FedEx SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
FedEx
FedEx offers overnight courier services, freight services, logistics solutions
and business support services. It operates the world’s largest express
transportation company. FedEx has a strong brand image. The company was
named the Fortune’s sixth best admired company all over the world. Strong
brand image besides driving domestic revenues, facilitates international
expansion. However, the increasing fuel prices are likely to have a direct impact
on the company’s profit margins by causing an increase in the operating
expenses of FedEx.
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FedEx SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ Strong brand image
¾ Declining operating
¾ Strong revenue growth
efficiency and weak
¾ Large scale operations
returns
¾ Dependence on the
US
External
Opportunities
¾ International
expansion
¾ Expanding Chinese
market
¾ Online shopping
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Threats
¾ Increasing
transportation cost
¾ Economic
slowdown in the US
¾ E-substitution