 2015-16
On
“Service Standard of FedEx Corporation”
PGDM-Marketing (2014-2016)
Mentored By: Submitted By:
Dr. Ashwini Vora Agrawal Bhavin (02)
Madhavi Nitin (28)
Som-Lalit Institute of Management Studies
DECLARATION
We undersigned Bhavin Agrawal and Madhavi Nitin hereby declare
that the project work presented in this report is our own work and has been
carried out under supervision of Dr. Ashwini Vora of Somlalit Institute of
Management Studies.
This work has been never submitted to any other university as
examination purpose.
Date:21st
December2015
Place:Ahmedabad
Signature
ACKNOWLEDGEMENT
This project has been very fruitful as practical study and we
would like to thank SOMLALAIT INSTITUTE OF
MANAGEMENT STUDIES to include this project report in
syllabus.
Any accomplishment includes the efforts of many people and
this project also is completed with the contribution of few people.
This is to the gratitude to FedEx Courier Service for providing us
information, sparing their time to us and for co-operation. I would
also like to thank Dr. Ashwini Vora for the guidance in making
project and clearing our doubts as and when we required.
Index
Sr. No. Title Page No.
1. Introduction to Industry 1
2. Introduction to Service Sector 2
2.1 Overview 2
2.2 Market Size 2
2.3 Government Initiatives 3
3. Introduction Of FedEx 4
3.1 Overview 4
3.2 History 4
3.3 Company Structure and Facts 5
3.4 Mission 5
4. Comparison of Service Standard of
FedEx and Forecasting the Future
6
4.1 Industry Life Cycle 6
4.2 Porter’s Five Forces 7
4.3 Global Competition 8
4.4 National Context 9
5. Data Analysis and Interpretation 11
6 Finding 35
7 Recommendation 36
8 Conclusion 37
9 Limitation of study & Expected
outcomes of Study
38
10 Bibliography 39
10 Appendix 40
SYNOPSIS
Introduction
FedEx offers a wide range of transportation services and they accommodate to the widest range
of shipments. FedEx is in the shipping services industry, which is an oligopolistic industry with
few established competitors. The shipping services industry can be classified as being in the
mature stage of the industry life cycle. The few competitors in this industry, such as UPS, DHL
and USPS, in addition to FedEx, each have their own brand loyal customers and low cost
operations that create significant barriers to entry into this industry.
Nobody understands international shipping better than FedEx. Shipping to the U.S. or halfway
around the world doesn’t have to be complicated. FedEx offers you an array of services and tools
to make it easy. Whether you are shipping documents, boxes or freight, count on FedEx for fast,
reliable on-time delivery to over 220 destinations worldwide.
Hard and Soft Services
Hard Services offered by the FedEx is Packaging, Package Shipment, Freight Shipment and
Return Shipment in the U.S and at the International Level.
Soft Services Offered by the FedEx is Timely Delivery, Money Back Guarantee, Security of
package, Pickups & Delivery Facility, etc.
It’s what we do
A more connected world means more opportunities. That’s why customers count on our diverse
portfolio of transportation, e-commerce, and business solutions. Our air, ground and sea
networks cover more than 220 countries and territories, linking more than 99 percent of the
world’s GDP.
It’s why we matter
In a connected world, the power of technology, transportation, information, and ideas
compounds and multiplies. Businesses big and small create jobs that lift their communities. For
people who are hungry for the education, goods, services and jobs that can improve their lives, a
connected world is a better world.
It’s who we are
We are consistently ranked among the world’s most admired brands and employers. More than
300,000 FedEx team members are absolutely, positively focused on safety, the highest ethical
and professional standards, and the needs of our customers and communities.
Our objective of Research:
1. To understand the management of huge network
2. How meet the needs of the customer it serves
3. How to meet those needs at a acceptable level of operating cost
4. How to select specific sites for facility location
5. Determine how to execute the network model for the distribution of the FedEx
Literature Review
According to James P Hoffa General President of theInternational Brotherhood of Teamsters
Federal Express is a majorproponent of an alarming trend in today's market classifying workers
asindependent contractors which allows them to maintain absolute control overoperations shift
costs and risks onto workers and reap the benefits oftheir labor This is a critical issue at Federal
Express whichdescribes itself in its Employee Handbook as a company that offers a widerange of
important benefits to all workers regardless.
http://www.research-assistance.com/essays/Literature-Review--Federal-Express-and-
Unions.html
Federal Express (FedEx) are deploying new software to get that closer with consumers that
quicker. FedEx Corp. is launching a multi-million dollar Customer Resource Manager (CRM)
initiative, deploying software from Clarify Inc., in an effort to cut costs and use existing
customer data to cross-sell and up sell services. FedEx hopes that this new system will allow
them to tailor its data in ways that are not currently possible in the industry, ultimately
contributing to the firm’s competitive advantage. The use of these brokerage systems will
further help FedEx to realize market “Sweet Spots” and calculate how profitable those segments
will be to the company. This relationship between FedEx and Clarify can be expected to give
FedEx a leading edge in their industry. This competitive advantage will not last long, as other
third party logistic suppliers in the highly competitive package-delivery market are likely to keep
pace in technological advancement.
It is clear that many companies today are outsourcing supply chain and logistical tasks to third
party customs brokers. Customs Brokers have an obligation to be up to date with technological
innovation and to implement it within their respective organizations thus ensuring that they are
meeting the expectations of the services that they are providing. These services must not only
meet industry expectations, but must exceed them to ensure competitive advantage. Companies
must rely on brokers to develop systems that increase efficiency, decrease lead-time, lower costs,
and increase the precision of the overall production process. Any brokerage firm that fails to
acknowledge consumer needs and adapt to the external environment will fail to provide what
their competitors surely will, as demonstrated in FedEx’s case.
http://www.oocities.org/dbateconsulting/literaturereview.htm
Research Methodology
Research Topic
To understand the service standard of FedEx Corporation
Research Objectives
The following are the specific objectives of the study.
1. To study the service standard of FedEx Corporation .
2. To study the consumer satisfaction of FedEx Corporation Service
3. To study the perceived value offered by FedEx Corporation to the consumer
4. To study the factors influencing the consumer to use the FedEx Corporation service
Research Design
The Research Study will be Descriptive in nature. The Research will be based on collecting data
in the form of questionnaire that are framed as per objective of the project.
Sample Unit
Present Customers of FedEx in Ahmedabad Region
Sample Size
50 Respondents
Sources of Data
Primary Data: The Primary data are those data which are collected fresh and for the first time
and thus happen to be original in character. The primary data that was collected through filling
questionnaires in Ahmedabad Region
Secondary Data: The secondary data are those which have already been collected by someone
else and which have been passed through the statistical process. Secondary data was collected
through websites.
CHAPTER 1: INTRODUCTION OF INDUSTRY
Courier services are a more specialized delivery service that businesses and individuals turn to
when they need a package or a document to reach its destination quickly. While regular mail
services can also deliver packages rapidly, they cannot guarantee same day delivery or overnight
delivery as the case may be. The term “courier service” can refer to every form of delivery or
transport service ranging from a small, local operation to an international network servicing
millions daily using a fleet of trucks, planes, trains and ships.
Courier services have been around for a very long time. Ancient cultures had runners or
horsemen to carry messages from one place to another without the hassle of going through the
more commonly used slow channels. Another reason that couriers became such an important
fixture in the delivery sector is that they were able to provide greater security to a parcel or letter.
Technically, courier services are not supposed to be able to lose a letter given their intricate
tracking systems. Plus, you can rest assured that the intended recipient will get the letter as they
will have to sign for it at the other end.
There are different courier services to which you can turn if so needed. In cities couriers can take
the forms of cars, bikes, motorcycles and even taxis – although the cab system tends to be most
common only in the UK. Bike couriers are the most practical in cities as they are able to weave
in and around traffic and are not constrained to the same kind of traffic issues with which car
couriers must deal. Naturally, for longer distances, car or motorcycle couriers are a more
practical and convenient choice.
Sending a package or a letter a long distance but with the maximum amount of security will also
necessitate the hiring of a courier service – except that you will have to turn to the big services
that include overnight flights, shipping and other delivery systems.
Courier services are currently a multi-billion dollar industry that help the wheels of business to
turn smoothly. Without couriers in our cities we would have to rely on regular post for the
shipment of our documents and packages – something that would be both inconvenient and a
waste of time. Most courier services charge reasonable rates for deliveries. Generally rates are
based on the distance something needs to be delivered – and, in the case of inter-city,
international or overseas deliveries the cost is usually based on weight and distance.
Finding a good, reliable courier service is something every company will have to do at a certain
point in their growth. Once they begin dealing with larger numbers of clients and have to deliver
products or packages on a regular basis, having a solid courier service in their corner is essential.
CHAPTER 2: INTRODUCTION TO SERVICE SECTOR
2.1 Overview
The services sector, with around 52 per cent contribution to the Gross Domestic Product (GDP)
in 2014-15, has made rapid strides in the past decade and a half to emerge as the largest and one
of the fastest-growing sectors of the economy. The services sector is not only the dominant
sector in India’s GDP, but has also attracted significant foreign investment flows, contributed
significantly to exports as well as provided large-scale employment. India’s services sector
covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and
communication, financing, insurance, real estate, business services, community, social and
personal services, and services associated with construction.
2.2 MarketSize
The services sector contributed US$ 783 billion to the 2014-15 GDP (at constant prices) growing
at CAGR of 9 per cent, faster than the overall GDP CAGR of 6.2 per cent in the past four years.
Out of overall services sector, the sub-sector comprising financial services, real estate and
professional services contributed US$ 305.8 billion or 20.5 per cent to the GDP. The sub-sector
of community, social and personal services contributed US$ 188.2 billion or 12.6 per cent to the
GDP. The third-largest sub-segment comprising trade, repair services, hotels and restaurants
contributed nearly equal or US$ 187.9 billion or 12.5 per cent to the GDP, while growing the
fastest at 11.7 per cent CAGR over the period 2011-12 to 2014-15.
2.3 Government Initiatives
The Government of India recognises the importance of promoting growth in services sectors and
provides several incentives in wide variety of sectors such as health care, tourism, education,
engineering, communications, transportation, information technology, banking, finance,
