The information in this document will cover when and how FedEx works and how they have contributed to technological advances in their line of work. After reading this document you will have a basic understanding of how they were started and how they have made technological advances to become one of the largest powerhouses in the parcel delivery service. FedEx today has become one of the largest companies not only in the United States, but in the entire world. FedEx is truly a global organization. FedEx unlike the other parcel delivery companies such as UPS or DHL focused much more on airfreight. They were the first ones to really focus on air travel for their packages. The explanation of this in the document will create an understanding of why and how they did this; and why it has made them so successful globally.
The document will show how FedEx is different from the other competitors and why they are a better global company. FedEx always seems to have a competitive edge over its competitors due to its technological advances. FedEx’s use of the internet has put them over the top. Since 1994 they have seen the potential power of the internet and have used it to their full advantage ever since. The shareholders are also a huge factor for FedEx as well since it is FedEx’s goal to make sure they still give them a large share. Unlike many other companies in the recession, FedEx has not seen much negative impact from the recession in the United States. FedEx has become the leading global company in the package delivery industry.
The Basics of FedEx
Knowing how and why FedEx was created is a key part to understanding the business. It has been a successful business venture for many reasons and its mission, strategy, and values are very important. Originally known as Federal Express, the company is a global courier business specializing in having small packages reaching their destination the next day as well as a major competitor of ground shipping. FedEx has a unique start that began with an idea from an undergraduate college student. This idea transformed into a very successful business that consists of many companies. (“Reference”) Who, Why, and How FedEx Was Created
The story of how the idea of this type of company came about is unique and also a bit humorous. The idea was first created in 1965 by Yale University undergraduate Frederick W. Smith. He thought that the passenger route system used by airfreight shippers was inadequate. At this time shipping companies either shipped packages on passenger planes or by trucks. He wrote his paper on a new system that was designed only for airfreight and especially for time sensitive materials. Examples of these materials are hospital supplies, like medicine, and computer parts. Although he had a great idea, he did not put the time into the paper and received a C from his professor. The average grade on his paper did not stop him from still thinking about and pursuing this idea. A few years later he finally launched Federal Express Corporation. His idea that he pitched to his first potential customers was that he could get their packages to their destination overnight. His process was that he would ship all items to a central airport hub and then from there fly them to their destinations on routes called spokes. Although customers did not pick up on this idea at first, it remained the heart of how FedEx does its business. To this day Frederick W. Smith is still the owner, chairman, and CEO of FedEx Corporation. (“Reference”) History
The corporation was formed in 1998 when FDX Corp., the name in 1998, acquired Caliber system Inc. This company was on a mission to build and strengthen their already established express system. They did this by continuing to purchase different but related businesses. The original FedEx Corp. included: RPS, Roberts Express, Viking Freight, Caribbean Transportation Services, and Caliber Logistics and Caliber Technology....