Case Analysis - Sales Force Integration at Fedex
Case Analysis - Sales Force Integration at Fedex
Case Analysis - Sales Force Integration at Fedex
FedEx
GROUP 4
MEGHNA BAGRI
NIHAL SINGH
N I K H I L M A H E S H WA R I
P R E R N A C H A U R A S I YA
RY T HM B AJ AJ
TA N YA J A I N
5C Analysis
Company
started by Fred Smith in 1973
main products are FedEx Express (87% of revenues) and FedEx Ground (13% of revenues) which takes care of shipments through air and road respectively
Customers
Based on the revenue FedEx obtained from customer in the previous year. On the top of the pyramid are companies like “General Electrics” and “Daimler-Chryselrs”
with billings of more than $10 million per year. Bottom of the pyramid are companies which do a business of $6000 - $ 40000 per year
Competition
In ground segment main competitors are UPS (United parcel service), U.S. Postal services(USPS) and Airborne Freight.
Airborne freight primarily offered next-day delivery of packages less than 2 lbs and it is the third largest express carrier of US in 1999.
Collaborators
Independent contractors of RPS who operate the fleet of trucks and a consulting service for transportation called caliber logistics which looks after transportation,
logistics and supply chain customer needs.
Context
Independent contractors of RPS who operate the fleet of trucks and a consulting service for transportation called caliber logistics which looks after transportation,
logistics and supply chain customer needs.
Decision Problem
To redesign the compensation plan and unify the salesforces of FedEx
Alternatives
Alternative 1:
Integrate the sales force into one
• One shipping system
• Single point of contact
• Focus on consultative selling
Alternative 2
Coordinate the units instead of integrating the sales force
• Will become difficult to judge the units
• Chances of coordination problems among sales executives
Recommendations