management, among others.
The Government of India has adopted a few initiatives in the recent past. Some of these are as
follows:
 The Central Government is considering a two-rate structure for the goods and service
tax(GST), under which key services will be taxed at a lower rate compared to the
standard rate, which will help to minimize the impact on consumers due to increase in
service tax.
 By December 2016, the Government of India plans to take mobile network to nearly 10
per cent of Indian villages that are still unconnected.
 The Government of India has proposed provide tax benefits for transactions made
electronically through credit/debit cards, mobile wallets, net banking and other means, as
part of broader strategy to reduce use of cash and thereby constrain the parallel economy
operating outside legitimate financial system.
 The Reserve Bank of India (RBI) has allowed third-party white label automated teller
machines (ATM) to accept international cards, including international prepaid cards, and
has also allowed white label ATMs to tie up with any commercial bank for cash supply.
http://indiainbusiness.nic.in/newdesign/index.php?param=advantage/169
CHAPTER 3: INTRODUCTION OF FEDEX
3.1 OVERVIEW
Type Public
Industry Courier
Founded Little Rock, Arkansas (1971) as Federal
Express Corporation
Founder Frederick W. Smith
Headquarter Memphis, Tennessee, India
Area Served World wide
Products Post Delivery, Express Mail, Freight
forwarding, third-party logistics
Revenue US$ 45 BILLION (2013)
3.2 HISTORY
FedEx Corporation is an American global courier delivery services company headquartered in
Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the name of the company's
original air division, Federal Express, which was used from 1973 until 2000.
FedEx Corporation is an import/export company, incorporated October 2, 1997 in
Delaware.FDX Corporation was founded in January 1998 with the acquisition of Caliber System
Inc. by Federal Express. Fedex's first van displayed at the FedEx World Headquarters With the
purchase of Caliber, FedEx started offering other services besides express shipping. Caliber
subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited
shipping provider; Viking Freight, a regional, less than truckload freight carrier serving the
Western India; Caribbean Transportation Services, a provider of airfreight forwarding between
the India and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics
and technology solutions. FDX Corporation was founded to oversee all of the operations of those
companies and its original air division, Federal Express.
3.3 Company Structure and Facts
As business becomes more global and competitive, everyone from entrepreneurs to big
companies turn to us for flexible and innovative solutions. It’s the No. 1 priority of all our
companies.
Think of them as a portfolio of solutions that can tackle any challenge in the world of global
commerce. Each network operates independently. That means our individual networks can be
fine-tuned, like a race car, to deliver the best service possible for customers.
It’s how we deliver real
3.4 Mission
FedEx Corporation will produce superior financial returns for its shareowners by providing high-
value-added logistics, transportation, and related business services through focused operating
companies. Customer requirements will be met in the highest quality manner appropriate to each
market segment served. FedEx will strive to develop mutually rewarding relationships with its
team members, partners, and suppliers. Safety will be the first consideration in all operations.
Corporate activities will be conducted to the highest ethical and professional leader.
FedEx has two main goals in mind for his best in class series:
1) To help the distributor better understand his industry, their supply chain and the issues
impacting them aid;
2) To develop tools that distributor can use to improve their business.
CHAPTER 4: COMPARISON OF SERVICE STANDARD OF FEDEX
AND FORECASTINGTHE FUTURE
4.1 Industry Life Cycle
FedEx offers a wide range of transportation services and they accommodate to the widest range
of shipments. FedEx is in the shipping services industry, which is an oligopolistic industry with
few established competitors. The shipping services industry can be classified as being in the
mature stage of the industry life cycle. The few competitors in this industry, such as UPS, DHL
and USPS, in addition to FedEx, each have their own brand loyal customers and low cost
operations that create significant barriers to entry into this industry.
As for the intensity of competition, in mature industries "companies tend to recognize their
interdependence and try to avoid price wars." (Hill Jones, p.57) For mature industries a stable
demand reduces the threat of intense rivalry between the established companies. However,
unpredictable economic activity can cause a "trickle down" effect, such as a slump in an
economy causing a decrease through-out industry demand, and as companies fight to make
money a price war begins among companies in an industry, therefore, price leadership can be
broken down by unpredictable future events.
4.2 Porter’s Five Forces
Applying Porter’s five forces model to the industry is not an easy task provided that FedEx
Corporation provides various shipping services. For simplicity, we examined and applied the
Porter’s five forces model to the ground and air-shipping sector. In FedEx, these two sectors are
represented by FedEx Express and FedEx Ground. FedEx Express is the world's largest express
transportation company. FedEx Ground, on the other hand, is North America's second largest
provider of small-package ground delivery service, following the lead of UPS. Other segments of
shipping service industry are for example e-commerce and supply chain management services,
which are not included in the Porter’s five forces analysis.
1. Risk of new entry by potential competitors
The barriers to entry are very high. One of the reasons that there is a high entry barrier is the
high fixed cost associated with establishing the international transportation network. This
includes hubs, ground transportation vehicles, air fleet, etc. Additionally, existing companies can
take advantage of the absolute cost advantage achieved by large volume of shipments and
economies of scale.
2. Extent of rivalry between established firms
Established players in shipping service industry complete rigorously for a market share, as
demonstrated by the constant battle between FedEx and UPS, the company who responses first
to the constantly changing environment wins. Established companies have to strive for
continuous improvement in quality, lowering price, and innovation. There is very low switching
cost for consumers in this industry making rivalry even more intense. In addition, intense rivalry
is also due to the fact that maintaining the infrastructure of an express delivery company presents
an exit barrier due to high fixed costs.
3. Bargaining power of buyers
The bargaining power of large buyers in shipping service industry is high. Cost associated with
switching from one shipping service to another is very low. Therefore, buyers can turn to a
shipping provider that offer faster service, lower price, or service innovation with ease. This is
especially true for large corporations, like IBM, which ships in large volumes and can bargain
quantity discounts.
4. Bargaining power of suppliers
The supplier power within this industry is fairly low. Large shipping service provider can affect
prices of supplies, like packaging materials. This is because they buy in large quantities and can
turn to different suppliers easily.
5. Threat of substitute products
There are not many substitutes to shipping. In this day and age where many businesses have
strong online presence and a small physical presence, it would be difficult to find a substitute in
delivering their product. Shipping services are very much similar to a commodity, in that it is not
easily replaced with another service or even a similar service.
Porter’s five forces model – FedEx Corporation
4.3 Global Competition
The competition in the package delivery service is very global. FedEx Corporation competes
with UPS (United Parcel Service), DHL, USPS (India Postal Service) as well as a host of other
smaller companies at home and abroad. FedEx delivers packages to 214 countries as do most
major players in this industry like UPS and DHL. As well as competing against bigger players,
FedEx must also compete with regional delivery companies and international delivery companies
that serve only their country.
Competition is not becoming more global due to the fact that companies are merging and
the industry is consolidating and companies are making alliances with each other. These are the
visible signs of a shakeout occurring within an industry.
Supplier’s Power
LOW
Potential Competitors
LOW to MODERATE
Substitute Products
LOW
- Shipping - commodity
Buyers’ Power
HIGH
- large buyers
- low switching
cost
Existing Rivals
HIGH
- FedEx, UPS, DHL
4.4 NationalContext
The shipping service industry in which FedEx operates is a complementary industry to the
majority of other industries. The industry has several leaders all of whom provide various
services with unique twists on the service offering. Local conditions largely influence the
operations of FedEx Ground. In addition, FedEx also needs to monitor the moves of the
established leader of this sector, UPS. FedEx Express, on the other hand, faces all the affects of
changing global environment. The operations of FedEx Express need to respond to local demand
conditions, factor conditions and related and supporting industries of each country that FedEx
serves.
Factor Endowments: FedEx Corporation in the India administers variety of advanced factors of
production. These are managerial sophistication, logistics know-how, and physical infrastructure.
Logistics is one of the main advanced factors which FedEx developed for managing its complex
hubs. Physical infrastructure that FedEx uses is not only airports but also roads and ports.
Local Demand Conditions: Demand conditions in the India thrusts FedEx, as well as its
competitors, to constantly upgrade its services. As customers continually desire their shipments
delivery faster and cheaper, the shipping service industry must constantly improve its services
and customer responsiveness. The rivalry of existing competitors is very intense and the low
buyer switching cost only fuels it. Specific shipping needs of various companies and individuals
demand innovative approaches and the extensive use of technology in this industry.
Competitiveness of Related and Supporting Industries: The presence of internationally
competitive suppliers and related industries in the India serves as another complimentary
attribute of national advantage for FedEx’s operations.
Intensity of Rivalry: As mentioned earlier, the shipping service industry faces rigorous rivalry
for market share. Established companies have to strive for continuous improvement in quality,
lowering price, and innovation. There is very low switching cost for consumers in this industry
making rivalry even more intense. In addition, intense rivalry is also due to the fact that
maintaining the infrastructure of an express delivery company presents an exit barrier due to high
fixed costs. Rivalry forces companies in this industry to improve its services, making them better
international competitors.
Opportunities and threats – FedEx Corporation
Opportunities Threats
- The cost of infrastructure of express
delivery companies are a barrier of entry to
new comers
- FedEx leadership in global express delivery
- As long as the nature of our socioeconomic
environment exists, there will always be a
need for express delivery
- E-commerce is creating an increased need
for express delivery
- Globalization offers opportunities for
expansion
- Maintaining the infrastructure of an express
delivery company is an exit barrier because of
high fixed costs
- Capitol is acquired through the volume of
sales, so the high fixed costs can hurt when
times are slow
- Due to the nature of the industry, it is nearly
impossible to become the clear industry leader
- The nature of the industry shows very low
returns on invested capitol
- The E-tailing industry demands lower shipping
rates and charges to pull customers from the
