FedEx Corporation
Company Description
Holding company FedEx hopes its package of subsidiaries will keep delivering significant market share. Its FedEx Express unit is the world's #1 express transportation provider, delivering about 3.5 million packages daily to more than 220 countries and territories from about 2,000 stores.
It maintains a fleet of more than 665 aircraft and more than 41,000 motor vehicles and trailers. To complement the express delivery business, FedEx Ground provides small-package ground delivery in North America, and less-than-truckload (LTL) carrier FedEx Freight hauls larger shipments. FedEx Office stores offer a variety of document-related and other business services and serve as retail hubs for other FedEx units.
FedEx Corporation
Competitive Landscape
Demand is driven by consumer spending and manufacturing output. The profitability of individual companies depends on efficient operations. Large companies have advantages in account relationships, bulk fuel purchasing, fleet size, and access to drivers. Small operations can compete effectively by providing quick turnaround, serving a local market, or transporting unusually sized goods. The industry is labor-intensive: average annual revenue per employee is $145,000. Trucking competes with other forms of cargo transportation, including rail, air, and water. However, the shift toward intermodal transportation means that these modes of delivery are often more complementary than competitive.
FedEx Corporation
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