Preview

FedEx - Current Market Trends and Conditions

Powerful Essays
Open Document
Open Document
4943 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
FedEx - Current Market Trends and Conditions
Project Overview � PAGE * MERGEFORMAT �19�

Current Market Trends and Conditions-FedEx

March 15, 2010

University of Phoenix

FEDEX - CURRENT MARKET TRENDS AND CONDITIONS

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.

HISTORY OF FEDEX

FedEx Corporation is responsible for the direction of FedEx which is comprised of FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks, and FedEx Services. FedEx started in 1998 and wanted to expand their express delivery service so that they could diversify their portfolio ultimately to compete in the market on a global scale. In 2000, FedEx acquired a new subsidiary called Tower Group International who is a leader in the business of international logistics and trade information technology. Through this acquisition, FedEx has become the largest-volume customs entry filer in North America and a leader in global ocean and air cargo distribution and trade facilitation.

In January 2001, FedEx Global Logistics realigned to streamline the organization to further improve their customer service across the board. They bought out American Freightways and Viking Freight changing them to FedEx Freight encompassing the Eastern two thirds of the United States. In 2004 FedEx acquired Parcel Direct who is a leading parcel consolidator, which became SmartPost. This helped FedEx in its alliance with the U.S Postal Service and provided customers with proven cost effective solutions for low weight and time sensitive shipments within the United States.

FEDEX OPERATING MARKET

FedEx created a new market less


References: FedEx. (2010). _History of FedEx_. Retrieved from http://about.fedex.designcdt.com/our_company/company.../fedex_history. FedEx. 2010. _Policies and Procedures._ Retrieved February 21, 2010 from http://fedex.com/us/government/intl/termsandconditions.html#dangerousgoods. FedEx. 2010. _Company Information._ Retrieved February 22 from http://about.fedex.designcdt.com/our_company. FedEx (2010) Retrieved from http://fedex.com/us/ecommerce/whyfedex.html. Wikinvest (2009).FedEx Expands Freight Forwarding Presence Globally. Business Wire. Retrieved on February 22, 2010, from http://www.wikinvest.com/stock/FedEx_(FDX)/News/215455/FedEx_Expands_Freight_Forwarding_Presence_Globally. FedEx. (2009). _Executive Summary: Global Impact of FedEx on the Economy_. Retrieved from http://images.fedex.com/us/about/download/...sri_exec_summary.pdf FedEx. (2010). _Investor Relations_. Retrieved March 5, 2010, from Key Facts: http://ir.fedex.com/financials-KeyRatios.cfm (January 2009) About.com. 2010. Federal Express Jobs. Retrieved February 28, 2010 from http://jobsearch.about.com/od/companyprofiles/p/fedex.htm FedEx. (2010). _Export Advisory_ . Retrieved March 1, 2010, from FedEx Trade Networks: http://fedex.com/us/customersupport/ftn/faq/eas.html?link=2 FedEx
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Acc 100 Final Project Paper
    • 554 Words
    • 3 Pages

    Acc 100 Final Project Paper

    Federal Express was founded in 1973 by Fred Smith. The idea came from FedEx Corporation operates in four segments. FedEx Express is the world's largest express transportation company, delivering some 3 million packages daily. It provides transportation, e-commerce, and business services worldwide. The company offers a range of shipping services for the delivery of packages, documents, and freight. FedEx Freight segment offers regional next-day and second-day, and interregional less-than-truckload freight services. FedEx Kinko's provides document management solutions and many business services including facsimile, black and white and color copying/printing, finishing and presentation services, signs and graphics, Internet access, videoconferencing and various other retail services and products. The company was incorporated in 1971 and is based in Memphis, Tennessee.…

    • 554 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Unit 1, the Business Environment, P1
    • 1014 Words
    • 5 Pages

    Unit 1, the Business Environment, P1

    Federal Express (later known as FedEx) was established in 1973. Ten years later, the company reaches $1bn in revenue – the first US business to achieve this status without merger or acquisition. Services extend to Europe and the Middle East by the end of 1989. Between 1991 and 1999 FedEx launches: Express Freighter® to provide overnight delivery to Europe and Asia, FedEx Ship Manager® - first company to allow customers to process shipments online and FedEx EuroOne®, opening a new hub in Paris. In 2000, FedEx became known as “FedEx Corporation”. Services are divided into different companies that operate independently yet compete collectively. During 2008, FedEx Corp ranks ninth in the business superbrands list. In 2010, the company opened a brand new hub in Cologne airport, the largest solar powered hub worldwide. FedEx Corporation’s revenue during 2011 was in excess of $39.3bn.…