retailing industries
- Major competitors: UPS, the airborne DHL
Chapter 5: Data Analysis and Interpretation
1. Average number of shipments that your company sends out per month
1-10 4
11-50 14
50-200 28
>200 4
More than 50% consumers are having the shipment number between 51 to 200. Followed by the
slot of 11-15.
4
14
28
4
0
5
10
15
20
25
30
1 - 10 11 - 50 51 - 200 > 200
Shipment
Shipment
2. Average shipping costthat your company incurs per month
<INR3000 7
INR3001-INR7000 8
INR7001-INR15000 13
>INR15000 12
Out of 15 companies, 13 companies are spending 7000 to 15000 Rs, 12 companies spending
more than 15000Rs for shipment in a month
7
8
13
12
0
2
4
6
8
10
12
14
<INR3000 INR3001-INR7000 INR7001-INR15000 >INR15000
Response
Response
3. Classification that best describes your company
Consulting/Advertising agency 9
Education 3
Finance/Insurance 10
Government 0
Manufacturing 18
Transportation/Distribution 10
Other 0
We had taken response of many industries that are using various courier services, out them more
companies are indulged in Manufacturing followed by insurance and other.
9
3
10
0
18
10
0
0
2
4
6
8
10
12
14
16
18
20
Response
Response
4. Which courier service firm you regularly use?
DHL 12
FedEx Express 30
UPS 6
TNT 2
Others 0
Out of 50 companies, 30 companies are using FedEx services and second most used courier
service is DHL.
12
30
6
2
0
0
5
10
15
20
25
30
35
DHL FedEx Express UPS TNT Others
Response
Response
5. Do you Agree safety protection for the delivered product provided by FedEx is meeting
the standard requirement for your organization?
Strongly Agree 10
Agree 17
Neutral 3
Disagree 0
Strongly disagree 0
Out of 30, 10 consumers are strongly agree, 17 consumers are agree that it meet the standard
requirement organization in terms of safety which shows its standard.
10
17
3
0 0
0
2
4
6
8
10
12
14
16
18
Strongly Agree Agree Neutral Disagree Strongly
disagree
Response
Response
6. Is your organization satisfied with the prices charged by FedEx?
Highly Satisfied 18
Satisfied 7
Neutral 5
Dissatisfied 0
Highly Dissatisfied 0
Majority of consumers are Highly Satisfied with the price charged by FedEx for the service
offered to them.
18
7
5
0 0
0
2
4
6
8
10
12
14
16
18
20
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied
Response
Response
7. Rate the satisfaction level of services of FedEx given to your organization (Pickups time,
packaging & handling)?
Highly Satisfied 22
Satisfied 8
Neutral 0
Dissatisfied 0
Highly Dissatisfied 0
Out of 30, 22 customers are highly satisfied with the service offered by the FedEx and remaining
8 falls in criteria of being satisfied.
22
8
0
5
10
15
20
25
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied
Response
Response
8. The time of delivery of FedEx is on your company expectation?
Yes 23
No 5
Sometimes 2
More than 70% customers are saying yes for the timely delivery offered by the FedEx. Only 5
are not happy with service.
23
5
2
0
5
10
15
20
25
Yes No Sometimes
Response
Response
9. Do you agree that FedEx is a reliable and trustworthy courier services provider?
Strongly Agree 21
Agree 8
Neutral 1
Disagree 0
Strongly disagree 0
Majority of the companies think that FedEx is a reliable and trustworthy organization.
21
8
1
0 0
0
5
10
15
20
25
Strongly Agree Agree Neutral Disagree Strongly disagree
Response
Response
10. It would cost my company a lot to switch from FedEx to another courier firm
Strongly Agree 12
Agree 15
Neutral 3
Disagree 0
Strongly disagree 0
27 Companies think that it will cost them a lot if they switch to FedEx to another courier service
12
15
3
0 0
0
2
4
6
8
10
12
14
16
Strongly Agree Agree Neutral Disagree Strongly
disagree
Response
Response
11. It would take my company a lot of effort to switch from FedEx to another courier firm
Strongly Agree 14
Agree 10
Neutral 5
Disagree 1
Strongly disagree 0
Out of 30, 24 feels that it will be take them a lot of efforts to switch from FedEx to other courier
services.
14
10
5
1
0
0
2
4
6
8
10
12
14
16
Strongly Agree Agree Neutral Disagree Strongly
disagree
Response
Response
12. Have you recommended FedEx to professional colleagues?
Yes 24
No 6
Many customers are highly satisfied that they have recommended FedEx to other professional
colleagues.
24
6
0
5
10
15
20
25
30
Yes No
Response
Response
13. Does your company always considers FedEx as its first choice for courier services
Yes 28
No 2
Out of 30, FedEx is the first preference of 28 firms.
28
2
0
5
10
15
20
25
30
Yes No
Response
Response
14. Will your company do more business with FedEx in next few year?
Yes 23
No 3
Can’t Say 4
Out of 30, 23 are ready for future promises remaining are less but it affects a lot.
23
3
4
0
5
10
15
20
25
Yes No Can't say
Response
Response
SPSS ANALYSIS
Significance level is .000 which is less than 0.05 so average numbers of shipments and
classification that best describes your company has no relation.
Findings
 More than 50% consumers are having the shipment number between 51 to 200. Followed
by the slot of 11-15.
 Out of 15 companies, 13 companies are spending 7000 to 15000 Rs, 12 companies
spending more than 15000Rs for shipment in a month
 We had taken response of many industries that are using various courier services, out
them more companies are indulged in Manufacturing followed by insurance and other.
 Out of 50 companies, 30 companies are using FedEx services and second most used
courier service is DHL.
 Out of 30, 10 consumers are strongly agree, 17 consumers are agree that it meet the
standard requirement organization in terms of safety which shows its standard.
 Majority of consumers are Highly Satisfied with the price charged by FedEx for the
service offered to them.
 Out of 30, 22 customers are highly satisfied with the service offered by the FedEx and
remaining 8 falls in criteria of being satisfied.
 More than 70% customers are saying yes for the timely delivery offered by the FedEx.
Only 5 are not happy with service.
 Majority of the companies think that FedEx is a reliable and trustworthy organization.
 27 Companies think that it will cost them a lot if they switch to FedEx to another courier
service
 Out of 30, 24 feels that it will be take them a lot of efforts to switch from FedEx to other
courier services.
 Many customers are highly satisfied that they have recommended FedEx to other
professional colleagues.
 Out of 30, FedEx is the first preference of 28 firms.
 Out of 30, 23 are ready for future promises remaining are less but it affects a lot.
Recommendations
 FedEx is been the leading service provider in courier service. FedEx goes upto the mark
and it meets the service standard of set by them. FedEx is covering all types of customers
having large number of couriers to be done also the average and the small customers.
 FedEx is covering all the sectors, but mostly it has the customers from Manufacturing
and IT Sector, so they must also focus to cater the other sectors. Large number of
customers is highly satisfied with the services provided by the FedEx like security of
product, price charged, timely delivery, pickup and other facilities. But yes there are few
customers who are not satisfied they are less but they can’t be ignored.
 There are firms who feels that switching from FedEx will not be a cost added to them
also there are firms who are not ready to do business in future with the FedEx, such are
firms are need to be personally analyzed and try to find the problems faced by them and
try to resolve the same. They are less in numbers but it might be able to increase in
future.
 When the question of referring the FedEx to other professional colleagues came there are
about 6 firms which are not ready to give as reference, so what the reason behind the
same must be found and try to resolve it as soon as possible.
Conclusion
FedEx is being the one of the largest courier service provider and having
the wide distribution and networking channel there are some negative
points which is been seen from their side.
As FedEx is known for the timely delivery and prompt, quick and
reliable service, they are doing efforts to maintain the same and reach
upto the mark. After the survey it came to known that most of the
customer are highly satisfied with the services offered by the FedEx to
them for the domestic as well as international delivery.
But there are many firms who are dissatisfied with the different services
provided by the FedEx which includes the security of the parcels,
pickups and delivery, price charged for the different locations are
comparatively higher than that of its competitors. So such factors might
lead to the firms to switch to their competitors form the FedEx.
So, FedEx must focus on such customers and try to know their problems
and must give them feedback and also solve the same.
Limitation of the Study
 As only one city is surveyed, it does not represent the overall view of the Indian market.
 The study Is only confined for the main client of FedEx so no focus is given on the small
users of FedEx
Expected Contribution of the Study
 This study will enable to find out the consumer awareness, preferences, brand loyalty,
expectations, attitude and perception.
 The study deals with consumer satisfaction and the media, which influences them, the
most. In the current scenario, where the competition is tough, the consumers are allowed
to make the choice.
 The company can frame the objectives and compete in the market only if they satisfy the
needs of the customers by taking into account their suggestions and complaints.
 The findings and suggestions of this survey will help the companies to formulate
marketing strategy in order to satisfy the consumer‟s needs in the best way.
Bibliography
http://www.fedex.com/in/about/company-info/
http://www.oneentry.com/categories/logistics_transportation/courier_services/buyers_guides/
http://indiainbusiness.nic.in/newdesign/index.php?param=advantage/169
http://www.research-assistance.com/essays/Literature-Review--Federal-Express-and-
Unions.html
http://www.oocities.org/dbateconsulting/literaturereview.htm
Appendix
Questionnaire for Service Standard of FedEx Express
1) Name: ________________________________________
2) Company Name: ________________________________
3) Your position in company: _________________________
4) E-mail Id: _______________________________________
5) Average number of shipments that your company sends out per month
1-10 ( )
11-50 ( )
50-200 ( )
>200 ( )
6) Average shipping cost that your company incurs per month
<INR3000 ( )
INR3001-INR7000 ( )
INR7001-INR15000 ( )
>INR15000 ( )
7) Classification that best describes your company
Consulting/Advertising agency ( )
Education ( )
Finance/Insurance ( )
Government ( )
Manufacturing ( )
Transportation/Distribution ( )
Other___________________
8) Which courier service firm you regularly use?
DHL ( )
FedEx Express ( )
UPS ( )
TNT ( )
Other specify____________
Answer question 9-18 if you selectedFedEx in previous question
Customer Satisfaction
9) Do you Agree safety protection for the delivered product provided by FedEx is meeting
the standard requirement for your organization?
Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )
10) Are your organization satisfied with the prices charged by FedEx ?
Highly Satisfied ( )
Satisfied ( )
Neutral ( )
Dissatisfied ( )
Highly Dissatisfied ( )
Perceived Value
11) Rate the satisfaction level of services of FedEx given to your organization (Pickups time,
packaging & handling)?
Highly Satisfied ( )
Satisfied ( )
Neutral ( )
Dissatisfied ( )
Highly Dissatisfied ( )
12) The time of delivery of FedEx is on your company expectation?
Yes ( )
No ( )
Sometimes ( )
13) Do you agree that FedEx is a reliable and trustworthy courier services provider?
Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )
Switching cost
14) It would cost my company a lot to switch from FedEx to another courier firm
Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )
15) It would take my company a lot of effort to switch from FedEx to another courier firm
Strongly Agree ( )
Agree ( )
Neutral ( )
Disagree ( )
Strongly Disagree ( )
Customer Loyalty
16) Have you recommended FedEx to professional colleagues?
Yes ( )
No ( )
17) Does your company always considers FedEx as its first choice for courier services
Yes ( )
No ( )
18) Will your company do more business with FedEx in next few year?
Yes ( )
No ( )
Can’t Say ( )
Any Suggestion:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

