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Current Market Trends and Conditions-FedEx
March 15, 2010
University of Phoenix
FedEx - Current Market Trends and Conditions
The purpose of this paper is review the current market trends and conditions for FedEx. There are numerous ways that a company can become a success or become a failure. The market trends and conditions are just of those reasons. Team A has analyzed the market trends and conditions by reviewing FedEx's operating structure, competitors, the impact of government regulations, price elasticity of demand, along with a supply and demand analysis.
History of FedEx
FedEx Corporation is responsible for the direction of FedEx which is comprised of FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks, and FedEx Services. FedEx started in 1998 and wanted to expand their express delivery service so that they could diversify their portfolio ultimately to compete in the market on a global scale.
In 2000, FedEx acquired a new subsidiary called Tower Group International who is a leader in the business of international logistics and trade information technology. Through this acquisition, FedEx has become the largest-volume customs entry filer in North America and a leader in global ocean and air cargo distribution and trade facilitation.
In January 2001, FedEx Global Logistics realigned to streamline the organization to further improve their customer service across the board. They bought out American Freightways and Viking Freight changing them to FedEx Freight encompassing the Eastern two thirds of the United States. In 2004 FedEx acquired Parcel Direct who is a leading parcel consolidator, which became SmartPost. This helped FedEx in its alliance with the U.S Postal Service and provided customers with proven cost effective solutions for low weight and time sensitive shipments within the United States.