Corporate Strategy Case Study

FedEx, The US Express Parcel Carrier: Rationale Behind its Strategic (Non) Expansion

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Abstract:
Since its inception in 1971, FedEx, the world's leading express transportation company, has focused on its core business of express delivery. Although, the growing international trade and increasing demand for custom-made services have driven various dominant players like DHL, UPS and TNT to establish themselves as a ‘one-stop shop’ for all the logistics requirements of their customers, FedEx has limited itself to the small package and light freight markets. This policy of the company has raised doubts about the prudence of its decision.

Pedagogical Objectives:

• To highlight the changing trends in the global exprss parcel delivery industry
• To discuss the rationale behind FedEx's decision to stay tuned only to its core business

Keywords : Federal Express; Global express delivery industry; Transportation services; One- stop shop for all logistics services; Supply chain and warehouse management; Role of express delivery service; United Parcel Service; DHL and TNT; Frederick Smith; International trade and globalisation; Hub and spoke model; Third party logistics providers; Key stages in express delivery; Corporate Strategies Case Study; Federal ground; Competitive strategies