Essay about Fedex Analysis

3650 Words15 Pages
TABLE OF CONTENTS
EXECUTIVE SUMMARY II
TABLE OF CONTENTS III
LIST OF FIGURES V
LIST OF TABLES V
1 INTRODUCTION 1
PART 1: TRANSPORTATION AND LOGISTIC INDUSTRY 2
2 EXTERNAL ENVIRONMENT ANALYSIS 2
2.1 TECHNOLOGICAL 2
2.2 ECONOMICAL 2
2.3 MARKET 2
2.4 POLITICAL AND LEGAL 2
2.5 ENVIRONMENTAL 3
2.6 SOCIETAL 3
2.7 DEMOGRAPHIC 3
3 INDUSTRY ENVIRONMENT ANALYSIS 4
3.1 PORTER’S FIVE FORCES MODEL 4
3.1.1 Threat of new entrants (Low) 4
3.1.2 Threat of substitutes (Low – medium) 5
3.1.3 Bargaining power of buyers (High) 5
3.1.4 Bargaining power of suppliers (Medium – high) 5
3.1.5 Intensity of rivalry (High) 5
4 CRITICAL SUCCESS FACTOR 6
4.1 STRONG AND TRUSTWORTHY BRAND 6
4.2 ADVANCED IN IT SYSTEMS 6
4.3 INTEGRATION TO CUSTOMERS
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To cater to this need, as of 2000, FedEx now operates in 210 countries managing over 10 million square feet of warehouse space worldwide. Other than globalization, there are more economic factors that affect the transportation and logistics industry, for example economic rates, fuel price and economic growth. Economic rates, such as interest rate, inflation rate and currency exchange rate, and fuel price affect the price management of this industry. While economic growth affects the industry in terms of the demand of the services from customers.
2.3 Market Globalization has broadened market for all industry, from nationwide to world wide. The speed and accuracy has become the critical success factors not only for transportation and logistic company but also for their customers as well. As a result, fast and reliable service is not considered as values anymore, it becomes norm which customers expected from every transportation and logistic company. Therefore, to be competitive in this industry, companies must provide value-added-services which create great satisfaction to its customers.
2.4 Political and Legal The transportation and logistic industry is greatly affected by political stability, government policies, and regulations in each country. The deregulation and trade agreement has eliminated boundaries between countries such as U.S and Mexico, and hence, encourage transportation and logistic companies to easily

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