Fed-X
FedEx Express: Globally Competitive
Introduction
FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL and TNT. In most Western markets, the industry is relatively concentrated, with these companies and a few local competitors (such as Purolator in Canada) dominating the business. In the developing world, there may be more competitors and the industry less concentrated. FedEx remains a strong competitor in the overnight delivery industry. Today, industry growth is concentrated on emerging markets. As such, most of the notable moves from FedEx Express have related to these markets. Recent moves in China for example have included opening a third station in Suzhou, a wealthy and historic city near Shanghai (Berman, 2011) and opening its largest operations station in the country last month in the Pudong area of Shanghai (Lopez, 2011).
FedEx is expanding in India, having made a major acquisition there this year of AFL and Unifreight India (FedEx, 2011). The company is also launching a new service in India to help it capture a larger share of that growing market (Ashby, 2011). The company is also expanding in Brazil and the Southern Cone region of South America including Argentina and Chile (FedEx, 2007). These expansions, as well as those in Europe, point to the company’s commitment to not only take advantage of the opportunities presented by globalization, but to spur further globalization by providing better market access between expanding economies and mature ones.
FedEx Express Industry
The global courier market is expanding, in large part due to the long-run trend of globalization. Technology has aided in
Introduction
FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL and TNT. In most Western markets, the industry is relatively concentrated, with these companies and a few local competitors (such as Purolator in Canada) dominating the business. In the developing world, there may be more competitors and the industry less concentrated. FedEx remains a strong competitor in the overnight delivery industry. Today, industry growth is concentrated on emerging markets. As such, most of the notable moves from FedEx Express have related to these markets. Recent moves in China for example have included opening a third station in Suzhou, a wealthy and historic city near Shanghai (Berman, 2011) and opening its largest operations station in the country last month in the Pudong area of Shanghai (Lopez, 2011).
FedEx is expanding in India, having made a major acquisition there this year of AFL and Unifreight India (FedEx, 2011). The company is also launching a new service in India to help it capture a larger share of that growing market (Ashby, 2011). The company is also expanding in Brazil and the Southern Cone region of South America including Argentina and Chile (FedEx, 2007). These expansions, as well as those in Europe, point to the company’s commitment to not only take advantage of the opportunities presented by globalization, but to spur further globalization by providing better market access between expanding economies and mature ones.
FedEx Express Industry
The global courier market is expanding, in large part due to the long-run trend of globalization. Technology has aided in
Cited: Ashby, A. (2011). FedEx Express launches new delivery service in India. Memphis Business Journal. Retrieved October 15, 2011 from http://www.bizjournals.com/memphis/news/2011/10/04/fedex-express-launches-new-delivery.html Berman, J FedEx. (2007). FedEx Express responds to growth of Brazil, South Cone with greater access for local markets. FedEx Brazil. Retrieved October 15, 2011 from http://news.van.fedex.com/intl/br?node=5688 FedEx FedEx. (2011). FedEx Express completes acquisition of AFL Pvt Ltd businesses. FedEx Press Release. Retrieved October 15, 2011 from http://whattheythink.com/news/49448-fedex-express-completes-acquisition-afl-pvt-ltd-businesses/ FedEx.com MSN Moneycentral. (2011). FedEx and UPS retrieved October 15, 2011 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=ups and http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=fdx Reuters. (2009). FedEx profit drops 75%, more than estimated. New York Times. Retrieved October 15, 2011 from http://www.nytimes.com/2009/03/20/business/20fedex.html TNT 2010 Annual Report