Strategic Management Report: FedEx Corporation Analysis and Strategy

This report provides a strategic analysis of FedEx Corporation, examining its internal and external environments to assess its competitive position and future prospects. The analysis includes a company profile, vision, mission, and objectives, followed by a PESTLE analysis to evaluate political, economic, social, technological, environmental, and legal factors. Internal analysis utilizes SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. The report further delves into tangible and intangible asset analysis, value chain analysis, and VRIO analysis to determine the company's competitive advantages. Recommendations are provided for FedEx to enhance its market share, particularly in the Asian market, and to focus on employee satisfaction. The report concludes that FedEx has a strong market position but needs to expand its global presence to achieve further growth.

RUNNING HEAD: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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Introduction
Strategic analysis is an important concept for the corporates as it helps the organization in the
identification of internal and external analysis of the company, which will benefit the
organization in the long run. In the competitive scenario, the companies have to make strategic
planning for the future prospects of the business. In the present paper, we have discussed the
strategy formulation of FedEx Corporation the biggest logistics corporation of US, by making an
analysis on the basis of internal factors and other strategic tools for the successful
implementation of organizational goal and strategies. The company has already attained the high
reputation in the world market (Villamayor,2015). This report will help the company in assessing
the resources of the company by using VRIO analysis and value chain analysis that helps in
providing recommendations to the CEO of the company in terms of strategic vision and
objectives that helps the company in making more competitive.
Company profile
Fed Ex is the multinational corporation which deals with the wide range of supply chain,
logistics, and transportation-related business information services. FedEx was incorporated in
1971, by the 28-year-old Frederick Smith with the name Federal Express Corporation. Smith is a
former marine pilot that identify the problem of difficulty in getting packages within two or three
days of operating the firm. This problem gave an idea to him to provide the delivery services for
making the delivery effective. And here the idea of FedEx has evolved. The corporation was
created in 1998 as FDX Corporation, and converted into FedEx Corporation in 2000. Presently
the company is having more than 2, 90,000 employees and committed the safety on the basis of
ethical and professional standards.

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Vision, mission, and objectives
The company is having a vision of making possible for people and business in connection and
collaboration with each other. FedEx emphasize on people first as they are the important assets,
with the help of them the goals are accomplished. The company is focused on providing high-
quality services Save Time and Improve your Marks. (2018)..The company is using its strategies
in making itself competitive in terms of acquiring the market share with respect to its
competitors.
Pestle analysis
Political
The company has to be focused on the political factors as they deal in logistic business, so the
company has to take permission from the government for making upgradations in business for
the success of the organization. Any political instability will lead to the problem for the company
as it results in the major impact on the FedEx contribution.
Economic
The company has to consider the economic factors as the sole growth of the company is linked to
the economic growth of the country. The changes in the dollar process will affect the economic
growth of the country, as according to statistics FedEx is considered as the 21st largest
contributor, which result in trade opportunities.

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Social
Social practices for FedEx involves that the freight should be time bound and reached to the
customers without any damage, to increase the customer demand (FedEx - FedEx - FedEx
Express Strategy. (2018). . The countries who are having high population rate are seen as the
potential customers for FedEx. In addition to that, the business of the company is dependent on
the literacy rate as more literate people need more services.
Technological
The firm is having the strong technological concept for the tracking system of couriers in the
market. The concept of online shopping increases the business of the company due to the online
concept of home delivery (Chatzoglou, 2017). The technological advancement results in easy
tracking of packages and makes the company more effective in terms of customer queries and
feedback.
Environmental
These factors impact the company as the climatic change will delay the delivery system of the
company, and affect the air transportation. So the company has to work hard for the
sustainability of environment of any country, to reduce the impact of environment factor on the
company.
Legal
The company also has to analyze the legal factors of the country as every organization is having
different legal factors. So the company has to understand the legal procedures in terms of labor

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laws and ISO certification. In addition to that, the company also has to provide information
security and become answerable in terms of lawsuits.
Internal analysis SWOT table
Strategic management is having an important impact on the organizational goals and actions.
Strategic decisions are helpful for the managers in reaching the long-term objectives of the
company. For providing the recommendation here we have conducted the SWOT analysis for the
future development of the company.
Strengths
The brand value of FedEx stands at $ 65.418 million as in 2016 and the company is holding a
high market value of 68% in the same year. These figures, as well as the additional services that
are provided by the company, provide the strong brand image to the company (FedEx SWOT
Analysis, 2018). The financial strength of the company is shown in the quarterly growth revenue
of the company for the year 2017, which attract investors in terms of making investments in the
organization (Paras, 2017). In addition to that the patents and the diversified organization size act
as the strength of the company against its competitors.
QUARTERLY REVENUE IN MILLION DOLLARS FOR YEAR (2017)
Quarter (year) Revenue
Q1’17 24,506
Q2’17 25,762
Q3’17 27,470

