Ahmed Zaeem

Ammara Rehman
Liaqat Ali
Tehreem Ijaz
Yasmine Latif
Muhammad Atif
Presented By

Tehreem Ijaz
History

 Founded in 1971 by Frederick W. Smith.

 First Investment
 1980’s:
– FedEx reached its maturing stage.
– First US company to reach $1 billion in
revenues.
 FedEx handles 3.3 million packages
 History (direct competitor)

 1907 – UPS created by Jim Casey as the

American Messenger Company in Seattle,
Washington.
 1953 - UPS resumes air operations. Blue
Label Air provides two-day service to
Chicago, Detroit, and several major cities on
the east and west coasts.
 1973 - Federal Express relocates operations
to Memphis, Tenn.
 On the first night of continuous operation, 389
Federal Express employees and 14 aircrafts
deliver 186 packages overnight to 25 U.S.
cities — and the modern air/ground express
industry is born.
 1975 - Federal Express installs the first
Federal Express Drop Box.

 1977 - After two years of lobbying led by

Federal Express, Congress passes Public
Law 95-163 enabling FedEx and other cargo
airlines to use larger aircraft with no
geographic restrictions on routes.
 1978 - Federal Express Corporation is listed
on the New York Stock Exchange; ticker
symbol is FDX.
 1981 - Federal Express introduces the
Overnight Letter.
 Federal Express begins international delivery
with service to Canada.
 Federal Express opens its Super Hub
adjacent to Memphis International Airport
 1983 - Federal Express becomes the first U.S.
company to reach revenues of $1 billion
without merger or acquisition
 1984 - Federal Express acquires Gel co
Express International and launches operations
in Asia Pacific. The first PC-based automated
shipping system, later named FedEx Power
Ship®, is introduced.
 1985 - RPS Inc. (now FedEx Ground) is
founded in Pittsburgh, Pa., and introduces bar
code labeling to the ground transportation
industry.
 1986 - Federal Express introduces the
SuperTracker®, a hand-held bar code scanner
system that captures detailed package
information.
 1989 - Federal Express purchases Flying
Tigers to expand its international presence.
 1990 -Federal Express becomes the first
company to win the Malcolm Baldrige National
Quality Award in the service category.
 1993 - RPS (now FedEx Ground) exceeds $1
billion in annual revenue in its ninth year of
existence, recording the fastest growth of any
ground transportation company.
 1994 - Federal Express officially adopts
"FedEx" as its brand for recognition as the
worldwide standard for fast, reliable service.
 FedEx launches fedex.com as the first
transportation Web site to offer online package
status tracking, enabling customers to conduct
business via the Internet.
 FedEx Ship® software (now FedEx Ship
Manager Quick Ship) allows customers to
process and manage shipping from their
desktop.
 1995 - FedEx acquires air routes from
Evergreen International with authority to serve
China.
 FedEx opens the Asia Pacific Hub in Subic
Bay, Philippines, launching the FedEx
AsiaOne® Network.
 1996 - RPS (now FedEx Ground) achieves
100 percent coverage of North America.
 1998 - FedEx acquires Caliber System Inc.
and creates FDX Corporation.
 1999 - FedEx Marketplace launches on
fedex.com, providing easy access to online
merchants that offer fast, reliable FedEx
express shipping.
 FedEx Corp. acquires Caribbean
Transportation Services.
 2000 - Parent company FDX is renamed
"FedEx Corporation." Services are divided into
companies that operate independently yet
compete collectively: FedEx Express, FedEx
Ground, FedEx Global Logistics, FedEx
Custom Critical and FedEx Services.
 FedEx Ground launches FedEx Home Delivery,
an innovative business-to-residential service, in
major U.S. markets.
 - FedEx Trade Networks is created with the
acquisitions of Tower Group International and
WorldTariff.
 FedEx Custom Critical acquires Passport

Transport.

