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Fed Ex Swot

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Submitted By whiteDiam16
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SWOT Analysis for FedEx

The Internal Environment:

Strengths
FedEx has a strong customer base and a great reputation. It has great reliability with guaranteed overnight delivery. It has no restriction on the size of packages it ships. It guarantees the safety of the shipments for the customers and offers a claim process online if there are any problems. FedEx has great market presence with service to more than 220 countries and territories (N/A) throughout the world. FedEx has online services to make the shipping process simple and easy to use. Internet access to parcels’ whereabouts in real-time as the parcel moves to its destination and automated custom clearance to speed up the deliveries. The internet website provides up-to-date news information on all things that matter to their customers. Well-trained employees handle the packages throughout the service channels on the ground and in the air every day. FedEx partnering with Canada Post to develop Priority™ Worldwide- international priority service sold through Canada Post outlets.
Weaknesses
FedEx has high maintenance expenses on the transportation it uses to ship packages. With over 637 cargo planes and 43,500 vans delivering packages every day (Williams, Kondra, & Vibert, 2008), FedEx is susceptible to the breakdown of the transportation it uses to ship. It has a tight delivery time frame with its guaranteed overnight delivery service. If one of its planes or vans is not on time, gets held at a border crossing, or loses a package and cannot deliver on its promise to its customers- it faces corporate image problems. It also faces high insurance fees for lost packages. FedEx faces corporate image problems being environmentally unfriendly- polluting the skies and highways with its planes and vans. FedEx is faced with seasonal problems with unforeseen bad weather making on-time deliveries tricky. FedEx depends on their employees so the loss of key staff could weaken there on-time arrivals.
The External Environment:

Opportunities
FedEx can follow the market trends. More people are using the internet than ever before and FedEx customers want a one-stop place to shop. Customers want to do everything from the comfort of their home so FedEx needs to capitalize on this. There is a huge market demand available with Internet E-stores and FedEx would be well served to set up a strategic alliance with one of them. Offer the customers something new and exciting such as a loyalty program rewarding customers for their loyalty. Offer contests and promotions, in return for surveys completed by the customer via the FedEx website, to gain knowledge from the customer. FedEx delivers over the holidays- work hard to be the delivery service everyone turns to over the holidays. Take advantage of competitor’s vulnerabilities by learning everything about the competition and providing better services then a competitor is offering. The world is getting smaller- open into new international markets reaching as many locations possible.
Threats
New regulations and government policies mean keeping up-to-date with the changes to the release process at the border crossings so that shipments will arrive on time. FedEx must have a successful compliance program for getting packages across the border in the allotted time frame. International market delivery services all around the globe are in competition with FedEx and it must stay ahead of this competition. It must also watch out for the local competition providing a service FedEx does not such as Ups offering insurance on all its packages. New competition entering the marketplace is a threat FedEx must remain aware of. Price wars with competitors locally and globally. FedEx needs to stay ahead of the competitors offering a great product at a low price. New technology such as fax machines and the internet that make it easier to operate without shipping items. With the economy in a downturn, FedEx could be faced with lagging sales and decreased profits if the company is not careful.

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