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Fedex Case Analysis

FedEx Case Analysis

Management 490

2/22/2008

Justin Howell

Table of Contents
Title Page 1
Table of Contents 2
Synopsis 3
Update Information 4-6
Case Challenges 7-8
Works Cited 9

Synopsis
Federal Express is a company based around overnight and second night delivery of packages. The founder, Fredrick Smith, started delivering packages in 1973. Federal Express was the first major air transport firm to implement a "hub and spoke system". This terminology is used to describe the logistics of how packages are flown to a central location (Memphis) each night and redistributed by air pre dawn.
The success of the company and the increase in market share can be directly linked to a strike of a well known competitor. In 1974, UPS employees went on strike, resulting in hundreds of thousands of packages to be forced to use FedEx for delivery.
During the 1980's, FedEx made the decision to progress internationally. This strategic decision led to the buying out of Tiger International. The results of that decision led to the doubling of FedEx's international volume in 1989. Another benefit to the company was that they were the first to offer internet based shipping in 1996. The 1997 UPS strike only added extended market share to the already emerging firm. The official name was decided in 2000, when board members chose FedEx.
FedEx is the world's leading express delivery company with over 56,000 drop off locations. They have over 640 aircrafts, 54,000 vehicles, and deliver over 3 million packages a day to over 200 countries. FedEx partners with the United States Postal Service in order to utilize post offices for critical package drop off locations. In turn, they have to provide air transportation for postal express shipments.

Update Information
The chairman, President, and CEO of FedEx is Fredrick W. Smith. He incorporated the company in June 1971 and officially began operations on April 17, 1973. The...