Finc International Case

FedEx has been in operation for a very long and it has managed to establish its network to 220 countries making it the most integrated company in the world with operations in more country. Through this, the company has ensured that its competitors have a hard time to catch up with it, with current market conditions being unfavorable with the rise of easier ways of communication and conventional ways of transporting goods and services. FedEx has also incorporated certain strategies in place in order to ensure that it is ahead of its competition and also to expand its market to more consumers.

FedEx has maintained its international markets even in countries where they face competition and also in areas where the market size has declined. Through this, the company has ensured that it is viewed as reliable and no so much interested in profits. Although it faces competition from local industrial players, the company has continued to thrive by ensuring that its process are low and they are favored by the demand of less integrated transport system such as rail, ensuring that it has to compete against other companies who are also reliant on road for transport. (Team 2015)

FedEx has over the years ensured that its investors are rewarded with high returns some going as high as 102%. This helps in retaining investors and also potential competition by ensuring that investors invest in the company rather than starting up their own company or even investing in rival firms (Schmidt 2015). Although its dividends are low compared to other logistics companies, its share value growth is high which ensures that it retains its long term investors and has a steady flow of income from investors who do not want to be long term investors.

The company has also revised its rates by ensuring that its rates are in line with market conditions, through surcharging its fuel rates, it has ensured that it is in touch with the market behaviors and that a decline in fuel cost will lead to the cost of distribution going up while an increase of fuel cost will affected the rates by going up with the most affected being the small scale distributors. This ensures that the company is able to retain its long term customers who require logistics help on a regular basis. (Schmidt 2015)

The company has changed how it prices its commodities in order to increase its revenues. Rather than charging commodities on their weight, the company has ensured that t is charging goods in relation to the space that they occupy (Team 2015). Through this, the company has ensured that it is able to transport light commodities for the same price as heavy commodities when they occupy the same space. This has ensured that it is able to motivate customers to squeeze their products in order to create spaces for more products which will lead to the price being relatively low for the client. This helps the company to meet its operation cost easily and not rely on other means in order to funds its operations.

The company has also increased its efficiency when it comes to delivering of goods especially during the holiday seasons. It achieved his through increasing its expenses leading to higher cost of operation but this increases its punctuality to accomplishing a 99% on time delivery of its orders. (Schmidt 2015)

The company through its integrated network has ensured that it is able to increase its revenues and cater for operations through backhauling. Through this the company is able to make revenues when the transport system is either firm a delivery or going to pick up a delivery. Through this strategy, the company ensures that it is able to haul goods from one place to another at subsidized priced as it already has met its operations cost.

FedEx Ratios

(FedEx Corporation)

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