FedEx

by hfxPalmer
Last updated 10 years ago

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FedEx

FEDEX (FDX)

The founder of FedEx was Frederick W. Smith in 1971. He raised $91 million in venture capital. He then was inherited $4 million that he then added to his funding. After he had gotten all this money he bought a aircraft company in Little Rock, Arkansas. He started out just using his services as an overnight delivery for envelopes and small packages within the US. When Smiths business was stable and he had a fleet of 14 Dassault Falcon airplanes and employed nearly 400 workers, he then named his business Federal Express. “When Smith found himself struggling to pay expenses, including payroll, he approached venture capitalist General Dynamics for a loan.” After he was rejected from General Dynamics smith flew out to Las Vegas, in 1976, and with his luck he won $27,000 at a black jack table. Where he then put all that money into the business to pay everything off. FedEx then created a direct mail advertising campaign to boost the visibility of the company. With about 19,000 packages delivered every day there sales reached $3.6 million. Luckly for FedEx ,in 1977, their rival UPS's employee's went on strike and another competitor, REA Express, went bankrupt which benefited FedEx greatly. In April of 1978 FedEx went public. The New York Stock Exchange began listing Federal Express shares in December. By the 1980s FedEs's package delivery rates had reached to 65,000 per day. “Federal Express had become the leading airfreight services provider in the United States because sales had reached $1 billion in 1983.”An International expansion in 1985 established a European headquarters in Brussels, Belgium. From the expansion their sales then jumped to $2 billion. FedEx bought Tiger International Inc. for roughly $885 million in 1989. Tiger operated an air cargo delivery service known as the Flying Tigers, which has runway rights in major airports in Asia, Europe, and South America. In the begging of the 1990 year FedEx held 43 percent of the express transportation market and their rival UPS only held 26 percent. FedEx packages delivered an averaged of about 1.4 million in 1993. By this time Federal Express had grown into the largest overnight delivery service on the globe. The firm also became the first U.S. cargo carrier allowed to fly in China. There businesses are FedEx, SAMIMA , and Tiger International Inc.The 52 high and low are 99.46:high-48.76 :low.


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