Fedex Strategic Analysis

2361 words 10 pages
Introduction:
Federal Express Corporation (FedEx) started its operation in March 1973 building a express delivery company to global logistics and supply chain management company. With logistics as a key part of forming a strong strategy formulation FedEx provided their customers differentiating means thus winning a healthy customer loyalty with enormous.

The growth of the express transportation and logistic industry was brought about by three main trends
• The globalization of businesses.
• Technological advancements and applications innovations.
• The changing market demand for more value added service..
• Application of new technology to generate process efficiencies, and changing market demand for more value- added services.
•
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With this came a host of service offerings. o First launcher of QuickShipper. o Integrated with existing online tools. —Web collection and Price checker. o First launch to access to detailed and personalized shipment Information. By the use of User ID and password. o Powerful and less expensive.

External Analysis:
Opportunities:
 Government deregulations
Government deregulations were main success of FedEx, Which permitted the landing of larger freight planes, thus reducing operating costs for FedEx.
 Industry deregulation:
Deregulation of the trucking industry, which allowed FedEx to establish a regional trucking system to lower costs further on short-haul trips.
 Trade deregulation:
Trade deregulation in Asia pacific, which opened a new markets for FedEx. Expanding globally became a priority for FedEx.
 Technological breakthroughs and applications innovations:
This external opportunity helped FedEx to promote significant advances for customer's ordering, packaging, tracking, and process monitoring

Threats:
 Increasing Fuel prices
During the period of 1999 the increasing fuel price affected the company's net income.
 More competition according to technological improvement:
FedEx serve their customer in a unique way by taking help of IT. For this reason FedEx has always heavy investment on IT. On the other hand UPS, DHL and TNT also started heavy investments on IT with a target of reducing customers switching

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