Free «FedEx» Essay Sample

FedEx greatest environmental force is the revolution in communication and delivery of mails from other modes of delivery, to the electronic mode of mail delivery.  This entails that most of the people around the globe would prefer to send their mail via the email. This environmental force may lead to decrease in number of potential customers in the business. Use of e-mail may also lead to prospective losses to the company, due to the investment it has already pumped into infrastructure and IT, that will not be put into full use.

Tight competition is another environmental force that one cannot assume by any slightest measure. Despite the greatest success that FedEx has achieved so far, the company has faced great competition forces that have affected most of its operations. The completion particularly from strong rivals such as the U.S. Postal service (U.P.S), Emery, RPS, DHL and the electronic  document delivery, such as, the fax facilities and the spread in the use of email service in the delivery of mail (James, 2001).

The changes of costs and relevance of IT technology, has also been a force that has affected the business. This is an external force that is costly, especially when it comes to application of newer IT technology to outdo the competitors. The demand for inclusion of newer IT compliant technology and system is enhanced by the market that is being grabbed by the users of email services. For if IT is not improved then the business may be headed for doom. The fluctuating costs of IT equipments have too impacted on the business negatively. For instance in 1984, the introduction of ZapMail, which was aimed at customers who would not afford the fax, came to a flop when the prices of fax machines escalated and this led to the company to stop the service, which led to a loss of $200 million.

SWOT Associated With FedEx

The Strengths

The company first, has a good capital base from the initial $8million that was pumped into the business, by Frederick Smith. The company too has invested greatly on fixed assets. The company is said to own more than 70,000 vehicles, m677 aircrafts that fly over 500,000 miles distance on every single day. The company also owns its own weather forecasting stations that enable its flights to arrive 15 minutes within the scheduled time of delivery. Flexibility, the fim is at all times is Prepared to deal with the uncontrollable and unexpected occurrences such as natural disasters. This is through their contingency plans. In addition to this, the company has impressive infrastructure, equipment and processes. The company is said to be in possession of vehicles exceeding 70,000, 67 aircrafts flying over 500,000 miles every single day and the weather stations that increases their reliability to deliver on schedules (Biria, 2005).


FedEx has over depended on IT which if the systems breaks down; it can lead to great losses. FedEx has pumped a lot of capital base to newer technology which changes with time, this may be a great weakness, for it is cost involving. The use of independent contractors may be a weakness in the event that contractors do not deliver the mail or parcels on schedule.


There are three main opportunities that the company can reach out for. These are the opportunity to expand its market to the places and countries it has not yet reached, because it already has the resources and good historical reputation that makes this possible. FedEx also has the opportunity to expand its e-commerce program to reach out to business clients and finally it has the opportunity to reach out to many countries as possible.


The first threat is its strong rivals such as the U.S.  Postal services (U.P.S.), Emery, DHL, RPS and electronic document delivery, such as, fax machines and email. In addition to this, the natural disasters are a great threat to the success of the business. It is reported that every day in some parts of the world that FedEx visits, experiences some political and natural unrest.


Yes. I agree that FedEx has attempted to adopt and use the marketing concept. This is seen through the move of the company to change the outlook and beliefs. This is seen by tagging its operation to "delivery certainty". The company has been involved in outdoing competitors by overnight strategy, which is its major marketing strategy. The maintenance of an impressive infrastructure and equipment, expansion and growth through partnering, flexibility to attract customers and use of IT are strong marketing techniques. Improvement of its services through enhancing its distribution networks, infrastructure and employee performance gives the company an image that markets its product to customers (Paul, 2006).

The mission statement

First, FedEx tries to stay focused on its mission statement, which states:

FedEx has determination to produce best proceeds for its stake holders, by offering quality supply chain of value, transportation, good business deals together with services on information transfer, through reputable running companies. Clients/customers demands shall be met in a very high quality method depending on the customers' market segment. FedEx shall fight to ensure existence of mutual relationships among its suppliers, its employees, as well as, its partners. Also it will take into account the value of safety all around its operations. Ethical issues as well as, standards of professionalism shall be upheld.   

The strength exposed here is that it is aimed to better the shareholders interest, as well as, the customers demand. The mission has created a balance between the two. The weakness may be the feasibility of the mission, for some issues such as safety and ethical concerns are easily said than done, particularly with regard to the pressure that customers may push to receive their mails and/or parcels on schedule.


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