DISCOVERY

FedEx SWOT Analysis

An In-Depth SWOT Analysis of FedEx
FedEx swot analysis

1. Background of FedEx

1.1. General Overview of FedEx

Company Name

FedEx

Company’s Former Name

Federal Express

CEO

Frederick Wallace Smith

Company Type

Public

Year Founded

17th April 1973

Number of Employees

428,000

Founder

Frederick Wallace Smith

Headquarters

Memphis, Tennessee, U.S.A

Operating income

US$4.466 Billion (2019)


1.2. Introduction to FedEx

One of the top logistic companies all over the globe is FedEx. It is a well-recognized company that originates from the United States of America. It has become a familiar and reputed brand in America that deals with delivery services.

As for the FedEx SWOT analysis, the abbreviation of FedEx is Federal Express. Initially, this name was in use between 1973 – 2000. This American origin company is now best known as FedEx. The brand deals with delivery service. It is renowned for being the first major company of shipping which offers overnight delivery. Even this company is one of the prime contractors of the government of USA.


1.3. Development Timeline of FedEx

1973

Establishment of the brand. Delivers 186 packages to 25 cities of USA on the first night of the company

1975

The firm installed the First Federal Express DropBox.

1977

The company acquires Seven Boeing 727, which can carry 40,000 pounds of weight.

1980

Introduction of Digitally Assisted Dispatch System (DADS) for customer’s on-call pickups took place this year.

1983

The revenue of the company has reached US$1 billion.

1984

The firm introduced the first Pc-based shipping. Later, they introduce FedEx Powership. This offer is for 160 countries.

2000

FDX is renamed FedEx Corporation. The company expanses its network globally, which connects Europe, Asia directly via flights.

2010

They launched their report of 2009 Citizenship. The firm announced an appointment of Gerald P. They have the most significant and worldwide hub for solar-power.

2011

The firm acquired distribution, logistics, and express business. The brand launched its new flight in between India and the Pacific hub of FedEx Asia.


2. SWOT Analysis of FedEx

Many companies of the same segments have evolved now and then. Even they have proven themselves equally efficient as well. Thus to keep a stagnant position of such a renowned and reputed logistics company, the brand needs to identify their factors, internally and externally. It shows the importance of the FedEx SWOT analysis. Well, this analysis helps to determine the strength and weaknesses of the company. It works as an internal factor. Whereas the analysis also helps to identify the opportunities and threats for the company. The company can plan some strategies to overcome the circumstances, expanding their business worldwide.

2.1. SWOT Analysis of FedEx in Detail

Strength:

For any company, it is crucial to know their strengths as those features have earned them a name. When they are working on their weakness, they need to retain their strengths. These can help them to earn a better status in the highly competitive market. Like most other companies FedEx have some strength:

  • The company has a massive network throughout the world. The brand has qualified itself as the world’s largest company of human resource employment. Even they rank 9th in the world for a considerable workforce. Nearly this company has 3.5 Lakhs of employees;
  • The brand has a massive economy of scale since they get many consignments to reduce their fixed cost;
  • Since the brand has enormous economies of scale, they can afford a satisfactory and excellent competition rate. They have massive competition from Bluedart, UPS, and many more. Even this brand has brilliant rates in the marketing platform of the world;
  • Nearly two decades before, the company made a move towards technology. They can track their goods with the help of their system, and this is how they compel themselves as a first mover;
  • ●Because of their consistent performances, they become the worldwide network of distributions. They got a prime position in the section of logistics. Even they deliver the urgent or essential document and even any hazardous documents as well.
Weakness:

A company may have some weaknesses, but they can also change them into their strengths with some steps. They need to judge their conditions while spotting their weaknesses to include appropriate policies to negate them. FedEx also has some weaknesses:

  • The major problem which the company generally faces is the damages caused especially during transport. It affects the company’s reputation and even the claims for their damage as well. Thus, it works as a negative factor;
  • In reality, the transport damages the reputation and honor of the company. According to the FedEx policies regarding the claims, the company is responsible for any damage while transport. Hence, as an e-commerce company, the company needs to deal with this seriously;
  • The majority of the company’s revenue is dependent on the US government. It may lead to a weak factor of the company.
Opportunities:

When a company is working on their strategies and making future goals, they need to recognize their opportunities. Since several coffee chains offer variety in menus and ensure inclusivity, the market competition is getting high. Thus, companies like FedEx need to consider their opportunities while doing FedEx SWOT analysis. Here are some opportunities that they can work on to have a better status in the competitive market:

  • Ecommerce is a profitable company nowadays. Thus with promising technologies and an excellent transportation system, the company leads the market of this segment. The company even delivers daily as well;
  • Speedy deliverance always has a profitable side as it holds the customer’s satisfaction. Moreover, this helps to attract more customers to deliver their objects quickly;
  • The company has strategic tie-ups with many e-commerce companies, which helps them raise their market share.
Threats:

A company that is surviving in a highly competitive market must have some threats. They should take some measures to cushion those threats to develop a solid policy to achieve their future goals:

  • The primary threat is the market saturation of FedEx. The price war affects the company’s reputation as well;
  • Suppose the fuel cost increase, the bottom-line of the company gets affected. Therefore the company needs to adjust with its operations which are dependent on the external environments;
  • The company needs to balance the capacity and demand as well. It leads to a challenge for the company.

FedEx donuts swot analysis

Source:EdrawMax Online


3. Key Takeaways

After a complete evaluation of the FedEx SWOT analysis, there can be the following recommendations for its growth and development:

  1. The company needs to focus more on the international market. It would help to overcome the competition with the other companies in the USA;
  2. Acquisitions and diversification may work as a miracle to upgrade the company’s growth;
  3. More utilization of Artificial Intelligence and digital technology is required. It will help to grow their capabilities in the market.

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