In the article “FedEx And The Power Of
E-Commerce And Holiday Shopping” which was written by Agustino Fontevecchia of Forbes Magazine talks about how “FedEx
posted fiscal second quarter earnings before the bell on
Thursday, beating analysts’ expectations as the global delivery company
capitalized on strong e-commerce trends and online shopping during the holiday
season.” With this new information coming to the fore front FedEx has been able
to notice how successful they truly are during the holiday grind. Because of
this information about E-Commerce and E- Business FedEx as a company can do
things differently than other companies because of how successful they are in
the second quarter. “FedEx’s net income jumped 75.6% to $497 million in the
second quarter.” This goes to show that FedEx is in the black easily because of
the holiday season.
The Holiday
season is a time for buying lots of presents which means that people are going
to go to the stores to get the best deals but with E-business and the
E-Commerce that today’s society has makes it much easier for people to just go
online and buy it, and then have it shipped by FedEx. I know that I use this a
lot because during the holiday season and the time leading up to the holidays I
am a very busy person in terms of school and work and other stuff that I tend
to go online and buy my gifts because of how easy it is and time saving it is.
You may have to pay a few extra bucks for shipping but when it comes to $5 and
doing it on your time or spend hrs on hrs in a mall parking lot trying to find
a parking spot to go buy that same thing you could online for $5 more. To me
and I know using E-businesses to my advantage is definitely working out for
companies such as FedEx and UPS because they get a certain percentage of
everything they ship.
FedEx also has
plans in the future to enhance the turnaround time on delivering. As stated in
the article “FedEx also announced it reached an agreement with Boeing
to buy 27 new 767-300F to replace its old MD10 fleet. The planes, set to arrive
between 2014 and 2018, will provide improved reliability, a 30% increase in
fuel efficiency, and a 20% reduction in unit operating costs.”
I agree with you Scuba on how shopping online saves time. Like you said, everyone is busy around the holidays and shopping online is much easier when you have a lot of things to do rather than going to a store or mall and trying to find a parking spot when it seems like everyone in the world is there as well. FedEx and UPS are definitely making out in this deal because of how many people are now just ordering things online and having them shipped. I think it is good that FedEx beat the analysts’ expectations as they capitalized on strong e-commerce trends and online shopping during the holidays. You are right when you stated that that shows how they really are successful during the holidays. I think FedEx’s deal with Boeing to buy 27 new planes arriving between 2014 and 2018 will only help them out even more in the future.
ReplyDeleteI agree with s-deethree-la on how FedEx handled this holiday season very well. FedEx made sure its customers knew how much easier and how reliable there services where for this hectic holiday season. FedEx's reliability payed off as “FedEx posted fiscal second quarter earnings before the bell on Thursday, beating analysts’ expectations as the global delivery company capitalized on strong e-commerce trends". With the extra revenue earned, which topped experts expectations for the company, will allow FedEx to continue to improve there services and excelent reliability for there upcoming quarters and will continue to capitalize on e-commerce in the near future.
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