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A Business History of FedEx

            When a person or an organization wants to send a parcel or important goods within a short time, you would commonly hear, "FedEx it." Two decades ago, FedEx was known for shipping express parcels only. Currently, FedEx is one of the main leaders in the logistics and transportation industry dealing with shipping of kind of goods within United States of American and all over the world. FedEx commands approximately 43% of market share in United States as compared to its main competitor United Parcel Service (UPS), which has a 27% market share. FedEx delivery service began with the delivery of document and small parcels to companies and homes in United State of America, but today, FedEx services are all over the world with largest market share being North and South American and Asia. The original goal of FedEx during its formation was delivering of crucial packages and documents but it scope of shipping has expanded with time and currently anything can be shipped through FedEx.
             Fred Smith found FedEx in 1971 and served as the Chief Executive Officer until 1998. His idea about express delivery of parcels and documents began at Yale University where he schooled in the 1960s. His idea originated from transportation on mainframe computers, which by them treated as very special machines by organizations. Whenever the mainframe computers broke down, their parts had to be transported from their place of use to a repair center. Efficient, reliable, and fast means of moving these mainframe computer parts, which were treated critical lacked by them and that is how the FedEx came to exist. In addition, hospitals by then needed a fast and reliable way of delivering medicine to their center within the shortest time possible. After his undergraduate years, Fred focused on his business idea and invested a lot of money on technology and transportation system, and by 1975, FedEx reached breakeven point.


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