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Fedex - Structural Transformation Through E-Business

EXECUTIVE SUMMARY
"Don't panic"
"whatever it takes"
"When it absolutely, positively has to get there overnight."
"Relax, it's FedEx"
"FedEx, a growing 21 billion dollar enterprise in the 21st century, remain the world largest cargo airline, connecting 90% of the world Gross Domestic Product."
(David Bronczek, President and CEO of FedEx Express, 2007)

FedEx - a company with its people that promised to pick up shipments when called, deliver new packaging materials when needed, get any goods to their destinations by a guaranteed time or even at a guaranteed range of temperature, and charge us a reasonable price to do so.

FedEx is a new-economy company, or we can say that FedEx is a service sector asset based economy company. The re-organisation taken place in FedEx has totally redesigned its business processes around the Web. Most of its shipments are ordered, tracked, and managed via the Internet.

In the new economy, FedEx need to consider its growth potential with respect to any investment opportunity, yet assessing that potential has never been more difficult. The post-dotcom era foresee that only those who focus on the customer and on creating new customer value proposition can succeed. In this new world, e-business is a must to be incorporated in the organization in order to create value previously unimaginable by the old corporation.
The challenge is now on the phrase e-business. How is FedEx going to incorporate the e-business solution in the whole organisation, but remain focus in resolving its fundamental customer value proposition, thus outbeat its competitors namely UPS, DHL, and TNT, in addition to post office organizations around the globe.

STATEMENT OF THE PROBLEM
FedEx need to choose the economy it wishes to be part of whether or not it is the conventional economy, dot.com era, or new economy, depending on the business model it embraces to create customer value and shareholder wealth.

Apparently, FedEx is one of the new...