Fed Ex began delivery in 1973 (Parnell, 2014). What was originally an overnight and second-day delivery service to 22 major cities in the U.S. has blossomed into a diverse portfolio of transportation, e-commerce, and business solutions where air, ground and sea networks cover more than 220 countries and territories (FedEx, n.d.). FedEx was the first major air transport company to implement a “hub and spoke” system, where all packages would enter a central location and be redistributed to their final destination (Parnell, 2014). According to Parnell (2014), Fedex lobbied for the Air Cargo Deregulation Act which successfully helped to change the face of the airline industry as we know it today and spurred Fedex’s growth rate by exponential amounts.
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FedEx chose to operate in multiple related industries. This is evidenced by their move toward an internet-based shipping management system and their decision to acquire Kinko’s. The internet had both hurt and helped FedEx. The internet had weakened the consumers need for FedEx to overnight documents because now they could be sent at via the internet and get to their destination almost immediately. Conversely, with the onset of the internet, FedEx also saw an increase in the number of small e-commerce businesses that needed to get packages to their customers quickly. Kinko’s would aid them in providing a broader array of shipping and office related needs, especially to those small business owners (Parnell, 2014). The late 90’s and early part the 21st century saw FedEx buying up other small businesses and rebranding them with the FedEx name to build a more diversified corporation of different but related businesses. The United States Postal Service has relied on FedEx to ship its Express Mail, Priority Mail and First Class Mail since 2000, and now through a partnership, FedEx depends on the USPS to deliver some packages for them (Rohrlich, 2012). This is a very strategic move on behalf of FedEx, because it saves them money. If the USPS is going to be going to the rural areas to make daily mail deliveries, it …show more content…
They continue to provide transportation, e-commerce, and supply chain management services; all the while remaining the world’s leading express delivery company (Parnell, 2014). FedEx has established itself with very strong brand value in the marketplace and among its dedicated customers. FedEx is a trusted business because of its reliability and timeliness of package delivery services. It has become a household name synonymous with quick, on-schedule delivery. The company is almost guaranteed to remain an integral part of the logistics world because of the barriers to entry that exist in the industry. The cost of starting a company that would even begin to disrupt what FedEx has established would be
FedEx chose to operate in multiple related industries. This is evidenced by their move toward an internet-based shipping management system and their decision to acquire Kinko’s. The internet had both hurt and helped FedEx. The internet had weakened the consumers need for FedEx to overnight documents because now they could be sent at via the internet and get to their destination almost immediately. Conversely, with the onset of the internet, FedEx also saw an increase in the number of small e-commerce businesses that needed to get packages to their customers quickly. Kinko’s would aid them in providing a broader array of shipping and office related needs, especially to those small business owners (Parnell, 2014). The late 90’s and early part the 21st century saw FedEx buying up other small businesses and rebranding them with the FedEx name to build a more diversified corporation of different but related businesses. The United States Postal Service has relied on FedEx to ship its Express Mail, Priority Mail and First Class Mail since 2000, and now through a partnership, FedEx depends on the USPS to deliver some packages for them (Rohrlich, 2012). This is a very strategic move on behalf of FedEx, because it saves them money. If the USPS is going to be going to the rural areas to make daily mail deliveries, it …show more content…
They continue to provide transportation, e-commerce, and supply chain management services; all the while remaining the world’s leading express delivery company (Parnell, 2014). FedEx has established itself with very strong brand value in the marketplace and among its dedicated customers. FedEx is a trusted business because of its reliability and timeliness of package delivery services. It has become a household name synonymous with quick, on-schedule delivery. The company is almost guaranteed to remain an integral part of the logistics world because of the barriers to entry that exist in the industry. The cost of starting a company that would even begin to disrupt what FedEx has established would be