Fedex Corporation is a holding company which was incorporated on October 2, 1997. The company's registered business address is located in Memphis, Tennessee, United States of America. The company provides a portfolio of transportation, e-commerce and business services under the Fedex Brand. The company operates in four segments: Federal Express Corporation is an express transportation company, offering time-certain delivery within one to three business days. FedEx Ground Package System is a provider of small-package ground delivery service. FedEx Freight is a provider of less-than-truckload (LTL) freight services. FedEx Corporate Services provides the Company's other companies with sales, marketing, information technology, communications and back-office support. The main competitors are United Parcel Service, DHL, TNT, Con-way Freight, YRC Worldwide , Old Dominion Freight Line and ABF Freight System, Inc. The company’s global network is divided into international regions namely Asia-Pacific, Canada, Europe, Middle East and Africa, Latin America- Caribbean, and United States. There are over 160,700 employees and the firm earns a net income of 1561 mil USD. Fedex visions the profit up by 13% in 2014 by cutting costs and jobs for customer’s preference for less expensive international shipping services.( Bloomberg, 2013). Fedex operates in an oligopoly market structure. Each firm in the industry has distinct competencies with sufficient market power. There is mutual interdependence between firms and the firm faces a kinked demand curve. The kinked demand curve explains if there is a decrease in price of a firm’s products its competitors will follow suit but when there is an increase they would not react so as to not lose their market share.
Conduct an analysis of the historical experience of the selected company strategic value drivers (SVDs) and compute the SV suggest what might be the strategic value of this company, compared to the capital market value,...