SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis.
Case 13 - FedEx
Strengths
1. FedEx has a strong brand image. FedEx strong brand image drives its retail business. The strong brand image besides driving domestic revenues facilitates international expansion as well. (FedEx, 2014).
2. FedEx's operations are large scale. FedEx Express is responsible for packages and freight deliveries throughout the United States and to more than 220 countries worldwide. FedEx Express also offers domestic pickup-and-delivery services within certain non-US countries, including the UK, Canada, China, India and Mexico. (FedEx, 2014).
3.FedEx has recently had some strong financial performances. Over the past few years, FedEx had a consistent strong …show more content…
FedEx's management. FedEx 's strong financial performances and their robust cash flow indicates proper decisions from the company's management. This also leads to greater stability with the company's operations and allows room for FedEx to grow/expand. (FedEx, 2013).
Weaknesses
1. FedEx has legal issues. They are part of several class action lawsuits. They also allegedly have violated some of the United States antitrust laws. (FedEx, 2014).
2. FedEx also has unfunded employee post-retirement benefits. Unfunded pension obligations may force FedEx to make regular cash contributions in order to bridge the gap between pension assets and liabilities, thereby pressurizing the liquidity position of the company. (FedEx, 2014).
3. In 2013, FedEx earnings fell due to a weakness in the air flight business. Customers shifted to slower and less-expensive international air-shipping options. (Koenig, 2013).
4. FedEx has a relatively small size. UPS is twice the size of FedEx in the terms of market capitalization. (FedEx, 2014).
Opportunities
1. FedEx has the opportunity to focus on regions such as the Indian region. In September 2013, FedEx launched its FedEx International Direct Priority Ocean service in India in September 2013. They are also the only company offering this type of service between India and the US. (FedEx, …show more content…
FedEx is working on network expansion to provide growth. FedEx is strongly focused on network expansion to drive growth. They are focusing on other countries and by doing so I believe this can have a good increase on the company making more money and continuing to stay ahead of their competitors. (FedEx, 2014).
3. FedEx has a positive outlook for North America's road freight sector. FedEx Ground and FedEx Freight are one of the leading players in the North American road freight sector. FedEx is has a strong position to take advantage of the strong growth in the North American road transportation industry. (FedEx, 2013).
4. FedEx has the opportunity to benefit from the growing online retail market. With the expected growth rate of online shopping, the deliveries of goods are expected to increase substantially, which in turn would boost the revenues of the company. (FedEx,
Case 13 - FedEx
Strengths
1. FedEx has a strong brand image. FedEx strong brand image drives its retail business. The strong brand image besides driving domestic revenues facilitates international expansion as well. (FedEx, 2014).
2. FedEx's operations are large scale. FedEx Express is responsible for packages and freight deliveries throughout the United States and to more than 220 countries worldwide. FedEx Express also offers domestic pickup-and-delivery services within certain non-US countries, including the UK, Canada, China, India and Mexico. (FedEx, 2014).
3.FedEx has recently had some strong financial performances. Over the past few years, FedEx had a consistent strong …show more content…
FedEx's management. FedEx 's strong financial performances and their robust cash flow indicates proper decisions from the company's management. This also leads to greater stability with the company's operations and allows room for FedEx to grow/expand. (FedEx, 2013).
Weaknesses
1. FedEx has legal issues. They are part of several class action lawsuits. They also allegedly have violated some of the United States antitrust laws. (FedEx, 2014).
2. FedEx also has unfunded employee post-retirement benefits. Unfunded pension obligations may force FedEx to make regular cash contributions in order to bridge the gap between pension assets and liabilities, thereby pressurizing the liquidity position of the company. (FedEx, 2014).
3. In 2013, FedEx earnings fell due to a weakness in the air flight business. Customers shifted to slower and less-expensive international air-shipping options. (Koenig, 2013).
4. FedEx has a relatively small size. UPS is twice the size of FedEx in the terms of market capitalization. (FedEx, 2014).
Opportunities
1. FedEx has the opportunity to focus on regions such as the Indian region. In September 2013, FedEx launched its FedEx International Direct Priority Ocean service in India in September 2013. They are also the only company offering this type of service between India and the US. (FedEx, …show more content…
FedEx is working on network expansion to provide growth. FedEx is strongly focused on network expansion to drive growth. They are focusing on other countries and by doing so I believe this can have a good increase on the company making more money and continuing to stay ahead of their competitors. (FedEx, 2014).
3. FedEx has a positive outlook for North America's road freight sector. FedEx Ground and FedEx Freight are one of the leading players in the North American road freight sector. FedEx is has a strong position to take advantage of the strong growth in the North American road transportation industry. (FedEx, 2013).
4. FedEx has the opportunity to benefit from the growing online retail market. With the expected growth rate of online shopping, the deliveries of goods are expected to increase substantially, which in turn would boost the revenues of the company. (FedEx,