4. COMPANY OVERVIEW
• FedEx Corporation (FedEx) is
a provider of transportation, e-
commerce and business
services.
• The company offers:
– time certain delivery services
– international trade services
– in-store services
– online services
– business solutions
• FedEx operates through four
segments.
5. COMPANY OVERVIEW
• FY15 Revenue: $47.5
billion
• Team Members: More than
325,000
• Countries and Territories
Served: More than 220
8. Objectives
• Financial Goals
• Long Term Goals
– Achieve 10%+ operating margin
– Increase EPS 10%-15% per year
– Grow profitable revenue
– Improve cash flows
– Increase ROIC
– Increase returns to shareowners
9. Strategies
• FedEx plans to focus on these five strategies to
grow as a business.
– Grow core package business
– Grow internationally
– Grow our supply chain capabilities
– Grow through e-commerce & technology
– Grow through new services & alliances
11. 1971 - 1989
• 1971: Federal Express Corp. is
founded in Little Rock, Arkansas.
• 1975: Federal Express installs its
first drop box.
• 1977: Federal Express purchases
seven Boeing 727 aircraft
12. • 1978: listed on the New York
Stock Exchange (FDX).
• 1983: reach revenues of $1
billion .
• 1989: purchases Flying Tiger
1971 - 1989
13. 1990 - 1999
• 1990: win the Malcolm Baldrige
National Quality Award in the
service category.
• 1994: launches fedex.com
• 1995: opens the Asia Pacific hub
in Subic Bay
• 1998: creates FDX Corp.
• 1999: opens a hub in Paris airport
and launches its Euroone network
14. 2000 - 2015
• 2000: FDX is renamed
FedEx Corporation.
• 2001: create an alliance with
U.S. Postal Service.
• 2004: acquires Kinko's for
$2.4 billion.
• 2005: launches around-the-
world flights.
15. 2000 - 2015
• 2007: expands in India
• 2012: acquires Rapidão
Cometa, Brazil.
• 2014: acquires the Supaswift
businesses in South Africa
and six other countries.
• 2015: starts the construction
of the FedEx Shanghai
International Express
30. • FedEx launched the Euro network in 1999.
• Two major hubs located in Paris, France and
Cologne, German.
31. • FedEx connect with more than 400 intra-Asian
flights to ensure complete coverage of the
region, including leading business centers such
as Seoul, Tokyo, Osaka, Taipei, Hong Kong
and Bangkok.
37. Technology
• In 2007,
– Launched FedEx Innovative
Labs
– Developed Digital Assisted
Dispatch System and
Electronic Trade Documents
• In 2010,
– Launched Global Business
Data Visualization Experience
– Introduced the first all-electric
trucks
• Recently,
– Built private cloud
46. Strengths Weaknesses
Diversified business operation
Strong information system networks
Strong market position
Brand equity
Technology infrastructure
Physical assets
Sustainable development
Overdependence in U.S. market
Declining market share in Sector
Cost of infrastructure in expanding international market
Decentralized operations
Delivery-staff need training
Covering loss in financing and investing activities by
profit in operating activity
Opportunities Threats
International expenses
Expanding Chinese market
Online shopping
Using cooperative strategies
Challenging competitors through merger &
acquisitions
Growing potential customers
Growing global transportation
Increasing transportation cost
Economic slowdown in China
E-substitution
Current economic situation in U.S. market
Vulnerable to increasing reach by major competition
Cost-cutting initiative
Green initiative makes it costly to keep up with
standards.
47. Recommended Strategies
1) Expand market
2) Retrenchment
• Controlling the operating expenses
• Communicating among regions to avoid
redundancy, overlap territories