Fedex Company Analysis
FedEx – Company Paper
Federal Express (FedEx) is a company that is designed to revolutionize global business practices by supplying speed and reliability. The Yale University undergraduate, Frederick W. Smith, was the inventor of this innovative way to send urgent shipments. He used the word “federal” because he wanted this to interest in nationwide economic activity while attracting the public attention. In January of 2000, Federal Express became FedEx Express. Now, FedEx Corp., provides customers and businesses worldwide with transportation, e-commerce and business services and is recognized as, “one of the most admired brands in the world and one of the best places to work.”
In 1965, Frederick W. Smith wrote a term paper that laid out challenges evolving companies were dealing with in the information technology industry. These challenges that the industry was facing was the urgency of shipping. To accommodate to these urgent shipping he tried to find better ways for packages to be delivered within one or two days. In April 17, 1973, FedEx finally started their operations with a starting of 389 team members. The company headquarters also moved to Memphis, Tennessee due to being in close vicinity as the Memphis International Airport. On the night of April 17, aircrafts delivered 186 packages to 25 U.S cities, ranging from the city of Rochester, NY to Miami, FL. Although it sounds like a huge movement, this company did not show signs of profit until two years later.
This profit was rapidly growing due to the change of using larger aircrafts such as the Boeing 727s and McDonelle Douglas DC-10s. Federal Express was growing even more with a growth rare of 40 percent annually. It grew so much that it was marked as the first company to reach $1 bullion in revenues inside 10 years of startup.
With this continual success, FedEx started making intercontinental operations beginning in 1984 with its service to Europe and Asia. In 1988, the company had a cargo service to Japan. FedEx’s success did not stop here. They acquired Tiger International Inc. for around $885 million, which made FedEx the world’s largest full-service, all-cargo airline including routes to 21 countries.
Even today, FedEx is continuously expanding their businesses. Not only did they acquire Tiger International Inc., but they also squired the Caliber Systems, which combined (Caliber Logistics and Caliber Technology) created FedEx Global Logistics. Just eleven years ago, FedEx also acquired privately geld KinKo’s Inc as well as a few months after the Parcel Direct. Over the following years, FedEx continues to acquire numerous transportation companies such as ANC Holding Ltd, Tianjin Datian W. Group Co. Ltd, Flying-Cargo Hungary Kft, Prakash Air Freight Pvt. Ltd, Servicios Nacionales Mupa, Courier Opek Sp.z.o.o., and TATEX.
Mission Statement
FedEx