More Related Content

What's hot

Fedex - SWOT Analysis and Marketing
Fedex - SWOT Analysis and MarketingFedex - SWOT Analysis and Marketing
Fedex - SWOT Analysis and MarketingQelender Memmedli
 
Fed ex warehousing overview
Fed ex warehousing overviewFed ex warehousing overview
Fed ex warehousing overviewsavvyavarma
 
Summer Internship project On Study of 3PL
Summer Internship project On Study of 3PLSummer Internship project On Study of 3PL
Summer Internship project On Study of 3PLKapil Mittal
 
Fed ex Case study powerpoint
Fed ex Case study powerpointFed ex Case study powerpoint
Fed ex Case study powerpointjennyb083
 
Tranzum courier service
Tranzum courier serviceTranzum courier service
Tranzum courier serviceMuhammad Umer
 
Internship PPT - The Effectiveness of Logistics and Distribution - DTDC Couriers
Internship PPT - The Effectiveness of Logistics and Distribution - DTDC CouriersInternship PPT - The Effectiveness of Logistics and Distribution - DTDC Couriers
Internship PPT - The Effectiveness of Logistics and Distribution - DTDC CouriersAvinash Heston
 
Costa logistics profile
Costa logistics   profileCosta logistics   profile
Costa logistics profilecostalog
 
45694501 logistics-project
45694501 logistics-project45694501 logistics-project
45694501 logistics-projectBishtdeep
 
logistics and warehousing
logistics and warehousinglogistics and warehousing
logistics and warehousingNitin Sharma
 
FedEx Supply Chain Management
FedEx Supply Chain ManagementFedEx Supply Chain Management
FedEx Supply Chain ManagementSaurabh Barnwal
 

What's hot (20)

Fedex - SWOT Analysis and Marketing
Fedex - SWOT Analysis and MarketingFedex - SWOT Analysis and Marketing
Fedex - SWOT Analysis and Marketing
 
Fed ex warehousing overview
Fed ex warehousing overviewFed ex warehousing overview
Fed ex warehousing overview
 
Fedex corporation
Fedex corporationFedex corporation
Fedex corporation
 
Summer Internship project On Study of 3PL
Summer Internship project On Study of 3PLSummer Internship project On Study of 3PL
Summer Internship project On Study of 3PL
 
Fed ex Case study powerpoint
Fed ex Case study powerpointFed ex Case study powerpoint
Fed ex Case study powerpoint
 
Dhl india
Dhl indiaDhl india
Dhl india
 
Tranzum courier service
Tranzum courier serviceTranzum courier service
Tranzum courier service
 
Internship PPT - The Effectiveness of Logistics and Distribution - DTDC Couriers
Internship PPT - The Effectiveness of Logistics and Distribution - DTDC CouriersInternship PPT - The Effectiveness of Logistics and Distribution - DTDC Couriers
Internship PPT - The Effectiveness of Logistics and Distribution - DTDC Couriers
 
Costa logistics profile
Costa logistics   profileCosta logistics   profile
Costa logistics profile
 
Service Brand study on Fedex
Service Brand study on FedexService Brand study on Fedex
Service Brand study on Fedex
 
Logistics Company Profile
Logistics Company ProfileLogistics Company Profile
Logistics Company Profile
 
Fed Ex Corp. Strategy
Fed Ex Corp. StrategyFed Ex Corp. Strategy
Fed Ex Corp. Strategy
 
Fed ex
Fed exFed ex
Fed ex
 
Manish report pdf
Manish report pdfManish report pdf
Manish report pdf
 
45694501 logistics-project
45694501 logistics-project45694501 logistics-project
45694501 logistics-project
 
Supply chain of dhl
Supply chain of  dhlSupply chain of  dhl
Supply chain of dhl
 
logistics and warehousing
logistics and warehousinglogistics and warehousing
logistics and warehousing
 
Dhl final
Dhl finalDhl final
Dhl final
 
Fedex
FedexFedex
Fedex
 
FedEx Supply Chain Management
FedEx Supply Chain ManagementFedEx Supply Chain Management
FedEx Supply Chain Management
 

Viewers also liked

Marwadi stock broking ; priyanka
Marwadi stock broking ; priyankaMarwadi stock broking ; priyanka
Marwadi stock broking ; priyankajitharadharmesh
 
CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.
CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.
CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.Anurag Ghosh
 
Declaration sample english-dlro epfo
Declaration sample english-dlro epfoDeclaration sample english-dlro epfo
Declaration sample english-dlro epfoVishal Soni
 
Pan card declaration letter format. (1)
Pan card declaration letter format. (1)Pan card declaration letter format. (1)
Pan card declaration letter format. (1)Unnikkrishnan
 
Boieng and airbus.
Boieng and airbus.Boieng and airbus.
Boieng and airbus.samoraah2008
 
FedEx UPS Presentation
FedEx UPS PresentationFedEx UPS Presentation
FedEx UPS Presentationrajopadhye
 
Sales And Distribution of Cadbury
Sales And Distribution of CadburySales And Distribution of Cadbury
Sales And Distribution of CadburyBhavin Agrawal
 
FedEx Vs. UPS Strategy Analysis
FedEx Vs. UPS Strategy AnalysisFedEx Vs. UPS Strategy Analysis
FedEx Vs. UPS Strategy AnalysisAlin Dev
 
Courier Business In India Copy
Courier Business In India   CopyCourier Business In India   Copy
Courier Business In India CopyNavin Tiwari
 
FedEx vs UPS - Strategic Management Analysis
FedEx vs UPS - Strategic Management AnalysisFedEx vs UPS - Strategic Management Analysis
FedEx vs UPS - Strategic Management AnalysisNew Mediators
 
Fedex corporation (MIS)
Fedex corporation (MIS)Fedex corporation (MIS)
Fedex corporation (MIS)Aabhas Rastogi
 
Service blueprint
Service blueprintService blueprint
Service blueprintvicku1111
 
Global Operations and Supply Chain Management: Airbus vs. Boeing Final Assig...
Global Operations and Supply Chain Management:  Airbus vs. Boeing Final Assig...Global Operations and Supply Chain Management:  Airbus vs. Boeing Final Assig...
Global Operations and Supply Chain Management: Airbus vs. Boeing Final Assig...Jamar Johnson
 

Viewers also liked (19)

Fedex
FedexFedex
Fedex
 
Fedex
FedexFedex
Fedex
 
Marwadi stock broking ; priyanka
Marwadi stock broking ; priyankaMarwadi stock broking ; priyanka
Marwadi stock broking ; priyanka
 
CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.
CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.
CUSTOMER FEEDBACK AT FIRST FLIGHT COURIERS LTD.
 
Declaration sample english-dlro epfo
Declaration sample english-dlro epfoDeclaration sample english-dlro epfo
Declaration sample english-dlro epfo
 
How FedEx Works
How FedEx WorksHow FedEx Works
How FedEx Works
 
Pan card declaration letter format. (1)
Pan card declaration letter format. (1)Pan card declaration letter format. (1)
Pan card declaration letter format. (1)
 
Boieng and airbus.
Boieng and airbus.Boieng and airbus.
Boieng and airbus.
 
FedEx UPS Presentation
FedEx UPS PresentationFedEx UPS Presentation
FedEx UPS Presentation
 
Ppt fedex
Ppt fedexPpt fedex
Ppt fedex
 
Sales And Distribution of Cadbury
Sales And Distribution of CadburySales And Distribution of Cadbury
Sales And Distribution of Cadbury
 
7 Ps Of Fed Ex
7 Ps Of Fed Ex7 Ps Of Fed Ex
7 Ps Of Fed Ex
 
FedEx Vs. UPS Strategy Analysis
FedEx Vs. UPS Strategy AnalysisFedEx Vs. UPS Strategy Analysis
FedEx Vs. UPS Strategy Analysis
 
Service Blueprint
Service BlueprintService Blueprint
Service Blueprint
 
Courier Business In India Copy
Courier Business In India   CopyCourier Business In India   Copy
Courier Business In India Copy
 
FedEx vs UPS - Strategic Management Analysis
FedEx vs UPS - Strategic Management AnalysisFedEx vs UPS - Strategic Management Analysis
FedEx vs UPS - Strategic Management Analysis
 
Fedex corporation (MIS)
Fedex corporation (MIS)Fedex corporation (MIS)
Fedex corporation (MIS)
 
Service blueprint
Service blueprintService blueprint
Service blueprint
 
Global Operations and Supply Chain Management: Airbus vs. Boeing Final Assig...
Global Operations and Supply Chain Management:  Airbus vs. Boeing Final Assig...Global Operations and Supply Chain Management:  Airbus vs. Boeing Final Assig...
Global Operations and Supply Chain Management: Airbus vs. Boeing Final Assig...
 

Similar to A project on service standard of fedex corporation

Swot Analysis Of Fedex
Swot Analysis Of FedexSwot Analysis Of Fedex
Swot Analysis Of FedexSandy Harwell
 
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...siva prasad
 
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...siva prasad
 
Fed ex strategic management
Fed ex strategic managementFed ex strategic management
Fed ex strategic managementYuki Hana
 
Fed ex strategic management
Fed ex strategic managementFed ex strategic management
Fed ex strategic managementtranaimy94
 
Running head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docx
Running head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docxRunning head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docx
Running head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docxcowinhelen
 
Part 1Question 1You are the Chief Purchasing Officer of a .docx
Part 1Question 1You are the Chief Purchasing Officer of a .docxPart 1Question 1You are the Chief Purchasing Officer of a .docx
Part 1Question 1You are the Chief Purchasing Officer of a .docxherbertwilson5999
 
A Feasibility Study on New Courier Company
A Feasibility Study on New Courier CompanyA Feasibility Study on New Courier Company
A Feasibility Study on New Courier CompanyBhavik Parmar
 
Logistics and Distribution Project - DTDC
Logistics and Distribution Project - DTDCLogistics and Distribution Project - DTDC
Logistics and Distribution Project - DTDCAvinash Heston
 
Rough DraftCameron BurnsRasmussen Colleg.docx
Rough DraftCameron BurnsRasmussen Colleg.docxRough DraftCameron BurnsRasmussen Colleg.docx
Rough DraftCameron BurnsRasmussen Colleg.docxdaniely50
 
fedex Annual Reports 2007
fedex Annual Reports 2007fedex Annual Reports 2007
fedex Annual Reports 2007finance7
 
Temans company profile
Temans   company profileTemans   company profile
Temans company profilenovagrace88
 
Change Resistance Models
Change Resistance ModelsChange Resistance Models
Change Resistance ModelsRyan Gunhold
 
Consumer Behavior Individual Assignment
Consumer Behavior Individual AssignmentConsumer Behavior Individual Assignment
Consumer Behavior Individual Assignmentkxtan2
 

Similar to A project on service standard of fedex corporation (20)

Swot Analysis Of Fedex
Swot Analysis Of FedexSwot Analysis Of Fedex
Swot Analysis Of Fedex
 
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
 
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
Comparative Analysis of Operational Work Aspects of FedEx-USA and Blue Dart-I...
 
FedEx Corp.
FedEx Corp.FedEx Corp.
FedEx Corp.
 
