Fedex Internal Analysis Essay

Words: 1974
Pages: 8

Internal Environment Analysis
Company Profile * History Founded by Frederick W. Smith, FedEx Express was established in 1973 and it has grown rapidly. Smith had the idea of creating a company that would deliver mail all over the United States over night. His idea was to fly mail from one location to another at night because the traffic is better and packages could be sorted, distributed and out of its original location faster. Delivering to over 220 countries and territories, FedEx today is a big global industry with a vast network worldwide. The company that started as a laid out in an economics class today is one of the biggest mail distribution corporations known by all customers as the company that “send shipment overnight”
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The company have been making more investments and increasing its assets as well.

Industry comparison
When comparing FedEx with UPS we can see that the market capital of FedEx of $31.39 billion is smaller than USP of $76.56 billion, however it is higher when compared to the industry which is 923.76 million.
FedEx also has a higher number of employees compared to UPS. When comparing revenue and net income, FedEx is still behind UPD by a significant amount of money. As we can see FedEx has been growing and expanding in the market however UPS is still leading the market of group postal service (Yahoo Finance). * Income Statement Period Ending | May 31, 2012 | May 31, 2011 | May 31, 2010 | Total Revenue | 42,680,000 | 39,304,000 | 34,734,000 | Cost of Revenue | 15,758,000 | 14,266,000 | 11,908,000 | | Gross Profit | 26,922,000 | 25,038,000 | 22,826,000 | | | Operating Expenses | | Research Development | - | - | - | | Selling General and Administrative | 21,489,000 | 20,598,000 | 18,852,000 | | Non Recurring | 134,000 | 89,000 | 18,000 | | Others | 2,113,000 | 1,973,000 | 1,958,000 | | | | Total Operating Expenses | - | - | - | | | | | | Operating Income or Loss | 3,186,000 | 2,378,000 | 1,998,000 | | | | | Income from Continuing