FedEx Corporation SWOT Analysis: A Perfect Diagram for Business

This blog will help you figure out the strengths and weaknesses of the FedEx Corporation. Also, you will know its potential weaknesses and threats that may influence the company's operations. If you wonder what tool to use to create the SWOT analysis, it would be best to read the post. To give you more details about the company, read the post and learn about the FedEx SWOT analysis.

• Part 1. Introduction to FedEx
• Part 2. FedEx SWOT Analysis
• Part 3. FedEx Strengths
• Part 4. FedEx Weaknesses
• Part 5. FedEx Opportunities
• Part 6. FedEx Threats
• Part 7. FAQs about FedEx SWOT Analysis

Part 1. Introduction to FedEx

FedEx Corporation is an American multinational company focusing on transportation, business services, and e-commerce. The company is located in Memphis, Tennessee. The first name of the company is Federal Express Corporation. The name “FedEx

Part 2. FedEx SWOT Analysis

Look at the quick overview of FedEx's SWOT analysis in this section. This way, you will know the strengths, weaknesses, opportunities, and threats of the company. After that, we will offer you one of the most effective tools for creating a SWOT analysis.

Get a detailed SWOT analysis of FedEx Corporation.

To create an excellent SWOT analysis of FedEx, use MindOnMap. You can operate the tool without hassle since it offers a simple interface. Also, the diagram-making process is not difficult. The tool can provide all the functions you need in creating the SWOT analysis. Shapes, text, lines, tables, colors, and other functions are available on MindOnMap. You can also change the size of each shape and text based on your preference. With these functions, the tool guarantees that you will get a satisfying SWOT analysis. More features are available on MindOnMap. You can brainstorm with other users using its collaborative feature. You can share your output with them by sending the link. Lastly, MindOnMap is available to all website platforms. You can use the tool on Firefox, Google, Explorer, Safari, and more, making it convenient for all users.

Part 3. FedEx Strengths

Brand Recognition and Market Positioning

◆ Nowadays, regarding shipping or transportation services, you will think about FedEx. It is because the company created its name worldwide. Also, it has become popular due to its reliable and fast delivery globally. Aside from that, the company obtained high brand recognition and a strong market position. This strength can help the company become more popular and attract more consumers.

Technological Capabilities

◆ Another strength of the company is its ability to operate precisely and efficiently. With the help of technology, it can facilitate the pickup and delivery of over 14 million shipments daily. Also, the company invested more in its 700 aircraft and more than 180,000 vehicles. With this, it will be helpful for them to have a great advantage over its competitors. It will also increase the rate of customer satisfaction.

Extensive Global Network

◆ The company expanded its business to Asia and Europe in its first decade of operation. FedEx was considered the largest full-service cargo airline worldwide when it purchased the Flying Tiger Line. FedEx is also known as the largest air operator in the world.

Part 4. FedEx Weaknesses

Bad Customer Service

◆ The FedEx Corporation receives more complaints about its driver's behavior. It also includes the inappropriate handling of packages. This kind of attitude may harm the image and reputation of the company in the industry. It can also be caused to decrease the number of customers, which may affect their revenues. In addition, FedEx’s claim policies are annoying. The complaints take a lot of time to solve for the damages to products and goods while in transit.

Lack of Diversification

◆ In the company’s services, it lacks diversification. Customers have become discerning and fickle. It is because of the availability of information on the internet. The company’s lack of diversification could be a weakness other companies can exploit by offering services that FedEx doesn’t have.

Increasing Transportation Cost

◆ The costs of nodes and links in a supply chain greatly influence the company's business model. With the urban expansion, the warehousing cost increase. It also includes changes in supply and demand, high fuel costs, and changes in labor costs. The company must ensure that its operations are complete with good efficiency.

Part 5. FedEx Opportunities

Engagement in e-Commerce

◆ It will be helpful for FedEx to venture into e-commerce and create a strong presence online. Since we are now techy, some consumers prefer purchasing products and services online. If the company can engage its business online, it can greatly help them. They can get more consumers and get opportunities to grow more.

Technology Development

◆ Having good and new technologies can increase the efficiency rate of the company. It can help them achieve their goal in a short time. Also, since delivery needs transportation, FedEx must invest more in its vehicles. It is because it is their best asset to have a successful operation.

Partnerships

◆ Expanding the company’s portfolio through partnerships or collaborations with other companies is possible. Partnerships can help the company expand its service offerings and global presence. The best example is its good relationships in Canada. The FedEx SmartPost expanded its services for the USA shippers in Canada. It is through the help of Canada Post Corporation. We can say that partnerships with other giants are one of the best opportunities for company development.

Part 6. FedEx Threats

Intense Competition

◆ One of the threats to FedEx is its competitors. In the shipping services industry, there are various factors they compete with. It includes price, frequency, geographical coverage, planned service capacity, package tracking ability, and more. Some of the company’s competitors are US Postal Service, Con-Way Inc., United Parcel Service, and more. FedEx must be aware of its competitors and strategize to exploit them.

Fuel Price Fluctuations

◆ The company relies on a fleet of various vehicles in the shipping business. These vehicles run only on fossil fuel. In that manner, one of the biggest costs of FedEx is its vehicle’s fuel. So, a fluctuation in fuel prices may affect the company’s financial performance.

Part 7. FAQs about FedEx SWOT Analysis