Fedex Case Summary

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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.
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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 …show more content…
The technological advances of the 20th and 21st century certainly gave the company very important tools to reach its desirable brand positioning. Among the most important breakthroughs that the company incorporated during the 80s we have: FedEx PowerShip, a computer that systematizes shipments; and SuperTracker, a scanner specifically designed to read package information. FedEx Custom Critical designed a communications system that utilizes satellite waves to track the company 's vehicles. During the 90s , FedEx 's commitment to leading technology gave birth to many more projects. FedEx developed an automated system called MultiShip which would basically allow them to process package information for packages sent by other delivery companies. In the consumption field, personal computers have invaded office work and daily activities have become more and more automatized. In general terms, the new strategy to position the brand entailed a concept of communicating the message that FedEx was not just a package transportation company, but that it also offered a wholesome logistics and transportation

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