 - FedEx teams with Amazon.com on a major e-

commerce event, delivering the book "Harry

Potter and the Goblet of Fire" to 250,000 eager
customers on the Saturday of its release.
 - FedEx introduces customer technology

solutions including a redesigned fedex.com,

FedEx e-Commerce Builder, FedEx Global
Trade Manager and FedEx Ship Manager.
 2001 - FedEx Express and the U.S. Postal
Service forge a public-private alliance. FedEx
Express provides air transportation of some
U.S. mail and places FedEx Drop Boxes at
post offices nationwide.
 - FedEx Corp. acquires American
Freightways, a less-than-truckload carrier
serving the 40 eastern states in the U.S.
 2002 - FedEx Corp. brands two of its LTL
companies, American Freightways and Viking
Freight, together as FedEx Freight.
 FedEx Trade Networks reorganizes; Tower
Group International becomes FedEx Trade
Networks Transport & Brokerage Inc., and a
new subsidiary is created, incorporating the
services of WorldTariff, called FedEx Trade
Networks Trade Services.
 FedEx Home Delivery completes its expansion
to serve virtually 100 percent of the U.S.
population.
 2003 - FedEx marks a 30-year milestone;
Federal Express (now FedEx Express) began
its first night of continuous operations in 1973.
 FedEx teams again with Amazon.com -
FedEx Express and FedEx Home Delivery
delivered over 400,000 copies of "Harry Potter
and the Order of the Phoenix" (up from the
previous release of 250,000) in a single day.
(About FedEx, FedEx Historical Timeline;
About UPS, Company History).
 In September 2004, FedEx Corp. acquired
Parcel Direct, a leading parcel consolidator,
and later rebranded it FedEx Smart Post. The
acquisition complements the FedEx alliance
with the U.S. Postal Service and provides
customers in the e-commerce and catalog
segments with a proven, cost-effective
solution for low-weight, less time-sensitive
residential shipments
 In 2006, FedEx Corp. acquired ANC Holdings
Limited, a United Kingdom domestic express
transpiration company.  This transaction
allowed FedEx Express to directly serve the
entire UK domestic market.  ANC was then
rebranded FedEx UK.
 In 2007, FedEx Corp. acquired Tianjin Datian
W. Group Co., Led's 50 percent share of the
FedEx-DTW International Priority Express
joint venture and DTW Group's domestic
express network in China.  FedEx then
launched a domestic express service serving
the Chinese market
 Also in 2007, FedEx Corp. continued its
acquisition of domestic express companies
with the acquisitions of Indian express
company Prakash Air Freight Pvt. Ltd.
(PAFEX) and Hungarian express company
Flying-Cargo Hungary Kft.
TODAY
 Today, 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." By operating independently, each
company can focus exclusively on delivering the
best service for its specific market. Competing
collectively under the trusted FedEx banner
ensures that all of the companies benefit from one
of the world's most recognized brands.
Vision Statement
 FedEx Corporation's vision is a world where
goods and information move quickly and
seamlessly. A world where businesses source
raw materials and parts globally, then move
high-value goods quickly between continents
and across time zones. A world where global
information and transportation networks can
shrink time and distance, creating competitive
advantages for customer
Mission Statement
 FedEx Corporation will produce superior
financial returns for its shareowners by
providing high value-added logistics,
transportation and related business services
through focused operating companies.
Customer requirements will be met in the
highest quality manner appropriate to each
market segment served.
 FedEx will strive to develop mutually
rewarding relationships with its employees,
partners and suppliers. Safety will be the first
consideration in all operations. Corporate
activities will be conducted to the highest
ethical and professional standards.
Presented by

Ammara Rehman
FedEx Management
 Executive Committee
 Frederick W. Smith
FedEx Corporation
Chairman, President and Chief Executive
Officer
 T. Michael Glenn
FedEx Corporation
Executive Vice President, Market Development
and Corporate Communications
 Robert B. Carter
FedEx Corporation
Executive Vice President, Information Services and
Chief Information Office
Operating CEO
 David J. Bronczek
FedEx Express
President and Chief Executive Officer
 William J. Logue
FedEx Freight
President and Chief Executive Office
FedEx Success Strategy
FedEx’s strategy for success in the market place
relies on a combination of
 customer intimacy

 operational excellence

 product leadership customer

 Value proposition
FedEx 4 business Segments
General Environment

 Global Provider of:

- Transportation
- e-commerce
- supply chain management
 FedEx an Innovator company:
- Overnight package and letter delivery
- 10:30 am next day delivery
- Saturday delivery service
 • Most familiar service.
• Handles millions of shipments.
• Delivers in 1 to 2 business days.

• Cost effective.
• Alternative for small packages.
• Distance and time are wider.

• Heavy weight shipments.

• Less than truck load (LTL) freight.
• 600 miles next day delivery.
• 1,600+ miles second day delivery.

• When customers need it now.

• 24hrs. 7 days a week, including nights,
weekends and holidays.

