The Case Of Federal Express

1483 Words Feb 8th, 2015 6 Pages
Examining the Case of Federal Express One of the major segments of the wider postal and cargo industries is the small package express delivery sector or industry, which is an increasingly complex and competitive sector. The complexity and competitiveness of this industry requires the use of combating and strategic approach to enhance the profitability of the small package express delivery industry. The contemporary express delivery industry in America originated from Fred Smith’s vision for the Federal Express Company that is commonly known as FedEx. FedEx has played an important role in the small package express delivery industry through the establishment of a system that contribute to the realization of next-day delivery of small package airfreight that weighs less than 70 lbs. The company has also been instrumental in the development of the use of standard packaging with a weight that exceeds 70 lbs. This role has contributed to FedEx’s value creation, product differentiation, and effectiveness of existing business model.
Brief History of the FedEx The Federal Express was established in 1971 by Fred Smith, Jr. and later incorporated before commencing operations in 1973. This company was founded at a time when a sizeable portion of small-package airfreight was transported on commercial passenger flights. Actually, the major cargo carriers during this period were the main passenger airlines that operated various cargo planes and carried extra cargo in passenger…

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