General presentation of Fedex:
In order to help you better understand the challenges and opportunities for growth of the Fedex company, we are now offering you to discover some information about the activities of this company and its main sources of profit.
The Fedex Corporation Group is an American company specialising in the transport and delivery of parcels. More precisely, Fedex is today the leader in express transport in the world.
In order to better understand the activities of this company, it is possible to divide them into different divisions according to the share of turnover they generate and in this way :
- The largest share of this group's revenues comes from courier and express transport services. This division alone accounts for almost 53.6% of the company's turnover.
- Next comes the delivery of small parcels, which generates almost 29.4% of Fedex's turnover.
- In third place is the large parcel delivery business with a 10.9% share of the company's turnover.
- Document management and office automation services generate nearly 2.4% of the company's turnover. These services are provided in particular through centres grouped under the Kinko banner.
- Finally, the remaining 3.7% of turnover comes from ancillary activities.
Know the competition of the Fedex share:
Let's now take a look at the competitive environment of the Fedex group with a presentation of the various competitors of this company that you should watch out for in your analyses of this value:
- UPS: UPS or United Parcel Service is an American postal company which is also known as "Big Brown" in reference to the brown colour of its employees' uniforms. This company is based in Atlanta but operates worldwide, as does Fedex.
- USPS: Also known as the United States Postal Services, USPS is the United States government postal service and was formerly known as "US Mail". It has existed since 1775 and was created by an Executive Order of the Second Continental Congress in Philadelphia as the United States Post Office.
- DHL: Finally, the DHL group is another American group specialising in transport and logistics which has since become an international group since it has integrated the Deutsche Post DHL group which is itself made up of Deutsche Post, the German postal company in charge of transporting mail and parcels in Germany, and DHL which remains the international transport and logistics group that we know. DHL itself is made up of various specialist divisions.
The strategic alliances set up by the Fedex group:
We now invite you to discover two strategic partnerships that the Fedex group has recently set up as examples of events that can influence its stock market performance:
- Google Wings: In 2019, Google's Google Wings subsidiary announced a collaboration with Fedex and the Wallgreens pharmacy chain to automate drug delivery. The project is to deliver these drugs using autonomous drones and the pilot programme was launched in October of that same year after obtaining certification from the US Federal Aviation Administration or FAA.
- La Poste: Previously in 2008, Fedex had also signed a major agreement with the French group La Poste with a view to bringing their mail, parcel and logistics activities closer together. Fedex thus became Chronopost's air operator for its international traffic and Chronopost International is responsible for distributing Fedex parcels in France and the rest of Europe.