Table of contents

Introduction......................................................................................................................................2
Part 3: Strategy evaluation and selection for FedEx:.......................................................................3
1.

Strategy evaluation:..............................................................................................................3

2.

Strategy selection:.................................................................................................................6
2.1. Suitability evaluation matrix:............................................................................................6
2.2. Feasibility Evaluation Matrix:...........................................................................................7
2.3. Acceptability to Stakeholders Evaluation Matrix:.............................................................8
2.4. Potential Risks:..................................................................................................................8
2.5. Scoring:.............................................................................................................................9

Part 4: Strategy implementation for FedEx...................................................................................11

1.

Compare the roles and responsibilities for strategy implementation:.................................11

2.

Evaluation about resource requirements to implement a new strategy and discussion about

targets and time scales for achievement in FedEx:....................................................................15

Conclusion.....................................................................................................................................20
References......................................................................................................................................21

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Introduction
FedEx stands for Federal Express, which is the worlds largest express transportation company. It
was established on April 1973 in America. FedEx has a wide range of headquarters all over the
world in all continents, from Africa to Asia.
FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e
commerce and business services. They offer integrated business applications through operating
companies competing collectively, under the respected FedEx brand. Consistently ranked among
the worlds most admired and trusted employers, FedEx inspires its more than 290,000
employees to remain absolutely, positively focused on safety, the highest ethical and professional
standards and the needs of their customers and communities.
Todays FedEx is led by FedEx Corporation, which provides strategic direction and consolidated
financial reporting for the operating companies that compete collectively under the FedEx name
worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom
Critical, etc.
Continue the first report, this report set up the 5 years objective for FedEx in Vietnam. Vietnam
is the potential market that Fed should invest because the demand for logistic in Vietnam is big.
Vietnam exports and imports so many goods from all over the world so FedEx will have so many
chances to expand their business here. This report is aimed to draw the appropriate strategy for
FedEx to enter Vietnam market. Hopefully it is helpful for not only FedEx but also other people.

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Part 3: Strategy evaluation and selection for

FedEx:
In this part, I will set up new objective for FedEx in the period from 2013-2017 within Vietnam
market. This objective will be based closely on the vision of FedEx to maintain that FedEx is
going in right direction. Firstly, the objective will be broke down into two stages and I will
comment some strategies which appropriate with the objective of that stage. Then, I will select
the most efficiency strategy by scoring and ranking based on some criteria. All those things will
be analyzed carefully below.

1. Strategy evaluation:
Vision of FedEx is A world where goods and information move quickly and seamlessly. A world
where businesses source raw materials and parts globally, then move high-value goods quickly
between continents and across time zones. A world where global information and transportation
networks can shrink time and distance, creating competitive advantages for customer
Based on that vision, I set new objective for FedEx in period 2013-2017 like this:
Belonging to top three leading international cargo companies in Vietnam by the end of 2017
Enter into Vietnam market will help FedEx to fulfill a world that is mentioned in their vision.
New market will brings more chances for FedEx to develop. In order to achieve that objective
feasibly, it will be divided into two periods, respective with two stages like this:
Stage 1 (2013-2014): Achieving 15% market share in three majors cities are Hanoi, Da Nang,
Ho Chi Minh City.
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Specific: Achieving 15% market share

Measurable: 15% market share in three major cities of Vietnam
Achievable: Is the worlds largest express transportation company. FedEx has a wide

range of headquarters all over the world in all continents, from Africa to Asia.
Realistic:
o FedEx provides customers and businesses worldwide with a broad portfolio of
transportation, e commerce and business services.
o Is the worlds largest express transportation company and technology pioneer.
o Enable the customer to track their package via Internet, from the start to the end

unique service of FedEx.

Timetabled: by the end of 2014.

Stage 2 (2015-2017): Belonging to top three leading cargo companies in Vietnam, gaining about
30% market shares.

Specific: top three leading cargo companies in Vietnam, achieving 30% market share
Measurable: 30% total market share of Vietnam cargo industry.
Achievable: achieving 15% market share in the three major cities of Vietnam.
Realistic:
o Took the largest market share in airborne service in US.
o Prestigious and long term brand.
Timetabled: from 2015 to the end of 2017

To achieve the objective of each stage, I choose two strategies for each stage. Each strategy
will support for each other in the most reasonable way.

