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FedEx Company’s Customer Environment Case Study


The firm’s current customers include everybody who uses FedEx services to deliver their letters, parcels and goods to the destinations they have chosen within a certain period of time. The company’s potential customers are untapped markets and customers with unique needs that FedEx is yet to accommodate. From the case study, it is notable that most of the current and potential customers are seeking to find the fastest means to deliver their parcels, in the safest possible ways that cost effectively and readily affordable.

According to Ferrell and Hartline, most of the customers use the firms services to derive a number of services in distribution of parcels, goods and in business communication with different parties in different locations, as in the example of the case of business entity to a customer or doctors who want the certain deliveries of medicine (537). It can generally be said that most of the customers use FedEx services in their daily livelihood and business operations.

Customers purchase FedEx products from different offices located in various towns, at airports, drop off points and in places where they have agreements with other companies in the market such as the DHL, U.S.

Customers purchase FedEx products when they need them depending on the urgency of their needs. From the case study, we note that FedEx offers a variety of products with different time requirements. For example, they offer late night pick-ups, weekend services and same day services among others. FedEx products are purchased when consumers need them and they happen to be the only efficient option available. However, there are also potential customers who do not purchase FedEx products because of the lack of market penetration in some areas, high cost of some of the products, ignorance of the existence of the products in the market, and preference to use the competitors’ products.

According to Hartline and Ferrell, Customers select FedEx products depending on a number of factors including, the urgency of the delivery, nature of the delivery, safety of the delivery, the bulkiness of the delivery, the cost of delivery, availability of the service in their area and presence or absence of a competitor service (535). For example, a customer who needs same day delivery for a perishable good will choose express delivery. In general, most people purchase FedEx products because they find them efficient in achieving their desired needs.

The most basic feature of FedEx service is that they strive to accommodate all the customers’ needs by providing them with the fastest and safest means of delivery at all times (Ferrell, and Hartline 534). FedEx has penetrated into the market to reach full potential by acquiring other small firms that offer individual pieces. On the other hand, their competitor like UPS has relied on its large customer base by continuously offering cheap ground shipment that is fuel-efficient during the time it is the market leader.

There is a general anticipated change in customers’ needs because of the improvement of infrastructure, competition and changes in information and communication technology (Ferrell, and Hartline 537). Most customers are expected to demand for efficient means of deliveries in terms of cost, time and safety.There is anticipated decrease for need of FedEx products, as most of the customers will have alternative means like access to internet and other forms of communication. Competition is another factor that will eventually lead to change in customers’ needs by the presence of a variety of efficient products and a variety of choices for the consumers.

Work Cited

Ferrell O. C., and Michael D. Hartline. Marketing strategy (5th ed.). USA: South-Western College, 2004. Print

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IvyPanda. (2020, May 27). FedEx Company's Customer Environment. Retrieved from https://ivypanda.com/essays/fedex-companys-customer-environment/

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"FedEx Company's Customer Environment." IvyPanda, 27 May 2020, ivypanda.com/essays/fedex-companys-customer-environment/.

1. IvyPanda. "FedEx Company's Customer Environment." May 27, 2020. https://ivypanda.com/essays/fedex-companys-customer-environment/.


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IvyPanda. "FedEx Company's Customer Environment." May 27, 2020. https://ivypanda.com/essays/fedex-companys-customer-environment/.

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IvyPanda. 2020. "FedEx Company's Customer Environment." May 27, 2020. https://ivypanda.com/essays/fedex-companys-customer-environment/.

References

IvyPanda. (2020) 'FedEx Company's Customer Environment'. 27 May.

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