SWOT Analysis on FedEx Corporation

SWOT ANALYSIS ON FedEx Corporation - November 30th, 2010 FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee. [1] The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. FedEx Corporation is a Delaware corporation, incorporated October 2, 1997. [2] FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express.

With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional, less than truckload freight carrier serving the Western United States; Caribbean Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express.

Strengths Superior product performance vs competitors. Better product life and durability. Spare manufacturing capacity. Have customer lists. Direct delivery capability. Product innovations ongoing. Can serve from existing sites. Products have required accreditations. Management is committed and confident Weaknesses Limited budget. No pilot or trial done yet. Don't have a detailed plan yet. Delivery-staff need training. Customer service staff needs training. Processes and systems, etc. Management cover insufficient. Opportunities Local competitors have poor products.

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Profit margins will be good. Could extend continentally Challenge competitors. Support core business economies. Threats Market demand very seasonal. Start up small competing against big companies (FedEx) Possible negative publicity. Vulnerable to reactive attack by major competitors. Fedex SWOT ------------------------------------------------- Top of Form Fedex SWOT Stengths When the FedEx Corporation began in 1973 who knew that they would eventually get to the point where they now? They own nearly 50% of the market share in ground shipping in the United States.

Companies that are on the right track when it comes to planning in the right market are usually a household name, and this seems to be the case with FedEx. FedEx increased revenues just about every year that they have been in business. With a sales track like that and when it comes to shipping and overnight deliveries, it's no wonder that they are truly better than their competitors. One of the major strengths that FedEx has going for the company is their slogan and message that they want to get across to consumers. The People-Service-Profit attitude and motto indicates that they place their customers as first priority.

This instantly gains trust with consumers. Oppositely, FedEx's competitors may not keep this business model in mind and may lack when it comes to customer service. FedEx was essentially the first company to develop such an idea as express delivery. Today, they are unmatched by even the United States Postal Service in terms of being able to carry out their operations on time as well as customer service. Since FedEx is generally credited with owning the idea of express delivery services, they are generally held to a higher standard and turned to more often than other companies. * Customer Service Customer First * First company in overnight mail * Centralize Hubs * Great Brand Name Fedex SWOT Weaknesses From a customer's point of view, the rising prices of FedEx services are a major downside. Even though the FedEx Corporation thinks that their customer's are getting a superb value, it is ultimately the consumers who hold this same opinion for FedEx's business model to sustain. In addition, FedEx could lose revenues and annual sales if prices keep climbing and customers start seeing other brands that have more potential. * Rising Fuel Prices * World expansion is weak compare to competitors Expensive compare to other services * Many companies cannot incorporate thier software * Email is fastest and free Fedex SWOT Opportunities The internet should be used as a huge advantage to FedEx. The online shipping market has grown rapidly within the last 5 years alone and will only continue to soar! FedEx needs to offer more options to consumers who want to conduct all their shipping needs online. Fedex should consider contracting with other online companies that use shipping services to gain brand recognition and trust! * Expand online services * Offer larger variety of shipping services Increase technical services for hardware and software installs * Increase number of World Wide Hubs * Market with other on line companies Fedex SWOT Threats The major threats to the FedEx business model are the other major competitors within their market segment. For example, BAX Global and DHL are two services that also experienced continued growth in these years. Since those companies have the same majority of services that FedEx does, it would be easy for FedEx competitors to use a competitive advantage such as a proprietary product or service that has more potential than FedEx services. Fuel prices * External competition * World wide government politics * Natural resources costs Fedex Swot Conclusion As you can see from this free Fedex Swot, the FedEx Corporation is doing well and, despite the economic slowdown, keeps turning a profit. This is because FedEx is based on a sound business model. Customers always need packages and belongings shipped in any economy, and the company has done an excellent job so far at dominating the market share! Read more: http://www. quality-assurance-solutions. com/Fedex-Swot. html#ixzz27wc3lukQ

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