Option 1

Stage 1: Market penetration

Applying Organic Growth, develop the internal

Stage 2: Related diversification

Key activities:

resources through 4Ps

Vertical integration: FedEx build their

Key activities:

own cargo service based on its standard by

Product: providing high quality service in both

linked its aircrafts, trucks, bar-code

air and ground cargo.

scanners, serves and more to become the

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Price: no need to set lower price than other

distinctive infrastructure.

competitors. Customer will pay high price if

Horizontal integration: focus on extra

FedEx provide good service.

3Ps to complementary the companys

Place: Building the headquarters in the major

presents activities:

cities: Hanoi, Da Nang, and Ho Chi Minh city.

People: training regularly to advance

their working skill.

Process: install SMS system which

Branches are also needed to open in the

surrounding provinces.

automatically send message to customer

Promotion: Advertise on TV, website and big

outdoor billboards.

when their parcel come to destination.

Physical evidence: design the distinctive
workplace with feature theme of FedEx

Option 2

Stage 1: Join venture

Join venture with EMS from Vietnam Post

to attract customer.
Stage 2: Market development
After the joint venture is stable, FedEx get

because it already had the hubs in Hanoi, Da

used to the working style and market of

Nang, and HCMC and companys transaction

EMS, developing the market is

network spread across 63 provinces.

indispensable.

Key activities:

Key activities:

- Preparing for the joint venture.

- Standardizing managing and service system

- Building the hubs which are fully equipped

with the most modern technology in

between two organizations.

- Focus on promoting brand in three major cities
is Hanoi, Da Nang, and HCMC.

other provinces which have strong

demand in logistic and cargo.
- Invest to advance and expand the transport
network, and the station operators,
transfer station.

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2. Strategy selection:
I will analyze the suitability, feasibility, stakeholders acceptability and risk for the two given
option based on some criteria which personally, it can compare the two options clearly.
Moreover, comments will be given below each matrix to explain more about the marking. At the
final, scoring and ranking will be summarized.
2.1. Suitability evaluation matrix:

No.
1
2
3
4

Suitability evaluation matrix

Criteria
Option 1
Strength and distinctive competences

Seize opportunities
x
Satisfy our goals

Generate competitive advantage

Option 2

Comments:

Option 1: Firstly, even FedEx invest independently, it still can show its strength and
distinctive competences because it is the worlds largest transportation (Eastern, 2012). It has
wide transaction network all over the world, owned the most advanced infrastructure that
cost billion dollars which create it distinctive advantage. However, it seems no significant

opportunity for FedEx at all.

Option 2: Joint venture with EMS is the opportunities for FedEx because EMS is developing
so well, catching a significant market share and the most important is its transaction network
adapt what FedEx is needing (located in three main cities). FedEx can still generate its
competitive advantage by investing more on EMS. This option is really adapting the
objective of FedEx.

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2.2. Feasibility Evaluation Matrix:

No.
1
2
3

Feasibility Evaluation Matrix

Organizational capacities
Option 1
Human Resources

External Relations and Partnerships

x
Technology
x

Option 2

Comments: The Human Resources in Vietnam is abundant so it is not a problem in both option.
About external relations and partnership, in option 2, FedEx no need to worry because EMS
already had a lot of relations like that in 8 years operating. EMS can also provide FedEx their
advanced technology, help to reduce a lot of time and money than option 1.
2.3. Acceptability to Stakeholders Evaluation Matrix:

No.
1
2
3
4

Acceptability to Stakeholders Evaluation Matrix

Organizational stakeholder
Option 1
Benefits and risks
Financial considerations
Employees
Customers
Government

x
x
x

Option 2

Comments: About financial considerations, because option 2 is joint venture so FedEx just only
need to invest much less money than option 1. The available employees of EMS are trained
carefully so FedEx no need to train too much. If recruiting all new employees like in option 1,
FedEx have to pay a lot of money and time to train from the beginning. Moreover, EMS has
worked in courier 8 years so they have a certain amount of loyalty customers which is the
advantage of option 2 over option 1. Finally, Vietnam government always supports international
organization to invest in Vietnam market so both kind of investment is alright.

