Question

FedEx acquired Parcel Direct, a leading parcel consolidator that it later rebranded as FedEx SmartPost. The acquisition complemented a FedEx alliance with the U.S. Postal Service, providing customers in the e-commerce and catalog segments with a proven, cost-effective solution for low-weight, less time-sensitive residential shipments.

a.True
b.False

Answer 1

The given statement is a.True because "FedEx's acquisition of Parcel Direct and subsequent rebranding as FedEx SmartPost complemented its alliance with the US Postal Service by providing a cost-effective solution for low-weight, less time-sensitive residential shipments in the e-commerce and catalog segments."

Explanation:

FedEx's acquisition of Parcel Direct in 2005 was a strategic move to expand its offerings in the e-commerce and catalog segments. Parcel Direct was a leading parcel consolidator that specialized in low-weight, less time-sensitive residential shipments. By acquiring Parcel Direct, FedEx was able to provide its customers with a more comprehensive range of services, particularly for these types of shipments.

Furthermore, FedEx's alliance with the US Postal Service allowed it to leverage the postal service's extensive network of last-mile delivery capabilities to provide more efficient and cost-effective delivery solutions for these types of shipments. This partnership allowed FedEx to offer its customers a more competitive pricing structure for these types of shipments, making it an attractive option for e-commerce and catalog businesses.

Overall, the acquisition of Parcel Direct and the subsequent rebranding as FedEx SmartPost allowed FedEx to strengthen its position in the e-commerce and catalog segments by providing a more comprehensive range of services and competitive pricing structures. This move also highlighted FedEx's commitment to innovation and adaptation in response to changing market demands.