FedEx declining? (Memphis, Collierville: buying, zoned, dangerous)

[bluffcity]

all the buy out and shift from Express to Ground. Sad to see the business model change and would have big impact to Greater Memphis area and esp Collierville area

[tigerphan]

The business model isn't changing. They'll do express shipping as a core business....but right now customers demand more ground shipping and they are adapting. The buyouts occuring now are similar to what International Paper saw in 2009-2010. It's cyclical, and things will get better soon. They have many new initiatives in the pipeline.

I'm confident they'll eventually get back to hiring younger (cheaper) employees in the near future.

[characterRef]

The business model is in transition...no doubt about that. The digital compaction of information is necessitating a review of the infrastructure, best practices and change management.

That's smart, and necessary...to pretend the business model is not in transition is to deny global shifts in how information is shared....in fact , it would spell doomsday to ignore the shift in sharing of information.

In fact, global shipments of documents have declined...which was the core of their whole startup.

UPS had no such philosophical basis for their model...it's always been "packages" of size, not overnight letters and documents.

My opinion, looking at s few numbers, they will have to eliminate significant overhead to remain relevant in a "relevant way".

UPS is going to give them all the want with respect to GROUND FREIGHT...that's UPS's terr.
itory

Overnighting of documents is stupid, with the advent of PDF's etc etc etc.

My opinion is that the stock is a longterm short.

[009811]

Originally Posted by characterRef

The business model is in transition...no doubt about that. The digital compaction of information is necessitating a review of the infrastructure, best practices and change management.

That's smart, and necessary...to pretend the business model is not in transition is to deny global shifts in how information is shared....in fact , it would spell doomsday to ignore the shift in sharing of information.

In fact, global shipments of documents have declined...which was the core of their whole startup.

UPS had no such philosophical basis for their model...it's always been "packages" of size, not overnight letters and documents.

My opinion, looking at s few numbers, they will have to eliminate significant overhead to remain relevant in a "relevant way".

UPS is going to give them all the want with respect to GROUND FREIGHT...that's UPS's terr.
itory

Overnighting of documents is stupid, with the advent of PDF's etc etc etc.

My opinion is that the stock is a longterm short.

FedEx is weak of short period of history, and relative focus on overnight shipment.
For my personal believing, with a growing economy development and certain legal requirements, the overnight shipping will continue to grow, may not grow as fast as past, but still in a fast pace.
The FedEx is misjudge on the trend of e-business and lack of product development on the ground shipping products. I think that Fred Smith will make the smart decision to push some ground products to adapt to the high demanding for e-business.

Of course, post office is also waking up to focus on e-business package and overnight express mail service. For me, not extremely time sensitive, I may use the USPS express mail for overnight shipment. When they shift to focus on the overnight product, USPS may be a competitor as well.

[characterRef]

The Postal Service is already a huge competitor, albeit a losing "business". FEDEX already has rather large contracts with the Postal Service to move certain product.

The "freight" business is a whole different animal. "Ground" encompasses "freight", package and other sub-business classifications.

"Shipping" is the whole ball of wax.

If FEDEX wants a larger piece of the "freight" business...it better start buying Norfolk Southern, BN or preferably. a CSX, and really have a fully integrated, vertical line, efficient, and dominating business model.

I can see it now : newly painted locomotives and generator cars with white, red and blue with the name "FEDEXR" emblazoned on the sides.....yep, FedEx RAIL SYSYTEMs.....hell, the could take over and modernize passenger rails in the NE...from AMTRAK, which is horrible...take over the Chicago to NewOrleans routes....

The future is bright for bold thinking, and for those who support risk taking in the new economy. Risk taking is expensive, risk taking is dangerous to your health, but this company can clean up some of the dead weight, jettison unproductive divisions, departments, buildings, equipment, people and systems.....yes, shrink in one way, then expand in a bold new effort.......time has been out for a long while for "Absolutely, Positively Overnight"....they got rid of the slogan, which was smart...very...intelligent branding is not the exclusive domain of "Madison Avenue".

"FedEx"......Keeping You on Time, On Track" (not to be used without authorization of this poster, and owner..lol yep !)........can you see the glistening powerful locomotives and OTR monster 18 wheelers in the commercial ?? lol....Fred, I lost your number, but you know where to find me....LOL

Smith might want to have coffee with Buffet.

[characterRef]

FedEx just rose their freight rates 4.5% effective July 1 lol

[characterRef]

Smith wasn't that convincing on the conference call yesterday,, but the stock popped up - don't take the bait- lol

don't believe the hopeful bs - managing a change is one thing, surviving it is another for the longer term

I hope Smith is right though