Fedex Case Study
Fed Ex Case
Issue:
Federal Express is a strong recognizable brand with growth potential, but the company faces a multitude of challenges with rising fuel prices, increased value of living, as well as a decline in the economy. FedEx also encounters issues with competition and even negative publicity due to various lawsuits involving violations against EEOC laws and regulations.
SWOT Analysis:
Strengths: • Best leader in express shipping o 99% of deliveries are on time • Expansion of operations into international markets o Purchase of Tiger International • Strong brand image associated with products, quality, and reliability
Weaknesses: • Expensive compared to other services • Increased amount of debt • Decreased expansion in Europe
Opportunities: • Expansion of online consumer services • Offer larger variety of shipping services • Global business growth
Threats: • Technological advancements o E-Commerce • Competition o Overnight delivery market matured rapidly • Rising fuel prices • Decline in worldwide economy • Rising costs associated with employee salaries and benefits • Negative publicity due to lawsuits
Critical SWOT Factors:
Federal Express needs to focus on their strengths in the company, as well as pursuing their opportunities. FedEx built its foundation on being the fastest and most reliable postal service in the United States, and has taken these principles overseas in foreign markets. The FedEx brand name and image is critical toward the company’s on-going success and future growth opportunities. Being globally known, as well as having a strong foothold in almost every country will allow FedEx customers to more willingly accept new services offered by the company. Such factors for expansion and competitive advantage will include offering online services. The world is becoming more technologically advanced
Issue:
Federal Express is a strong recognizable brand with growth potential, but the company faces a multitude of challenges with rising fuel prices, increased value of living, as well as a decline in the economy. FedEx also encounters issues with competition and even negative publicity due to various lawsuits involving violations against EEOC laws and regulations.
SWOT Analysis:
Strengths: • Best leader in express shipping o 99% of deliveries are on time • Expansion of operations into international markets o Purchase of Tiger International • Strong brand image associated with products, quality, and reliability
Weaknesses: • Expensive compared to other services • Increased amount of debt • Decreased expansion in Europe
Opportunities: • Expansion of online consumer services • Offer larger variety of shipping services • Global business growth
Threats: • Technological advancements o E-Commerce • Competition o Overnight delivery market matured rapidly • Rising fuel prices • Decline in worldwide economy • Rising costs associated with employee salaries and benefits • Negative publicity due to lawsuits
Critical SWOT Factors:
Federal Express needs to focus on their strengths in the company, as well as pursuing their opportunities. FedEx built its foundation on being the fastest and most reliable postal service in the United States, and has taken these principles overseas in foreign markets. The FedEx brand name and image is critical toward the company’s on-going success and future growth opportunities. Being globally known, as well as having a strong foothold in almost every country will allow FedEx customers to more willingly accept new services offered by the company. Such factors for expansion and competitive advantage will include offering online services. The world is becoming more technologically advanced