Continuous Improvement Strategies

This essay will discuss how the FedEx Corporation strategically used IS to exploit the

Internet to compliment their core business, and dramatically increase company profits.

Based on this case study It will explain how formulating an IS strategy can help a

company achieve its business objectives, and it will also discuss the importance of

strong leadership and management support for the IS strategy.

Fred Smith founded FedEx Corporation formerly known as Federal Express in 1973 in

Memphis, Tennessee. An Express Transport and Logistics company, Federal Express

was joining a domestic market dominated by the US Postal Service and UPS (United

Parcel Service). Fred Smith understood for the company to prosper, he had to embrace

technology and use it strategically to improve his business. Smith understood the

importance of information in his industry, his vision being: “information on a package

is as important as the package itself.”

FedEx instantly broke the mould by bucking the trend for courier companies to lease

space on 3rd party airplanes; instead they invested in their own fleet. FedEx did not

have to rely on other companies to ensure their customers received their packages on

time, and it meant they built up a strong, early presence in the market. This trend

continued and now FedEx have the largest fleet of vehicles of any company in the

world (Fedex.com, 2006). This early outlay by Fred Smith was seen as a necessary and