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Fed Ex

Introduction:

Federal Express achieved a great deal of success in the 1970’s with a pioneering approach to overnight delivery of letters and packages in the U.S.A. After several booming years of catering to customers needs, FedEx’s growth in the United States slowed considerably. This was due to direct competition from United Parcel Service, and the increased popularity of the fax machine. At this time FedEx founder, Fredrick Smith began to look elsewhere for opportunities for new growth.


Problems:

FedEx made more than 20 international acquisitions, including courier services and trucking operations. But strong overseas rivals, DHL Worldwide Express and TNT were becoming deep-rooted in Europe. In addition, government regulations posed a problem, resulting in a million dollar a month loss for an entire year. In 1988, FedEx acquired Tiger International, the worlds biggest air heavy-cargo company, which included the Flying Tiger Line. However this acquisition brought...

Posted by: Justin Rech

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