Sales Force Integration at FedEx (A) Harvard Case Solution & Analysis

“Sales Force Integration at FedEx (A)”

       This report is divided into four parts which includes:

1. Situation analysis of the company
2. Problems faced by the company
3. SWOT matrix  of  FedEx
4. Recommendations 

Situation Analysis of the Company

Situation analysis is a method that is used by the companies in order to examine the inside and outside situation of the company that affects their profitability and which helps them to enhance their internal strengths while overcoming external threats. Since its beginning from 1973 FedEx had become the world largest logistic and shipping company that provides wide variety of service to their customers as it has diversified operations of its production.

 FedEx has strong brand image and they provide their customer required services on time which strengthen their position in the industry. The company has the tremendous growth rate but the main important contributor in the company’s success was acquisition of the companies. The acquisition of different companies play major role in the growth and the expansion of the company and thus increases the profitability of the company. This also gives company a competitive edge over its competitors.

The company has established the project with the name ARISE “Achieving Revenue and Information Technology Synergies across the Enterprise” with the objective to increase their business capabilities in order to operate more efficiently and to integrate their two sales unit which includes FedEx Express and FedEx Ground services into single sales unit. The company adopts the changes in their product and services operations with the changing requirements of the company while providing their customer 24 hours available services. In addition to this the factors that may impact the success of the Fedex Corporation consist of the increasing prices of the fuel, the downfall period of the economy of many countries that affects the revenue of the company and the regulatory restriction from the government of global markets.

FedEx Corporation has faced intense competition from its industry rivals. The key competitors that are directly competing with the company include, Airborne Freight, UPS, DHL and TNT.The day by day increasing competition in the company was due to the reasons that limited or no differentiation among the products of the company and the low switching cost in the industry. This intense competition makes it difficult for the new companies to enter the market as the investment of the capital in the industry is high, in addition to this many already established companies are competing against each other making it impossible situation of new firms to enter the industry.

The companies in the industry including FedEx also have the risk of substitute because the development in the interest related services like email that is regularly use by the customer which are affecting the profit of the company especially in the market of overnight delivery of letters.

Problems Faced by the Company

The main problem that FedEx Corporation has faced that what factors should be considered while making the decision of development of the best compensation plan for integrating two different sales units that include FedEx Express and FedEx Ground services into single sales unit. They also facing the problem in determining the elements that can make the compensation plan flourishing and that also must be associated with goals of the project ARISE. These are the most important issues that FedEx Corporation had faced. 

SWOT Matrix

The SWOT matrix is use to analyze the strength, weakness, opportunities and threats of the company that internally and externally impact the operations of the company. It includes: 

• S-O strategies: take the benefit of opportunities by using strengths.
• W-O strategies: Take the benefit of opportunities to conquer weaknesses.
• S-T strategies: utilize the strength to decrease the outside threats.
• W-T strategies: reduce weaknesses by falling threats. 

Strengths of FedEx

1. Strong brand name and status.
2. Market leader in FedEx Express services in their domestic market.
3. Acquisition of multiple companies.
4. Diversified operations of the products and services.
5. Largest market shares in the industry.
6. 24 services providers with the  timely services
7. Highly invested in the technologies.
8. Wide variety of services and products provider. 

Weaknesses OF FedEx

1. No or less differentiation in the services and product portfolio.
2. More dependent on the domestic market.
3. Slow growth of market shares.
4. Weak in the ground services.

Opportunities for FedEx

1. International expansion
2. The company can acquire new companies in the industry.
3. Adopt new and innovate technologies
4. Can enhance their hubs internationally.
5. Expand business more in Asian countries.
6. Expand Viking Freight. 

Threats for FedEx

1. Intense industry competition.
2. Increase in prices of fuel.
3. Declining economies of the countries.
4. Government regulations globally.
5. Weather conditions Volatility.
6. Changing customer demands
7. UPS strong market shares in ground services.

S-O strategies:

FedEx should expand .........................

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(FedEx) Federal Express "The recent acquisition of RPS - solid ground delivery - has given us the potential to offer a single source for delivery to the customer's needs. However, to fulfill this potential, the company needed to provide comprehensive solutions through a single sales. Such integration requires solutions Many questions, no more important than the development of a new compensation plan, which is determined not only by the efforts of sales, but also served as a vehicle through which FedEx reported its sales expectations. Jerry Beyl chaired the committee charged with making recommendations on the compensation and training of new members of the Department sales. Compensation Plan needed to encourage sellers to sell both products. Complicating matters the fact that the culture of the two organizations have been radically different. "Hide
by David B. Godes Source: Harvard Business School 17 pages. Publication Date: October 14 2005. Prod. #: 506029-PDF-ENG

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