Question

Why would companies choose to use an intermediary like FedEx instead of taking on distribution responsibilities themselves? 2. Significant numbers of consumers are choosing to do their shopping online. Will this decision most likely hurt or help FedEx’s business? 3. What utilities does FedEx provide for its customers? Which utility is probably the most important to its customers?

Answer 1

Answer:

1) The companies choose intermediaries such as FedEx for the distribution of goods because they want to focus on their primary objective of producing the goods and services, hence they leave the delivery services to the delivery professionals.

2) Shopping online will definitely help FedEx as the higher number of people use online shopping, the higher number of orders FedEx receive for the generation of income.

3) FedEx provides services such as delivering important documents, accessories, gifts and other equipment locally and internationally. Probably the most important utility provided by FedEx is the delivering of goods and services to the people living abroad or any other part of the world.

Hope this Helps.

Goodluck.

Answer 2

Answer:

The answers to the questions are simple and to the point.

1) Companies would choose an intermediary like FedEx to handle shipping, because it is cost effective to do so. When companies assign certain business activities to other entities outside of its own, it is called Outsourcing. Outsourcing is an important business strategy which businesses deploy in order to allow them focus on their core strategy/areas of strength.

2) Online shopping is made possible because there are intermediaries who take the products purchased from the sellers (who receive orders online) to the buyers (who demand or buy online). It therefore follows that increase in online shopping will most likely translate to increase in the demand for FedExs services.  As the demand for FedExs services increases, do does its sales and most likely its profits increase. Profits is good for any business. Therefore, increased shopping online is not going to harm FedExs business but it will help it.    

3) FedEx provides packaging, shipping, design and printing of banners, posters, floor graphics, custom branded boxes etc, ability to track shipped items, and small business support such as occasional business grants.

4) Of all the services mentioned above, the core and most critical to the customer is the shipping and delivery. This is because, it involves a lot of logistics, allowing FedEx handle that service removes the burn of risk of damage from both shipper and recipient to FedEx at least until it leaves the senders warehouse and it is off loaded at the recipients premises.

Cheers!