Current Market Conditions - FedEx

Essay by babydoll77stlCollege, UndergraduateA-, March 2010

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Current Market Conditions - FedEx

March 1, 2010

University of Phoenix



Current Market Conditions - FedEx


The purpose of this paper is to review the current market conditions for FedEx. Like many organizations, FedEx is faced with different market conditions on a regular basis. Team A has reviewed some of the market conditions and addresses which ones will or will not change. The research that Team A compiled together are conditions such as market structure, impact of new companies, pricing, technology, productivity, price elasticity, competitors, and several more. After reviewing the market conditions, Team A will show how FedEx has managed to continue growing in today's market.

Market Structure

FedEx is moving rapidly into freight transportation which is less expensive than the usual ground services. FedEx is expanding into other foreign markets at a rapid pace offering printing, photocopying, Internet access, and other business- center services.

FedEx is currently the leader in express shipping owning 49% of the market share by volume in the U.S. FedEx is currently entering the in ground shipping field in which UPS dominates currently.

Impact of new Companies

FedEx plans to expand their international network and is banking highly on this international shipping network. This will cost the company a great deal at first and their success will depend on how quickly they can attract customers to this expanded network. The costs are associated with the economy and fuel prices have cut into their profits as well as salaries for their employees. The operating income of the organization has continued to fall because of the current state of the economy.


The sales have declined for FedEx and reduced revenue by 6.5% from $37.953 billion to $35.497 billion. The only segment that made money...