Fedex Strategy Analysis

3346 Words14 Pages
1EXECUTIVE SUMMARY3

2INTRODUCTION4

3EXTERNAL ANALYSIS (PEST)5

3.1Political5

3.2Economical5

3.3Social5

3.4Technology6

4PORTER'S FIVE FORCES7

4.1Bargaining power of suppliers - High7

4.2Bargaining power of buyers - Moderate7

4.3Threat of new entrants - low7

4.4Threat of substitutes - moderate7

4.5Degree of Rivalry - High8

5COMPETITOR ANALYSIS9

5.1UPS9

5.29

5.3DHL9

5.4TNT9

6COMPANY ANALYSIS10

6.1Strategy10

6.2Marketing10

6.3Market Positioning11

6.4Financial Performance11

6.5Information Technology12

6.6Human Resource12

7CRITICAL SUCCESS FACTORS13

8SWOT ANALYSIS15

8.1Strengths15

8.2Weaknesses16

8.3Opportunities17

8.4Threats17

9RECOMMENDATIONS18

9.1Corporate Level18

9.2Business Level19

9.3Network Level20
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3.2Economical

Due to globalisation, a growing trend was observed where businesses expanded across national boundaries to capture new markets and outsource production. This increased the need for movement of goods which created demand for global transportation. From increasing inflation and competition, businesses were sought to reduce operating costs, hence demanding for more efficient logistics management to reduce inventory costs and implement just-in-time inventory.

3.3Social

FedEx encouraged its customers to integrate its systems to their businesses. In return, customers will be able to reduce inventory, save time and warehousing costs. At the same time, innovative customers were demanding for greater integration of FedEx's systems. FedEx was able to design and develop customised software for their customers in order to enhance integration, such as an extranet for Cicso Systems.

3.4Technology

FedEx is a company built around the use of technology. Continuous research and development of innovative software have helped the Company reach its success. As a result, FedEx was able to link its networks to enable sharing of information between departments and within departments in the company to increase operating efficiency, reduce costs and also to improve customer services.

4Porter's Five Forces

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