FedEx Corporation

Executive Summary

As the recession moves out of the economy and country starts to observe growth, it is expected that FedEx's revenue will increase by 4% in 2013. The factor than can play positive role in company's growth this year will be the expansion in shipping volume and increased fuel surcharges. In 2010 and 2011 these factors also played their positive role in generating revenues for the company as well as it increased the demand for delivery services. It is also expected that in the 5 years to 2013, revenue for FedEx will increase annually at 2.6 % average and it will reach to 20.9 billion dollars. There are two segments that constitute the courier and the local delivery services industry and same is for FedEx. It caters a big segment of consumers, as the demand of customers in every segment is different. The first segment is based on the local business and manufacturers in the urban areas. The other segment is derived by the general public, households and local markets. There are several factors that influence the performance of this industry such as Fuel prices, Trends in globalization and new entrants in the market that makes the competition more intense. Substitute products also bring competition in this industry. These factors are so intense that they can even bring recession in the industry if not handled carefully. As we have seen this in last five years that both the segments in this industry declined drastically. In last five year the revenue in this industry declined at the average rate on 1% to $85.5 billion. In the year 2013, FedEx regained its growth as the economic conditions started to improve resulting the growth of 2.5%. In the year 2009 the revenue of this FedEx reduced by 12.5% and also there was a job cut of 7.8% by most of the major player in the industry. This industry is highly fragmented for the segment for local messenger and delivery services because it does not have any major player in the market. Moreover in last five years the businesses in this industry decreased at the annual rate of 0.8% to 181,018. It is expected that FedEx Corporation is going to recover in coming years by 2.5% and this has been determined by using different valuation methods as well. The projection for the next five year till 2017, the forecast suggest that there will be the annual increase in the revenue by 2.81% to 40,605,361 dollar and by 2.5% in 2017 with 44,820,721. FedEx Corporation serve a diverse range of market sectors as it increase the demand from retail and wholesale sector. FedEx also have strong Worldwide Network, Acquisitions & Centrally Located Hubs which has leads them to increase their profit. They also have opportunities via Economic Development of Asia & European Community & Expansion of Acquisition Activities. FedEx over the year has strong brand name in the industry due to its wide spread operations and its presence in the industry for over 30 ...