1. Federal Express
(FedEx)
Acourier and logistics services
company.
Based in the U.S.
Headquarters : Memphis,
Tennessee.
The FED is of Purple colour and
the ex is orange in colour.
2nd largest express delivery
company.

2. Background
Founded by Frederick
W.Smith.
Original concept at Yale.
Incorporated in 1971.

3. Yesterday and Today.
 April 17,1973 – first day of operation.
-186 packages.
-25 cities.
 Today :
-210 countries
-Global network.
-Asia Pacific
-Canada
-Europe, Middle East, Africa.

4. FedEx Corporation.
 1998–Original name of FedEx
Corporation.
 January 2000 – Change name to FedEx
Corporation.

5. Milestones
1975-First showed profits.
1977- Deregulation for air cargo
allowed use of larger aircraft.
1984 – Services to Europe and
Asia began.

6. Goal
Operateindependently and
compete effectively.

7. What is Logistics and 3PL ?
 Management of flow of resources .
 Integration of information, transportation,
inventory, warehousing, material handling,
packaging and security.
 Third Party Logistics(3PL) involves using
external organization to execute activities that
have been traditionally been performed within an
organization itself.

8. SWOT ANALYSIS.
Favourable. Unfavourable.
Strenghts. Weaknesses.
-Strong brand image. -Declining operating
-Strong revenue growth. efficiency and weak returns.
-Large scale operations. -Dependance on the U.S.
Opportunities. Threats
-International expansion. -Increasing transportation
-Expanding chinese market. cost.
-Economic slowdown in the
-Online shopping. U.S.
-E-substitution.

9. 5 Work Force Model.
1. Industry threat from existing firms.
 United Parcel Service.
 DHL
 United States Postal service.
2. Bargaining power of suppliers.
 Fairly Low for FedEx.

10. 3. Threat of new Entrants.
 Large capital investments are required for
entering this industry.
 Air fleets, warehouse, distribution centers etc.
 Customers are difficult to attract because of the
switching costs.
 Online tracking, online sales and shipping
system.

11. 4. Bargaining power of buyers.
Can vary greatly between new and
existing customers.
 New customers initially have power.
 Existing customers have decreased
power.

12. 5. Threat of Substitutes.
Currently low, but subject to change.
 E-mail.
 Less likely to be used to transmit
information.
 Regular Mail. (e.g. US Postal Service)
 Still have issues with security, speed, and
reliability.

13. Reasons for evolution from courier
company to 3PL service provider.
 Due to the Change in technology.
 To cope up with the Latest Development.
 To produce services which are at ease to
absorption.