The company that I researched was FedEx Corporation. They are traded at the New York Stock Exchange and their current stock price is roughly $ 85.80 dollars. For their 52 week high price range it costs $97.19 and the 52 week low costs $64.07. The two main competitors of FedEx are United Parcel Service (UPS) and Air Transport Services Group Inc. UPS is very similar to FedEx in terms of cost and they appear to be in tight competition (FedEx, 2012). One of the main ways that FedEx distinguishes themselves from the rest of their competitors is through sponsorships, most notably the FedEx Cup. Very recently they announced a five year extension of their partnership with the PGA Tour to continue running the FedEx Cup through 2017. According to Mike Glenn, FedEx Executive VP of Marketing Development, the FedEx Cup offers $35 million dollars in total prize money including $10 million to the 1st place winner. This is the largest single bonus payout in sports (“Fedex, pga tour,”2012). This tournament receives a tremendous amount of exposure as the events are broadcasted to 715 million households in 225 different countries. The competition spans about 37 weeks and Glenn believes that this supports their brand and serves as a great marketing platform. Aside from building brand awareness, this tournament provides a great opportunity to connect with customers. One of the main reasons why FedEx stock has seen its fair share of ups and downs is due to the economy. However, many major companies and businesses are willing to pay more to use services like FedEx in order to ship their product quickly and more efficiently. By using FedEx to ship certain products, they are able to get into the market much faster and as a result more revenue is created. There will always be a need for services such as FedEx because major companies rely on fast delivery and cannot afford delays (Burrows, 2012). FedEx does a great job of reaching out to the high ranking business tycoons or executives that are avid golfers and make their company sound more appealing. By sponsoring an event such as the FedEx cup they are making themselves look very appealing to corporate executives who may be in charge of making decisions regarding shipping. Golf is the perfect sport for FedEx to relate to their customers and potentially form new business relationships. If I had $1,000 dollars I would invest in this company due to their solid reputation and ability to build brand awareness on a large level. I would definitely be cautious with my investment though.
FedEx Corporation (2012). Retrieved from http://www.google.com/finance?q=NYSE%3AFDX&ei=J8tMUPj-HJOilwPBHA
Burrows, D. (2012, September 5). Fedex profit warning is no surprise. Retrieved from http://www.investorplace.com/2012/09/fedex-profit-warning-is-no-surprise-fdx/
(2012). Fedex, pga tour extend partnership. (2012). [Print Photo]. Retrieved from http://video.cnbc.com/gallery/?video=3000074653