Federal Express Corporation: Case Study

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Executive Summary.

Federal Express Corporation ("FedEx Express") is the innovator and the global leader in the express transportation industry, offering full range of integrated air and ground transportation services, logistics, customs clearance services, telecommunications and shipment handling technology in over two hundred and twenty (220) countries around world. FedEx Express offers speed, reliability and ease of use at competitive prices. A major part of FedEx Express success is directly attributed by its company strategy.

1. Introduction

This case study report aims at illustrating, analysing and explaining the world's largest express transportation company "FedEx Express" and looks at how its strategy developed. In a first step
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3. External Environment

The first requirement for understanding a company is a thorough analysis of its environment which can be broken into two areas; its macro-environment, and its industry.

3.1 PEST Analysis

The most general layer of the environment is often referred to as the macro-environment where an understanding of political, economic, social and technological influences (PEST). The PEST Analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates - the outside influences on success or failure.

PEST factors are discussed in detail below.

3.1.1 Political

U.S. has been very successful in opening up many international aviation regimes, there are still countries that seem to endorse aviation protectionism. For example, some of the more established aviation players such as the United Kingdom still want to limit competition in their international markets.

3.1.2 Economic

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.3 percent in the second quarter of 2005, according to final estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.8 percent. The profitability of the transportation sector, especially the express transportation industry, is highly linked to gross domestic product (GDP) and exchange rates. These drivers indicate

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