Strategic Management of FedEx company | Assignment
Added on 2019-09-26
13 Pages2848 Words166 Views
Running head- Strategic Management STRATEGIC MANAGEMENTFEDEX Industry overview
1Strategic ManagementThe main purpose of industry analysis is to evaluate the strength and opportunity of the concerned industry. In this assignment whole or entire courier or e-commerce service providing companies strength and its business opportunities and the threat has been analyzed. In this assignment, the FedEx company industry analysis has been conducted which is also operating and providing the major and reliable transportation, e-commerce and courier services to the major part of the world. This company that is FedEx is been categorized into the transportation industry. So this industry has been found much competitive as there are many consumers with different need and preferences. At the global level, FedEx major competitors are DHL that is Deutsche Post, FCML Courier, LDH Express, and Royal Mail. The current position of the FedEx is topmost in the courier and e-commerce industry operation atdomestic level. By providing the reliable and satisfying services on time to the customer.FedEx overviewFedEx is mainly the service industry that it can be categorized in the transportation industry. Themain competitors of the FedEx are UPS that is United Parcel Service and the United States Postal Service. FedEx has the global presence. Its major market share is in Europe and USA. FedEx is the global solution and shipping corporation that mainly provides services to the major consumer and businesses globally. It was incorporated in the way back to 1970 and since then it is operating and dealing with the transportation, shipping, and courier delivery service sector.Current position Currently, FedEx is the world leader in the service industry. The company that is FedEx flagshipdivision, FedEx Express, is currently the worldwide leader in the transportation and express
2Strategic Managementdelivery market. Due to its supply chain management and same day delivery system it has to gain the strategic and competitive advantage in the transportation industry.Relevantgeneral environment and their implications for successful implementation of strategic goals.The general environment of the transportation industry as well the environment of the FedEx company influence the operational activities and its risk and opportunities. The environment is socompetitive in transportation industry at both the level that is at domestic as well as at the global level (Kumar et al., 2015). To compete at both the level the strategy which the FedEx has adopted is it has fine and sound supply chain management and policy of delivering the post on the same day. Which leads it to gain the competitive and strategic advantage in the competing industry where so many competitors are competing with each other. The main goals are to make the global presence and to be the leader in the transportation and shipping industry. So for this FedEx adopted the environment of fine supply chain management and providing the same day delivery. It became successful in the industry by making the loyal and regular customer just by providing the reliable and prompt service to the customer.PESTLE AnalysisPolitical factors or environment- it plays a vital role in making any business or operation into agreat success. Transpiration and shipping industry requires the transportation of the goods and services through the sea and by the airline. So here the proper rules and regulation are to be followed. Any political issues like instability in the political system in the country will hamper the industry growth. But in case of FedEx, the political factors found to be stable in the country
3Strategic Managementand very favorable. It has fine international trade agreements which are boosting the growth of the FedEx.Economic environment or factors- economic factors also contribute the growth of the industry.The economic segment of the general environment address changes and the conditions in the economy which includes many factors such as interest, inflation, and unemployment, GDP, and exchange rate (Boersen et al., 2015). So in case of transportation and shipping industry, it has been found that the GDP has been increased over the time all over the world. Which is contributing the courier and shipping industry to operate in a good manner and earn more profit.With the change in the price of Dollar, FedEx is affected and it has impacted the economy.Social factors- countries which have more population are more likely to have the major customer. So same is the case with the transportation industry. Social factors include such as literacy rate, lifestyle and so on. If more literate people are there then they demand more transportation and shipping services so transportation and shipping industry will be benefited dueto more literate people. So FedEx is serving its major services in the region which are more educated and developed so it has good opportunity to serve the maximum customer.Technological factors- in any industry technology play a vital a role. Due to globalization and technological advancement, the transportation and shipping, as well as courier industry and company, gained a lot of importance. The increasing trend of online shopping has resulted to increase the economy of the FedEx Company as it is also dealing in the same transportation and courier services sector (Gleghorn et al., 2015). In regards to technology, FedEx is very much sound and its adopted fine technology in its supply chain management.
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