Saturday, October 22, 2011

FedEx Business Models for E-commerce

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Business Models


A business model can be defined as the structure and actions by which organizations operate within its marketplace. In other words, a business model is a representation of the activities of a business. Federal Express uses 4 of the 5 major business models for e-commerce business-to-business (BB), business-to-consumer (BB), consumer-to-consumer (CC), and mobile or “m”-commerce. FedEx has always been a leader in technology amongst its industry competitors, and the success of its highly utilized website is a testament to that. The company was one of the first to harness the power of the Internet and the vast new information pathways it opened up to provide fast, easy and convenient service options for its customers. With a deliberate effort to make each transaction as smooth as possible FedEx has enhanced and expedited the 4 major business models it utilizes.


One of the business models FedEx uses is BB and BC service providing. FedEx supports companies through online business services such as tracking, online order processing, and online quotes. Businesses can experience a hassle-free transfer of products to other businesses in their supply chain through one-on-one human interaction, or they can go online, at their convenience, and have complete control over the shipping and tracking of their materials. Businesses also have the ease and convenience of managing and tracking shipments to and from consumers with all the services they would receive if they were tracking to a business. When conducting CC transactions, FedEx uses a number of tools, similar to the ones offered in BB, to guide the customer through a pleasant shipping experience. A consumer can find tracking information, pickup times and locations, as well as information on transit times. You can even print out your packing label, all with the click of your mouse. FedEx has even braved the mobile commerce frontier offering m-commerce services that enable customers to access package tracking and drop-off location data via Web-enabled devices such as WAP phones, Personal Digital Assistants and pagers. FedEx also uses wireless data collection devices to scan bar codes on shipments. These magic wands are a key part of what makes it possible for customers to find out where packages are in transit. FedExs newest data collection device for couriers incorporates a micro-radio for hands-free communication with a printer and mobile computer in the couriers delivery vehicle. Called the PowerPad, the devices use Bluetooth wireless technology that allows FedEx couriers to communicate with each other within 0 feet of their vehicle.


It’s very obvious that FedEx utilizes and continuously searches for way to maximize the capabilities of its existing business models. By giving both consumers and businesses access to basically the same features and services FedEx has aggregated all the business models, and their advantages and benefits, into one fully functional machine that operates to make the most of place and time utility.


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