Answer:
The answers to the questions are simple and to the point.
1) Companies would choose an intermediary like FedEx to handle shipping, because it is cost effective to do so. When companies assign certain business activities to other entities outside of its own, it is called Outsourcing. Outsourcing is an important business strategy which businesses deploy in order to allow them focus on their core strategy/areas of strength.
2) Online shopping is made possible because there are intermediaries who take the products purchased from the sellers (who receive orders online) to the buyers (who demand or buy online). It therefore follows that increase in online shopping will most likely translate to increase in the demand for FedExs services. As the demand for FedExs services increases, do does its sales and most likely its profits increase. Profits is good for any business. Therefore, increased shopping online is not going to harm FedExs business but it will help it.
3) FedEx provides packaging, shipping, design and printing of banners, posters, floor graphics, custom branded boxes etc, ability to track shipped items, and small business support such as occasional business grants.
4) Of all the services mentioned above, the core and most critical to the customer is the shipping and delivery. This is because, it involves a lot of logistics, allowing FedEx handle that service removes the burn of risk of damage from both shipper and recipient to FedEx at least until it leaves the senders warehouse and it is off loaded at the recipients premises.
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1. The reason why companies would outsource this to a company like FedEx is due to the fact that FedEx has better resources that would help them to take on the distribution.
If the companies should try to do this on their own, they would have to incur higher costs. Given that they would have to get the vehicles they would use for delivery and also get fuel to power the vehicles, and employ a driver.
2. If significant people are choosing to do their shopping online, it would have a significant positive effect on FedEx, they would benefit because more customers would be in need of their services.
3. The utilities that FedEx provides for its customers includes
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