This is a detailed case study on FedEx. I had presented this case study. This a You Tube Link for detail overnight shipping: https://www.youtube.com/watch?v=y3qfeoqErtY&t=211s

1. Submitted To- Dr. Ashok K. Chitkara
Dr. Ashok K. Chitkarë
Submitted By- Aditya B. Raghav
Adität B. Raghav (MBA- HR)

3. Trade Name: FDX
Former Name: Federal Express Corporation (1971-1999)
Type: Public Company
Traded As: NYSE: FDX
Industry Types: E-Commerce , Services, Transportation
Founded In: May 5, 1971; 51 years ago in Little Rock, Arkansas
Founded By: Frederick Wallace Smith
Head Office/Head Quarter : 942 S Shady Groove, Memphis, Tennessee, United States
No. of Locations : 1,955 locations (as per 2021)
Area Served : World Wide
Key People: Frederick W. Smith (Executive Chairman)
Raj Subhramaiyam (CEO & President)
Services: Business Service, Express Delivery, logistics
Total Revenue: USD $93.513 billion (2022)
Operating Income: USD$6.245 billion (2022)
Net Income: USD$3.826 billion (2022)

4. Total Assets : USD$85.994 billion (2022)
Total Equity: USD$24.939 billion (2022)
No. of Employees : 621,000 (June 2022)
Main Hub: Memphis International Airport, Memphis
Primary Hubs: Newark International Airport, Ney York, San Francisco, Anchorage, London, Frankfurt,
Rome, Dubai, Singapore etc. (total 40 hubs)
U.S Hubs: Anchorage in _______ Alaska, Fort Worth in _____ Texas, Indianapolis, IL and New York
Main Hub in India: New Delhi (Indira Gandhi Intl. Airport) & Mumbai (Chattrapati Shivaji Airport)
Fleet Size: Air (735) including 3 jumbo jets Ground (44,000)
FedEx Super hub

5. o The company which was just near to bankruptcy in 1973, today by January 2023 its valuation
is $108 billion USD(89cr,49lacks,70 thousand and 260 rupees).
o At time of pandemic when 20 Cr + business destroyed or dead, but a few companies growth
rapidly grew up, one of them is FedEx(earlier known as federal express). Today world’s top 3
most major logistics company is FedEx, UPS, Amazon. But it is saying in the Dangal Film,
that, “Agar silver jeeti toh aaj nahi toh kal log tanne bhool javenge ... gold jeeti toh misaal ban
javegi ... aur misaalein di jaati hai , bhooli nahi jaati” . The same case is with FedEx, world’s largest
and busiest logistic company.
o Where some major logistics company like UPS, Amazon, DHL, TNT , USPS(United States Postal
Service), etc. , whom had a loss of $ 1billion, whereas FedEx in same pandemic era had a profit of 1.30
billion dollars & by 2021 profit of 5 billion dollars exceeded

6. Now the curious question arises how FedEx able to gain profits, on other hand loss
was instantly rising to other companies. Now I will show you the secrets of FedEx

7.  The boy named Frederick Wallace Smith was born on 10th August,1944 in Marks, Mississippi, U.S
his father was James Fredrick and mother Sally.
 In 1962 Frederick entered Yale University in New Haven, Connecticut, while attending in Yale, he
was given an assignment for economics class, teacher questioned him, ‘suppose you are logistics
manager – so design an sketch of overnight delivery service, on which he received ‘C’ grade.
 On the assignment what he purposed an idea of FedEx, where his teacher scolded and said your idea
will not work at all forever.
 Firstly what do you guess what may be his idea? Any Idea
 He said that till now (1962) America and other countries there was no dedicated logistic companies
carry 24/7 delivery, but at that time they were open Monday to Saturday from 5am to 8pm only,
people who send their parcel went either by containers on truck or through passenger plane and
delivered at least 3-4 days and sometime on special occasion like new year it even take weeks to
send.

8.  And his plan was that let I start-up my company FedEx where I will operate 24/7 FedEx for the
customers.
 Fredrick identified the biggest problem in market that people want that their parcels send and
arrive quickly, but at that time people did not want to spend more money. Later FedEx fixed
this problem and then FedEx became market leader. At today time FedEx charge premium
prices and their customers and loyal customers pay too. Now question arises how he fixed
these problem. By the end of 1965, while FedEx was discovering markets, and FedEx notice
the equation called – Difference of tangible and perceived value. In simple words it is called as
tangible value and perceived value. What may be the difference?
 Well, tangible value is that which you can touch, feel the product e.g.. pencil, bottle.
 Whereas as perceived is that which creates the value of product in customer brain. Best
example services.
 And FedEx had lacked on perceive value. FedEx had not a perceived value.

9. Every product have a perceived value. In which firstly Value Proposition Creation, what is the
value outcoming.
So, what was FedEx Value, which he had made
1.) Overnight Shipping & Speed
2.) Package Tracking
3.) Trust
So Firstly he combined Speed + Trust = FedEx value
Now the problem was that how to quantify the value ?
Fed Ex find a solution known as C2C network strategy

10. What is C2C Model ?
Sol. So C2C Model that is Customer to Customer Model, this is a business model whereby
customers can trade by each other, typically in an online environment.
 Also it is a business model that facilitates the transaction of products or services between
customers.
 C2C is a business model where customers purchase goods from other customers via a third-
party platform or business.
 Businesses that facilitate C2C transactions help sellers reach vast numbers of potential buyers.
 C2C companies act as intermediaries to foster engagement and help consumers reach bigger
audiences.
 Whether a C2C platform focuses on goods or services, this e-commerce category facilitates
transactions between people.

12. How can we do overnight shipping in more than 200 countries??
Sol. If you want to do an overnight shipping globally then you should focus on three main
Areas.
1.) Hubs : As mentioned earlier FedEx have 40 primary hubs and rest secondary hubs
Suppose you sent your parcel from Point ‘A’ to Point ‘B’, so before heading if your home to destination is
less than /= 2hrs in flight and 20 hrs in roadways the it will go direct to your destination. But if it is more
long way in that case the flight will fly around 11 pm from point A and reach by 5 am to point B. Ex. A
packaged ship from Miami, FL around 5pm on Thursday and reach Anchorage , Alaska on Friday at 9 am.
Or from Endburisk at 6 pm on Monday and get a packaged ship to Chicago on 9 am on Tuesday.

13. FEDEX V/S UPS
Originally known as Federal Express(1971) Old Name United Parcel Service (1907)
The World On Time for You Slogan What can Brown Do for you ?
$US 93. 513 Billion Total Revenue (2022) $ US 72.201 Billon
20.9 Million Average Shipments Daily 14.01 Million
95 % Percentage of Shipments on time 88%
17:20 avg. express transit time 15:00
695 Jets Total Air fleet 268 Jets
18,100 Ground Fleet 24,000

14.  Firstly, we are see any sector of industry from I.T to FMCG to Education, the customers are always the
first, in this when FedEx researched market they learned that how much important customer are, and how
to make them happy, and this thing FedEx applied it, even today after every 5 months FedEx update it
self for customer.
 FedEx killed others by using the strategy of C2C strategy which other logistics companies applied but not
up to the mark or a edge over it.
 Technology and transportation is nerves system for FedEx, because with help of technology they track
packages and they are able to transport goods.
 The Prices also is the important which FedEx noted. They put premium prices and FedEx customer pay it
for the quality of packaging done by FedEx.
NUTSHELL : Hence in one word FedEx only works and serves for the customers, as they fell the
customer is king and their slogan is also The World on Time for You means customer.