Fedex : The Largest Global Shipping And Solutions Corporations

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FedEx is one of the largest global shipping and solutions corporations in the World. FedEx has more than 300,000 employees all of which whom provide services to consumers along with businesses globally. FedEx is broken down into several kinds of operating systems, which include FedEx Freight, FedEx Express and FedEx Ground. All of which serve different purposes on how they are able to deliver products to its consumers. The headquarters of FedEx is located in Memphis, Tennessee. The location of the headquarters was quite strategic as Memphis is considered a central point within the United States. Since most of the shipping is through use of a plane they are only a couple of miles away from Memphis International Airport, which is almost…show more content…
Competition within package delivery companies is hard to get into. There are a few dominant companies within this kind of business other than FedEx, which include DHL and UPS. These three companies are the real players while smaller shipping companies don’t stand a chance. FedEx market structure is an oligopoly, which is, “A state of limited competition, in which a market is shared by a small number of producers or sellers.” The competition is really just narrowed down between FedEx and UPS both of who started innovative ideas at an early stage in this market to help better the revenue of their respective companies. Coming up with new deals of pricing strategies through the air or on the ground is a huge part on how these two companies became so successful. FedEx and UPS offer discount freight shipping at prices at which other companies can’t compete or afford to do in order to maintain steady profits. Through the use of airplanes FedEx does around 80 percent of shipping this way while UPS does four times as less shipping by plane at 20 percent. FedEx has control in the market of air shipping, but UPS is considered to be more dominant in ground transportation. Overall the competition is primarily between these two companies and they are both continually

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