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Fedex Company Profile Essays

Essay on Fedex Company Profile

746 Words3 Pages

FedEx is a leading global provider of transportation, e-commerce and supply chain management services. FedEx companies offer following services: worldwide express delivery, ground small-package delivery, less-then-truckload freight delivery, global logistics and customs brokerage. Other services include trade facilitation and electronic commerce solutions.

All of the above services are provided through a portfolio of operating companies: Federal Express Corporation (world largest express transportation company), FedEx Ground Package System, Inc. (second in North America provider of business and residential money-back-guaranteed small-package ground delivery services), FedEx Freight Corporation (largest regional LTL carrier in the…show more content…

For example, FedEx increase its capacity for heavyweight shipment between Europe and Asia. This change allowed FedEx to offer later cut-off times for shipment to Western Europe and earlier arrival to Paris: more extensive connectivity through the network to various European destinations for Asian shippers was achieved.

The express package and freight markets are highly competitive and very sensitive to price and service. Competitors in this market include United Parcel Services, Inc., DHL Worldwide Express, Airborne Express, Postal Services in United States. Key foreign competitors are Deutsche Poste and TNT Post Group. The ability to compete effectively depends upon price, extend of geographic coverage, reliability and innovative service offerings, frequency and capacity of service, ability to track packages.

FedEx currently holds certificates of authority to serve more foreign countries than any other United States all-cargo air carrier. Its extensive scheduled international route system allows it to provide single-carrier service to many points not served by its competitors. Many of FedEx's competitors are owned and controlled by government having lower costs and less sensitivity to profit.

FedEx holds the philosophy of People-Service-Profit. "People" is a continuous improvement of management

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Fedex Essay


Federal W.Smith had a vision of overnight air express venture. He and his business partners commissioned two independent market research which suggested a market niche for a reliable, time-definite overnight delivery service. Then they executed the vision in 1973, establishing Federal Express.

Today, approximately 90,000 Federal Express employees, at more than 1,650 sites process 1.5 million shipments daily, all of which must be tracked in a central information system, sorted in a short time at facilities in Memphis, Indianapolis, Newark, Oakland, Los Angeles, Anchorage, and Brussels, and delivered by a highly decentralised distribution network. The firm's air cargo fleet is now the world's largest. Federal Express revenues totalled $7 billion in fiscal year 1990. In 1990, Federal Express became the first winner of the Malcolm Baldrige National Quality Award in the service company category.


Federal Express achieved a great deal of success in the 1970s with a pioneering approach to overnight delivery of letters and packages in the U.S.A. After several booming years of catering to customers needs, FedEx's growth in the United States slowed considerably. This was due to direct competition from United Parcel Service, and the increased popularity of the fax machine. At this time FedEx founder, Fredrick Smith began to look elsewhere for opportunities for new growth by adopting information system.

Developmental History

Today's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for six independent operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.

Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc. Through this and future purchases, FedEx sought to build on the strength of its famous express delivery service and create a more diversified company that included a portfolio of different but related businesses. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited, exclusive-use shipping provider; Viking Freight, a regional, less-than-truckload (LTL) freight carrier serving the Western U.S.; Caribbean Transportation Services, a provider of airfreight forwarding between the U.S., Puerto Rico, the Dominican Republic and the Caribbean Islands; and Caliber Logistics and Caliber Technology, providers of integrated logistics and technology solutions. These companies, along with worldwide express shipping provider Federal Express, composed the original FDX Corp.

Over the next two years FDX Corp. oversaw the assimilation of these companies and introduced them to many trademark service and...

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