E-BUSINESS MODELS & STRATEGIES AT FEDERAL EXPRESS: AN ANALYSIS
This study examines the e-business models and strategies implemented by Federal Express. The study scope extends well beyond the e-business focus, however, to evaluate the company's performance.
Fred Smith recognized the need for a reliable, overnight delivery service. Smith presented the idea in a Yale term paper in the 1960s, and received a "C" grade for his efforts. Between 1969 and 1971 Smith, however, secured $90 million ($40 million from investors, $8 million from his family, and $42 million in bank financing) to launch Federal Express as the then largest startup funded by venture capital. Federal Express began offering overnight and second-day delivery to 22 American cities in 1973.
Today, The FedEx Express unit is one of the five subsidiary organizations that comprise Federal Express. The FedEx Express unit is the primary focus of this study.
FedEx Express is the global market leader in express transportation. The firm moves an average of three million packages daily.
FedEx Ground is a subsidiary of FedEx Express. FedEx Ground provides ground delivery of packages in North America.
FedEx Freight is a less-than-truckload carrier. FedEx Freight operates throughout the United States. FedEx Freight has two operating subsidiaries ù FedEx Freight East and FedEx Freight West.
FedEx Custom Critical is an expedited surface carrier. FedEx Custom Critical specializes in urgent freight deliveries.
FedEx Trade Networks operates internationally. FedEx Trade Networks provides customs brokerage and freight forwarding services to international shippers.
Company Mission Statement, Vision, Objective, and Strategy
The company mission of FedEx Express is "to see what makes tomorrow work" and to provide the necessary services on a timely basis (FedEx Corporation, 2003, p. 10). The company's vision is to be the organization that "delivers the ce...