FedEx faces its biggest ever threat from the growing popularity of internet. In recent years, electronic
email has more or less replaced the postal letter as a means of communication. Advances such as
free email services, wireless broadband, and text messaging (SMS) are adversely affecting traditional
mail services, especially in urban areas.The postal mail business delivers information such as letters
and bank statements as well as printed matter such as direct mail and periodicals, which can now
be accessed faster through the internet (for instance, electronic banking). Further, the first-class
mail volumes have also been affected by the telephone, fax machine, and other electronic
communications. If substitution of traditional mail by digital alternatives continues, mail volumes will
decrease, resulting in lower revenues for the company