FedEx uses a hub and spoke system to move freight around the world. It has its main hub in Memphis, which is the 2nd-largest airport in the world for cargo movements (ACI, 2014). Several other FedEx hubs feature in the top cargo traffic rankings -- Anchorage, Pudong, Dubai, and Miami. 65% of average daily package volume is domestic U.S. shipments, hence why Memphis is the main focal point in the system (2015 FedEx Annual Report, p.21).
International operations are divided into two types -- international domestic and international export, reflecting the destination. International domestic would be, for example, a package going from Vancouver to Toronto. Export would be anything that crosses a border. The breakdown of average daily volume for international shipments are international domestic 58.8% and international export 41.2% (2015 FedEx Annual Report, p.21).
The international system is still based on the hub-and-spoke network. There are several international hubs around the world. These include Pudong (Shanghai), Dubai, Guangzhou, Osaka, Paris and Incheon (Won, 2016; FedEx, 2014). From these hubs, packages are gathered by the different stations in the region, and then all shipped to the hub, usually via air. In the more established regions, this means using FedEx company planes, but there are partners to cover a lot of the world's outlying areas.
Canada represents a somewhat unique system in FedEx in that it does not run a hub-and-spoke. There are mini versions of the hub-and-spoke, such as all Alberta flows run through a small hub in Calgary, but the general pattern...
FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL
FedEx Applying Strategic Market Planning to FedEx Marketing Foundations FedEx (NYSE: FDX) is one of the leading providers of global logistics services to the Business-to-Business (B2B) and Business-to-Consumer (B2C) marketplaces globally. FedEx is particularly strong in the U.S. where 73% of total revenues in their latest fiscal year were generated (FedEx, 2010). FedEx's approach to marketing is to accentuate the role of trusted advisor in shipping, 3rd party logistics (3PL), and supply chain
FedEx is in the global logistics industry, and offers a wide range of products and services within this space. The major business units are Express, Ground, Office, Custom Critical, Freight, SupplyChain and Trade Networks. The major business is Express, which is the overnight courier business. FedEx pioneered this service and remains the global leader in overnight shipping. While most subsidiaries are based in the United States, Express operates globally, spanning
FedEx The organization in question is FedEx Express, the overnight courier company. The company operates a global network for picking up and distributing packages and envelopes. Most of its major fixed assets are its stations, its aircraft and its fleets of vehicles. The company's business is highly correlated with the state of the global economy, and as a result FedEx must continually adapt its capacity in different regions according to the
Thus it exemplifies a company's migration from the technology strategy through the service strategy to the market strategy of the B2C e-strategic grid" (132). These authors suggest that these it-based initiatives were primarily responsible for the company's ability to promote its services and grow its market share far more rapidly than its main competitor: "By focusing on building profitable market share, UPS is now able to deliver 12.4 million
For the first 2010/2011 fiscal quarter ending Aug 31, FedEx Freight generated revenue of $1.26 billion, up 28% from last year's $982 million, but made a loss of $16 million -- down from an income of $2 million a year ago (2010, FedEx). FedEx Corp. reported gross revenue of $9.46 billion in the quarter, up 18% from $8.01 billion the previous year; operating income of $628 million, a 99% increase from
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now