FEDEX Annual Changes in Segments’ Revenue Shares

The four existing segments of FEDEX have been holding relatively stable shares in the total revenue from Financial Year 2008 to 2013, with FEDEX Express dominating the charts significantly with relatively low variations in the revenue shares throughout the years. The other segments of the company are substantial contributors to the total revenue of the Company as well but comparatively the shares of FEDEX Services and FEDEX Freight have been fluctuating substantially, enough to reduce the share of FEDEX services over the financial years. This may be a reason due to the lack of capital investment activities carried out for market growth and capitalization.
FEDEX Ground had a decreased share in the FY 2008 its share in the next 2 years has remained constant. Significant variations between the company’s segments can be seen in the Financial Years 2011 to 2013 where FEDEX ground has achieved a higher share in revenue of approximately 5%, give or take, in FY 2010 and FY 2013.
Generally a decrease or an increase in the revenue share of divisions and segments can be traced down to the cash flow projections and operating activities carried out by that particular function or other external factors not in control of the business function. This can be further explained by the fact that the segment, FEDEX Freight incurred a decrease in revenue share in the FY 12 and 13, a probable possibility of this situation being the increase in Global average crude oil prices.
Likewise, the increase in the shares of FEDEX Ground can be supported by the evident possibility of customers preferring ground services and logistics to air and sea freight which can be further supported by the fact that since 2012 the average crude oil prices globally have experienced substantial volatility.


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