Company Weaknesses And Resource Deficiencies

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COMPANY WEAKNESSES AND RESOURCE DEFICIENCIES
• Rising Prices: FedEx prices are higher as compared to their competitors which can be a potential weakness if their customers do not perceive a difference between FedEx and its competitors.
• Labor Disputes with Pilots: The FedEx Pilots Association is formed by the FedEx pilots. The motive of this global body was to bring about changes in the pilots’ salaries, retirement benefits and also restricting outsourcing of foreign flights. The pilots can share their views and feelings through a website. There was a case in 1998 where the pilots were about to go on a strike which enabled FedEx and FedEx Pilots Association to develop an agreement that was posted on the website. However, this agreement did not satisfy the expectations of the pilots and thus, this is an internal weakness for Federal Express keeping in mind the fact that it has about 3500 employees in its kitty. FedEx would suffer and force other competitors to take over if its pilots would go on strike and also incur heavy losses. There was a case in 1997 where the UPS employees went on strike forcing FedEx to take an extra 800,000 shipments in a day.
• Running Subsidiaries Separately: FedEx has made a conscious effort to keep their companies separate to allow a much more organized and structured working environment.

In the 1998 annual report of FedEx, CEO Frederick Smith states, “Simply layering the unique resource and operating requirements of a time-definite, global,
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