Leveraging Data Driven Digital Services to Shift from a Logistics provider to a profit Driver

This decision-based case considers how FedEx should go about transitioning from a logistics provider leveraging data analytics to a data driven digital services firm leveraging logistics. Data and digital technologies had the potential to change FedEx from being perceived as a cost driver due to charging firms to ship products to instead be seen as a strategic partner who could increase merchant profitability via integrating into their sales system to determine optimal shipping routes and incentivize customer purchasing while reducing backlogs and customer complaints. Despite the potential of these novel offerings, FedEx needed to determine how to market, price, and mainstream their new offerings without disrupting their existing market share.