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2.4. Potential Risks:

Alternative
strategies
Option 1

Potential Risks
-

advanced equipment and already has experiences in Vietnam market.

The logistic market are go down because of economic downturn
Difficult for FedEx to find new customer.
Conflict in managing and creating marketing strategy between two

organizations may arise.

Disagreements over profit share, interest, amounted invested, etc.

Option 2

The cargo market has so many existing competitors which are equipped by

2.5. Scoring:

Alternative
strategies
Option 1
Option 2
Comments:

Suitability

Feasibility

Scores
Acceptability

7
8

6
9

4
8

Risks

Total

4
7

21
32

Option 2 has higher mark than option 1 so I will choose option 2 to implement. Join venture with
EMS is the safe choice for FedEx because:

EMS has 8 years working in courier, logistic, and cargo service within Vietnam and

international market.
According to statistics of VNPost Express (2012), in Vietnam courier market, local EMS
services of the company are evaluated is leading the market in terms of sales volume,

accounting for about 24% market share.

Reduce a lot of time to approach the market. EMS may give FedEx a more direct access to

making decision.
FedEx can use the already advanced infrastructure of EMS to develop its business and raise
revenue faster by sharing the profit.
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After the first two year that focus on get used to with the working style of EMS, the market
development strategy is the appropriate step. The approach is expanding to other provinces
which have commodity exchange spot like Hai Phong, Binh Duong, Nha Trang, etc.
The success of joint venture between DHL and VNPT is the most convincing evidence for my
choice. After 5 year working, in 2011, their market share in total revenue of Vietnam postal
market is 15, 5% (SGTT, 2012). This statistic is lower than the objective of FedEx (30%) but it is
still possible to achieve because in different period, the technology and market demand is
different.

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Part 4: Strategy implementation for FedEx.

1. Compare the roles and responsibilities for strategy implementation:
Sub-objective is very important to support for the objective. It broke down the objective into smaller target in order to control the
efficiency better. With the strategy that I choose for FedEx, I will also do that. In each sub-objective, I will indicate the specific
activities that need to do to fulfill the objective. Besides, I also showed which department will take responsibility as well as target for
each activity.
Stage
Stage 1:

Sub-objective
Competed the procedure

Activities
Arranging the meeting for

Achieving

to join venture in the

Board of Managements to

15% market

earliest time (at the end of

discuss and negotiate.

share in

2013)

Chi Minh

venture in 3 months.

legal procedure for the joint

cities are
Nang, Ho

Target
Both organizations can finish join

Preparing documents and

three majors
Hanoi, Da

Department
Administrative

Standardizing managing

venture.
Drafting company rules and

and service system

regulations.

between two

Administrative

Finishing the companys rule

immediately after the joint venture so
that the company can run normally.
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City.

organizations.

Install extra technologies

IT

which follow the standard of

Create international workplace,

increase the productivity efficiently.

FedEx.
Training employees based on

Human

the international standard of

Resources

Create the professional working style.

FedEx.
Synchronize audit system

Accounting

Accounting will be easier to monitor

between two organizations.

and IT

and audit.

Focus on promoting brand

Changing logo, brand name

Marketing

Create one strong brand.

in three major cities is

and marketing strategy.

Prepare the forecast budget

Accounting

Set up the goal for all employees to

R&D

work hard to achieve.

Expanding the market to increase

All department

revenue.
Listen to the employees will let the

Hanoi, Da Nang, and

HCMC.

for new project

Do research to find out new

Evaluate the business

potential segment
Do research within the

operation after two year.

organization
Do survey on customer in
large scope in three cities.

company know their strength and

Marketing

weakness.
Base on the result to evaluate the
efficiency of operational model and
how many market share company is
hold.

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Stage 2:

Expanding the market

Do research in those

Belonging to

scope to Hai Phong, Binh

provinces to find out how

top three

Duong, Khanh Hoa where

leading

have strong demand in

potential they are

Contact with some companies

cargo

logistic and cargo because

companies

they have sea port and big

Prepare legal procedure to

in Vietnam,
gaining

industrial parks.
Building the new hubs in

operate in those provinces.

