FEDEX CASE STUDY

Vision
To connect people, businesses and ideas seamlessly in order to
create opportunities that become the driving force for progress.
Mission
To provide the best value-added logistics services worldwide by
utilizing the vast array of logistical assets and our partnerships
around the world. To ensure that this is done with the highest safety
standards for both our customers and our employees while
maintaining a green approach and striving to leave little to no
carbon-footprint.

SWOT
STRENGTHS
 Variety of service
1. FedEx express
2. FedEx Ground
3. FedEx Freight
4. FedEx Service
 Brand Valuation
1. Market Capitalization $49 Billion
2. Net Income $2.1 Billion
3. Revenues $45 Billion
 Global Network
1. Operations in 220 countries
2. 57000 drop off locations
3. 700 aircrafts
4. 62000 vehicles
5. 220000 employees
 Sustainability oriented
From 2005 to 2014 they reduced 14% of their carbon footprint and they plan to take this
number to 20% by 2020.
  Time critical deliveries (more than 26 million packages were delivered in one
day during Christmas)

WEAKNESSES
 Overdependence on US market (68% of total revenue comes from US market)
 Poor Management (every year more than 50000 of seasonal workers are hired
for just peak days)
 Increasing cost of transportation (oil prices increased by 49%)
 Damages during transit (delivery staff needs training)

OPPORTUNITIES
 Increasing trend in online shopping from $9.2 billion to $17.2 billion
 Can expand internationally through franchising because they have $3 billion of
goodwill in their balance sheet
 They can finance through their own reserves ($2.9billion cash and 2.7 million
share vat a price of 173 on February 2015)
 Expanding Chinese market

THREATS
 Increasing transportation cost
 Intense competition in US by UPS because they have more market share (75% of
their revenue comes from the US market)
 Global trends changing
 Green initiative makes it costly to keep up with the standards

CPM MATRIX
FedEx is good at streamlining management and increasing the quality of service while using
advertising to promote your brand image. Improving resource allocation in global
expansion, especially in China. However, with the economy unstable, its financial condition
is likely to suffer, adding another downside to maintenance. Their market share in a
competitive price race, even though they offer good service and customer loyalty is
relatively higher. The need to train your deliverers more when your customer incident
occurs damages the company's reputation and affects customer loyalty. According to the
CPM matrix, FedEx falls right behind its competitor, UPS. In the years leading up to 2015.
UPS has shown exponential growth and expects its revenues to rise by 7% annually through
2018. Like FedEx, UPS has also heavily invested in its expansion in the international market.
Conclusion FedEx does well with its market, but needs to actively plan its expansion strategy
and take greater account of delivery staff recruitment and the full profile of the competition,
in order to become the market leader.

EFE MATRIX
FedEx approach is to enlarge their areas in line with the end result 2.89 they have got
captured properly the possibilities and behaviour the Cooperative techniques to go into
worldwide marketplace mainly China with excessive call for developing capacity clients
developing Global transportation in addition to the spelling of Internet in new economic
system as they revel in those possibilities to be had to the fullest which enables tough
competition via merger and acquisition nearby organizations at their New Market beside
this FedEx make investments the capacity on line buying commercial enterprise which to be
quickly analysing and new fashion of for consumption. but their plan need to account all of
the going through Threats that's the growing transportation price the slowdown in Chinese
financial the focused marketplace they need to penetrate and the cutting-edge financial
scenario in US the
most
important
marketplace those
threats will boom
price and
probably invent
trouble that
constitute a
diversion from
the principle
intention FedEx
go away in the
back of their
competition way to
their
optimize control
and investments in era get their competition is developing rapid and enlarge their attain in
worldwide play area which need to be a word for FedEx for shifting ahead the price for from
their day by day operation and from Green in provoke to maintain up with the usual is some
other factor they need to have interest for.
IFE MATRIX
FedEx operates a diversified business with massive investments in information systems
networks and technology infrastructure. They also have strong physical assets and practice
sustainable development. All of this factor helps them build solid market position and brand
equity for the company. the presence of weakness factors such as excessive dependence on
the US market with the loss of decentralized operations, which cover the operational
activities of investing and financing activities, and the necessary training of delivery staff,
which FedEx can still achieve with solid strength with a score of 2.99, a quiet high score.

SPACE MATRIX
The company is inscribed on the competitive quadrant, which means it uses internal
strengths to take advantage of external opportunities, overcome internal weaknesses and
also avoid external threats according to Appendix 1 shows FedEx's financial health is
growing but is a dictionary unstable FedEx can be at risk due to high pressures and relative
elasticity, so it is necessary to create something new in order to compete with its
competitors and the field of competitive position, FedEx product quality and technological
advancement are ready for whatever reasons they are Maintain their market share and
ultimately gain customer loyalty for the industry FedEx has good factors to grow its
business, such as high productivity or increased leverage.