Global Package Business Lures Expansion Opportunity

Global package business

For businesses that seek to grow and flourish, there’s no better way to accomplish the task than to reach new customers. That’s the concept behind a recent move by a package shipping business to build a new facility in a foreign country.

To better serve its customers in Canada and reach a wider audience, FedEx has constructed a new 27,000 square-foot facility in Saskatoon to provide shipping services to local businesses. The move is part of a continuing expansion effort into Canadian territories to lure new customers away from the competition. FedEx has also trained its Canadian Express staff with a specific focus on small to medium sized businesses to capitalize on the lucrative export market.

Besides adding to its infrastructure in other countries, FedEx is also acquiring foreign businesses to expand its operations. In 2011, the company acquired Servicios Nacionales Mupa, a Mexican domestic express package business, for $128 million. In that same year, it also purchased AFL Pvt, Ltd, an Indian logistics, distribution and express company, for $96 million. FedEx also recently acquired other shipping companies in Poland, France, and Brazil.

With international priority and domestic package revenue exceeding $9.56 billion in 2012, FedEx is likely to continue its efforts toward increasing globalization.

Do you think USPS should expand its package operations into other countries to take advantage of the robust trend in global shipping?

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