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FedEx Situational Analysis
Conduct a situational analysis for FedEx. What are its internal strengths and weaknesses? What strategic opportunities and threats does it face? Think SWOT analysis.
FedEx has evolved into one of the most powerful freight and courier service providers, in addition to providing world class logistics and business support. It's core strengths in logistics and supply chain management continually lead the U.S. And global air express industry (Pettus, 2006). The company is organized into the divisions of FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services, Uniting all of these diverse divisions into a single unified identity has been possible through the use of world class branding and marketing. FedEx has one of the strongest brand images globally today, instantly recognized and considered a global leader in brand management (Murphy, 2011). In addition their strength in branding, they have been able to attain a very large scale operation in logistics and supply chain management that is comparable to WalMart and globally-based mass merchandisers and retailers (Oster, Rubin, Strong, 1997). FedEx is also known for managing their entire logistics, supply chain and services...
The strengths of an exceptional brand image, well-run and globally-based operations and the ability to attain high levels of efficiency throughout their operations differentiate the company in the market.
Weaknesses the company is facing include a lack of sales in their core American markets and an inability to open new markets globally fast enough to compensate for declining revenues. There is also the many lawsuits the company is facing, partly from competitors domestically and from foreign governments for their pricing strategies (Pettus, 2006). These weaknesses are perennially impacting their bottom line over time as well, draining profits at a time when they are needed most (Oster, Rubin, Strong, 1997).
There are many strategic opportunities and threats the company is facing as well. First, the potential for global expansion is overdue in terms of being addressed. FedEx has struggled with its globalization plans yet must move quickly on this opportunity before it slips away. The second strategic opportunity is the commercialization of the…
References
Murphy, C. (2011). FedEx CIO explains the real power of cloud. InformationWeek, (1291), 18-19.
Oster, C.V., Rubin, B.M., & Strong, J.S. (1997). Economic impacts of transportation investments: The case of federal express. Transportation Journal, 37(2), 34-44.
Pettus, M.L. (2006). Structural transformation of the U.S. air express industry. Journal of Transportation Law, Logistics, and Policy, 73(2), 261-265.
Viaene, S., & De Hertogh, S. (2010). Enterprise-wide business-IT engagement in an empowered business environment: The case of FedEx express EMEA. Journal of Information Technology, 25(3), 323-332.
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