his market share was gained at the expense of scheduled freight, which fell from a 70 percent market share in 1975 to a 42 percent share in 1988.
The company's strengths begin with its name recognition. While other companies, including United Parcel Service (UPS) also have overnight service, Federal Express has the highest level of name recognition. In fact, Federal Express was recently cited as the 139th most powerful name brand in the United States, ranking ahead of American Express, Texaco and Cadillac. In addition, the company owns and operates more than 33,000 ground vehicles, including vans, trucks and tractor-trailers. The company's air fleet is also considerable: as of July 1992, the company owned four MD11s, 12 747s, 30 DC-10s, 150 727s, 216 Cessna 208s and 32 Fokker F-27s. The company was also committed to purchase an addition 38 aircraft, increasing its capacity. The company now also operates a second sorting facility in Indianapolis, in addition to the primary facility in Memphis. Regional hubs are operated in Oakland and Newark.
Another strength of the company is its reputation for quality. The company was awarded the much-coveted Malcolm Baldridge Award in 1990 in recognition of its commitment to quality and its track record in this regard. This quality awareness, combined with the company's name recognition and capacity, give the company considerable advantage in its market.
However, the company is suffering from significant problems, despite these strengths. The company purchased the Flying Tigers company in 1989, which enabled it to enter the world market. The late 1980s witnessed several consolidations within the industry. In addition to Federal Express acquiring Flying Tigers for 880 million dollars, Emery purchased Purolator for 300 million in 1987, and was itself purchased by Consolidated Freightways for 230 million shortly thereafter. Domestic airlines, including American and United, disconti...