1 - Evaluate the implementation of fedex based on what is written

Resource Allocation

A market penetration strategy requires more concentrated marketing plan that allows the firm to increase its market share. Moreover penetration pricing consists of lowering the prices of a specific service, which will happen in FedEx by reducing costs and eliminating waste. This will be achieved by putting an end to unnecessary and useless physical and human resources that exist in several departments and may be labeled as additional costs.

In return more financial and human resources will be allocated to the marketing department in order to boost its advertising potential through several campaigns that will reach the targeted market. These commercials will aim to reveal the new prices, discounts and offers while ensuring on maintaining the same high quality.

Restructuring FedEx express

After allocating and reallocating human resources, the organizational structure of FedEx express will be modified and restructured to become more cost effective.

Managing conflicts and Resistance to change.

The changes mentioned above will initiate several point of views, which will result in conflicts among managers in different levels. Disagreements may occur when deciding about employees lay-off, budgeting, scheduling, etc. These problems and misunderstanding may be resolved by Diffusion: it implies managers sitting down together, working on their differences, and defining their common interests and goals to generate solutions that will be in the benefit of the whole company.

Since people have tendency to resist anything new, employees and managers at FedEx will face difficulties adapting to the new strategy. Using the educative approach will facilitate managing this resistance: by giving information and more details behind this choice and its positive effect on the firms long term objectives.

Human Resources

Its important to maintain and increase the employees performance and productivity throughout all the implementation phase. Having a motivated team with high morale improve the overall atmosphere by providing a healthy and pleasant work environment.

There are few things that should be taken into consideration such as:

-Giving bonuses and financial incentives for outstanding employees performances which will make them more enthusiastic and competitive.

-Allowing them to work from home one or two days per week to help them balance their lives and have a more flexible schedule.

-Creating a supportive organizational culture that will inspire managers to be more transparent when dealing with employees. In return they will have faith in them, and trust their decisions.

Marketing

Penetration pricing strategy doesnt aim to change the targeted market, however it works on increasing the market share within the same geographical area.

Perceptual map:

Based on this perceptual map we were able to identify this virgin segment: Cheap & Fast. FedEx express should be positioned in this quadrant were there are no competition, this will assure that the chosen strategy is effective and applicable. In that way FedEx express will be engraved in the mind of its customers as a fast, affordable and high quality service.

In order to implement this strategy, many marketing functions should be taken into consideration since it requires a lot of effort of the marketing department:

Selling: which consists of advertising and publicity to let people know about the new prices, discounts, offers, etc.

Pricing: which includes studies done by the marketing team about pricing strategy that can allow them to offer a cheaper service while maintaining the same profit margin.

Cost/benefit Analysis: which estimates the total benefit generated by this strategy when compared to the total cost

Product and service Planning: it requires several sessions to ensure that the high quality of this service is available with all its features such as the live tracking systems, while making sure to maintain the desired service position.

taim to change the targeted market, however it works on increasing the market share within the same geographical area. 8 does Perceptual map: Fast service FEDEX UPS Express Cheap Expensive USPS Slow service Based on this perceptual map we were able to identify this virgin segment: Cheap & Fast FedEx nynrers should ha positioned in this quadrant were there are no competition, this will assure