Federal Express Case Analysis

1674 Words 7 Pages
Frederick W. Smith graduated in 1965 from Ivy League Yale University. During his time at Yale, the young Smith wrote an important document about routing systems that were used by aerial consignors when transporting packages, cargo, and documents. He came to the conclusion that the systems were economically inadequate at the time. Smith wanted to create a system in which packages and other cargo were effectively delivered at guaranteed times and organize the shipments by priority. He realized that the client in this industry demanded some sort of power to control the sending and receiving of shipments as well as to be able to plan the delivery dates for them.

In 1971, Frederick Smith bought Arkansas Aviation Sales based in Little Rock, Arkansas. Smith 's new company had to face a few challenges in the airfreight industry. It would often be difficult to compete with transportation companies that had faster delivery times. After realizing that
…show more content…
Federal Express counted with one air fleet of fourteen Dassault Falcon jet planes that would fly out of Memphis International Airport. That same day, 186 packages were delivered to 25 different cities in the United States, from Rochester, NY to Miami, FL. Federal Express became the first company to offer a 24 hour service of package, cargo and document deliveries from door to door in the United States. The company 's geographic point for all airplane take offs was Memphis since it was a strategic location in terms of stable weather. The Memphis airport also counted with special hangars for cargo transportation planes. FedEx did not turn a profit until the middle of 1975. After this point, the delivery service company experienced an exponential growth. With only two years into the creation of the company, FedEx had already attained a remarkable positioning in the market. They were the first airfreight company to handle top priority goods in the

Related Documents