Fedex International Strategy

INTERNATIONAL STRATEGY

ANALYSIS OF FEDERAL EXPRESS (FEDEX)

Introduction of the Firm

Headquartered in Memphis, Tennessee, Federal Express (FedEx) pioneered the package delivery industry with its air and ground express delivery system in 1971. By 1998, Federal Express had rebranded itself and created its corporation as FDX Corporation. The FedEx Corporation as we know it today was once again rebranded in 2000. Today FedEx is a global provider of transportation, e-commerce, and supply chain management services reporting in four segments of business including FedEx Ground, Express, Freight and Services. Globally, FedEx extends its services of package delivery and parcel delivery all over the United States and globally via its Ground and Express delivery systems which happens to be its most profitable source of earnings and revenue. Other services include freight delivery and FedEx Office (formerly known as Kinko’s). FedEx continues to grow its market share in ground transportation by incorporating owner-operators drivers. While domestic growth may seem to be a bit slow, the international market seems to be on a steady rise.

FedEx operates in the airfreight and package delivery industry, with its only competitors being UPS, and the U.S. Postal Service both domestically and abroad. FedEx is the second-largest domestic ground package delivery network, the largest regional partial truckload provider, and a leading document services company. The long-term growth rates for FedEx range from 11.0% to 15.0%, with the average long-term growth rate being 13.1%. FedEx believes their portfolio will allow them to further develop its existing client relationships, broaden its client base, and reach market leading growth rates in the long term.

With more than 300,000 employees worldwide, FedEx ships over 9 million packages