Fed ex strategic management
Fed ex strategic managementFed ex strategic management
Fed ex strategic management
 
Fed ex strategic management
Fed ex strategic managementFed ex strategic management
Fed ex strategic management
 
Running head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docx
Running head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docxRunning head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docx
Running head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docx
 
Fed ex ob
Fed ex obFed ex ob
Fed ex ob
 
Part 1Question 1You are the Chief Purchasing Officer of a .docx
Part 1Question 1You are the Chief Purchasing Officer of a .docxPart 1Question 1You are the Chief Purchasing Officer of a .docx
Part 1Question 1You are the Chief Purchasing Officer of a .docx
 
A Feasibility Study on New Courier Company
A Feasibility Study on New Courier CompanyA Feasibility Study on New Courier Company
A Feasibility Study on New Courier Company
 
The 10 most trusted corporate courier and cargo companies
The 10 most trusted corporate courier and cargo companiesThe 10 most trusted corporate courier and cargo companies
The 10 most trusted corporate courier and cargo companies
 
Logistics and Distribution Project - DTDC
Logistics and Distribution Project - DTDCLogistics and Distribution Project - DTDC
Logistics and Distribution Project - DTDC
 
Rough DraftCameron BurnsRasmussen Colleg.docx
Rough DraftCameron BurnsRasmussen Colleg.docxRough DraftCameron BurnsRasmussen Colleg.docx
Rough DraftCameron BurnsRasmussen Colleg.docx
 
fedex Annual Reports 2007
fedex Annual Reports 2007fedex Annual Reports 2007
fedex Annual Reports 2007
 
Temans company profile
Temans   company profileTemans   company profile
Temans company profile
 
Change Resistance Models
Change Resistance ModelsChange Resistance Models
Change Resistance Models
 
Solis Invicti Consultancy Pvt Ltd
Solis Invicti Consultancy Pvt LtdSolis Invicti Consultancy Pvt Ltd
Solis Invicti Consultancy Pvt Ltd
 
Consumer Behavior Individual Assignment
Consumer Behavior Individual AssignmentConsumer Behavior Individual Assignment
Consumer Behavior Individual Assignment
 
Praveen synopsis
Praveen synopsisPraveen synopsis
Praveen synopsis
 
Courier Pak
Courier PakCourier Pak
Courier Pak
 

More from Bhavin Agrawal

Hindustan products ltd
Hindustan products ltdHindustan products ltd
Hindustan products ltdBhavin Agrawal
 
Textile industry in germany
Textile industry in germanyTextile industry in germany
Textile industry in germanyBhavin Agrawal
 
Luftansa vs emirates airlines
Luftansa vs emirates airlinesLuftansa vs emirates airlines
Luftansa vs emirates airlinesBhavin Agrawal
 
Market research companies
Market research companiesMarket research companies
Market research companiesBhavin Agrawal
 
Merger, acquisition &amp; alliance
Merger, acquisition &amp; allianceMerger, acquisition &amp; alliance
Merger, acquisition &amp; allianceBhavin Agrawal
 
Colgate rural marketing
Colgate rural marketingColgate rural marketing
Colgate rural marketingBhavin Agrawal
 
Analysis of Tata Steel
Analysis of Tata SteelAnalysis of Tata Steel
Analysis of Tata SteelBhavin Agrawal
 
TCS Pre-Placement Talk
TCS Pre-Placement TalkTCS Pre-Placement Talk
TCS Pre-Placement TalkBhavin Agrawal
 
Maruti suzuki dispute in manesar plant
Maruti suzuki dispute in manesar plantMaruti suzuki dispute in manesar plant
Maruti suzuki dispute in manesar plantBhavin Agrawal
 
STP of Fast Food in India
STP of Fast Food in IndiaSTP of Fast Food in India
STP of Fast Food in IndiaBhavin Agrawal
 
Comparison of marketing and promotionsl strategy between dove and pantene sha...
Comparison of marketing and promotionsl strategy between dove and pantene sha...Comparison of marketing and promotionsl strategy between dove and pantene sha...
Comparison of marketing and promotionsl strategy between dove and pantene sha...Bhavin Agrawal
 

More from Bhavin Agrawal (16)

Hindustan products ltd
Hindustan products ltdHindustan products ltd
Hindustan products ltd
 
Textile industry in germany
Textile industry in germanyTextile industry in germany
Textile industry in germany
 
Luftansa vs emirates airlines
Luftansa vs emirates airlinesLuftansa vs emirates airlines
Luftansa vs emirates airlines
 
Ariel n tide
Ariel n tideAriel n tide
Ariel n tide
 
Market research companies
Market research companiesMarket research companies
Market research companies
 
Merger, acquisition &amp; alliance
Merger, acquisition &amp; allianceMerger, acquisition &amp; alliance
Merger, acquisition &amp; alliance
 
Colgate rural marketing
Colgate rural marketingColgate rural marketing
Colgate rural marketing
 
Nescafe IMC
Nescafe IMCNescafe IMC
Nescafe IMC
 
Monetary policy
Monetary policyMonetary policy
Monetary policy
 
Analysis of Tata Steel
Analysis of Tata SteelAnalysis of Tata Steel
Analysis of Tata Steel
 
Cadbury
CadburyCadbury
Cadbury
 
TCS Pre-Placement Talk
TCS Pre-Placement TalkTCS Pre-Placement Talk
TCS Pre-Placement Talk
 
Maruti suzuki dispute in manesar plant
Maruti suzuki dispute in manesar plantMaruti suzuki dispute in manesar plant
Maruti suzuki dispute in manesar plant
 
STP of Fast Food in India
STP of Fast Food in IndiaSTP of Fast Food in India
STP of Fast Food in India
 
Work culture of china
Work culture of chinaWork culture of china
Work culture of china
 
Comparison of marketing and promotionsl strategy between dove and pantene sha...
Comparison of marketing and promotionsl strategy between dove and pantene sha...Comparison of marketing and promotionsl strategy between dove and pantene sha...
Comparison of marketing and promotionsl strategy between dove and pantene sha...
 

Recently uploaded

Understanding the Role and Responsibilities of a Pipe Foreman Jobs.pptx
Understanding the Role and Responsibilities of a Pipe Foreman Jobs.pptxUnderstanding the Role and Responsibilities of a Pipe Foreman Jobs.pptx
Understanding the Role and Responsibilities of a Pipe Foreman Jobs.pptxB2 Contracting
 
Amil Baba In Pakistan Authentic Amil In pakistan Best Amil In Pak
Amil Baba In Pakistan Authentic Amil In pakistan Best Amil In PakAmil Baba In Pakistan Authentic Amil In pakistan Best Amil In Pak
Amil Baba In Pakistan Authentic Amil In pakistan Best Amil In Pakdilawarshahuk
 
Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...
Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...
Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...dilawarshahuk
 
KREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARH
KREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARHKREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARH
KREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARHKreativan Technologies
 
No-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North Goa
No-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North GoaNo-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North Goa
No-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North Goadelhincr993
 
ADMI: Bridging Dealer & OEM - Capabilities Deck
ADMI: Bridging Dealer & OEM - Capabilities DeckADMI: Bridging Dealer & OEM - Capabilities Deck
ADMI: Bridging Dealer & OEM - Capabilities DeckADMI
 
Call Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For Genuine
Call Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For GenuineCall Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For Genuine
Call Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For Genuinedelhincr993
 
_Al Afnan Steel Industrial Company _LLC_
_Al Afnan Steel Industrial Company _LLC__Al Afnan Steel Industrial Company _LLC_
_Al Afnan Steel Industrial Company _LLC_alafnanmetals
 
Pros and Cons of Being a Fashion Designer.pdf
Pros and Cons of Being a Fashion Designer.pdfPros and Cons of Being a Fashion Designer.pdf
Pros and Cons of Being a Fashion Designer.pdfEdumystic Institiute
 
Protecting your business: staying compliant with NFPA codes
Protecting your business: staying compliant with NFPA codesProtecting your business: staying compliant with NFPA codes
Protecting your business: staying compliant with NFPA codesStartech Engineering
 
Online Dating Precautions How Background Checks Can Safeguard You
Online Dating Precautions How Background Checks Can Safeguard YouOnline Dating Precautions How Background Checks Can Safeguard You
Online Dating Precautions How Background Checks Can Safeguard Youaffordablebackgroundchecks
 
cloudstudioアプローチ別営業資料202403_en (1) (2).pptx
cloudstudioアプローチ別営業資料202403_en (1) (2).pptxcloudstudioアプローチ別営業資料202403_en (1) (2).pptx
cloudstudioアプローチ別営業資料202403_en (1) (2).pptxcomworks
 
Create a fire prevention plan with a suppression engineer
Create a fire prevention plan with a suppression engineerCreate a fire prevention plan with a suppression engineer
Create a fire prevention plan with a suppression engineerStartech Engineering
 
Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...
Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...
Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...shubhamaapkikismat
 
Customize Your Positioning System with Partner Solutions.ppt
Customize Your Positioning System with Partner Solutions.pptCustomize Your Positioning System with Partner Solutions.ppt
Customize Your Positioning System with Partner Solutions.pptUbiTrack UK
 
(VAPT) Vulnerability Assessment And Penetration Testing
(VAPT) Vulnerability Assessment And Penetration Testing(VAPT) Vulnerability Assessment And Penetration Testing
(VAPT) Vulnerability Assessment And Penetration TestingBluechip Gulf IT Services
 
Boost Your Brand with Professional Digital Marketing Company in Noida
Boost Your Brand with Professional Digital Marketing Company in NoidaBoost Your Brand with Professional Digital Marketing Company in Noida
Boost Your Brand with Professional Digital Marketing Company in NoidaWAFI Media Marketing Solutions
 
Dubai Call Girls Riri O525547819 Call Girls Dubai
Dubai Call Girls Riri O525547819 Call Girls DubaiDubai Call Girls Riri O525547819 Call Girls Dubai
Dubai Call Girls Riri O525547819 Call Girls Dubaikojalkojal131
 

Recently uploaded (20)

Understanding the Role and Responsibilities of a Pipe Foreman Jobs.pptx
Understanding the Role and Responsibilities of a Pipe Foreman Jobs.pptxUnderstanding the Role and Responsibilities of a Pipe Foreman Jobs.pptx
Understanding the Role and Responsibilities of a Pipe Foreman Jobs.pptx
 
Amil Baba In Pakistan Authentic Amil In pakistan Best Amil In Pak
Amil Baba In Pakistan Authentic Amil In pakistan Best Amil In PakAmil Baba In Pakistan Authentic Amil In pakistan Best Amil In Pak
Amil Baba In Pakistan Authentic Amil In pakistan Best Amil In Pak
 
Search Engine optimization and its types
Search Engine optimization and its typesSearch Engine optimization and its types
Search Engine optimization and its types
 
Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...
Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...
Love problem soulation talaq ka Amil amliyat online istikhara online Mohabbat...
 
KREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARH
KREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARHKREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARH
KREATIVAN TECHNOLOGY IS THE BEST DIGITAL COMPANY IN CHANDIGARH
 
No-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North Goa
No-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North GoaNo-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North Goa
No-1 Call Girls In North Goa Panaji 98998 VIP 855202 Escort service In North Goa
 
ADMI: Bridging Dealer & OEM - Capabilities Deck
ADMI: Bridging Dealer & OEM - Capabilities DeckADMI: Bridging Dealer & OEM - Capabilities Deck
ADMI: Bridging Dealer & OEM - Capabilities Deck
 
Call Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For Genuine
Call Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For GenuineCall Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For Genuine
Call Girls In Goa North Goa 9899855202 Direct Cash 0nline Payment For Genuine
 
_Al Afnan Steel Industrial Company _LLC_
_Al Afnan Steel Industrial Company _LLC__Al Afnan Steel Industrial Company _LLC_
_Al Afnan Steel Industrial Company _LLC_
 
Pros and Cons of Being a Fashion Designer.pdf
Pros and Cons of Being a Fashion Designer.pdfPros and Cons of Being a Fashion Designer.pdf
Pros and Cons of Being a Fashion Designer.pdf
 
Protecting your business: staying compliant with NFPA codes
Protecting your business: staying compliant with NFPA codesProtecting your business: staying compliant with NFPA codes
Protecting your business: staying compliant with NFPA codes
 
Online Dating Precautions How Background Checks Can Safeguard You
Online Dating Precautions How Background Checks Can Safeguard YouOnline Dating Precautions How Background Checks Can Safeguard You
Online Dating Precautions How Background Checks Can Safeguard You
 
2024 List of gmp project (Updated T1) .pdf
2024 List of gmp project  (Updated T1) .pdf2024 List of gmp project  (Updated T1) .pdf
2024 List of gmp project (Updated T1) .pdf
 
cloudstudioアプローチ別営業資料202403_en (1) (2).pptx
cloudstudioアプローチ別営業資料202403_en (1) (2).pptxcloudstudioアプローチ別営業資料202403_en (1) (2).pptx
cloudstudioアプローチ別営業資料202403_en (1) (2).pptx
 
Create a fire prevention plan with a suppression engineer
Create a fire prevention plan with a suppression engineerCreate a fire prevention plan with a suppression engineer
Create a fire prevention plan with a suppression engineer
 
Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...
Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...
Balancing Sexual Desires for a Happier Relationship_ An Astrological Perspect...
 
Customize Your Positioning System with Partner Solutions.ppt
Customize Your Positioning System with Partner Solutions.pptCustomize Your Positioning System with Partner Solutions.ppt
Customize Your Positioning System with Partner Solutions.ppt
 
(VAPT) Vulnerability Assessment And Penetration Testing
(VAPT) Vulnerability Assessment And Penetration Testing(VAPT) Vulnerability Assessment And Penetration Testing
(VAPT) Vulnerability Assessment And Penetration Testing
 
Boost Your Brand with Professional Digital Marketing Company in Noida
Boost Your Brand with Professional Digital Marketing Company in NoidaBoost Your Brand with Professional Digital Marketing Company in Noida
Boost Your Brand with Professional Digital Marketing Company in Noida
 
Dubai Call Girls Riri O525547819 Call Girls Dubai
Dubai Call Girls Riri O525547819 Call Girls DubaiDubai Call Girls Riri O525547819 Call Girls Dubai
Dubai Call Girls Riri O525547819 Call Girls Dubai
 

