Fedex Essay

1819 WordsOct 11, 20118 Pages
August 8, 2011 Abstract This report is about a service company, FedEx, in Saudi Arabia. It starts with the history of the company. This is followed by how it price its services. Then, its relationship with the customers. Finally, how the company responses in case of any service failure. Key Issues: 1- Pricing of FedEx Service 2- FedEx Company is Focusing in Long Relationship 3- FedEx Service Recovery Introduction FedEx was established in 1998 with the acquisition of Caliber System Inc. It started with the name FDX Corporation. In 2000, its name had been changed to FedEx Corporation. In the same year. A new subsidiary named FedEx Services was formed and began in operations. FedEx Corp. made a number of acquisitions and realignments changed the size and scope of various FedEx operating companies. In February 2000, FedEx Corp. announced the acquisition of Tower Group International which is a leader in the business of international logistics and trade information technology. In September 2004, FedEx Corp. acquired Parcel Direct, a leading parcel consolidator, and later rebranded it FedEx Smart Post. The acquisition complements the FedEx alliance with the U.S. Postal Service and provides customers in the e-commerce and catalog segments with a proven, cost-effective solution for low-weight, less time-sensitive residential shipments. Also in 2007, FedEx Corp. continued its acquisition of domestic express companies with the acquisitions of Indian express company Prakash Air Freight Pvt. Ltd. (PAFEX) and Hungarian express company Flying-Cargo Hungary. Pricing of FedEx Service Many service companies like Saudi FedEx use the native and unsophisticated approach in pricing, regardless the demand and the supply issues and that because the service price is more difficult than product pricing. Customer Knowledge of service price that FedEx gives for

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