Finding the location for the

about 30%

those provinces.

new hubs
Install equipment and

market

R&D

feasibility.
Marketing

to create the relationship.

Administrative

Officially operating in the second

R&D

quarter of 2015
Building professional workplace to
attract more customers. Furthermore,

IT

technology

shares.

Training the staff and

network, the station

employee
Resources
Provide positioning device for IT

station.

all the working system will connect

directly with other cities.

Expand the transport

operators, and transfer

Testing new market, evaluate its

Human

Create professional working style,

adapting to the international
environment.

delivery personnel
Open the customer care

Marketing

Increase the satisfaction of customers.

Marketing and

Evaluate the image and position of

R&D

company in customers mind.

centers in six cities.

Evaluation after 5 years
operating

Do survey on customer

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Preparing the annual report

Director,

The objective is achieved or not will

through each year

Accounting

be assessed.

and
Stakeholder

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2. Evaluation about resource requirements to implement a new strategy and

discussion about targets and time scales for achievement in FedEx:
In this part, the resources will be allocated for each activity in terms of human resources and timescales. Besides that, the
measurement will also be given to help FedEx based on that, evaluate the result of each activity clearly.

Stage 1: Achieving 15% market share in three majors cities are Hanoi, Da Nang, Ho Chi Minh City.
Sub-objective

Activities

Competed the

Arranging the meeting for

procedure to join

Board of Managements to

venture in the

discuss and negotiate.

Department

Resources

Timescale

Measurement

Administrative

allocation
2 employees - 2

January

Meetings take place on time

weeks

2013

and both sides agree to

corporate.

earliest time (at

the end of 2013)

Preparing documents and

10 employees -

January to

The joint venture finishes

legal procedure for the joint

1 month

February

without conflict.

5 employees

2013
February

After 6 months applied, the

and the Board

2013

company runs well.

Standardizing

venture.
Drafting company rules and

managing and

regulations.

Administrative

service system

of Management

between two

- 1,5 months

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organizations.

Install extra technologies

IT

45 workers (15

February to

The systems can run

which follow the standard

people for each

March 2013

immediately after install.

of FedEx.

place) - 2
months

Training employees based

Human

Everyone can do their task

Do survey on customer to

All employees

From the

on the international standard Resources

have to join - 2

start of

of FedEx.

weeks to 1

February to

evaluate the attitude and

months depend

March 2013

efficiency of staff.

on different
Synchronize audit system

Accounting

function
All employee in

between two organizations.

and IT

accounting

March 2013

No mistake in the budgets

3 weeks
All department

January to

Do survey on customer to

2 months

February

know how they feel about

department and
5 employee in
IT department
Focus on

Changing logo, brand name

promoting brand

and marketing strategy.

Marketing

in three major
cities is Hanoi,
Da Nang, and
HCMC.

Prepare the forecast budget

Accounting

for new year

Do research to find out new

R&D

2013
5 employees 1 March 2013

the new image.

Compare with the annual

month.

and every 1

budget.

20 employees

year
April to the

Company gain more

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Evaluate the

potential segment.
Do research within the

business

organization.

All department

1 year
All employees -

end of 2014
October to

customer and contracts.

The employees feel satisfied

2 weeks

November

with the result of the

45 employees

2014
November

research.
Compare the result with

1 month

2014

other companies in the same

operation after
two year.

Do survey on customer in

Marketing

large scope in three cities.

field.

Stage 2: Belonging to top three leading cargo companies in Vietnam, gaining about 30% market shares.
Sub-objective

Activities

Department

Resources

Timescale

Measurement

45 employees (15

December 2014-

Based on the decision of the

January 2015

Board of Management

allocation
Expanding the

Do research in those

market scope

provinces to find out

each place) 2

to Hai Phong,

how potential they are.

Contact with some

months
15 employees (5

January to

whether invest or not.

