Countries such as China, which had been predominantly exporting countries, are now large importers of goods from all parts of the World. Since 1984 they have expanded service to over 300 cities within China.(Business Source Premier).
It is with this keen sense of "the big picture" that FedEx finds itself without a current sustained competitive advantage within the shipping industry. The Fedex return-on-equity percentage of 10% falls far below the industry average of nearly 20%. The company has invested heavily in aircraft and development of strategic worldwide airline hubs. In 1997, FedEx foresaw the opportunity of Internet commerce and its implications on the shipping industry. It is this same intuition that we at the San Jose Consulting Firm believe FedEx is positioning themselves as the future leader, with sustained competitive advantage, in the international market of the shipping industry. .
The extensive infrastructure and resources FedEx has compiled are quite impressive. The company has added several optimum hubs, the Euro One Hub in Paris, the Asia One Hub at Subic Bay, and the new Iraq hub to increase the reach and accessibility in blossoming new economies and manufacturing locations. This infrastructure, coupled with FedEx's continuous innovations and fulfillment of customers needs, is what will create continued success, and eventual sector competitive advantage in the years to come. .
Chapter I: HISTORY.
Key events and dates in the history of FedEx Corporation. .
(In italics: the entry of FedEx's major competitor, UPS Corporation.).
1907 – UPS created by Jim Casey as the American Messenger Company in Seattle, Washington. .
1953 - UPS resumes air operations. Blue Label Air provides two-day service to Chicago, Detroit, and several major cities on the east and west coasts. .
1957 - UPS serves areas of five states within 150-mile radius of Chicago. .
1971 – Federal Express Corporation is founded in Little Rock, Arkansas.