FedEx & Levis Re-orientate Strategy to gain competitive advantage

Porter’s Competitive Advantage Strategic target Industrywidecoverage Particular segment only Low-cost position Overall cost leadership Differentiation Focus Uniqueness perceived by the customers

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

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

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

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

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