After 1 year, those

companies to create the

each place) 1

February 2015

companies still use our

relationship.
Prepare legal procedure

months
12 employees (4

February 2015

service.
Start operating in second

Binh Duong,
Khanh Hoa.

R&D

Marketing

Administrative

to operate in those

each place) 1

Building the

provinces.
Finding the location for

months
12 employees (4

new hubs in

the new hubs.

those

R&D

quarter of 2015
February 2015

each place) 1
months

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provinces.

Buying new equipment

Accounting

12 employees in

February 2015

and install.

and IT

accounting and 21

Expand the

Training the staff and

Human

in IT 3 weeks
All staff 2 weeks

March 2015 and

Do survey on customer to

transport

employees.

Resources

to 1 months

every 6 months.

evaluate the attitude and

Provide positioning

IT

45 employees (15

April 2015

efficiency of staff
The number of customers

network, the
station
operators, and
transfer
station.

device for delivery

personnel.
Open the customer care

each place) 2
Marketing

centers in six cities.

Marketing

complaint decrease.

weeks
30 employees in

Start from

Do survey on customer to

marketing

January 2015

assess their satisfaction.

45 employees in

November 2017

Compare with other

Evaluation

Do survey on customer

after 5 years

to evaluate the market

Marketing 1

companies statistic in the

operating

share of company
Preparing the annual

same field like DHL-VNPT,

Director,

month
Directors,

At the end of

report through each

Accounting

Stakeholder, 15 in

2017

year

and

Accounting 3

Stakeholder

months

Ups, etc.

Allocating resources is very important within any organization. Allocating in a logical way will help organization to reduce cost and
time. Due to the limitation of time and knowledge, in this report, I just can allocate resources for FedEx in terms of timescale and
human. The number of employees I allocate in this report is the minimum number that is needed to be required for each activity so the
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director can modify if necessary. The timescale is also the minimum time that is needed to fulfill the activity. About the measurement,
I suggest the way which can measure the results of activities in the shortest time.
You can see at the end of each stage, the sub-objective is evaluation the efficiency of the period. It is necessary because company need
to know whether it is running in the right way or not. And if not, it will be not too late to fix and change the direction in the new
period. When stage 1 is success, it will be the firmly momentum for the implementation of stage 2.
In short, I have already showed very detail every step to implement a strategy which I have suggested in part 3 for FedEx. All
information was considered very carefully to give FedEx the best choice. Personally, my strategy is the most appropriate way for
FedEx to enter Vietnam market easily when the economic situation is not good like now; is the shortest way for FedEx to gain the top
three leading international cargo companies in Vietnam by the end of 2017.

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Conclusion
This report had presented for FedEx my strategy for them in the next 5 years. In this period, I
suggest FedEx to invest in Vietnam market, which I have already analyzed for them in my first
report, is a very potential market for them. My strategy was planned very carefully for FedEx,
detail in every activities, resources allocation, and measurement. It is compared with other choice
that was also suggested by me to show its strengths and advantages if FedEx apply it.
I tried to perform the report in the reasonable order by dividing relevant information in separate
part, and I think it will actually make the reader feel clear to follow. However, due to the limit of
time and knowledge, some field cannot be covered deeply. Everything I evaluated is considered
very carefully in a reasonable way to give the best choice for FedEx. I did not give too much
professional suggestion in this report but I think this report can become the basic draft which can
help FedEx to develop its own completed strategy in the future.

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References
SGTT (2012). DHL Express tang gia chuyen phat tai Viet Nam. Retrieved on 2 January 2012
from http://dddn.com.vn/2012092811104873cat117/dhl-express-tang-gia-chuyen-phat-tai-vietnam.htm
VA (2012). VNPost Express muon chiem tren 30% thi phan CPN trong nuoc. Retrieved on 2
January 2012 from http://ictnews.vn/home/Buu-chinh/7/VNPost-Express-muon-chiem-tren-30thi-phan-CPN-trong-nuoc/103760/index.ict
Eastern (2012). FedEx Express Plans to Acquire 19 Boeing 767-300F Aircraft. Retrieved on 2
January, 2012 from http://www.businesswire.com/news/home/20120629005822/en/FedExExpress-Plans-Acquire-19-Boeing-767-300F

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