Today, Federal Express is the undoubted leader in the overnight package delivery business. Statistics obtained at FedEx.com in 2001 indicates the sheer size of the company¡¦s e-business reach:
„« More than 2.5 million customers connect electronically with FedEx everyday.
„« About $12-$13 billion worth of the business flows through FedEx electronic networks.
However, with internet-based technology and a complex e-Business system in place, FedEx has created its own industry challenges and pressures. Not only does Fedex¡¦s sophisticated system make it difficult to cut down transit time, the customer is now empowered. For example, FedEx must be proactive in reporting a problem before the customer logs onto a computer to track their own shipment. As the speed of a service increases, so too does the customer¡¦s expectations for quality customer service which in turn places greater demands on FedEx.
Competitive challenges are also a focal point for added pressures for FedEx. Its competitors include UPS, DHL and TNT Limited to name a few. As a result, pricing as well as pacing pressures
„« Surprise: surprise competitors;
Its customer-centric focus has to be maintained in the future if the company wants to keep its market leader/market challenger status today and perhaps that may take on an extended form than what it has achieved to date.