Fedex Market SWOT In depth Analysis 01-03 PDF

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Marketing research about FedEx...

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Table of Contents EXECUTIVE SUMMARY ..................................................................................... 3 I. ANALYSIS ............................................................................................................ 4 1. A) Introduction.................................................................................................... 4 B) Financial Summary ........................................................................................ 5 2. External Analysis ............................................................................................... 7 3. Competitive Analysis ....................................................................................... 11 4. SWOT Analysis ............................................................................................... 12 5. Key Success Factors ........................................................................................17 II. RECOMMENDATION...................................................................................... 1 1. Strategic Recommendation ................................................................................ 2 2. Defend ................................................................................................................ 3 III. IMPLEMENTATION & CONTROL ............................................................. 1 1. Structure ............................................................................................................. 2 2. Culture................................................................................................................ 3 3. Strategic Control ................................................................................................ 4 BIBLIOGRAPHY .................................................................................................. 18

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Executive Summary Federal Express pioneered the modern air and ground express industry in 1971. In 1998, the corporation was created as FDX Corporation and in January 2000, became FedEx Corporation. FedEx provides a broad portfolio of transportation, e-commerce and business services to customers and businesses all over the world. FedEx maintains the highest professional and ethical standards, and has a strong commitment to safety. With over 290,000 employees in over 220 countries worldwide FedEx continually delivers exceptional services that other businesses can only hope to emulate. ("FedEx Facts") It is with this already developed corporate structure that we have decided our strategic recommendation is to expand our business into a new division called FedEx Moves. FedEx Moves will sell portable storage ―pods‖ to businesses and consumers, complementing our already existing freight related product line that includes FedEx Express, the world‘s largest express transportation company, and FedEx Freight, the leading North American provider of regional LTL (less than truckload) freight services. This new division will be an internal start-up that we will finance through a long-term debt issuance. We will have many advantages right from the start, a major one being the large market share which FedEx has already achieved as well as operating under the well-known and well-respected FedEx name. We will continue to use the M-Form Cooperative structure that has been so successful for us in the past. By aligning our value chains and resources with our other existing divisions, we will be able to keep our costs low and pursue a low-cost provider strategy.

I. Analysis 1. Introduction A) Company Profile The FedEx Corporation was founded in 1971 by Mr. Frederick W. Smith who is also the Executive Chairman, CEO and President of the Corporation which is headquartered in Memphis, Tennessee. Fedex provides transportation, e-commerce, and business services in the United States and internationally. It operates in four divisions: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. (―FedEx Corporation‖) FedEx Express is the world's largest express transportation company, providing timedefinite shipping to more than 220 countries and territories, as well as domestic express services in the United States, Canada, United Kingdom, China and India. FedEx also offers international trade services, customs brokerage and global cargo

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distribution through FedEx Trade Networks. This company division is headed by Mr. David J. Bronczek, CEO and President. (―FedEx Express‖) FedEx Ground provides low-cost, small-package shipping in the United States and Canada, as well as convenient residential services through FedEx Home Delivery. FedEx SmartPost gives customers the option of business-to-consumer service using the U.S. Postal Service. This division is run by Mr. David F. Rebholz, CEO and President. (―FedEx Ground‖) FedEx Freight is the leading North American provider of regional less-than-truckload (LTL) freight services, while FedEx National LTL offers long-haul freight delivery. FedEx also offers time-specific delivery options for urgent freight and valuable items through FedEx Custom Critical. Mr. Douglas G. Duncan is CEO and President of this division. (―FedEx Freight‖) FedEx Services provides sales, marketing, technology and customer service support for our transportation businesses. Mr. T. Michael Glenn leads this division as CEO and President and also resides as the Executive VP of Market Development & Corporate Communications for the Fedex Corporation. FedEx Services includes: FedEx Office (formerly FedEx Kinko's) and is the world's leading provider of document solutions and business services. It operates as FedEx Office Print and Ship Centers, FedEx Office Ship Centers, Signs and Graphics Centers, and closed-door production centers. FedEx Global Supply Chain, founded in 1989 as Roadway Logistics System, offers specialty services like critical inventory logistics, fulfillment services, transportation management, cold chain solutions, freight forwarding/ customer brokerage and cross dock and dock services. FedEx Customer Information Services, founded in 2006, is a subsidiary of FedEx Corporate Services, Inc. Its mission is to align customer contact centers, worldwide revenue operations, claims, trace and package engineering within FedEx‘s professional services company. (―FedEx Services‖) MISSION STATEMENT: FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx Corporation will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. (―Mission, Strategy, Values‖)

B) Financial Summary Fedex Corporation is a publicly traded corporation. It trades on the New York Stock Exchange under the stock symbol FDX. It is part of the Services sector and is in the Air Delivery and Freight Services Industry. Its biggest rival is UPS.

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