Through a process of selective acquisition in late 1997 and early 1998, FedEx not only consolidated its position in the express package delivery business, but also set the stage for rapid growth in the fast-emerging industries of electronic commerce and supply chain management.

This multimedia, Web-based case looks at the rise of FedEx as an electronic commerce "backbone" provider. The firm is portrayed as an intermediary that seeks to deliver value by integrating the Internet (through "virtual" e-commerce transactions) and the physical supply chain (through "real" physical delivery of products using superior logistics capabilities).

The case examines the motivations behind FedEx's digital moves and the impact of such moves on the package delivery business. It also explores several strategic choices facing FedEx in this new domain. Some of the questions addressed include:

• How do broad e-commerce trends affect the business models of FedEx and other third party logistics and supply chain intermediaries, such as UPS?;
  
  
• What types of new services will such companies need to provide as customer expectations rise worldwide and as increasing speed is demanded?;
  
  
• How do companies such as FedEx and UPS manage relationships with existing and new customers?; and
  
  
• What are the relevant internal and external challenges for organizational culture, strategic use of information technology, and the ability to deploy new business concepts with great speed and effectiveness?
  
  

Research for this case included an on-site visit and an interview by Bharat Rao with Navendu Charu, Senior Manager of Marketing for FedEx, at the company's main hub in Memphis, Tennessee.

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An article based on this case: "Building a World-Class Logistics, Distribution and Electronic Commerce Infrastructure", published in Issue 3, 1999 of EM - Electronic Markets (forthcoming).