Fedex Express : A Cargo Airline

FedEx: FedEx is the closest competitor of UPS in terms of their similarity in operational style, service offerings (also include freight and logistics service), target customers, and to some extent prices. FedEx also serves all 220 countries and territories that UPS serves which intensify their rivalry for market share, first mover status, most profitable customers, most suitable partners, and other arrangement with the country specific regulatory bodies, pressure groups, and unions. FedEx’s global market share in ‘Time Definite International Shipments’ in 2014 was 26%, and 30% of market share in U.S. domestic package delivery

The internal environment of FedEx consists of customers, distribution and competitors. This environment determines what FedEx does to succeed in their market.

In addition to that, FedEx came up with new services such as Saturday deliveries, delivery by 10:30 A.M., customer interfaces (drop boxes, drive through stations and express delivery stores) and same day pickup of order. This is to distinguish its services. More on that, FedEx's philosophy of "People-Service-Profit" was successful in insuring a union free workforce devoted to customer focus. In 1978, deregulation in transportation helped FedEx to acquire larger planes therefore achieve lower cost. Trade deregulation in Asia-Pacific enabled FedEx to expand further. The acquisition of Gelco express, Tiger International, and establishment of Airport Hub in Brussels expanded FedEx internationally. Inflation and rising global competitiveness generated the need for "just-in-time" supply model, which was the advantage supported by FedEx advanced technologies.

By capitalizing on this strategy, FedEx was able to boost its average delivery volume in 1976 to 20,726 packages per day via its three services, Priority-One, Standard Air, and Courier Pack, compared with an average of 10,521 delivered daily the prior year. Clearly the company’s calculated use of strategically-located hubs, nighttime flight routes, and limited package size allowed the company to carve out a niche by reliably delivering packages on an immediate, overnight basis.

Federal Express is known as FedEx. It is an express transportation company which was founded by Fredrick Wallace Smith in the early 70’s.

FedEx is a highly centralized organization, with decision-making for the firm centralized at the Memphis headquarters. While national branches of the company have some autonomy in hiring, head office controls hiring policy. Decision-making on large capital projects is also centralized, because the network structure of the company's distribution means that such decisions have global implications. As a result, FedEx has a heavily-centralized structure where very little power is delegated to local managers. Instead local managers are charged with operating the company's strategy efficiently and effectively.

FedEx is a logistical service company specialized in transportation, e-commerce and business services. The success of FedEx lies on an efficient information system. The business process is as follows:

FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)

Fred Smith, is the founder CEO of FedEx, the first overnight express delivery company in the world, and the largest in the nation. To really grasp the concepts that he used in the formation and launch of the company, we really should examine the story in his own words. A former Marine Aviation pilot in Vietnam, Smith founded Federal Express. In 1973, the company began offering service to cities, beginning with small packages and documents. The focus was upon developing an integrated air-ground courier system something that had never been done before. What guided Smith more than anything else according to his own words were the leadership qualities that he developed as a Marine officer in Vietnam that have guided his company from the beginning. These principles, plus his days at Yale came together in FedEx. In his philosophy, he tells his managers to rely on their subordinates, delegate and to praise in public for a job

The purpose of this paper is review the current market trends and conditions for FedEx. There are numerous ways that a company can become a success or become a failure. The market trends and conditions are just of those reasons. Team A has analyzed the market trends and conditions by reviewing FedEx's operating structure, competitors, the impact of government regulations, price elasticity of demand, along with a supply and demand analysis.

The main station is located in Memphis, Tennessee in the United States. The company started off by delivering couriers to some American cities, which was the first time for parcel delivery to take place at that time. As stated before, the industry’s goal is to fulfill the needs of customers, developing relations with different companies, and ensure a high investment for its shareholders. This is made possible through their six shared principles: people, service, innovation, integrity, responsibility and loyalty (FedEx). In order to satisfy its clients, FedEx has3 branches which provide customers with different services regulated on different demands; this include FedEx Corporation, FedEx Express, FedEx Kinko’s, FedEx Ground, FedEx Freight, and FedEx Services. It delivers more than 10.5 million shipments daily, covering more than 220 countries. Monthly, it has over 50 million visitors. In order to… it has 1250 express stations, 33 ground hubs, 370 freight service centers, and more than 1800 offices. The company also possessed 656 aircrafts and more than 100,000 motorized vehicles for express, ground, freight and expedited delivery service (FedEx). Through these aspects and values, Smith achieves to develop a company with a productive way in controlling time, space, and

FedEx Corporation (FedEx) is a transportation service that offers overnight mailing services, freight services, logistics solutions, and business services. The company is one of the largest express transportation companies, delivering small packages nationwide and worldwide. It mostly operates in the US. FedEx has its main headquarters in Memphis, Tennessee and has currently employed approximately 300,000 employees in FY2014. The company-recorded revenues of $45,567 million during the financial year ended May 2014 (FY2014), an increase of 2.9% over FY2013.The operating profit the company made was $3,446 million in FY2014, an increase of 35.1% over FY2013. The net profit the company made was $2,097 million in FY2014, an increase of 34.3% over FY2013.

FedEx is an American global courier delivery services company. The company has expanded from its original focus on ground and air-based services to include home delivery options and a retail division. They have 5 choices when shipping around the world. In case of above 68kg packages, customers can choose 2 choices,

FedEx was established on June 18, 1971, founded by Fredrick W. Smith, in Little Rock, AR. FedEx is a well known American corporation that brings courier global delivery service to its customers. Having such a wide range of portfolios, FedEx has been able to incorporate many different delivery systems for maximum customer satisfactory, with the help of e-commerce, and global delivery service it is no surprise that FedEx has consecutively been ranked amongst the most admired and trusted employers.

FedEx Corporation, situated in US, is one of the leading supply chain management solution providers in the world. With annual revenues as high as USD33 billion, the company offers incorporated business