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Fedex Five Porter's Forces and Swot

In: Business and Management

Submitted By sitingcai
Words 2622
Pages 11
Introduction
There is no doubt that FedEx Freight is a leading U.S. provider of less-than-truckload (LTL) freight services. It is known for exceptional service, reliability and on-time performance. (History of FedEx Operating Companies About FedEx) With the rapid rise of virtually instantaneous electronic mail, some wondered if FedEx overnight mail delivery was as important as it was in the past. Margaritis pointed out that the company received only 9.3 percent of its revenue from overnight express mail, and that much of that mail could not be delivered electronically, such as gifts, electronic components, and medical equipment. (FedEx Cooperation) Nevertheless, “While FedEx Ground and FedEx Freight posted solid financial results, the third quarter was very challenging for FedEx Express due to continuing weakness in international airfreight markets, pressure on yields due to overcapacity, and customers selecting less expensive and slower transit international services,” said aid Frederick W. Smith.( Jeff B. 2013)
In view of these issues, this essay is aimed to discuss how the business environment, company
3
resources and segmentation are related to the business performance. The paper analyzes these three elements using Porter’s five forces and SWOT.
Porter’s five forces model analysis
The five competitive forces model was came out from Porter’s first book "Competitive Strategy" in 1980. From that on, the model is broadly used by business managers as a guide tool to analyze enterprise structure and strategy. From his perspective, there are five forces that determine the competition scale and degree. Taken together, these five forces affect the profitability and attractiveness of an industry. This model is an effective tool used to analyze business in which the market characterized by dynamic competition. To improve the performance of a business, managers can...

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