Today, Federal Express is the undoubted leader in the overnight package delivery business.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.
Pressures & Challenges.
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 are continually emerging. On an ongoing basis, FedEx need to invest heavily in technological firms so that they may keep ahead of their competitors. FedEx must continually improve their internal processes so as to keep one step ahead of the competition. Complacency will most definitely result in the loss of valuable market share.
The complete integration of Fedex's tracking system should also be considered. In the event of Fedex's technical infrastructure losing connectivity and/or failure of its backup systems, how will this affect its entire e-Business infrastructure? A challenge here would be to ensure that every possible cause of downtime may be quickly and efficiently addressed.
Competitive Advantage.
A competitive advantage over competitors is gained by offering consumers greater value, either via lower prices or by providing more benefits that justify higher prices.