FedEx’s value creation frontier and which building blocks of competitive advantage it usesThe value creation frontier is the maximum amount of value of the products that thecompany within an industry can provide to customers at any one time using different businessmodels.Companies that are on this frontier are those that have built and maintained the mostsuccessful business models in a particular industry over time and thus giving competitiveadvantage and above average profitability. This frontier is reached by pursuing one or more of the four building blocks of competitive advantage which are innovation, quality as excellence,customer responsiveness, and quality as reliability. (Hill/Jones, 2013, p. 167-168)Part of FedEx’s innovation and customer responsiveness comes from its use ofinformation technology, mainly in the area of strategic advantage technology. FedEx learned earlier before its competitors the importance of information systems and invested largely in creating their own systems.By investing in customer satisfaction and strategic advantage technology the company is building long term goals and relationships. (IT Investment Strategies And Focus Of FedEx)Another building block is in its quality as reliability. The FedEx Priority service offers adds value to its customer’s services that include package tracking provided through the Fed Excall center and on the Internet that helps customers to know the current status and location of thepackage to be delivered. Proof of delivery is another feature that helps to inform customers of asuccessful delivery, along with recipient information. FedEx also allows a simple bookingprocess where customers can book a pick-up for delivery online or through the FedEx customer helpline. FedEx also promises a refund of all charges to the customer if they fail to complete thedelivery in the promised time frame. (Kidwai)Main aspect of product differentiation and capacity control that FedEx could useThe business strategy of differentiation that some companies use allows them to create aunique product that is perceived as being different or distinct in some important way from othercompanies.This gives them the competitive advantage because of its ability to satisfy the needsof the customers in a way that the competitor’s cannot.This method allows them to charge apremium prices for its product, giving the ability to increase revenues.Customers pay this price when they believe that the qualities of the differentiated product are worth the extra money
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