Essay by kenameiUniversity, Master'sA+, October 2004

download word file, 13 pages 3.8


Federal W.Smith had a vision of overnight air express venture. He and his business partners commissioned two independent market research which suggested a market niche for a reliable, time-definite overnight delivery service. Then they executed the vision in 1973, establishing Federal Express.

Today, approximately 90,000 Federal Express employees, at more than 1,650 sites process 1.5 million shipments daily, all of which must be tracked in a central information system, sorted in a short time at facilities in Memphis, Indianapolis, Newark, Oakland, Los Angeles, Anchorage, and Brussels, and delivered by a highly decentralised distribution network. The firm's air cargo fleet is now the world's largest. Federal Express revenues totalled $7 billion in fiscal year 1990. In 1990, Federal Express became the first winner of the Malcolm Baldrige National Quality Award in the service company category.


Federal Express achieved a great deal of success in the 1970s 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 by adopting information system.

Developmental History

Today's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for six independent operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.

Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc. Through this and future purchases, FedEx sought to build on the strength of its famous express delivery service and create a...