SWOT Analysis of FedEx
Uploaded by dylanb98 on Oct 31, 2011
An examination of FedEx Corporation’s strengths, weaknesses, opportunities, and threats, with its position as the original overnight delivery service being discussed as one of the company’s greatest strengths.
FedEx Corporation was created in 1973 as an entirely new concept in package delivery – an overnight air delivery service. While many competitors have sprung up since that time to steal small portions of the market share, FedEx is still undeniably the global leader in its industry. The company also provides e-commerce and supply chain management services to its clients in more than 210 countries.
The corporation has some 215,000 employees and contractors and offers a plethora of delivery options including worldwide express delivery, ground small parcel delivery, freight delivery, and customs brokerage. Integrated business solutions are provided through a group of operating companies, of which Federal Express Corporation is the largest.
FedEx has experienced consistent growth in terms of net income in just about every year of its operation, which has meant three decades of growth. One of the company’s greatest strengths is undoubtedly its business concept. No matter what the economy is doing, there will always be a need for package delivery of some sort by companies and individuals involved in nearly every industry. Even when times are tough and companies are seeking to save money, FedEx has less expensive delivery alternatives from which to choose.
Of course, being the originator of the express delivery concept is also a key strength. FedEx became a household name before any of its competitors ever arrived on the scene, and thus has become synonymous with the idea of express package delivery in the minds of many, if not most, consumers.
Another reason for FedEx’s unparalleled success is the company’s philosophy of “People-Service-Profit,” which dictates that company puts its people first above everything. This way, executives apparently believe, employees will be motivated to provide the best customer service possible, and profitability will follow.
The approach appears to be working. The FedEx employee relations program involves recognition for outstanding performance with tickets to special events and paid time off to participate in community volunteer projects.
Perhaps FedEx’ greatest weakness is the corporation’s large size. In a large, multinational organization, it is often difficult to maintain tight control over all operations. Indeed, according to respected marketing expert and author Jack Trout, the...