History In 1913, C.J.

Tower & Sons, forerunner to FedEx Trade Networks subsidiary FedEx Trade Networks Transport & Brokerage, begins operation as a customs broker in Niagara Falls, N.Y. It was not until 1971 that Federal Express Corporation was founded in Little Rock, Ark. In 1975, FedEx installed the first drop box for the public and since then the company developed and maintained a strategic leadership in managing a broad group of transportation services, e-commerce and other business services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions. (www.fedex.com) Financial strength and market share FedEx has annual revenues of $20 billion and is the leading global provider of transportation, ecommerce and supply chain management services. FedEx accounts for a large market around the world. It is a fact that FedEx reported an average daily express package volume of 3,167,000 for the fiscal year ended May 2004, with U.S. volume of 2,771,000. Of those U.S. shipments, 1,846,000 (66.6%) were overnight shipments, and 667,000 (24.1%) were overnight letters. Total international daily package volume was 396,000, just 12.5% of all shipments, and FedEx does not break out overnight shipments (www.yahoo.com) (Appendix A)

Geographical coverage The FedEx delivery company, the world's most important courier service, provides a good example of how intermodal transport operates. The FedEx network is built around a single hub airport located on each continent. The American hub is located in Memphis, Tennessee, the Near East one is located in Dubai, and Subic Bay, Philippines acts as the Asian hub and, Roissy, France represent the European hub. These redistribution points act as bridges between international relations. Beside its strategic hub airports web, FedEx is present in more than 325 airports in 212 countries around the world. (www.fedex.com)

Services Services offered by FedEx companies include worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery and global logistics, supply chain management and electronic commerce solutions. Services occurring domestically may take from 1 to 5 days, while its international delivery service could take place, typically in 1 to 7 business days. Also, FedEx Corporation is broken

down into a family of smaller companies such as FedEx Express, FedEx Ground, FedEx Custom Critical, and FedEx Global Logistics according to their service.

Technology Technology plays an important role at FedEx. It is a fact that FedEx uses electronic transactions and delivery for nearly 5 million shipments a day. The company decided to develop an integrated messaging solution to easily link customers with its subsidiaries and to process the increasing number of business transactions. FedEx chose Global exchange Services' (GXS) integration technology, Enterprise System, to develop FedEx Net. FedEx Net allows data exchange between computers of any platform at any time and anywhere. It connects trading partners, customers and vendors with near real-time, event-driven and interactive communication capabilities. FedEx Net processes more than 4.5 million business transactions per day and provides extensive professional data services to more than 5,000 global trading partners.(reference) customers can Receive Express and Ground tracking and invoice data, business documents covering shipping, tracking, invoicing and remittance. Since its implementation in 1996, FedEx has been able to save more than US $50 million by bringing in-house functions previously performed by third party VANs. (Reference). FedEx Trade Networks' is another electronic system that the company uses to gain worldwide network and thus solves transportation challenges every day around the world. (www.yahoo.com)

Advertising message "Relax, its FedEx" Is the advertising message used to promote the company's services. The main message throughout the campaign is that the portfolio of FedEx services will help small businesses meet their needs in a timely basis. Corporate Strategy FedEx plans to focus on several strategies. Among these strategies the main mission of FedEx is to grow internationally by increasing the supply chain capabilities through e-commerce, technology and alliances. Also, the company continues to implement revenue enhancement and cost reduction programs to provide long-term revenue and profit growth and to reduce costs by taking initiatives such as Airport-to-airport transportation of Priority, Express and First-Class Mail for the U.S. Postal Service, which began on August 27 and expansion of the FedEx home delivery network to 80% of the U.S. population, beginning September 25. FedEx Home Delivery will open 63 additional locations in regions throughout the U.S., including 56 co-located terminals with existing FedEx Ground facilities, minimizing capital expenditures. The nationwide placement of up to 10,000 FedEx Drop Boxes outside U.S. Post Offices is another strategy that the company uses for development.

History In 1907, Jim Casey & Claude Ryan as a teenager started the American Messenger Company, whose messengers ran errands, delivered packages, and carried notes, baggage, and trays of food from restaurants. They made most deliveries on foot and bicycles. Only a few automobiles were in existence at that time and department stores of the day still used horses and wagons for merchandise delivery. The company was soon delivering small parcels for local department stores and changed its name to Merchants Parcel Delivery. The company expanded outside Seattle in 1919 and the company was named United Parcel Service in 1930. In the early 50's UPS began the process of expanding its services by acquiring "common carrier" rights for the entire country.UPS has now grown into a USD 30 billion corporation by clearly focusing on the goal of enabling commerce around the globe.(www.ups.com) Financial Strength and Market share UPS is the only transportation company with a triple-A credit rating from both Standard & Poor's and Moody's. The company's financial strength has given it the resources to achieve global scale and to make needed investments in technology and fleet to position us for growth. UPS claimed average daily package volume of 13,638,000 in the fiscal year ended December 2003. UPS reports ground and express packages together, so the percentage of that volume that represents express deliveries is low. The average daily volume of U.S. next-day-air deliveries was 1,185,000 last year, representing 9.6% of all domestic shipments. Also, total international daily package volume is 1,267,000. Assuming next-day deliveries represent 9.6% of international shipments international next-day shipment volume is122, 000 per day. Total revenue in 2001 grew 9.1 percent, to just over $27 billion. The operating profit grew 29.1 percent, to $3.99 billion. Net income was $883 million, down from the previous year due to a second quarter charge against earnings of $1.44 billion, the result of an adverse Tax Court decision. (www.yahoo.com)(Appendix B)

