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FedEx & Levis

FedEx & Levis . Re-orientate Strategy to gain competitive advantage. Porter’s Competitive Advantage. Uniqueness perceived by the customers. Low-cost position. Strategic target. Industry wide coverage. Overall cost leadership. Differentiation . Particular segment only. Focus.

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FedEx & Levis

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  1. FedEx & Levis Re-orientate Strategy to gain competitive advantage

  2. Porter’s Competitive Advantage Uniqueness perceived by the customers Low-cost position Strategic target Industry wide coverage Overall cost leadership Differentiation Particular segment only Focus

  3. FedEx re-orientate strategy • Intensive competition from nation- and world-wide low-cost competitors • Innovative differentiation by speedy delivery • Over-night delivery • Imitated by many followers, especially, UPS, DHL • Advanced package tracking information system • Spread the access points—acquire the online printing service vendor, Kinko Copies

  4. Challengers’ attack • UPS • Non-proprietary IT-based package tracking system • Providing short- and middle-range speedy delivery beyond long-range over-night delivery pioneered by FedEx • DHL • The largest global reach of cargo fleet • Acquire US-based low-cost packager Airborne Express

  5. New delivery and packaging opportunities • Extensive logistics • Linking supply chain between operations of purchasing, manufacturing, and distribution • Connection facilitators between multiple work-in-process Specialized firms • E.g., the Semiconductor industry • IC design, foundry, packaging, and testing • Global outsourcing networks • Cost and service features differentiation

  6. Levis re-orientate strategy • Competition from several low-cost jean manufacturers contributed by the overseas later developed countries • Strategic change from differentiation for premium prices to lower cost by outsourcing production abroad

  7. Unfinished competition • Continuous low cost competition from worldwide vendors • Innovative differentiation • Customize by personal configuration through Internet ordering • Distribute by DHL, FedEx, and UPS • Returning over the allied street corner stores

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