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10/15/18, 11(12 PMCollection – MSA 603 Strategic Planning for the Admin ...

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Thread: Executive Summary - FedEx Ground

Post: Executive Summary - FedEx Ground

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Posted Date: October 15, 2018 1:29 AM Status: Published

Allison Delgado

FedEx Ground is the ground transportation operating company under FedEx

Corporation. FedEx has a solution to any shipping need large or small. FedEx Ground

started as a business-to-business shipping but later found success in business-to-consumer

shipping through the dotcom boom of the early 2000s. FedEx Ground offers 3-5-day

ground shipping to business or home, or its SmartPost option offers 5-7-day shipping

utilizing the U.S. Postal Service for last-mile delivery to the customer. Today, Fedex

Ground moves over 8 million packages a day. FedEx Ground is the second largest ground

transportation company in the United States behind UPS. FedEx Ground has received

pressure to keep up with the demand ecommerce.

FedEx Ground’s strengths include brand recognition, logistics experience, and

established network. FedEx Ground weaknesses include a smaller market share of the

ground transportation in the United States. Opportunities for ground transportation stem

from the increase in e-commerce growth. Threats to FedEx Ground include fuel cost,

substitutions, unions, and staffing. The ground transportation industry is in the mature-

phase so growth has slowed.

Recommendations for FedEx Ground are to expand operations to seven days in

phases to meet the ecommerce demand to gain more of the U.S. market share. Ecommerce

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has allowed business to be conducted anytime anywhere from anyplace and is expected to

keep growing.

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