A project on service standard of fedex corporation

  • 1. Grand Project Report- 2015-16 On “Service Standard of FedEx Corporation” PGDM-Marketing (2014-2016) Mentored By: Submitted By: Dr. Ashwini Vora Agrawal Bhavin (02) Madhavi Nitin (28) Som-Lalit Institute of Management Studies
  • 2. DECLARATION We undersigned Bhavin Agrawal and Madhavi Nitin hereby declare that the project work presented in this report is our own work and has been carried out under supervision of Dr. Ashwini Vora of Somlalit Institute of Management Studies. This work has been never submitted to any other university as examination purpose. Date:21st December2015 Place:Ahmedabad Signature
  • 3. ACKNOWLEDGEMENT This project has been very fruitful as practical study and we would like to thank SOMLALAIT INSTITUTE OF MANAGEMENT STUDIES to include this project report in syllabus. Any accomplishment includes the efforts of many people and this project also is completed with the contribution of few people. This is to the gratitude to FedEx Courier Service for providing us information, sparing their time to us and for co-operation. I would also like to thank Dr. Ashwini Vora for the guidance in making project and clearing our doubts as and when we required.
  • 4. Index Sr. No. Title Page No. 1. Introduction to Industry 1 2. Introduction to Service Sector 2 2.1 Overview 2 2.2 Market Size 2 2.3 Government Initiatives 3 3. Introduction Of FedEx 4 3.1 Overview 4 3.2 History 4 3.3 Company Structure and Facts 5 3.4 Mission 5 4. Comparison of Service Standard of FedEx and Forecasting the Future 6 4.1 Industry Life Cycle 6 4.2 Porter’s Five Forces 7 4.3 Global Competition 8 4.4 National Context 9 5. Data Analysis and Interpretation 11 6 Finding 35 7 Recommendation 36 8 Conclusion 37 9 Limitation of study & Expected outcomes of Study 38 10 Bibliography 39 10 Appendix 40
  • 5.
  • 6. SYNOPSIS Introduction FedEx offers a wide range of transportation services and they accommodate to the widest range of shipments. FedEx is in the shipping services industry, which is an oligopolistic industry with few established competitors. The shipping services industry can be classified as being in the mature stage of the industry life cycle. The few competitors in this industry, such as UPS, DHL and USPS, in addition to FedEx, each have their own brand loyal customers and low cost operations that create significant barriers to entry into this industry. Nobody understands international shipping better than FedEx. Shipping to the U.S. or halfway around the world doesn’t have to be complicated. FedEx offers you an array of services and tools to make it easy. Whether you are shipping documents, boxes or freight, count on FedEx for fast, reliable on-time delivery to over 220 destinations worldwide. Hard and Soft Services Hard Services offered by the FedEx is Packaging, Package Shipment, Freight Shipment and Return Shipment in the U.S and at the International Level. Soft Services Offered by the FedEx is Timely Delivery, Money Back Guarantee, Security of package, Pickups & Delivery Facility, etc. It’s what we do A more connected world means more opportunities. That’s why customers count on our diverse portfolio of transportation, e-commerce, and business solutions. Our air, ground and sea networks cover more than 220 countries and territories, linking more than 99 percent of the world’s GDP.
  • 7. It’s why we matter In a connected world, the power of technology, transportation, information, and ideas compounds and multiplies. Businesses big and small create jobs that lift their communities. For people who are hungry for the education, goods, services and jobs that can improve their lives, a connected world is a better world. It’s who we are We are consistently ranked among the world’s most admired brands and employers. More than 300,000 FedEx team members are absolutely, positively focused on safety, the highest ethical and professional standards, and the needs of our customers and communities. Our objective of Research: 1. To understand the management of huge network 2. How meet the needs of the customer it serves 3. How to meet those needs at a acceptable level of operating cost 4. How to select specific sites for facility location 5. Determine how to execute the network model for the distribution of the FedEx
  • 8. Literature Review According to James P Hoffa General President of theInternational Brotherhood of Teamsters Federal Express is a majorproponent of an alarming trend in today's market classifying workers asindependent contractors which allows them to maintain absolute control overoperations shift costs and risks onto workers and reap the benefits oftheir labor This is a critical issue at Federal Express whichdescribes itself in its Employee Handbook as a company that offers a widerange of important benefits to all workers regardless. http://www.research-assistance.com/essays/Literature-Review--Federal-Express-and- Unions.html Federal Express (FedEx) are deploying new software to get that closer with consumers that quicker. FedEx Corp. is launching a multi-million dollar Customer Resource Manager (CRM) initiative, deploying software from Clarify Inc., in an effort to cut costs and use existing customer data to cross-sell and up sell services. FedEx hopes that this new system will allow them to tailor its data in ways that are not currently possible in the industry, ultimately contributing to the firm’s competitive advantage. The use of these brokerage systems will further help FedEx to realize market “Sweet Spots” and calculate how profitable those segments will be to the company. This relationship between FedEx and Clarify can be expected to give FedEx a leading edge in their industry. This competitive advantage will not last long, as other third party logistic suppliers in the highly competitive package-delivery market are likely to keep pace in technological advancement. It is clear that many companies today are outsourcing supply chain and logistical tasks to third party customs brokers. Customs Brokers have an obligation to be up to date with technological innovation and to implement it within their respective organizations thus ensuring that they are meeting the expectations of the services that they are providing. These services must not only meet industry expectations, but must exceed them to ensure competitive advantage. Companies must rely on brokers to develop systems that increase efficiency, decrease lead-time, lower costs, and increase the precision of the overall production process. Any brokerage firm that fails to acknowledge consumer needs and adapt to the external environment will fail to provide what their competitors surely will, as demonstrated in FedEx’s case. http://www.oocities.org/dbateconsulting/literaturereview.htm
  • 9. Research Methodology Research Topic To understand the service standard of FedEx Corporation Research Objectives The following are the specific objectives of the study. 1. To study the service standard of FedEx Corporation . 2. To study the consumer satisfaction of FedEx Corporation Service 3. To study the perceived value offered by FedEx Corporation to the consumer 4. To study the factors influencing the consumer to use the FedEx Corporation service Research Design The Research Study will be Descriptive in nature. The Research will be based on collecting data in the form of questionnaire that are framed as per objective of the project. Sample Unit Present Customers of FedEx in Ahmedabad Region Sample Size 50 Respondents
  • 10. Sources of Data Primary Data: The Primary data are those data which are collected fresh and for the first time and thus happen to be original in character. The primary data that was collected through filling questionnaires in Ahmedabad Region Secondary Data: The secondary data are those which have already been collected by someone else and which have been passed through the statistical process. Secondary data was collected through websites.
  • 11. CHAPTER 1: INTRODUCTION OF INDUSTRY Courier services are a more specialized delivery service that businesses and individuals turn to when they need a package or a document to reach its destination quickly. While regular mail services can also deliver packages rapidly, they cannot guarantee same day delivery or overnight delivery as the case may be. The term “courier service” can refer to every form of delivery or transport service ranging from a small, local operation to an international network servicing millions daily using a fleet of trucks, planes, trains and ships. Courier services have been around for a very long time. Ancient cultures had runners or horsemen to carry messages from one place to another without the hassle of going through the more commonly used slow channels. Another reason that couriers became such an important fixture in the delivery sector is that they were able to provide greater security to a parcel or letter. Technically, courier services are not supposed to be able to lose a letter given their intricate tracking systems. Plus, you can rest assured that the intended recipient will get the letter as they will have to sign for it at the other end. There are different courier services to which you can turn if so needed. In cities couriers can take the forms of cars, bikes, motorcycles and even taxis – although the cab system tends to be most common only in the UK. Bike couriers are the most practical in cities as they are able to weave in and around traffic and are not constrained to the same kind of traffic issues with which car couriers must deal. Naturally, for longer distances, car or motorcycle couriers are a more practical and convenient choice. Sending a package or a letter a long distance but with the maximum amount of security will also necessitate the hiring of a courier service – except that you will have to turn to the big services that include overnight flights, shipping and other delivery systems. Courier services are currently a multi-billion dollar industry that help the wheels of business to turn smoothly. Without couriers in our cities we would have to rely on regular post for the shipment of our documents and packages – something that would be both inconvenient and a waste of time. Most courier services charge reasonable rates for deliveries. Generally rates are based on the distance something needs to be delivered – and, in the case of inter-city, international or overseas deliveries the cost is usually based on weight and distance. Finding a good, reliable courier service is something every company will have to do at a certain point in their growth. Once they begin dealing with larger numbers of clients and have to deliver products or packages on a regular basis, having a solid courier service in their corner is essential.
  • 12. CHAPTER 2: INTRODUCTION TO SERVICE SECTOR 2.1 Overview The services sector, with around 52 per cent contribution to the Gross Domestic Product (GDP) in 2014-15, has made rapid strides in the past decade and a half to emerge as the largest and one of the fastest-growing sectors of the economy. The services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction. 2.2 MarketSize The services sector contributed US$ 783 billion to the 2014-15 GDP (at constant prices) growing at CAGR of 9 per cent, faster than the overall GDP CAGR of 6.2 per cent in the past four years. Out of overall services sector, the sub-sector comprising financial services, real estate and professional services contributed US$ 305.8 billion or 20.5 per cent to the GDP. The sub-sector of community, social and personal services contributed US$ 188.2 billion or 12.6 per cent to the GDP. The third-largest sub-segment comprising trade, repair services, hotels and restaurants contributed nearly equal or US$ 187.9 billion or 12.5 per cent to the GDP, while growing the fastest at 11.7 per cent CAGR over the period 2011-12 to 2014-15. 2.3 Government Initiatives The Government of India recognises the importance of promoting growth in services sectors and provides several incentives in wide variety of sectors such as health care, tourism, education, engineering, communications, transportation, information technology, banking, finance, management, among others. The Government of India has adopted a few initiatives in the recent past. Some of these are as follows:  The Central Government is considering a two-rate structure for the goods and service tax(GST), under which key services will be taxed at a lower rate compared to the standard rate, which will help to minimize the impact on consumers due to increase in service tax.  By December 2016, the Government of India plans to take mobile network to nearly 10 per cent of Indian villages that are still unconnected.
  • 13.  The Government of India has proposed provide tax benefits for transactions made electronically through credit/debit cards, mobile wallets, net banking and other means, as part of broader strategy to reduce use of cash and thereby constrain the parallel economy operating outside legitimate financial system.  The Reserve Bank of India (RBI) has allowed third-party white label automated teller machines (ATM) to accept international cards, including international prepaid cards, and has also allowed white label ATMs to tie up with any commercial bank for cash supply. http://indiainbusiness.nic.in/newdesign/index.php?param=advantage/169
  • 14. CHAPTER 3: INTRODUCTION OF FEDEX 3.1 OVERVIEW Type Public Industry Courier Founded Little Rock, Arkansas (1971) as Federal Express Corporation Founder Frederick W. Smith Headquarter Memphis, Tennessee, India Area Served World wide Products Post Delivery, Express Mail, Freight forwarding, third-party logistics Revenue US$ 45 BILLION (2013) 3.2 HISTORY FedEx Corporation is an American global courier delivery services company headquartered in Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. FedEx Corporation is an import/export company, incorporated October 2, 1997 in Delaware.FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express. Fedex's first van displayed at the FedEx World Headquarters With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional, less than truckload freight carrier serving the Western India; Caribbean Transportation Services, a provider of airfreight forwarding between the India and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express.
  • 15. 3.3 Company Structure and Facts As business becomes more global and competitive, everyone from entrepreneurs to big companies turn to us for flexible and innovative solutions. It’s the No. 1 priority of all our companies. Think of them as a portfolio of solutions that can tackle any challenge in the world of global commerce. Each network operates independently. That means our individual networks can be fine-tuned, like a race car, to deliver the best service possible for customers. It’s how we deliver real 3.4 Mission FedEx Corporation will produce superior financial returns for its shareowners by providing high- value-added logistics, transportation, and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its team members, partners, and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional leader. FedEx has two main goals in mind for his best in class series: 1) To help the distributor better understand his industry, their supply chain and the issues impacting them aid; 2) To develop tools that distributor can use to improve their business.
  • 16. CHAPTER 4: COMPARISON OF SERVICE STANDARD OF FEDEX AND FORECASTINGTHE FUTURE 4.1 Industry Life Cycle FedEx offers a wide range of transportation services and they accommodate to the widest range of shipments. FedEx is in the shipping services industry, which is an oligopolistic industry with few established competitors. The shipping services industry can be classified as being in the mature stage of the industry life cycle. The few competitors in this industry, such as UPS, DHL and USPS, in addition to FedEx, each have their own brand loyal customers and low cost operations that create significant barriers to entry into this industry. As for the intensity of competition, in mature industries "companies tend to recognize their interdependence and try to avoid price wars." (Hill Jones, p.57) For mature industries a stable demand reduces the threat of intense rivalry between the established companies. However, unpredictable economic activity can cause a "trickle down" effect, such as a slump in an economy causing a decrease through-out industry demand, and as companies fight to make money a price war begins among companies in an industry, therefore, price leadership can be broken down by unpredictable future events. 4.2 Porter’s Five Forces Applying Porter’s five forces model to the industry is not an easy task provided that FedEx Corporation provides various shipping services. For simplicity, we examined and applied the Porter’s five forces model to the ground and air-shipping sector. In FedEx, these two sectors are represented by FedEx Express and FedEx Ground. FedEx Express is the world's largest express transportation company. FedEx Ground, on the other hand, is North America's second largest provider of small-package ground delivery service, following the lead of UPS. Other segments of shipping service industry are for example e-commerce and supply chain management services, which are not included in the Porter’s five forces analysis.
