SWOT Analysis

• Extensive global network & Supply Chain:

FedEx operates in more than 220 Territories across the Globe.

• Time-critical deliveries:

FedEx offers Time-critical deliveries for its clients. This is made possible through the real Time tracking of the packages

• Effective marketing:

FedEx focuses on making its marketing effective through ATL (Above the line) marketing activities like promoting its brand name through movies to sports and TV advertisements. FedEx also sponsors some of the biggest sports events around the globe.

• Electric Trucks:

FedEx has ordered fully electric autonomous trucks from Tesla for making its operations more efficient and effective.

• Variety Of Services:

FedEx offers a wide variety of services to its global clients. FedEx Express, ground, freight, and FedEx services.

• High operational costs:

FedEx has always prioritized operational Excellence and customer satisfaction. For this purpose, they have spent extensively on innovations for the past few years.

• Bad customer Service:

Complaints about FedEx customer service show that bad Customer service is one of the weaknesses of FedEx which hurts its brand reputation.

• Frustrating claim Policies:

FedEx Claim policies are considered to be frustrating because they take too long to be resolved especially for the damage of goods during transit

• Delivery drivers behavior:

Customers often complain about the rude behavior and rash driving of FedEx delivery drivers. The package is also mishandled by them sometimes which also directly affects the reputation of FedEx.

• Increasing transportation costs:

With the increase in Inflation and fuel prices across the globe, transportation costs are also increasing for FedEx. This also negatively impacts FedEx and its services.

• Expand into emerging market

Demand for the courier, logistics, and freight services, is increasing rapidly in emerging economies in Asia, Africa, and Latin America, along with improvement in economic situation.

• Focus on Retail e-commerce

Since the Covid 19, global retail e-commerce sales are growing fast. Therefore, FedEx enables to capitalize on the growing demand for delivery services in the retail e-commerce sector.

• Innovation

FedEx continuously innovates to fulfill customer needs. For example, Package Tracking, SameDay Bot Delivery, and Blockchain technology.

• Diversify Portfolio

With its extensive global network already functional, FedEx can diversify its portfolio by entering into the online retail sector.

• Expand through mergers and acquisition

FedEx can exploit its vast financial resources to acquire small and medium couriers in these markets for quick expansion.

• Stiff Competition

From DHL to UPS, and many more, FedEx is facing a competitive market. If stiff competition increases, long-term sustainability will be a challenge for FedEx.

• New rivals: Amazon & Uber Freight

For example, Amazon has been establishing a network of hubs, vehicles, and aircraft to expand its logistics and transportation capabilities. Now, Amazon is expanding its in-house transportation capabilities, it can pose a severe risk to FedEx’s revenue and market share.

• Unstable fuel prices

While the production cut has reduced the price of fuel globally, oil prices remain highly volatile with drastic drops and spikes.

• Government-to-government relationship

FedEx is highly vulnerable to anti-trade policies and global trade wars.

• Uncertain times

With planes, trains, trucks, and transport across the world still struggling to restart after the lockdown, FedEx’s operation will continue to be threatened until the world fully reopens for business.