Geographical Coverage UPS operates supply chains for major companies in 45 countries, with about five million square feet of distribution space and 35 centralized locations worldwide. Today UPS, or United Parcel Service Inc., is a global company with one of the most recognized and admired brands in the world servicing more than 200 countries as the largest express carrier and package delivery company in the world.(www.ups.com) Services

UPS has the world's largest express carrier and package delivery system specializing in its transportation and logistics services. Our primary business is the time-definite delivery of packages and documents throughout the United States and in over 200 other countries and territories. The company provides logistics services, including integrated supply chain management, for major companies worldwide. As an industry leader in the delivery of goods purchased over the Internet, the company main focus is the use of e-commerce and to focus on the movement of goods, information and funds. Technology UPS uses SMS Tracking system, one of the most sophisticated tracking systems that allow tracking the status of your shipments quickly and efficiently. Some of the features used are mobile phone, to receive an update of your shipment, get time in transit information and track your shipments. Advertising message "What Can Brown Do For You?" Is the message UPS proclaim as the current leading global provider of specialized transportation and logistic services, "moving at the speed of e-business". UPS dominates the challenges of e-commerce by focusing on the movement of goods, information, and funds. Corporate Strategy UPS strategy is to increase core domestic revenues through cross-selling of the existing and new services to large and diverse customer base, to limit the rate of expense growth and to employ technologydriven efficiencies to increase operating profit. The company's core business also is a springboard for the growth in all other areas, including international service, e-commerce, logistics, supply chain management and financial services. History DHL was formed in 1969, after the first flight that took place from San Francisco to Honolulu. The success of the company leads to the idea of sending out documentation in advance of cargo arriving to speed up the process of importing goods. Since then DHL Network grew quickly and the company expanded to westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1977, it had extended its range of services and started to deliver small packages as well as documents. 1982 an additional of 30 countries and territories added to DHL map of quest. The year after, it opened offices in Eastern Europe, the first air express company to do so, and in 1986 it started operations in China as well. (www.dhl.com) Financial strength and market share The company is the world market leader for cross-border express transport of particularly urgent document and parcel shipments. Revenue in the express corporate division, which was at 6.4 billion euro in 2001, increased in 2003 with revenue of EUR 22 billion. It is estimated that DHL holds an 18% share of the U.S. market by volume. The biggest weakness is DHL's market-share estimate. As a foreign company that is also a subsidiary of a larger business, DHL's financial reporting is sparse compared to

that of UPS and FedEx. Based on DHL's market-share estimates and actual data from the other three players, the combined market share of UPS, FedEx, and DHL is more than 100%, even before considering other competitors. (www.yahoo.com)(Appendix C)

Geographical coverage

DHL presently have around 5000 offices, 450 Hubs, Warehouses and Terminals in more than 220 countries and territories around the world. Until recently, DHL is more recognized in Europe and Asia. (www.dhl.com) Services DHL like FedEx handles all of the express and logistics needs whether local or global. Other services may include fast door-to-door delivery by a certain time and overnight or next possible business day delivery. While its core business is transporting documents and packages, it also offers e-Commerce fulfillment and intelligent logistics solutions, particularly special solutions for various industries such as Automotive and Life Sciences as well as customized solutions for global customers. DHL provide services outside normal business hours whether from bad weather to changes in customs regulations and inform customers about the status of their shipments. Technology As a global leader in express delivery, DHL have applied their knowledge and experience to a range of DHL eSolutions through each step of the distribution process, similar to UPS tracking system. EDI, Express WAP, iMode and eTrack are also electronic systems used to track shipments in process. DHL Online tracking allows you to track a shipment using the shipper's reference number that you selected to include on your air waybill. The presentation and ordering of goods over the Internet also continues to open up new markets. Because e-commerce generates worldwide demand, with which the provider must keep pace. Advertising message Competition. Bad for them. Great for you" is the message used to promote DHL, the world's leading express delivery and Logistics Company.

Strategy In general, DHL is focusing their efforts on quality and leadership expansion by offering value added services, into Europe. In Express, DHL is intending to combine Number one positions in European road-based transport and the worldwide air

Express business, following the example of its major competitors in the US. In the Logistics division, the expansion of the airfreight segment is the main concern, especially in Asia and the US.