• Custom brokerage.
• Electronic custom clearance.
• Speed shipments across the border.
External Environment

 Household name
 Competitive environment
 Global Presence
 IT advances
 Strong market position in air
freight
Competitive Environment

 World wide presence

 Dominates ground services domestically
 High market share in the US
 Acquired full ownership of Mail Boxes, etc.
 Intense competition with FedEx
Competitive Environment

 Recent acquire of ground services

 Specialize in air freight deliveries
 Global presence
 Other mergers, the effects.
Competitive Environment

 Largest customer, but strong

competitor
 Attempt injunction against the
alliance
Internal Evaluation
Management Marketing
 Uses strategic management in  Major advantage by being a
planning and meeting goals household name

 Strong in its corporate structure

 Able to respond to a
with low absenteeism and low
turn over rates at the corporate changing consumer
level, by paying well and showing environment by operating
respect independently completely
and collectively
 2002 hours were reduced, with
wages and benefits increasing
but with profit and incentive
sharing plans reduced
Internal Evaluation

Finance/Accounting Production/Operations

 Fairly strong financial  Industry leaders in Air Express

position
 Handles well over 3 million
 Year 2002 Highlights include packages daily.
large free positive cash
flows, 22% increased net  Excellent ground crew & pilots
income and a $.05 dividend
declared on common stock.
 24 hour customer service
 Fairly weak in leveraging;
incurred large amounts of
debt for an expansion
project.
Internal Evaluation

Research & Development CIS

 Very innovative R&D team.  Highly innovative software
 Six year expansion plan user and designer.
– Estimated cost of over 1.8 Billion  Very aware of competitors
– Doubling package volume programs and systems.
capacity  Constant and up to date
– 10 new distribution hubs & 23 system employee training.
expanded hubs
– Relocation or expansion of up to
300 existing facilities
– Expected completion in 2009
SWOT Analysis

 Strengths  Weaknesses

– Household name – Employee racial discrimination

– Product quality – Lack of ground transportation
– Global expansion force
– Abreast in technology – Costly technology innovations
– Air fleet – Judgment for late deliveries
– Increased debt
SWOT Analysis

 Opportunities  Threats

– Global business growth – Foreign competition entry into

– Online consumer home
services
– Economic standing
– Increase demand in
logistics – Online competitive
– Alliance with USPS advantages of rivals
– Gain in competition service
costs
Strategy Formulation

 Strategy 1
– Online subsidiary with a consumer retailer
 Creating a collaborative union utilizing technological strengths and
online consumer industry growth to provide full consumer
opportunities through the convenience of e-commerce

 Multiple strengths, opportunities and positive industry strength

(SWOT Analysis, Space Matrix)
Strategy Formulation

 Strategy 2

Travel

 Last minute discount air travel tickets available to the public

in order to gain additional profits from the already existing
and operating transportation system in use

 Major positive strength and opportunity

(SWOT Analysis, Space Matrix)
Strategy Formulation

 Strategy 3

Mail

 Enhancing and providing existing postal services

formally provided by USPS
 Strong opportunity and high competitive advantage
(SWOT Analysis, Space Matrix)
Evaluation of Alternatives

 Forward Integration
– Online Subsidiary With Consumer Retailer
 Larger companies become more profitable
– Ex: Wal-Mart, Target
 Company is equipped and able to expand in this area
– Leadership, technology, and equipment

 Use strengths and opportunities as mentioned in analysis

– Online consumer growth is expanding
– Company is abreast in technology
Evaluation of Alternatives

 Horizontal Diversification

Travel
 Currently operates one of the largest airlines in the world
– Has fleet of over 380 jets
– Jets have state of the art instrumentation
 Already employs more than 4200 skilled pilots
 Has some of the best air travel technology and equipment
 Highly capable to execute
Evaluation of Alternatives

 Concentric Diversification/Horizontal Integration

Mail
– Opportunity from SWOT analysis
– Existing contract with USPS
– Future services to be rendered to private outside provider
– Capable of providing additional USPS services
Evaluation of Alternatives

Mail

 Counteracting
competitive strategic
moves
 USPS recognition of
lack of resources
Strategy Implementation

 Strategy 3:
– Concentric Diversification/Horizontal Integration

Mail

– Additional personnel
– Insurance
– Training
 employee evaluations
Strategy Implementation

Mail

 Service sites by way of franchise

– UPS and Mail Boxes, etc.
 Ample resources to accommodate USPS needs
 Expansion project can handle additional/new inflows
– Extra packages and mail
Strategy Implementation

Mail

 Advertising
 TV
 Internet
 Sporting events/arenas
 New labeling on boxes
 Pop Quiz

a. c.

b. d.
…and remember to mail by
Mail