Strategic Management

• Presented to:

Mr. Omar Shawky

• Presented by:

Ahmed Osman

Amal Ali

Hasnaa Fouad

Haythem Youssef

Mohamed Zarah

AGENDA

• Company Profile• Vision, Mission, Strategy and Values• Societal Environmental Scanning• Porter’s 5 Forces• SWOT Analysis• Value Chain• Corporate Strategy• Business Strategy• Recommendations

Company Profile

• FedEx is one of the leading shipping service companies around the globe since inception in 1973

• Egyptian operation started in the year 1997as Egypt Express

• Worldwide network ensures delivery to more than 220 countries and territories

• Worldwide Express Delivery• Customs Brokerage• Trade Facilitation• Electronic Commerce Solutions. • Business Services Including Copying and Printing Services, Signs and Graphics,

Videoconferencing, High-Speed Wireless and Wired Internet Access.

FedEx Scope of Services

OUR VISION Become Europe, Middle East, Indian Subcontinent and Africa (EMEA) preferred supplier of international express box shipments in all major markets.

OUR MISSION • 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. • Develop mutually rewarding relationships with its employees, partners, and suppliers. • Corporate activities will be conducted to the highest ethical and professional standards.

OUR STRATEGYThe unique FedEx operating strategy works seamlessly and simultaneously on three levels:•Operate independently by focusing on our independent networks to meet distinct customer needs.•Compete collectively by standing as one brand worldwide and speaking with one voice.•Manage collaboratively by working together to sustain loyal relationships with our workforce, customers and investors.

Our ValuesOur Values

PeopleWe value our people and promote diversity in our Workplace and in our thinking.

Service

Innovation

Integrity

Responsibility

Loyalty

Our absolutely, positively spirit puts our customers at the heart of everything we do.

We invent and inspire the services and technologies that improve the way we work and live.

We manage our operations, finances and services With honesty, efficiency and reliability.

We champion safe and healthy environments for the communities in which we live and work.

We earn the respect and confidence of our FedEx people, customers and investors every day, in everything we do.

Societal Environmental Scanning

Economic Forces Tech. Forces Political & Legal Forces

Social Cultural Forces

•GDP•Inflation Rate•Disposable Income

•Internet Availability •Availability of Information Needed

•Law & Tax regulations•Attitude Towards Foreign Co.•Stability of Government•Foreign Trade Laws•Customs Regulation

•Life style Change•Population Growth Rate•Age Distribution•Birth Rate

Economic Forces

1- GDP

The Increase of every member’s share from

the GDP highly influences (companies to use such services as FedEx.

2- Inflation The Decrease encourages economy and foreign investments opportunities such as FedEx.3- Disposable Income Noticeable raise in wages creates disposable income (encourage people to use FedEx and other services to facilitate their lives.

Technological Forces

1- Internet Availability

Purchase through internet & deliver

by FedEx.

2- Availability of Information Needed

Assist in the awareness of people

about delivery services.

3- Telecommunications Revolution

Political & Legal Forces

1- Tax Laws:

Attitude towards foreign investments is recently encouraging.

2- Political Environment:

Stability of government is an asset that encourages foreign trade & services such as FedEx to invest in Egypt.

3- Custom Regulations

This factor affects Industries negatively in Egypt (FedEx)

Social Cultural Forces

1- Life Style Changes

Globalization & wages raise encourages

people to improve there life style by using

facilitating services such as FedEx.

2- Population Growth

Egypt Population is an enormous & growing

that encourages all kinds economical

investment of specially that most of its public

is between (20 & 35) great consumption

force.

Age Distribution

Industry Analysis Porter’s 5 ForcesIndustry Analysis Porter’s 5 Forces

Rivalry among Competition

Bargaining Power Of Suppliers

Entry Barriers

Bargaining Power Of Buyers

Threat of Substitute

1. Threat of new Entrants

• Raise of customs clearance fees

• Capital requirements

• Outsourcing for distribution

2. Rivalry among Competition

• Numbers of strong competitors such as “DHL,TNT & UPS”

• Very strong marketing activities and promotions

• High exit barriers

3. Threat of Substitute

• Availability of substitute

• Low switching cost

4. Bargaining Power of Buyers

• Industry based on a particular number of customer

• Increasing price may affect on losing a part of client

base

• FedEx have a high quality service

5. Bargaining Power of Suppliers

• FedEx have its Own printing house of the international supplies “AWB, Packing materials”

• FedEx supplied its local supplies from outsource supplier and depend on one supplier

Service Value Chain

SWOT Analysis

Opportunities

Strengths

Weaknesses

Threats

• Wide network coverage.• Powerful brand image.• Services variety with full coverage.• Net Income increases 7% percent.• International acquisitions. • Money back guarantee.

• Natural disasters and catastrophes and in consequence pay high insurance • High competition.• Terrorism and conflicts affect negatively on the business.

• High development in third world economies. • Liberation of international commerce. • New acquisitions and expanding market share.

• Customer's expectations in local market (Timing).• Customs clearance delay.• High turn over.

Corporate Strategy “How to Grow”

1 – Vertical integration Affects profit margin

2 – Horizontal integration Affects distribution

23

Corporation Corporate Strategy Corporation Corporate Strategy

Tracking System&E-Business

FedEx Custom Critical

FedEx 1973

FedEx Services

FedEx Global

Customer Inf. Service

Forw

ard In

tegrationB

ackw

ard In

tegration

Horizontal Integration

Ver

tica

l In

tegr

atio

n

New Markets

FedEx Ground

Europe 1985

New Markets

Afgh.&Iraq2003

Kinko2004

Japan1988

Canada 1981

Middle East1989

Sout. Africa1991

Asia Pacific1984

Automated Call Center

Business Strategy “How to compete”

1 – Competitive

All around the world, DHL, TNT & UPS.

2 – Cooperative

Alliances & Acquisitions with GELCO EXPRESS, CALIBER System, Tianjin Datian W. Group Co., Ltd & Prakash

Air Freight Pvt. Ltd

Market Share

25

Managing Business Strategically

Maintain Specialty

Outstanding Success

Maintain Cost

advantage

HighLowRelative Cost

High

Low

Hope for New Investment to

Push Economy GrowthD

eg

ree o

f d

iffere

nti

ati

on

Competitive Advantage MatrixCompetitive Advantage Matrix

261973-1983 Local Leader in USA

1984-1993 Global New Markets

Corporation Life CycleCorporation Life Cycle

Achiev

ing Our V

ision

1994 Technology & E-business

27

Corporate StrategyCorporate Strategy BCG MatrixBCG Matrix

High

High

Low

Low

Relative Market Share

?Question Mark

Cash Cow Dog

Star

Mar

ket

Gro

wth

Rat

e

Recommendations

• In order to achieve the aforementioned objectives, FedEx needs:

– Benefit from local market opportunities– Communicate various offers – each separately –

during the year– Employment fidelity plans– Create integration with powerful companies– Opening new outlets

Thank You