    • 1014 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Fedex marketing Case
    • 1341 Words
    • 4 Pages

    Fedex marketing Case

    FedEx’s new product Courier Pak makes sense because of its’ high profit margin and potential to generate new volume. Out of the 3 services that Fed Ex provides, CP yields the highest profit margin at 66% while Priority-One is at 55% and SAS is only at 27%. In addition to this, the company believes that it will be able to boost up sale of CP from 1300 to 6000 packages per day. This shows that CP is the most profitable and huge potential for growth.…

    • 1341 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Fedex
    • 2233 Words
    • 9 Pages

    Fedex

    FedEx Corp., founded by Frederick W. Smith, began operations in April 1973 and was incorporated on October 2, 1997. FedEx Corp. is a publicly traded company on the New York Stock Exchange and headquartered in Memphis, TN. Fedex Corporation was formed in January 1998 with the acquisition of Caliber System Inc. The company reports in four major business segments. FedEx Express provides time-certain delivery within one to three business days serving markets that comprise more than 90 percent of the world 's gross domestic product. FedEx Ground provides low-cost, day-certain service to every business address in the United States, Canada and Puerto Rico and nearly 100 percent of U.S. residences through FedEx Home Delivery. It also includes FedEx SmartPost, Inc. FedEx Freight provides less-than-truckload freight services through FedEx Freight and FedEx National LTL. The FedEx Freight segment also includes FedEx Custom Critical, Inc., North America 's largest time-specific, critical shipment carrier, and Caribbean Transportation Services, Inc., a leading provider of airfreight forwarding services between the United States and Puerto Rico. FedEx Services provides sales, customer service, and information technology support through FedEx Customer Information Services, Inc., primarily for the benefit of FedEx Express and FedEx Ground. The FedEx Services segment also includes FedEx Office and Print Services, Inc., formerly known as FedEx Kinko 's, and FedEx Global Supply Chain Services, Inc., which offers a range of supply chain solutions. In 2007, FedEx Corporation acquired ANC Holdings Ltd. (now rebranded as FedEx UK), Prakash Air Freight Pvt. Ltd. and Tianjin Datian W. Group Co., Ltd. 's 50 percent share of the FedEx-DTW International Priority joint venture and assets relating to DTW Group 's domestic network in China.…

    • 2233 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    UPS Vs FedEx
    • 1115 Words
    • 4 Pages

    UPS Vs FedEx

    This report will analyze the fierce on-going competition between the two companies that have dominated the package delivery service, FedEx Corporation and United Parcel Service, Incorporated. The situational analysis will explain the back and forth battle between in both popularity and profitability as these two companies try to gain market dominance. This part will also analyze the agreement between the United States and China regarding the new air-transportation agreement. Financial analysis will also be used to show that UPS, at the time the case was written, is financially superior to FedEx.…

    • 1115 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Fedex vs Ups
    • 4116 Words
    • 17 Pages

    Fedex vs Ups

    Fedex was formed in 1971, as the brain child of Fred Smith who started the idea of the business as a undergraduate term paper for a Yale economic class. Smith’s strategy dictated that FedEx would purchase the planes that it required to transport packages, whereas all other competitors used the cargo space available on passenger airlines. In addition to using his own places, Smiths key innovation was a hub and spoke distribution…

    • 4116 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Fedex vs. Ups
    • 2478 Words
    • 10 Pages

    Fedex vs. Ups

    Federal Express was founded in 1971. In 1973, FedEx started operations officially and its hub-spoke distribution pattern enabled it to offer cheaper and faster service than its competitors. By 1981, UPS began to enter into the overnight air market and the United States Postal Service (USPS) cut its overnight letter at half the price of FedEx’s. Despite facing such extreme competition in the industry, FedEx could still excel due to change in the business environment. The success of the firm could be attributed to several factors:…

