Thursday, October 21, 2010
FedEx Acquisitions
In 2007, FedEx made 5 acquisitions including Flying Cargo, Hungary; Tianjin Domestic Express, China; and Prakash Airfreight, India. There were a couple of acquisitions in 2006 and 2004 (Kinkos for one).
Friday, October 15, 2010
more on FedEx in China
http://about.fedex.designcdt.com/our_company/company_information/regional_facts
FedEx Express President, Asia Pacific Region (APAC): David L. Cunningham
Headquarters: Hong Kong, China
Employees and Contractors: More than 14,000
Stations: Located in all major cities in Asia
Main Hubs: Subic Bay, Philippines; Guangzhou, China
Countries and Territories Served: More than 30
Airports Served Directly: More than 20
With more than 14,000 employees, FedEx currently serves more than 30 countries and territories in the Asia Pacific market through its innovative FedEx Asia One network, launched in 1995. This launch included trans-Pacific flights and the creation of an Asia Pacific hub in Subic Bay, which provided overnight intra-Asian delivery among major Asian business centers.
In mainland China, FedEx Express service has led the industry, building solutions and meeting business needs for international customers. In 1996, FedEx became the sole U.S.-based express transportation company with aviation rights to China. In 2004, FedEx received 12 additional rights from the U.S. Department of Transportation to fly cargo aircraft to and from China. FedEx continues to increase flights to China, providing access to more cities across the country and throughout the Asia Pacific region than any other global express provider.
In 2007, FedEx introduced domestic express service within China to more than 19 cities. By 2008, this next-day delivery service has expanded to more than 40 cities, with second-day delivery service reaching customers in more than 200 cities throughout the country. In the first half of 2008, FedEx Office opened 12 new centers in China, with six in Beijing, five in Shanghai and one in southern China.
In late 2008, a new FedEx Express Asia Pacific hub will open in Guangzhou, China. The new hub will feature state-of-the-art technology to support real-time package tracking and an innovative, satellite-based dispatch system.
In addition to its expanding business in the region, FedEx is committed to utilizing its logistics expertise to help improve the quality of life for its customers and employees. In fact, FedEx has transported medical supplies to fight Severe Acute Respiratory Syndrome (SARS) and provided the first private airlift of relief supplies to China following the massive earthquake in Sichuan Province in May 2008.
Regional Facts
Asia FactsFedEx Express President, Asia Pacific Region (APAC): David L. Cunningham
Headquarters: Hong Kong, China
Employees and Contractors: More than 14,000
Stations: Located in all major cities in Asia
Main Hubs: Subic Bay, Philippines; Guangzhou, China
Countries and Territories Served: More than 30
Airports Served Directly: More than 20
With more than 14,000 employees, FedEx currently serves more than 30 countries and territories in the Asia Pacific market through its innovative FedEx Asia One network, launched in 1995. This launch included trans-Pacific flights and the creation of an Asia Pacific hub in Subic Bay, which provided overnight intra-Asian delivery among major Asian business centers.
In mainland China, FedEx Express service has led the industry, building solutions and meeting business needs for international customers. In 1996, FedEx became the sole U.S.-based express transportation company with aviation rights to China. In 2004, FedEx received 12 additional rights from the U.S. Department of Transportation to fly cargo aircraft to and from China. FedEx continues to increase flights to China, providing access to more cities across the country and throughout the Asia Pacific region than any other global express provider.
In 2007, FedEx introduced domestic express service within China to more than 19 cities. By 2008, this next-day delivery service has expanded to more than 40 cities, with second-day delivery service reaching customers in more than 200 cities throughout the country. In the first half of 2008, FedEx Office opened 12 new centers in China, with six in Beijing, five in Shanghai and one in southern China.
In late 2008, a new FedEx Express Asia Pacific hub will open in Guangzhou, China. The new hub will feature state-of-the-art technology to support real-time package tracking and an innovative, satellite-based dispatch system.
In addition to its expanding business in the region, FedEx is committed to utilizing its logistics expertise to help improve the quality of life for its customers and employees. In fact, FedEx has transported medical supplies to fight Severe Acute Respiratory Syndrome (SARS) and provided the first private airlift of relief supplies to China following the massive earthquake in Sichuan Province in May 2008.
FedEx in China
FedEx definitely has a lot of business in China. much of it is transporting goods from China, but they also have delivery services within China. you can even view the FedEx China website in English. here is a link to a page where they give info on service during an upcoming event in Shanghai:
http://www.fedex.com/cn_english/about/local/servicenews/Expo_index.html
here is an older (2006) article from Forbes.com concerning FedEx in China.
http://www.forbes.com/2006/09/28/china-shipping-fedex-biz-logistics-cx_rm_1002fedex.html
http://www.fedex.com/cn_english/about/local/servicenews/Expo_index.html
here is an older (2006) article from Forbes.com concerning FedEx in China.
http://www.forbes.com/2006/09/28/china-shipping-fedex-biz-logistics-cx_rm_1002fedex.html
Friday, October 8, 2010
FedEx, Vertical Integration and OutSourcing
It seems that FedEx is about as vertically integrated as they would like to be. It makes sense that they continue to out-source things like maintenance of airplanes. I had read something that suggested FedEx could get in the business of making energy-efficient trucks, and work on building more of a truck fleet. this may be a stretch, too far from their areas of expertise.
FedEx - which of the five strategies employed?
In considering which of the five generic strategies is used by FedEx, I immediately ruled out the low-cost provider, best-cost provider, and market niche based on low-cost because in comparing prices between the package carriers, they don't seem to be using price as their main selling point. Prices were pretty well in-line with other providers, though lowest provider can vary depending on shipping location, package size, and weight. I see them in the category of Broad Differentiation. They are offering many services in their overall category to appeal to different users (business, home, large and small package, freight, and copy/print services). They offer differentiated service in the late dropoff offered and early delivery times.
Monday, October 4, 2010
Friday, October 1, 2010
Strengths and Weaknesses
FedEx has an extremely well-known brand, and has solid financial resources to use for capital improvements such as equipment upgrades that can lower costs and add capacity as needed. Another strength is their ability to manage information to maximize efficiency of both package transportation, and the efficient use of vehicles. they tout their ability to receive packages longer at end of work day and have arrivals early in am. They have some cost advantages in the way they utilize contract drivers. I could not come up with much in the way of inherent weakness, but they are susceptible to external threats (unionization, legislation, possible costs increases if CAP and Trade for emissions comes about... I wanted to list their dependence on fuel as weakness, but that is same for all in industry, and they seem to have done ok at passing on costs in the form of fuel surcharges.
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