In an ongoing bid to increase its reach, FedEx continues to widen its scope around the globe, expanding services to new global markets through its pending USD $4.8 billion acquisition of Dutch packaging delivery firm TNT Express—just two years after the E.U. moved to block UPS from taking over TNT.
With TNT, FedEx now has access to an extensive system of European distributors, as well as a significant foothold in the U.K. and French markets. To amplify its new acquisition and signal an increased presence across Europe, FedEx will sponsor the UEFA Europa League, a major football competition that involves 54 teams. Meanwhile, FedEx has also positioned itself as a partner with easy access to the global marketplace by supporting small businesses, such as small hot-pepper sauce maker Llewellyn Clarke in the Caribbean. FedEx has also recognized the impact of its carbon footprint: It recently purchased 100 Boeing 767 Freighters in a distinct effort to improve its fuel efficiency.
The company is also expanding its investment in customer-centric technology. With the development of Workbench (FedEx’s IT solution that revolutionizes aircraft maintenance) and its acquisition of GENCO (the largest third-party logistics provider in North America), FedEx is gearing up to attract customers looking for logistics solutions and faster product delivery—including more consumer and small businesses.
With competitors like UPS and DHL also increasing their footprints, focusing on social responsibility, and pursuing innovation around e-commerce and digital platforms/services, FedEx is focusing all the more intently on differentiation, as it continues to expand at its present pace.