Mergers, Acquisitions and Takeovers Case Study

FedEx : The acquisition of Kinko’s

OR

Abstract:
FedEx incorporated operations in early 1970s. During this period the US package delivery business was dominated by two big organisations, the United States Postal Service (USPS) and United Parcel Services (UPS). USPS had postal monopoly and no strong incentive to provide good services. Fed Ex saw the gap provided through negligence of service providence to high end postal delivery market. It exploited the situation and organised to deliver packages overnight using its own aircrafts. As a strategic move to build on the strength of its now famous express delivery service and create more diversified company through various different acquisitions of related businesses, it acquired the retail focused Kinko’s. Fed Ex Kinko’s, the combined entity made sense from a competitive landscape. In 2005, the company generated $ 2.07 billion in revenues, four times higher on y-o-y basis.

Pedagogical Objectives:

• To discuss the importance of peripheral vision
• To discuss the synergy created by the vertical integration
• To derive a cost benefit analysis of the acquisition of Kinko’s
• To illustrate the growth strategies adopted to become Industry leader from a follower.

Keywords : Business Strategy; Mergers and Acquisitions; Strategic Management; Core Competence; Synergy through Acquisition; Peripheral vision;Mergers,Acquisitions,Alliances Case Study;

Contents : 
A Success story
FedEx Acquires Kinko’s
FedEx Rebrands Kinko's
FedEx growth strategy
Mergers & Acquisitions Activity
FedEx Corp. Consolidated Balance Sheets