Fedex Company Profile

FedEx is a leading global provider of transportation, e-commerce and supply chain management services. FedEx companies offer following services: worldwide express delivery, ground small-package delivery, less-then-truckload freight delivery, global logistics and customs brokerage. Other services include trade facilitation and electronic commerce solutions.

All of the above services are provided through a portfolio of operating companies: Federal Express Corporation (world largest express transportation company), FedEx Ground Package System, Inc. (second in North America provider of business and residential money-back-guaranteed small-package ground delivery services), FedEx Freight Corporation (largest regional LTL carrier in the US providing next-day and second-day freight services), FedEx Custom Critical, Inc. (American largest surface-expedited carrier offering door-to-door delivery of time-critical shipments), FedEx Trade Networks, Inc. (global transportation and logistics services), FedEx Corporate Services, Inc. (extensive supply chain management solutions).

FedEx Express invented express distribution as early as 1973 and till today remains the leader on the market providing rapid, reliable and time-definite delivery of packages, documents and freight within one to three business days. FedEx works in more than 214 countries serving more than 90% of the world gross domestic product through customer-cleared and door-to-door delivery. FedEx's extensive air route authorities and transportation infrastructure combined with leading-edge information technologies makes it the largest transportation company in the world. Currently, FedEx employs more than 134,000 employees operating in approximately 53,500 drop-off loc...

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FedEx has an impressive performance record. In 1998 the revenue was $15.9 billions. Sales are growing steadily for the last five years. However, looking at the net income, not everything is so wonderful. It even declined in 1997 because of the rising fuel costs. Nevertheless, today net income is growing due to acquisition of subsidiaries with lower operating costs and reduction in average costs of the corporation.

FedEx needs to ensure those employees are well compensated. It is a service company and employees are critical to its success. Pilots' salaries need to be placed at least at the industry average. The presence on Internet needs to be maintained and e-commerce made profitable and user-friendly. Prices also need to be kept 10% of their competitors' price or find other ways to make sure that customers view their service as worth of higher paying.