Fedex vs Tnt

Abstract

The global industry of cargo-carrier is more competitive, FedEx who has become the major player for more than 30 year got challenged by TNT, a Europe based company. The main differences between TNT and FedEx relate to their use of technology and their relationships with their hub airports. Both companies have similar considerations in choosing location for their hub. In conclusion, FedEx is much bigger than TNT both in asset and customer value that they obtained by giving number of advantages.

Background

Services constitute the largest economic sector in postindustrial societies. Until about 1900, most Americans were employed in agriculture. Increased agricultural productivity allowed people to leave the farm and seek employment in the city. Similarly, manufacturing employment has decreased in the past 30 years. The changes in manufacturing and service employment, in millions, are shown in Figures 1.1.

Figure 1: U.S. manufacturing and service employment

Although there is common perception that service industries are low paying, in fact, many service jobs pay very well. About 42% of all service workers receive wages above the national average.

Freight companies are companies that specialize in the moving (or "forwarding") of freight, or cargo, from one place to another. There are various methods of shipping goods; by air, road, sea, or rail. Some companies offer multi-modal solutions, this means that they offer more than one service, in many cases air and sea and in other cases air, sea, and road. Some of the most well-known and worldwide companies are FedEx and TNT.

The first cargo flight ever took place between Dayton and Columbus, Ohio in November 1910, when a department store shipped a bolt of silk. Even though the shipment was of small size, the flight stayed in the records because it was achieved in less time than possible by train.

Some time elapsed before the first commercial cargo airline was created. In the 1920s passenger carriers...