Analysis of Federal Express
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In 1973, Frederick Smith began a company in Memphis which would revolutionize the way that American companies sent packages. Federal Express became a powerful force in moving packages and letters overnight from any point in the continental United States to any other point. Taking full advantage of airline deregulation in 1978, the company's shortened name, Fed Ex, has become synonymous with overnight delivery in much the same way that Xerox is synonymous with photocopying.The company's mission is to provide high-quality express delivery of packages or documents. Initially, the company focused on parcels weighing less than 70 pounds, which was the minimum weight the traditional freight forwarders would handle. Until Federal Express, these smaller packages were sent by airline couriers. Smith brought his company into the marketplace at a time when there was increasing demand for moving these smaller packages as companies which manufactured electronic components and similar items were faced with shipping packages of less weight than previously. Smith also drastically changed the way in which packages were handled and shipped in that Federal Express controlled a parcel's entire movement, instead of relying on freight forwarders. A Federal Express truck picks up the parcel at the shipper's facility and transports it to the airport where it is placed directly on a Federal Express aircraft. The airplanes are all routed through Memphis where they are transferred to planes g
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nt transfer, with the advantage that FAX machines are considerably cheaper to operate. Except in cases where a signature is required for legal reasons, and in cases where confidentiality can be an issue, FAX machines are more economical and faster than Federal Express.
There are significant barriers to companies entering the express carrier market because of the large capital investment required in equipment, transportation, computers and access to airports. However, large organizations, including United Parcel Service and the US Mail Service have recently begun offering overnight service for smaller packages, traditionally Federal Express' domain. The purchase of Emery by Consolidated Freight moved another traditional freight carrier into the express realm, as well. Customers seeking to simplify their operations may choose to use only one carrier for their shipping needs to enhance the shipper's negotiating position with the carrier.
The following charts illustrate the company's recent financial and stock performance, illustrating that the company has recently encountered difficult times:
What these graphs illustrate is that the although sales for the company have increased steadily (although at a declining r
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Some common words found in the essay are:
Federal Express, United Canada, North American, Consolidated Freight, Express European, Texaco Cadillac, Flying Tigers, Fed Ex, federal express, Baldridge Award, Fokker F-27s, market share, stock performance, company able, european operations, moving packages, core business, market company, name recognition, financial performance, including united parcel, market share company, federal express aircraft, business moving packages, united parcel service,
Approximate Word count = 2350
Approximate Pages = 9 (250 words per page)
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