History and Success Story of global courier giant FedEx
Want to deliver your packages in quick time: do FedEx, that’s the image FedEx has created in the mind of customer. Customers associate quick delivery with FedEx. FedEx idea was initially written as a thesis paper by Yale University undergraduate Frederick W. Smith which is the base of FedEx history.
Smith’s professor was not convinced by the economic implication of the paper and gave average marks. That average marks thesis paper changed the history of courier services industry. It brought revolution in the functioning of the industry.
What's Inside?
About the company
FedEx initially started as a federal express corporation was established in 1971 in America by Frederick W. Smith. FedEx operated as “federal express” from 1973 until 2000, after that it was renamed as FedEx.
After finishing his military stint in August 1971, Smith bought the interest in Arkansas Aviation Sales, located in Little Rock, Arkansas. In those days it was very difficult to deliver the packages and other airfreight within one or two days.
He saw the difficulty while operating in his new firm. Smith with his thesis paper in mind was determined to find new ways of doing business. Thus the idea for Federal Express was born: A company that has revolutionized global Courier business and that now defines speed and reliability. It redefined the history of courier industry.
Early Years/History of FedEx
Federal Express official operations started on April 17, 1973, with 389 team members. On the night of April 17th, 14 small aircraft took off from Memphis and delivered 186 packages to 25 U.S. cities from Rochester, New York, to Miami, Florida.
FedEx did not earn profit up to 1975 but it became successful to build its image in the market as fast courier service provider. It soon became the top courier service provider of high priority goods in the marketplace and sets high quality standards of fast delivery of product in the courier industry.
During mid-1970s, Federal Express was a leader in lobbying for air cargo deregulation, which was legislated in 1977. These changes in rule were important, because they allowed the company to use larger aircraft (Boeing 727s and McDonnell-Douglas DC-10s) and spurred its rapid growth.
By the 1980s, FedEx became well established company. In the year 1983, it reported $1 billion in revenue, making it as the first company in American business history to reach that financial hallmark inside 10 years of startup without mergers or acquisitions. These dates starts the success of FedEx history.
Growth over the Years of FedEx
Real growth of FedEx started after its strategy of going global. FedEx growth increased exponentially after entering global market.
Following the first of several international acquisitions, intercontinental operations began in 1984 with service to Europe and Asia. In 1985, Federal Express marked its first regular scheduled flight to Europe. In 1988, the company for the first time initiated direct-scheduled cargo service to Japan.
The company made another significant transition in 1994, adopting the name “FedEx” as its official brand. One year later, it started to serve China through an acquisition from Evergreen International Airlines.
Under this authority, it became the sole U.S.-based, all-cargo carrier with aviation rights to the worlds most populated and fast growing nation. Its global reach has continued to expand into what is now an unmatched network, delivering to customers in more than 220 countries and territories.
With the history of courier company, FedEx has diversified its business since the start, now it provide portfolio of solution to many problems. It provides various services under the same company name. Some of the services provided by the FedEx Corp. are:
FedEx Express
The original overnight courier services, providing next day air service within the United States and time-definite international service. FedEx Express operates one of the largest civil aircraft fleets in the world and the largest fleet of wide bodied civil aircraft; it also carries more freight than any other airline.
FedEx Ground
Guaranteed day-definite delivery within Canada and the United States at a cost savings as compared to time-definite FedEx Express.
FedEx Freight
The largest Less than truckload carrier in the United States, with $4.5 billion in revenue for 2008.
FedEx Services
Provides global marketing, planning, and information technology (IT) services for the other FedEx operating companies.
Present Condition of FedEx
Started with 14 planes and a team of 389 staff, now FedEx has more than 425,000 employees and 411 aircrafts. The revenue of FedEx in the year 2018 was $65.450 billion. FedEx is growing and now it has set its sight in e-commerce sector.
As the world we live in continues to evolve, so does FedEx. With FedEx, you can be sure the spirit of FedEx innovation is hard at work delivering a brighter, better future for the world.
FedEx has made easier for the customer to tap our deep industry expertise in specialty logistics, supply chain and e-commerce, FedEx brought together several of our companies and capabilities to form a new operating company. FedEx is looking to improve continuously in order to remain relevant in the current market space.
