Airborne Express Case

Federal Express

1971 FedEx Incorporated in Memphis

1971

1973 FedEx buys hub, airport and planes

1973

1973 Commence Service

1973

1997 $11.5 billion revenue

1977

1983 $1 billion revenue

1983

1985 start global delivery

1985

1990 National Quality Award

1990

1992 lose $600 million in international delivery

1992

1996 Ad expense >$138 million

1996

1997 Global expansion again

1997

1997 600k cust has Powership systems

1997

1997 "People, Service, Profits"

1997

1997 UPS strike

1997

United Parcel Service

1907 Founded in Seattle

1907

1913 Purchased first Model T Ford

1913

1922 SoCal UPS delivers parcels to all, not just stores

1922

1929 UPS bought by bankers to merge into air & ground

1929

1933 UPS buy back from bankers

1933

1950 Moved retail stores to suburbs

1950

1953 UPS offers 2 day air service

1953

1980 Complete National Coverage

1980

1981 UPS purchases 1st aircraft

1981

1987 UPS Controls all Air Operations

1987

1990 Invested billions in technology to catch up

1990

1990-95 $3 billion in tech to match FedEx

1990 - 1995

1996 $22 billion in revenue

1996

1996 Marketing expense $100 million

1996

1997 Major UPS Strike

1997

1997 4,000 people in R&D vs 95 in 1984

1997

Airborne Express

1968 Merger forms Airbore Freight Corporation

1968

1980 purchased Strategic Air Command base in Ohio

1980

1988 Customizable Services

1988

1995 stopped serving cust w/heavy seasonality

1995

1996 shift towards higher margin products

1996

1996 Int investment $78 million

1996

1996 Airborne partners with RPS

1996