FedEx: 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 that uses 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. This would be done via FedEx integrating into the client 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 its new offerings without disrupting existing market share.
After completing this assignment, students will be able to:
1. Discuss the influence that customer perceptions have on firm pricing and profitability.
2. Comprehend how collecting and utilizing data creates opportunities within the logistics industry.
3. Debate the pros and cons of collecting and utilizing data to drive business productivity.
4. Explain the effect that market entry strategy may have on firms’ abilities to develop core competencies and competitive advantage.