SWOT Anaysis Strengths FedEx Is an Established Term Paper

Excerpt from Term Paper :

SWOT Anaysis


FedEx is an established company with many strengths, the first of which is the brand name recognition that the company enjoys. In addition, the company has the ability to deliver products throughout the world in a timely and efficient manner. FedEx has a presence in the Asia Pacific, Europe, Latin America, the Middle East and Africa.(About FedEx) Another strength that the company possesses is the ability to properly utilize technology. According to an article found in Mckinsey quarterly the company was one of the first to allow customers to track their orders through the internet and creating a virtual value chain. The article explains that Federal express now allows 'customers to track packages through the company's World Wide Web site on the Internet. Now customers can locate a package in transit by connecting online to the FedEx site and entering the airbill number. After the package has been delivered, they can even find out who signed for it. Although FedEx provides this service for free, in doing so it has created added value for the customer - and thus increased loyalty - in a fiercely competitive market."(Rayport)

In addition, FedEx treats its employees well. The company has long been associated with good benefit packages and flexibility. The company also has a diverse workforce. These qualities are strengths because it allows the company to maintain a stable workforce and reduce the likelihood of high turnover rates.


FedEx is an industry leader with global appeal. The company is able to do business in a way that very few companies in the industry can. For this reason, the company has very few weaknesses. One weakness is that many of the products that the company delivers to consumers have routinely been associated with sweatshops in the third world. (Ciscel et al.) This association is a weakness because it could prove detrimental to the company's image.


The company has an opportunity to expand its operations through increased levels of advertising. The company currently markets it services through commercials and print media. The company can also apply even better technologies, which will ensure that consumers will receive their goods in a timely and efficient manner. Maintaining the competitive advantage is essential to the continued success of the company.


For FedEx one of the main threats comes from other companies within the industry. This industry is extremely competitive and can easily turn in favor of another company. FedEx has to compete with UPS, DHL, and the United States Postal Service. FedEx must continue to pursue customer satisfaction if it expects to maintain the competitive advantage.

Another threat that the company faces is terrorism. Although the fact that the company operates globally is strength, it also poses a threat. FedEx uses planes to distribute goods; terrorists could attempt to sabotage one of these flights, which would be detrimental to the company.

In addition to the aforementioned threats, FedEx also faces the threat of problems associated with the technology that the company needs to operate. A large-scale problem with the company's computer system would be disastrous for the company, because it relies on computer systems to get its products to consumers. It also uses these technologies to allow customers to tack their orders.

Analysis of the SWOT matrix

The SWOT matrix illustrates that FedEx has many strengths and operates in a proficient way. In addition, the SWOT matrix illustrates that the competitive advantage of FedEx lies in the Global structure of the company. The SWOT matrix also found that this global structure can pose a threat to the company. The matrix also asserts that the company has an opportunity to expand through marketing and advertising.

Establishing a strategic focus

For FedEx establishing a strategic focus for the companies marketing plan is essential. The company must focus on the type of advertisement and service that will keep customers. In addition, the company must advertise in a way that differentiates FedEx service from the service consumers will receive from competitors. The strategic focus will assert that FedEx is a global company that has more efficient and reliable than any company in the industry.

II. Marketing Implementation

-Structural Issues

The implementation of a new marketing will focus on the basic four principles of marketing; price, product, placement and promotion. FedEx will have standard prices based on the weight of the product and the desired delivery date of the product. The company must ensure that this price is competitive and not exorbitant when compared to other carriers. The product or in this case the service, that is being provided must be efficient. The company must ensure that packages are properly handled and are the proper condition when customers receive them. To ensure this occurs the company must implement a strategy that takes into customer feedback. In addition, the placement or distribution of products to customers will continue to be global. This is the only way that FedEx can maintain a competitive advantage. The company must also promote their services through the medium of television and the internet. FedEx currently promotes using both mediums but the effort needs to be more concerted.

In addition, marketing professionals must understand the roles that they will play in the implementation of the marketing plan. Managers in the marketing departments must take the lead and delegate the appropriate duties to employees. For this reason the marketing plan must be clearly defined and focus on demonstrating what needs to be done to achieve organizational goals.

Tactical marketing activities

Tactical marketing activities "are about doing things in the right way." (Marketing Planning) Tactical marketing activities are also those activities that are performed routinely to ensure that the company's strategic plan is implemented correctly. In the case of FedEx the tactical marketing activities will be as follows

Cleary define the strategy for employees and routinely reiterate the strategy.

Clearly define the roles that each employee plays in the implementation of the marketing strategy

Ensure that the prices that are set are reasonable and competitive

Gather customer feedback information and act on the information that is received

Be aware of terroristic threats that may threaten the safety of employees, customers or tarnish the reputation of the company.

Ensure that global distribution is uninterrupted and running proficiently

Make a concerted effort to promote the company

III. Evaluation and Control

Formal marketing control

Input Control Mechanisms

These mechanisms involve such things as employee recruitment and retention. It also involves employee training. (Marketing Plan Worksheets) For FedEx the implementation of a marketing strategy is dependent upon the recruitment and training of good employees. The company must train employees in a fashion that is conducive with the marketing strategy that the company desires to implement. These employees must have the proper education and experience if they want to be a part of the marketing team.

Process control mechanisms

Process control mechanisms involve such things as employee evaluation and compensation. (Marketing Plan Worksheets) There must be a standard evaluation for all employees. These evaluations should be completed by managers each quarter to examine the progress of employees. Likewise, employees should be provided with compensation and incentives based on the work that they have done or strategic goals that have been met. In addition, FedEx must focus on factors such as internal communication, management commitment to the marketing plan and management's commitment to employees. All of these factors are important because they allow managers and employees to develop the standards that will exist in the workplace.

Informal marketing control

The informal marketing control involves such things as the self-control and the social control of employees. (Marketing Plan Worksheets) FedEx must ensure that their employees are content with their jobs before attempting to implement a new marketing plan. Employees must know that their jobs are significant and that they will be compensated for…

Sources Used in Document:


Marketing Plan Worksheets. Retrieved November 26, 2004 from; hl=en

About FedEx. Retrieved November 26, 2004 from; http://www.FedEx.com/us/about/

Ciscel David H.,Marcela Mendoza, Barbara Ellen Smith. Ghosts in the Global Machine: New Immigrants and the Redefinition of Work. Journal of Economic Issues. Volume: 37. Issue: 2. Publication Year: 2003. Page Number: 333+.

RayporJeffrey F., John J. Sviokla. Exploiting the Virtual Value Chain. Contributors: author. Journal Title: The McKinsey Quarterly. Issue: 1. Publication Year: 1996. Page Number: 21.

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