FedEx Corporation is a global transportation and logistics enterprise that offers customers a single source for global shipping, logistics, and supply chain solutions. In the last 29 years, FedEx has expanded horizontally with its five subsidiaries to include FedEx Express (formerly Federal Express), FedEx Ground (formerly RPS), FedEx Custom Critical (formerly Roberts Express), FedEx Logistics (formerly Caliber Logistics), and Viking Freight. As a result, the FedEx family has been able to compete collectively in the express transportation and logistics industries. Today, services offered by FedEx include worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery, and global logistics, supply chain management, and electronic commerce solutions.

Formed in 1973 by Fred Smith, Federal Express Corporation is the company's original business. It began with the sole focus of improving customer segmentation, pricing and quality of services for the overnight delivery market in the United States. Since then, it has grown to provide leading document and freight services for the entire North America and for over 212 countries abr

„Y Bargaining Power of Buyers: This power is eliminated as FedEx proves its quality of service. In addition, the customized delivery service of the company is unique in the market. It is the only company that can provide delivery and the management of logistics and the supply chain. Buyers will be more than willing to pay more in order to receive full customer satisfaction.

Another possible solution for FedEx would be to concentrate on becoming a cost-leader in the industry. Since all of its resources for delivery are in-house, FedEx can strictly concentrate on lowering delivery costs so that prices are low enough to drown out competitors. Although, this is a weaker solution, there are advantages in saving in the delivery business. For example, savings from this sector can than be implemented into the information and logistics infrastructure of the company. In addition, FedEx can team up with businesses such as the United States Postal Service to better serve the business-to-consumer market instead of just targeting business-to-business markets.

„Y Rivalry with Existing Competition and Potential Entrants: As a first mover, by investing in technological improvements immediately, FedEx made it difficult for competitors to catch up without baring heavy initial costs. In addition, the fact that FedEx owns its airplanes, trucks, and programs makes it difficult for others to cut down on costs as much as the company.

The best way for FedEx to implement these solutions is to rely on their brand name. FedEx, over the years, has strongly gained its customer loyalty. With each turn in the industry, FedEx had proven itself as a pioneer of innovation while still maintaining reliable service that customers have grown to count on. Therefore, FedEx could conveniently market these changes as the company's continuous effort to improve customer satisfaction.

The express transportation and logistics industry went through several important changes from the 1970's to the 1980's. Prior to 1980, competition in this industry was primarily based on customer segmentation, pricing, and quality of services for the delivery of finished goods. However, due to important trends in the business world such as the rise of globalization, advances in information technology, the application of these technologies to improve processes, and the increase in the market demand for services, busin

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