  • 17. 1. Risk of new entry by potential competitors The barriers to entry are very high. One of the reasons that there is a high entry barrier is the high fixed cost associated with establishing the international transportation network. This includes hubs, ground transportation vehicles, air fleet, etc. Additionally, existing companies can take advantage of the absolute cost advantage achieved by large volume of shipments and economies of scale. 2. Extent of rivalry between established firms Established players in shipping service industry complete rigorously for a market share, as demonstrated by the constant battle between FedEx and UPS, the company who responses first to the constantly changing environment wins. Established companies have to strive for continuous improvement in quality, lowering price, and innovation. There is very low switching cost for consumers in this industry making rivalry even more intense. In addition, intense rivalry is also due to the fact that maintaining the infrastructure of an express delivery company presents an exit barrier due to high fixed costs. 3. Bargaining power of buyers The bargaining power of large buyers in shipping service industry is high. Cost associated with switching from one shipping service to another is very low. Therefore, buyers can turn to a shipping provider that offer faster service, lower price, or service innovation with ease. This is especially true for large corporations, like IBM, which ships in large volumes and can bargain quantity discounts. 4. Bargaining power of suppliers The supplier power within this industry is fairly low. Large shipping service provider can affect prices of supplies, like packaging materials. This is because they buy in large quantities and can turn to different suppliers easily. 5. Threat of substitute products There are not many substitutes to shipping. In this day and age where many businesses have strong online presence and a small physical presence, it would be difficult to find a substitute in delivering their product. Shipping services are very much similar to a commodity, in that it is not easily replaced with another service or even a similar service.
  • 18. Porter’s five forces model – FedEx Corporation 4.3 Global Competition The competition in the package delivery service is very global. FedEx Corporation competes with UPS (United Parcel Service), DHL, USPS (India Postal Service) as well as a host of other smaller companies at home and abroad. FedEx delivers packages to 214 countries as do most major players in this industry like UPS and DHL. As well as competing against bigger players, FedEx must also compete with regional delivery companies and international delivery companies that serve only their country. Competition is not becoming more global due to the fact that companies are merging and the industry is consolidating and companies are making alliances with each other. These are the visible signs of a shakeout occurring within an industry. Supplier’s Power LOW Potential Competitors LOW to MODERATE Substitute Products LOW - Shipping - commodity Buyers’ Power HIGH - large buyers - low switching cost Existing Rivals HIGH - FedEx, UPS, DHL
  • 19. 4.4 NationalContext The shipping service industry in which FedEx operates is a complementary industry to the majority of other industries. The industry has several leaders all of whom provide various services with unique twists on the service offering. Local conditions largely influence the operations of FedEx Ground. In addition, FedEx also needs to monitor the moves of the established leader of this sector, UPS. FedEx Express, on the other hand, faces all the affects of changing global environment. The operations of FedEx Express need to respond to local demand conditions, factor conditions and related and supporting industries of each country that FedEx serves. Factor Endowments: FedEx Corporation in the India administers variety of advanced factors of production. These are managerial sophistication, logistics know-how, and physical infrastructure. Logistics is one of the main advanced factors which FedEx developed for managing its complex hubs. Physical infrastructure that FedEx uses is not only airports but also roads and ports. Local Demand Conditions: Demand conditions in the India thrusts FedEx, as well as its competitors, to constantly upgrade its services. As customers continually desire their shipments delivery faster and cheaper, the shipping service industry must constantly improve its services and customer responsiveness. The rivalry of existing competitors is very intense and the low buyer switching cost only fuels it. Specific shipping needs of various companies and individuals demand innovative approaches and the extensive use of technology in this industry. Competitiveness of Related and Supporting Industries: The presence of internationally competitive suppliers and related industries in the India serves as another complimentary attribute of national advantage for FedEx’s operations.
  • 20. Intensity of Rivalry: As mentioned earlier, the shipping service industry faces rigorous rivalry for market share. Established companies have to strive for continuous improvement in quality, lowering price, and innovation. There is very low switching cost for consumers in this industry making rivalry even more intense. In addition, intense rivalry is also due to the fact that maintaining the infrastructure of an express delivery company presents an exit barrier due to high fixed costs. Rivalry forces companies in this industry to improve its services, making them better international competitors. Opportunities and threats – FedEx Corporation Opportunities Threats - The cost of infrastructure of express delivery companies are a barrier of entry to new comers - FedEx leadership in global express delivery - As long as the nature of our socioeconomic environment exists, there will always be a need for express delivery - E-commerce is creating an increased need for express delivery - Globalization offers opportunities for expansion - Maintaining the infrastructure of an express delivery company is an exit barrier because of high fixed costs - Capitol is acquired through the volume of sales, so the high fixed costs can hurt when times are slow - Due to the nature of the industry, it is nearly impossible to become the clear industry leader - The nature of the industry shows very low returns on invested capitol - The E-tailing industry demands lower shipping rates and charges to pull customers from the retailing industries - Major competitors: UPS, the airborne DHL
  • 21. Chapter 5: Data Analysis and Interpretation 1. Average number of shipments that your company sends out per month 1-10 4 11-50 14 50-200 28 >200 4 More than 50% consumers are having the shipment number between 51 to 200. Followed by the slot of 11-15. 4 14 28 4 0 5 10 15 20 25 30 1 - 10 11 - 50 51 - 200 > 200 Shipment Shipment
  • 22. 2. Average shipping costthat your company incurs per month <INR3000 7 INR3001-INR7000 8 INR7001-INR15000 13 >INR15000 12 Out of 15 companies, 13 companies are spending 7000 to 15000 Rs, 12 companies spending more than 15000Rs for shipment in a month 7 8 13 12 0 2 4 6 8 10 12 14 <INR3000 INR3001-INR7000 INR7001-INR15000 >INR15000 Response Response
  • 23. 3. Classification that best describes your company Consulting/Advertising agency 9 Education 3 Finance/Insurance 10 Government 0 Manufacturing 18 Transportation/Distribution 10 Other 0 We had taken response of many industries that are using various courier services, out them more companies are indulged in Manufacturing followed by insurance and other. 9 3 10 0 18 10 0 0 2 4 6 8 10 12 14 16 18 20 Response Response
  • 24. 4. Which courier service firm you regularly use? DHL 12 FedEx Express 30 UPS 6 TNT 2 Others 0 Out of 50 companies, 30 companies are using FedEx services and second most used courier service is DHL. 12 30 6 2 0 0 5 10 15 20 25 30 35 DHL FedEx Express UPS TNT Others Response Response
  • 25. 5. Do you Agree safety protection for the delivered product provided by FedEx is meeting the standard requirement for your organization? Strongly Agree 10 Agree 17 Neutral 3 Disagree 0 Strongly disagree 0 Out of 30, 10 consumers are strongly agree, 17 consumers are agree that it meet the standard requirement organization in terms of safety which shows its standard. 10 17 3 0 0 0 2 4 6 8 10 12 14 16 18 Strongly Agree Agree Neutral Disagree Strongly disagree Response Response
  • 26. 6. Is your organization satisfied with the prices charged by FedEx? Highly Satisfied 18 Satisfied 7 Neutral 5 Dissatisfied 0 Highly Dissatisfied 0 Majority of consumers are Highly Satisfied with the price charged by FedEx for the service offered to them. 18 7 5 0 0 0 2 4 6 8 10 12 14 16 18 20 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Response Response
  • 27. 7. Rate the satisfaction level of services of FedEx given to your organization (Pickups time, packaging & handling)? Highly Satisfied 22 Satisfied 8 Neutral 0 Dissatisfied 0 Highly Dissatisfied 0 Out of 30, 22 customers are highly satisfied with the service offered by the FedEx and remaining 8 falls in criteria of being satisfied. 22 8 0 5 10 15 20 25 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Response Response
  • 28. 8. The time of delivery of FedEx is on your company expectation? Yes 23 No 5 Sometimes 2 More than 70% customers are saying yes for the timely delivery offered by the FedEx. Only 5 are not happy with service. 23 5 2 0 5 10 15 20 25 Yes No Sometimes Response Response
  • 29. 9. Do you agree that FedEx is a reliable and trustworthy courier services provider? Strongly Agree 21 Agree 8 Neutral 1 Disagree 0 Strongly disagree 0 Majority of the companies think that FedEx is a reliable and trustworthy organization. 21 8 1 0 0 0 5 10 15 20 25 Strongly Agree Agree Neutral Disagree Strongly disagree Response Response
  • 30. 10. It would cost my company a lot to switch from FedEx to another courier firm Strongly Agree 12 Agree 15 Neutral 3 Disagree 0 Strongly disagree 0 27 Companies think that it will cost them a lot if they switch to FedEx to another courier service 12 15 3 0 0 0 2 4 6 8 10 12 14 16 Strongly Agree Agree Neutral Disagree Strongly disagree Response Response
  • 31. 11. It would take my company a lot of effort to switch from FedEx to another courier firm Strongly Agree 14 Agree 10 Neutral 5 Disagree 1 Strongly disagree 0 Out of 30, 24 feels that it will be take them a lot of efforts to switch from FedEx to other courier services. 14 10 5 1 0 0 2 4 6 8 10 12 14 16 Strongly Agree Agree Neutral Disagree Strongly disagree Response Response
  • 32. 12. Have you recommended FedEx to professional colleagues? Yes 24 No 6 Many customers are highly satisfied that they have recommended FedEx to other professional colleagues. 24 6 0 5 10 15 20 25 30 Yes No Response Response
  • 33. 13. Does your company always considers FedEx as its first choice for courier services Yes 28 No 2 Out of 30, FedEx is the first preference of 28 firms. 28 2 0 5 10 15 20 25 30 Yes No Response Response
  • 34. 14. Will your company do more business with FedEx in next few year? Yes 23 No 3 Can’t Say 4 Out of 30, 23 are ready for future promises remaining are less but it affects a lot. 23 3 4 0 5 10 15 20 25 Yes No Can't say Response Response
  • 35. SPSS ANALYSIS Significance level is .000 which is less than 0.05 so average numbers of shipments and classification that best describes your company has no relation.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45. Findings  More than 50% consumers are having the shipment number between 51 to 200. Followed by the slot of 11-15.  Out of 15 companies, 13 companies are spending 7000 to 15000 Rs, 12 companies spending more than 15000Rs for shipment in a month  We had taken response of many industries that are using various courier services, out them more companies are indulged in Manufacturing followed by insurance and other.  Out of 50 companies, 30 companies are using FedEx services and second most used courier service is DHL.  Out of 30, 10 consumers are strongly agree, 17 consumers are agree that it meet the standard requirement organization in terms of safety which shows its standard.  Majority of consumers are Highly Satisfied with the price charged by FedEx for the service offered to them.  Out of 30, 22 customers are highly satisfied with the service offered by the FedEx and remaining 8 falls in criteria of being satisfied.  More than 70% customers are saying yes for the timely delivery offered by the FedEx. Only 5 are not happy with service.  Majority of the companies think that FedEx is a reliable and trustworthy organization.  27 Companies think that it will cost them a lot if they switch to FedEx to another courier service  Out of 30, 24 feels that it will be take them a lot of efforts to switch from FedEx to other courier services.  Many customers are highly satisfied that they have recommended FedEx to other professional colleagues.  Out of 30, FedEx is the first preference of 28 firms.  Out of 30, 23 are ready for future promises remaining are less but it affects a lot.
  • 46. Recommendations  FedEx is been the leading service provider in courier service. FedEx goes upto the mark and it meets the service standard of set by them. FedEx is covering all types of customers having large number of couriers to be done also the average and the small customers.  FedEx is covering all the sectors, but mostly it has the customers from Manufacturing and IT Sector, so they must also focus to cater the other sectors. Large number of customers is highly satisfied with the services provided by the FedEx like security of product, price charged, timely delivery, pickup and other facilities. But yes there are few customers who are not satisfied they are less but they can’t be ignored.  There are firms who feels that switching from FedEx will not be a cost added to them also there are firms who are not ready to do business in future with the FedEx, such are firms are need to be personally analyzed and try to find the problems faced by them and try to resolve the same. They are less in numbers but it might be able to increase in future.  When the question of referring the FedEx to other professional colleagues came there are about 6 firms which are not ready to give as reference, so what the reason behind the same must be found and try to resolve it as soon as possible.
  • 47. Conclusion FedEx is being the one of the largest courier service provider and having the wide distribution and networking channel there are some negative points which is been seen from their side. As FedEx is known for the timely delivery and prompt, quick and reliable service, they are doing efforts to maintain the same and reach upto the mark. After the survey it came to known that most of the customer are highly satisfied with the services offered by the FedEx to them for the domestic as well as international delivery. But there are many firms who are dissatisfied with the different services provided by the FedEx which includes the security of the parcels, pickups and delivery, price charged for the different locations are comparatively higher than that of its competitors. So such factors might lead to the firms to switch to their competitors form the FedEx. So, FedEx must focus on such customers and try to know their problems and must give them feedback and also solve the same.
  • 48. Limitation of the Study  As only one city is surveyed, it does not represent the overall view of the Indian market.  The study Is only confined for the main client of FedEx so no focus is given on the small users of FedEx Expected Contribution of the Study  This study will enable to find out the consumer awareness, preferences, brand loyalty, expectations, attitude and perception.  The study deals with consumer satisfaction and the media, which influences them, the most. In the current scenario, where the competition is tough, the consumers are allowed to make the choice.  The company can frame the objectives and compete in the market only if they satisfy the needs of the customers by taking into account their suggestions and complaints.  The findings and suggestions of this survey will help the companies to formulate marketing strategy in order to satisfy the consumer‟s needs in the best way.
  • 50. Appendix Questionnaire for Service Standard of FedEx Express 1) Name: ________________________________________ 2) Company Name: ________________________________ 3) Your position in company: _________________________ 4) E-mail Id: _______________________________________ 5) Average number of shipments that your company sends out per month 1-10 ( ) 11-50 ( ) 50-200 ( ) >200 ( ) 6) Average shipping cost that your company incurs per month <INR3000 ( ) INR3001-INR7000 ( ) INR7001-INR15000 ( ) >INR15000 ( ) 7) Classification that best describes your company Consulting/Advertising agency ( ) Education ( ) Finance/Insurance ( ) Government ( ) Manufacturing ( ) Transportation/Distribution ( ) Other___________________ 8) Which courier service firm you regularly use? DHL ( ) FedEx Express ( ) UPS ( ) TNT ( ) Other specify____________
  • 51. Answer question 9-18 if you selectedFedEx in previous question Customer Satisfaction 9) Do you Agree safety protection for the delivered product provided by FedEx is meeting the standard requirement for your organization? Strongly Agree ( ) Agree ( ) Neutral ( ) Disagree ( ) Strongly Disagree ( ) 10) Are your organization satisfied with the prices charged by FedEx ? Highly Satisfied ( ) Satisfied ( ) Neutral ( ) Dissatisfied ( ) Highly Dissatisfied ( ) Perceived Value 11) Rate the satisfaction level of services of FedEx given to your organization (Pickups time, packaging & handling)? Highly Satisfied ( ) Satisfied ( ) Neutral ( ) Dissatisfied ( ) Highly Dissatisfied ( ) 12) The time of delivery of FedEx is on your company expectation? Yes ( ) No ( ) Sometimes ( ) 13) Do you agree that FedEx is a reliable and trustworthy courier services provider? Strongly Agree ( ) Agree ( ) Neutral ( ) Disagree ( ) Strongly Disagree ( )
  • 52. Switching cost 14) It would cost my company a lot to switch from FedEx to another courier firm Strongly Agree ( ) Agree ( ) Neutral ( ) Disagree ( ) Strongly Disagree ( ) 15) It would take my company a lot of effort to switch from FedEx to another courier firm Strongly Agree ( ) Agree ( ) Neutral ( ) Disagree ( ) Strongly Disagree ( ) Customer Loyalty 16) Have you recommended FedEx to professional colleagues? Yes ( ) No ( ) 17) Does your company always considers FedEx as its first choice for courier services Yes ( ) No ( ) 18) Will your company do more business with FedEx in next few year? Yes ( ) No ( ) Can’t Say ( ) Any Suggestion: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________