    • 2478 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Inside Fedex Express
    • 15674 Words
    • 63 Pages

    Inside Fedex Express

    As a Secretary of Defense Corporate Fellow during 2005-2006, I was assigned to work at FedEx Express located in Memphis, Tennessee. FedEx Express provides time-critical delivery services and associated information assistance globally. It is one of several Operating Companies (OPCO) within FedEx Corporation. Other OPCOs include: FedEx Custom Critical, FedEx Ground, FedEx Freight, and FedEx Kinko’s. Each OPCO operates independently, competes collectively, and manages collaboratively. FedEx Services, FedEx Trade Networks, and FedEx Supply Chain Solutions are separate corporations that interface with the OPCOs. The company continues to operate under the company founder, Fred Smith’s, original 1973 business plan, adding improvements as global competition and opportunities have emerged.…

    • 15674 Words
    • 63 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Ricky Doc
    • 286 Words
    • 2 Pages

    Ricky Doc

    FedEx Express, the worlds second largest package delivery company is cutting cost due to the slow economic. Fedex offering voluntary buyout for eligible U.S. employees. FedEx said those that newer employees and those who are close to retirement are also eligible for buyouts. FedEx hasn't said yet how many positions they've decided to buyout, but it will be more focus on slow-growth areas like its Express and Services units. The Express is still FedEx's biggest segment far, mainly know as FedEx's speedy shipping division. Ships about 3.5 million packages on an average day, has been hit hard because people are deciding to use slower delivery methods to save money.…

    • 286 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Risk Assessment
    • 1788 Words
    • 8 Pages

    Risk Assessment

    FedEx Corporation is a 29 billion dollar company that offers a variety of supply chain, transportation, business and related information services (FedEx Corporation, 2006). Today FedEx consists of a network of different companies providing services to many countries around the world. FedEx Corporation is the premier provider of shipping and information services worldwide, and its companies function under the motto of "operate independently, compete collectively and manage collaboratively" (FedEx Corporation, 2006).…

    • 1788 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Fedex Corporation: Structural Transformation Through E-Business
    • 290 Words
    • 2 Pages

    Fedex Corporation: Structural Transformation Through E-Business

    In 1998, FedEx acquired Caliber and its subsidiaries. The acquisition gave FedEx a sure advantage that it is now capable to providing more transportation services to other segments upstream in the supply chain. Along with internet and e-business, FedEx seize the opportunity to collaborate with customers in providing full supply chain management system.…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Strategic Management FedEx
    • 2734 Words
    • 9 Pages

    Strategic Management FedEx

    FedEx is a company, founded in 1971 by Fred Smith, which “provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. Our networks operate independently to deliver the best service to customers without compromise. They compete collectively as a broad portfolio of customer solutions and are managed collaboratively, under the respected FedEx brand.” Here is a chart explaining the different companies and how they relate to the parent company:…

    • 2734 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Fed Ex Case Study
    • 728 Words
    • 3 Pages

    Fed Ex Case Study

    FedEx Corporation was created in 1973 as an entirely new concept in package delivery – an overnight air delivery service. The company also provides e-commerce and supply chain management services to its clients in more than 210 countries. The company has grown from a packaging company to a software company. Providing there customers with state of the art software for supply-chain management and logistics…

    • 728 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Awerasfdw
    • 980 Words
    • 3 Pages

    Awerasfdw

    Global demand for air cargo and express services continues to grow rapidly and FedEx has made significant investments in our network to meet customers' needs and fulfill our business…

    • 980 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Fedex Case Analysis Essay Example
    • 463 Words
    • 2 Pages

    Fedex Case Analysis Essay Example

    FedEx's modeling capability gave them a competitive advantage as they implemented new methods and technology. They currently have a SuperHub with several regional hubs and packages are managed and tracked by a system called COSMOS. This system allowed customers to know where their packages were at all times and was later integrated for web use, allowing customers to track packages over the Internet. Today, UPS also allows customers to track packages over the Internet and has improved customer service. I would assume that they have developed a mainframe similar to that of FedEx to decrease FedEx's competitive advantage. The United States Postal Service, which has lower rates, has also increased their customer service and quality. FedEx must find new technological advancements to stay ahead of the competition in the package delivery industry.…

    • 463 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics