Presently, FedEx is encountering various strategic issues emanating from its environmental changes. To be specific, the world is currently having negative environmental problems caused by poor weather conditions. In relation to the above information, FedEx is greatly criticized by the agencies taking part in environmental conservation practices. For instance, this company is unable to come up with automobiles that do not emit poisonous gases into the atmosphere (Hall & Potts, 2012). In connection with the above information, it occurs that FedEx is pressured to incur extra costs and expenses while trying to make aircraft and vehicle fleets that are environmentally friendly by enhancing (Wang, 2012). Conversely, this company is also experiencing the challenge of identifying the expertise workforce with the capability of improving its vehicles and crafts’ efficiency (Ketchen et al., 2004). On the other hand, this company is also forced to instigate strategies meant to enhance fuel efficiency, particularly while dealing with vehicle fleet.
Moreover, the existence of natural disasters has also made FedEx change its operational strategies in order to be able to cope with this issue. For instance, the aviation sector is negatively affected by poor weather conditions such as extreme rain, storms, wind, and mist, hence, being forced to start making aircraft with the capability of tolerating these poor weathers (Wang, 2012). On the same note, the aspect of poor roads and presence of snow in some areas still appear to force FedEx to start making the vehicles that will be able to go through these areas without experiencing greater resistance (Hall & Potts, 2012). Presently, the consumers prefer to buy advanced vehicles, hence, exerting much pressure to FedEx while trying to manufacture crafts and vehicles with higher quality compared to that offered by the competitors. In the view of real time data, it is clear that changes in technological innovation have made FedEx transform its operation and advance its system in order to be able to handle big data and carrying out cloud services as well as improving and optimizing its operation (Hill, 2017). Still, the growth of e-commerce makes FedEx come up with online platforms for promoting its sales.
FedEx has been experiencing higher competition from different companies such as XPO Logistics, C.H. Robinson, Purolator International, Hub Group, United Parcel Service, DHL, Atlas Air, Transplace and PostNet among others Ketchen et al., 2004). Irrespective of FedEx encountering competition-based challenges, this company is confirmed to have major successful strategies that provide with the capability of dominating its rivals (Wang, 2012). For instance, FedEx has a fixed cost structure that provides it with the aptitude of establishing different distribution centers as well as accessing the materials for making quality planes and trucks.
Furthermore, there are several factors that make many individuals opt to consume the vehicles and manufactured by FedEx. For instance, this company has a large and strong global network, a thing that is achieved by being in the automobile and craft making industry for more than 40 years. Based on the above information, this company has instigated a huge network spread in more than 220 territories and nations worldwide. Presently, FedEx is also continuing to expand its businesses in grounds through acquisitions (Hall & Potts, 2012). Besides, this company has successfully attaining strong brand value in the market, hence, managing to win clients’ loyalty. To illustrate, many customers have trust with FedEx’s timely and reliable package delivery services, a thing that makes this firm to grow rapidly (Wang, 2012). More importantly, this company is monitored by the professional and competent manager, thereby, ensuring that organizational resources are used in an effective and efficient manner (Ketchen et al., 2004). For example, FedEx was instigated by talented and visionary, Fred Smith, who had the capability of changing the logistics activities in the entire world. Moreover, the real time data also shows that FedEx is continuing to utilize innovative methods, hence, managing to outweigh its competitors. For instance, this compared have hub network and it has invested much in package-selection systems, which, enhance speed and minimize destruction. Still, FedEx freight services are carried out through advanced technologies, which, in turn, shortens the travel times and facilitate truckload operations. This company has also minimized various intercontinental supply times by utilizing Boeing 777 (Smith, 2015). As a matter of fact, all the above practices seem to offer FedEx with the capability of outweighing its competitors.
There is confidential information indicating that FedEx is effectively positioned in the market, a thing that provides it with the competency of outweighing its competitors. For instance, this company is continuing to instigate strategies such as acquiring Rapidao Comenta, a thing that promotes its revenue growth. In a like manner, FedEx has acquired Servicios Nacionales, thereby, being able to compete effectively with other automobile companies in Mexico and Brazil (Hall & Potts, 2012). Moreover, this company has expanded its alliances and opened new offices with the firms that offer automotive services in different regions as well as launching new freight forward service alternatives. Basically, all the above strategies seem to provide FedEx with the capability of outshining its competitors. Furthermore, FedEx has come up with tactics for reaching potential clients on different localities (Ketchen et al., 2004). To illustrate, this company have instigated domestic general distribution operations for inter-province supplies for serving Chinese staying in the city centers.
Otherwise, there are numerous methods that FedEx can utilize in order to enhance its strategic position in the marketplace. First, this firm must come up with suitable ways of appealing to its buyers in a consistent and clear manner. At this point, FedEx should establish incremental adjustments concerning its strategic decision, thereby, managing to maintain a strategic direction of attracting more consumers (Parnell, 2017). On the other hand, it is essential for this company to use price and product differentiation technique in order to be able to satisfy all clients (Uusitalo & Rökman, 2007). As a matter of fact, the above strategies will strengthen FedEx’s competency, thereby, improving its sales and revenue. The real time information from the website also denotes that FedEx is utilizing an effectual method that enables it to dominate its competitors in the marketplace. For instance, this company is using psychographic and demographic segmentation tactics to differentiate the market in the group of clients with the same requirements and wants (Bhasin, 2018). Similarly, this company is applying price based positioning techniques to target a specific group of customer and valued services.
There are multiple environmental changes that contribute to strategic issues in Dollar Tree, Inc. To be specific, the alterations in the macro-environment elements have direct implications that hinder effectual organizational progress. For instance, the institution of new policies in the business sector tends to affect Dollar Tree’s competitive landscape, hence, making it impossible to attain the intended profits (Uusitalo & Rökman, 2007). In this case, Dollar Tree is experiencing lots of problem from adverse weather conditions that make the prices of food products to rise at a higher rate (Gielens, 2018). As a result, this company is forced to come up with new pricing strategies, hence, avoiding chances of losing its loyal clients or encountering losses while trying to distribute different products at low prices.
On the other hand, there are other environment-based factors that have made the management in this company to instigate new ways of monitoring its operations. In the illustration, this Dollar Tree is forced to start offering different types of products because of changes in customer preferences. In this case, the firm has launched new product and price segmentation methods in order to satisfy the customers with different priorities and preferences (Ketchen et al., 2004). Likewise, the changes in weather conditions such as rain and snow have made Dollar Tree to establish new operational programs to ensure that its clients can obtain the needed good within the right time and at the convenient place (Parnell, 2017). More importantly, this company has tried its level best to enhance security and safety in all its stores through instituting advanced ways of monitoring its clients through surveillance cameras and screening while leaving and entering into the stores (Uusitalo & Rökman, 2007). Indeed, it is clear that the environmental changes have pressured Dollar Tree to make positive transformations in most of its operations. In addition, The aspect of the American government coming up with new tactics of preventing the chances of its residents being provided with food containing poisonous chemicals have affected Dollar Tree in a greater manner. There initially, this company was selling products containing phthalates and lead (Wunderlich, 2015). However, after the products containing the above chemicals being banned, Dollar Tree had to advance its mechanism of screening food to determine if it contains harmful products.
Miles and Snow provides a typology regarding business-level plans that help different companies to outweigh their rivals. To illustrate, the typology of the above researchers involve four strategic types including reactors, analyzers, prospectors, and defenders. Through the application of the above strategy typology, I classify Dollar Tree into different groups. In the view of the defender’s division, the Dollar Tree appears to have ventured in a stable market, hence, an indication that this company has the potential of attaining its long-term objectives without encountering hardships (Uusitalo & Rökman, 2007). On the other hand, the prospectors will destabilize the performance of Dollar Tree since there are many companies carrying out their activities by utilizing innovative tactics (Ketchen et al., 2004). For instance, some firms have invested in advanced equipment and machinery, hence, subjecting Dollar Tree to great pressure while trying to align its operations with that of the competitors.
On the other hand, the prospector, analyzer, and defenders act as organizations that affect Dollar Tree’ operations. To illustrate, this company can obtain competitive power if it can align its activities with that of its opponents. Moreover, Dollar Tree should also ensure it has a professional and competent workforce who will, in turn, improve the organizational efficiency and effectiveness (Ketchen et al., 2004). Alternatively, if this company will not be able to match its structure and strategy highlighted by Miles and Snow, there are higher chances that its operation will decline at a higher rate (Gielens, 2018). As a result, Dollar Tree will not have the necessary powers and tactics of competing with other companies within the automotive industry.
Dollar Tree is utilizing distinctive strategies compared to its rivals, hence, managing to attract many customers to consume their products and services. In the first place, this company is utilizing the pulsing technique that involves proper market timing as well as employing continuous patterns (Ketchen et al., 2004). In relation to the above information, most clients opt to stick with this company due to its consistency (Gielens, 2018). Moreover, this company is also providing its clients with discounts and bonuses, hence, enticing them to spend more during the holidays. Furthermore, this company should invest greatly in marketing by putting adverts on television to reach many clients (Parnell, 2017). For instance, the aspect of Dollar Tree notifying the customers that it offering fair prices has enabled it to attract many middle-class customers in America.
Although Dollar Tree is doing well, there are several recommendations that can make it more competitive. First, this company should establish its own niche in order to create more room for its operations. In this case, it is important to instigate special tactics and offer unique products to its clients, hence, reducing the number of competitors (Ketchen et al., 2004). Furthermore, this form should instigate an effective pricing strategy by adjusting the charges of different goods and services through considering prices offered by the competitors (Parnell, 2017). As a matter of fact, the above strategy will provide Dollar Tree with a competitive advantage since it will be able to sustain its clients whereas attracting consumers from other firms in the same industry (Gielens, 2018). Indeed, if Dollar Tree will comply with the above suggestions it will be able to dominate other companies dealing with similar products and services.
References
Bhasin, H. (2018, March 6). Marketing strategy of FedEx – FedEx marketing strategy. Retrieved from Marketing91.com: https://www.marketing91.com/marketing-strategy-fedex/
Gielens, K. (2018). The competitive price effects of Lidl’s entry in the US grocery market, 1-34.
Hall, N. G., & Potts, C. N. (2012). A proposal for the redesign of the FedEx Cup playoff series on the PGA TOUR. Interfaces, 42(2), 166-179.
Ketchen Jr, D. J., Snow, C. C., & Street, V. L. (2004). Improving firm performance by matching strategic decision-making processes to competitive dynamics. Academy of Management Perspectives, 18(4), 29-43.
Parnell, J. A. (2017). Strategic management: Theory and practice, Ohio, Academic Media Solutions, (5), 155-182.
Uusitalo, O., & Rökman, M. (2007). The impacts of competitive entry on pricing in the Finnish retail grocery market. International Journal of Retail & Distribution Management, 35(2), 120-135.
Wang, Y. (2012). How to succeed in the Chinese express logistics market, 1-80.
Wunderlich, S. (2015, July 27). Targeted toxicity: Dollar stores and environmental justice. Retrieved from Saferchemicals.org: https://saferchemicals.org/2015/07/27/targeted-toxicity-dollar-stores-and-environmental-justice/
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