The European region hasn’t been stable. It has seen investment from foreign companies that want make use of this opportunity to expand their operations, gain market share, and take advantage of the lower euro. On similar terms, FedEx aims to gain market share in the European market, especially in Europe’s fast-growing e-commerce market.
The deal will help the company lower its first and last-mile costs like pickup and drop-off costs in the region since TNT has a huge network of delivery depots and lorries. TNT Express focuses more on the profitable business-to-business delivery. FedEx expects to use its experience to grow the company’s reach in residential parcel delivery as well. However, this will also require heavy investment in operations.
This deal poses a formidable challenge to other players in the market. FedEx’s unmatched global air network and TNT’s road network in Europe could make this new entity the forerunner in the market.
View more information: https://marketrealist.com/2015/09/will-tnt-express-deal-benefit-fedex/