FedEx unique business model to get profit even in pandemic situation

Fedex
Fedex

A company which is in a condition that it can get bankrupt in two days, that company managed to get 100 billion dollars valuation at present. Wen the present pandemic completely finished more than 20 crore business around the globe, this company grew exponentially.

The company is none other than FedEx. This company earlier predicted 1 billion dollars loss in 2020. But the fun fact is that they did not loss a dollar whereas they get 1.29 billion dollars profit in that year. This revenue not just stopped there, they got more than 5 billion dollars in last year. Now we will understand how all these happen?

USP of the company

 Normal courier delivery company took almost 4-5 days to ships a delivery as they depend on passenger planes. Owner of the FedEx found that people need faster delivery. He wanted to fix this problem. FedEx not just fixed the problem and also get premium prices from their customer.

They did it by overnight shipping and tracking of package so that customer can get the idea about the arrival of the products. They used customer networking effect to board more people in their platform. Whenever a person delivers of the product through FedEx in just one day, the receiver get a good feeling over the company and he bragged about this with their friends. 

Marketing strategy

In this way by serving one customer FedEx get two customers in their platform without spending money in marketing. The company operated such business around the world by creating a huge hub network. They have 39 super hubs and many more secondary hubs to complete the chain. 

When you send a delivery, it reached to the central hub. In just half and hour the package was checked, repacked and moved to the destination plane. They used bar code tracking so that it can identify and moved their package faster in various places.

 FedEx also provide real time tracking so that customer satisfaction occurs in both the sender and receiver side. They have a dedicated team who make sure that every delivery take place in time.

Managing Financials

They are good in managing their financials. They always noticed and measured their growth from previous years. It makes them motivated to do more hard work. The employees were also rewarded with good incentives for their achievement in the fiscal year.

Business spike in Pandemic 

But there is still one question unanswered. How this company make billions of dollars in the time of pandemic. We know that B2B delivery down to almost zero in that time as most of the business stopped to give order.

 It happens because people started to give household delivery. This gave boost to the company. Same time decrease of fuel price also gave huge profit for this company. They almost saved 35 percent in that period of time. At the same time demand of grocery deliveries was sky high. As the rule of economics, prices also get higher. FedEx also get huge amount of profit from here indirectly.

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