Environment Analysis : Shipping Industry

1600 Words Mar 20th, 2015 7 Pages
ENVIRONMENT ANALYSIS
Shipping industry services is oligopolistic in nature with few global players like UPS, DHL along FedEx as its competitors. Shipping industry is in mature stage of industry life cycle. Low cost operations by competitors create barriers to entry into the industry.

EXTERNAL ENVIRONMENT

PEST ANALYSIS

Political Factors

Government rules and regulations are the primary political factors that affect an organization. As Fed ex has its reach across the globe, it has to interact with various nations around the world which are lenient in enforcing trade regulations and which grants them with the privilege of getting better international services. Other political factors which influence the business are political stability, business standards followed and industrial limitations and advancements. Abiding by all the rules of the nations in which it has its reach, it has been very successful.

Economic Factors

Major economic factors that are taken into consideration are Inflation, exchange rates and interest rates. Financial assets in the market are affected by depression in the market. Providing services in around the world is positive as well as a negative factor for FedEx, as it has to comply with all varying economic factors. It has to be flexible with its charges and should base them according to the prevalent economic factors of all the countries that it is it serving.

Social Factors

Population, demographics and educational perspective of the…
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