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Q4’17 31,914
www.statista.com (2018)
Weaknesses
The company is having the dependency on the US market for the revenues as it leads to many
external problems for the company .in addition to that the company is facing the decline in the
annual growth rate due to lack of innovative products and services.
Opportunities
The company is having global opportunities in the areas of Europe, Middle East, and Africa
regions. The company is also working on the strategic alliances for making diversification in the
service portfolio and improve profits (Bauer, 2015). The company is also having hybrid electric
vehicles which are the largest in the logistics industry.
Threats
The company is facing intense competition due to the competitors like DHL International, US
Postal service, TNT NV,Con Way Inc. etc. as they provide innovative services to the customers
at low cost (Marketing Plan of FedEx Express. (2018). . The company is also having the threat of
seasonability as in the US the volume is there between Oct and Nov , whereas Freight LTL
group handle lower volume in Dec,-Feb. the business is also affected by labor relations Act
Strengths
 Strong market position
 Diversified business operations
 High market value
 Highly effective network of
Weaknesses
 Dependency on the US market.
 Decline in the market share due to the
competitors.

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information system
Opportunities
 Growth opportunities in diverse areas.
 Focus on vehicle efficiency at low
cost
 Making strategic allowances
Threats
 Intense competition in market
 Legal regulations
Identification of tangible and intangible assets table
The table shows the financial position of the company in terms of tangible and intangible assets
which shows that the total tangible assets of the company are increasing from 2013-2017 , which
shows that the company is in profitable business FedEx Corp. (FDX) | Assets. (2018). On the
other hand, the analysis on the basis of intangible analysis states that the company is maintaining
customer relationships from 2013-16.

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Value chain analysis
The company is having physical assets of 663 aircraft, 90,000 vehicles in addition to the staff
which consists of drivers and pilots that are having support in IT infrastructure in terms of goods

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and service delivery to customers. The operations of FedEx heavily rely on IT as the resources
are ,molded into a hub and spoke model , that allow the transportation from efficient routes
(Anthony,2014). The company also relies on secondary activities for the completion of a value
chain, which includes the firm infrastructure, HR management, procurement and the
technological advancement. Marketing is also considered as the important function of the value
chain as it enables the business to face the intense competition in terms of low switching cost and
creates customer awareness for the brand.
VRIO analysis
VRIO is a tool used to understand the competitive advantage of the form by analyzing the
internal and external environment of the organization.
Valuable
Fed ex is creating value in terms of its operations with 656 aircrafts that are working worldwide
in the areas of Asia, Europe ,Latin America etc.in addition to that the company is created value
in terms of environmental stability by the use of hybrid buses and trucks and all the FedEx
envelopes are carbon neutral , which do not harm environment.
Rare
The company is having the largest air cargo airport in the world. In addition to that, the company
is having the air-ground infrastructure, which is customer oriented and provides door to door
services to the customers at international locations, for meeting the varied needs of customers.

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Imitability
The organization is different in terms of P-S-P philosophy, which means people, service, and
profit.as it is saying that nature of the industry makes processes but the uniqueness lies in the
skill and quality of the workforce. The company is employee oriented and possess the value of
the company.
Organization
FedEx is the organization that provides integrated business applications with the help of
competing companies under the brand name of FedEx brand (Bull, 2016). The company is
initiating the international presence by closing their hubs in Asia Pacific region which make the
company the largest logistics company in the US, in terms of high barrier of entry at the social
and the legal environment.
Recommendations
FedEx is primarily concentrating on the US market, but after doing the strategic analysis of the
company and by the identification of opportunities it is found out that the company needs to
focus on the Asian market as well which includes India and China as these countries are showing
tremendous growth opportunities. UPS is considered as the biggest competitor of the coma0ny in
the national and international market. UPS is playing a political game against the company due
to the labor rules, which is considered problematic for the company. For that, the company needs
to follow proper labor laws. And as per the value chain analysis model, the company is focused
towards its employees as they considered employees are the backbone of the organization. So to
achieve the competitive advantage the company needs to focus on employee satisfaction.

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Conclusion
On concluding the report, it is obtained that FedEx is having a competitive advantage in the
market, but the company needs to move in the foreign market for increasing the market share.
The intangible and tangible asset analysis states that the company is having a good financial
position in terms of current assets with an increase of 12,678 from the previous year, and the
company is also having valuable resources in terms of hybrid buses and vehicles FDX :
Summary for FedEx Corporation - Yahoo Finance. (2018). . The company is also following the
P-S-P principle which makes it differentiate from other organizations. This report is of great
advantage to the researchers those who are interested in the same field of study as its focus on
the strategic and competitive analysis of the company.
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FedEx - FedEx - FedEx Express Strategy. (2018). Investors.fedex.com. Retrieved 22 February
2018, from http://investors.fedex.com/company-overview/fedex-express/strategy/default.aspx
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ideas/business-marketing/Business strategy for FedEx-36180050
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(2018). MBA Skool-Study. Learn.Share.. Retrieved 22 February 2018, from
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Marketing Plan of FedEx Express. (2018). Marketing Dawn. Retrieved 22 February 2018, from
http://marketingdawn.com/marketing-plan-of-fedex-express/
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I.ntangible-Assets
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https://www.stock-analysis-on.net/NYSE/Company/FedEx-Corp/Financial-Statement/Assets
FDX : Summary for FedEx Corporation - Yahoo Finance. (2018). Finance.yahoo.com.
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