FEDEX Assingment
BACKGROUND INFORMATION
History:
FedEx is a logistics services company having its headquarters in Memphis, USA. The name FedEx is the abbreviation of Federal Express which was the original name used from 1973 until 2000. In 1978, Federal Express was listed on NYSE as FDX. The success of Federal Express can be recognized by this that this was the first company that had reached revenues of $1 billion without having any kind of merger or acquisition though afterwards the company acquired different companies like in 1998 Caliber System Inc was acquired, in 1999 Caribbean Transportation Services was acquired and in 2004 Kinko 's Inc and Parcel Direct were acquired (Birla, 2005).
Industry Type:
FedEx is operating in the shipping services industry or more specifically in the express delivery industry. The shipping services industry or express delivery industry have few recognized and well known companies like FedEx, DHL, UPS, and TNT. These four main companies have full control over the industry hence making the industry oligopolistic in nature. The industry is at maturity stage in the industry life cycle, as almost all major companies in this industry have their own loyal customers and are able to operate at low cost which in turn add considerable barriers to entry.
Express delivery industry is growing at the fastest rate at the moment, with around 1.3 million people employed in the year 2008 and the overall revenues of US $175 billion. Also in the year 2008, express delivery industry made US $80 billion contribution to the global GDP (Global Express Association, 2010). At the same time it is being forecasted that the industry will continue showing the growing trend because of the growing demand of mode of transport which is efficient and consume less time. Around 8 percent growth is being forecasted in the industry and it is being estimated that express delivery industry will be a source of around 4.5 billion direct employment all over the world by the year 2013
History:
FedEx is a logistics services company having its headquarters in Memphis, USA. The name FedEx is the abbreviation of Federal Express which was the original name used from 1973 until 2000. In 1978, Federal Express was listed on NYSE as FDX. The success of Federal Express can be recognized by this that this was the first company that had reached revenues of $1 billion without having any kind of merger or acquisition though afterwards the company acquired different companies like in 1998 Caliber System Inc was acquired, in 1999 Caribbean Transportation Services was acquired and in 2004 Kinko 's Inc and Parcel Direct were acquired (Birla, 2005).
Industry Type:
FedEx is operating in the shipping services industry or more specifically in the express delivery industry. The shipping services industry or express delivery industry have few recognized and well known companies like FedEx, DHL, UPS, and TNT. These four main companies have full control over the industry hence making the industry oligopolistic in nature. The industry is at maturity stage in the industry life cycle, as almost all major companies in this industry have their own loyal customers and are able to operate at low cost which in turn add considerable barriers to entry.
Express delivery industry is growing at the fastest rate at the moment, with around 1.3 million people employed in the year 2008 and the overall revenues of US $175 billion. Also in the year 2008, express delivery industry made US $80 billion contribution to the global GDP (Global Express Association, 2010). At the same time it is being forecasted that the industry will continue showing the growing trend because of the growing demand of mode of transport which is efficient and consume less time. Around 8 percent growth is being forecasted in the industry and it is being estimated that express delivery industry will be a source of around 4.5 billion direct employment all over the world by the year 2013
References: Birla, M. (2005). FedEx Delivers: How the World’s Leading Shipping Company keeps Innovating. NJ: John Wiley & Sons Inc. FedEx. (2010). Annual Report 2010. Retrieved August 7, 2011, from FedEx. Mission, Strategies, Values. Retrieved August 7, 2011, from Global Express Association. (2010). Discussion Paper of Express Delivery Services. UK: Global Express Association. Retrieved August 7, 2011, from Lester, D. (2008). Making the Case for Sustainable Strategic Management: an assessment of FedEx. International Journal of Sustainable Strategic Management, 1(1), 82-97. Marshburn, K. (2007). Strategic Analysis of the FedEx Corporation. USA: Washington College. Oxford Economic Forecast. (2005). The Impact of the Express Delivery Sector on the Global Economy. UK: Oxford Economic Forecasting. Shult, K. (2008). Battle of Brands: UPS vs. FedEx. Retrieved August 7, 2011, from Song, H. (2003). E-Service at FedEx. Communications of the ACM, 46(6).