FedEx was founded in 1971 by Frederick W. Smith as an overnight delivery service. It is now a global logistics company with over 325,000 employees and $47.45 billion in revenue in 2015. FedEx's business model focuses on high-value package delivery to over 220 countries through its fleet of 652 aircraft and network of logistics services. The company tracks every phase of delivery with its COSMOS computer system to ensure over 99% reliability. While FedEx has strengths in its global network and technology leadership, it faces threats from rising fuel costs and increased competition from companies like UPS.

1. By: Vaibhav Jain

2. Coverage
•Brief History
•About FedEx
•What Is FedEx’s Business
Model
•Logistics System
•Success Mantra
•SWOT

3. FedEx: A Concept that Blossomed
into an Industry
• FedEx (FDX) was the
brainchild(invantion) of Frederick W. Smith
in 1965. An economics student at Yale
University, Smith wrote a term paper in
which he came up with the idea for an
overnight delivery service.

4. CEO

6. About FedEx
•Founded by Frederick W. Smith in
1971.
•Headquarters located in Memphis,
Tennessee.
•Daily Volume of more than 7.5 million
shipments
•Workforce of more than 3,25,000
team members worldwide
•Revenue of $47.45 billion for year
2015

7. What Is FedEx’s Business
Model?
•FedEx creates value by offering “high-value
added” package delivery to over 220 countries.
•The business model can best be summed-up in
the company’s early slogan: When it absolutely,
positively has to be there overnight.
•With 652 aircraft (the world’s largest freight
airline) moving over 4 million packages per day,
FedEx guarantees speed with a reliability of
greater than 99%

8. Cont...
• FedEx provides a portfolio of
transportation, e-commerce, and
business services through wholly
owned subsidiaries. In the same
year, Fortune ranked the company
12th for the “world’s most admired
companies” for the 14th
consecutive year.

10. Logistics System

11. Old Supply Chain

12. New Supply Chain

13. Service
•Review and analysis of supply
chain
•Order administration
•Shipment planning and
management
•Freight bill audit and payment
•Invoice and report generation

14. Competitor

15. UPS History
•Started in 1907 by 19 year-old Jim
Casey then called American Messenger
Company.
• Became Unite Parcel Service of
America in 1929 and began shipping
packages on commercial airliners.

16. Fede
x
UPS
•50,000 Delivery
Trucks
•625 Cargo Planes
•325,000
Employees
•$47.45 Billion
USD
•88,000 Ground
Trucks
• 583 Planes
• 360,000
Employees
• 58.36 billion USD

17. Success Mantra
COSMOS
It is a
computerized
package tracking
system that
monitors every
phase of delivery
cycle at Federal
Express

18. SWOT
Strength Weakness
•Network in more than 220
countries and more than
3,25,000 employees
worldwide
•Best use of technology
•Dependable knowledge in
the delivery business.
•High investment in IT
systems
•More than three decades of
experience in logistics
services
•More dependence on US
market
•Since this is a competitive
segment, the market share
growth is limited
•Less competitive ground
shipping

19. Opportunities Threats
•To use cooperative
strategies
•Challenging
competitors through
mergers and
acquisitions
•Local competitors with
poor service & products
•Acquire smaller
companies to increase
market share
•Rising fuel prices could
impact company’s profit
•Varying market demand
•Vulanrable(unsafe) to
increasing reach by major
competitors.