FedEx Corporation (FedEx) is an international business organization with a wide range provision of transportation and e-commerce services to its clients. Analysis of the company’s strength, weaknesses, opportunities, and threats reveal the organization’s diversified business transactions and its strong position in the market emerge as FedEx’s key strengths. Despite its’ main strengths, FedEx has a weak operational efficiency due to increased operational. Intense competition and the worldwide unstable economic conditions seem to hamper FedEx’s growth.
The company’s strong position in the market arises from its worldwide provision of services in about 220 nations with 492 service centers globally (FedEx, 2016). Another major strength is the FedEx diversification in its operations. The broader diversification of FedEx’s transportation and delivery services is facilitated through the firm’s group companies. Catapulting the company’s success as strength is also the existence of a robust information systems network which enables efficient coordination and service delivery.
FedEx exhibits weaknesses ranging from overreliance on the United States to the reducing market share in the transport sector. Despite being a multinational company, the organization has put so much focus on the United States market with the country’s market accounting for about 71.7 percent of the firm’s total revenue. This limits the company’s growth options and share in the market.
Strategic growth plans, cost-cutting plans and the growing air freight and logistics market are among the opportunities that FedEx is having. According to Mbaskool.com (2016), FedEx has embarked on growth expansion plan in over 22 location world over. The company also plans to reduce costs in a bid to improve its operational efficiency. The company plans to escalate its vehicle efficiency by up to 20 percent and use renewable energy sources (FedEx, 2016).
FedEx is also encountering possible threats from the emerging intense competition in the market, seasonality of the business and also international policies and other factors. Despite the company having key strengths that manage to sustain it in the market, the threats and weaknesses should be analyzed and worked on.
References
FedEx. (2016). Corporate Fact Sheet - About FedEx. Retrieved from http://about.van.fedex.com/our-story/company-structure/corporate-fact-sheet/
Mbaskool.com. (2016). FedEx | SWOT Analysis | USP & Competitors | BrandGuide | MBA Skool-Study.Learn.Share. Retrieved from http://www.mbaskool.com/brandguide/transport-and-logistics/2689-fedex.html
