SWOT Analysis of FedEx Company - Essay Example

Given below is the SWOT analysis of FedEx:

STRENGTHS OF THE COMPANY:

• Company’s name:

The first and foremost strength is the name of the company itself as it is well reputable and trustable company.

• Skilled worker:

9000 skilled workers (Memphis) of FedEx are always on their toes ready to receive work and highly efficient to do their work on time.

• Management:

The proper management of workers is also one of the main strengths of FedEx. As employees are well briefed regarding their work. Furthermore, resource management is also up to the mark.

• Coverage area and resources:

FedEx is currently providing services to over 220 countries and territories and knows the market very well, plus in terms of resources 637 cargo planes and 43,500 vans also place the company strongly.

Besides these, companies have many more strengths like delivery time, effective advertisement, strong brand endorsement, and strong revenue generation.

Weaknesses:

• Dependence on the US:

FedEx is too much dependent upon the US. So if the US economy is affected then there is a high chance that FedEx would also be affected.

Opportunities:

• International expansion:

International expansion is another opportunity for FedEx although the company is currently catering to 220 countries and territories still there is a lot of potential for growth and expansion.

• Online shopping:

With the advent of online shopping around the world, the role of courier companies is likely to increase. Therefore catering to this huge market is sort of a great opportunity for FedEx.

• Chinese market:

FedEx has great chances to increase its market share in China. As China is one of the leading exporters in the world and therefore it requires courier services as well.

Threats:

• Oil prices:

Since prices of oil fluctuate a lot. Therefore it is hard for courier companies to cope with such problems.

• Economic slowdown:

Globally recession has affected the masses and per capita incomes of people have seen decreases. With the economic slowdown in the US FedEx is also affected by it.

• Small companies:

Small courier companies one way or another takes business from big companies in terms of low prices. These small courier companies are likely to challenge FedEx further in the future.

• Political and social unrest:

The world today is not safe as war is going on in many countries around the world. So therefore it is quite hard to deliver couriers safely in places where there is social unrest.

Question 2:

FedEx is currently amongst the top courier service providers in the world and is growing in terms of revenue generation, market share, and penetration in new markets. However, there are possible chances of slowing the success path of FedEx. As FedEx is too much dependent upon the US market so, therefore, chances of slowing down are possible moreover the current situation of the world is another reason to add in this regard.

Similarly, besides these issues, the company has very much scope in terms of generating more income by expanding and reaching new markets. One possible opportunity is in the Asian market. As currently many Asian countries are growing. So they rely too much on imports and exports therefore FedEx has a great opportunity in reaching and capturing those markets by using experience and brand name.

Another important development in terms of revenue generation is online shopping. If FedEx is likely to hold its growth online shopping should be dealt with with utter care. New plans should be formulated, techniques should be devised as online shopping is likely to change shopping trends in most developing countries. Different schemes should be launched so that the masses can be attracted.

Furthermore, the role of competitors new and old will always be a threat to FedEx. In most cases, new companies have nothing to lose so they usually lower their price in order to gain market share. Therefore FedEx should try to offer competing prices in order to wipe out these companies from challenging FedEx. This can be done with ease as FedEx has enough revenue to hold a market and lower prices as well.

The future of FedEx is split between opportunities and threats. Therefore the role of management will be crucial because proper planning can give FedEx billions and one wrong step can lead them toward a catastrophic situation.