Federal Express (FedEx) is a courier and logistics services company headquartered in Memphis, Tennessee. It was founded by Frederick W. Smith in 1971 and began operations on April 17, 1973 with 186 packages delivered to 25 cities. Today, FedEx operates in over 220 countries and territories with a global network spanning Asia Pacific, Canada, Europe, Middle East, and Africa. FedEx has evolved from a courier company to a third-party logistics service provider to remain competitive and effectively manage the flow of resources through integrated information, transportation, inventory, and other services.

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.