Fedex

FedEx Corporation operating(a) plane sections and Companies Basic wholey, FedEx is shargond out into four segments and 11 operating companies. The segments consist of FedEx pull up Segment, FedEx primer Segment, FedEx Freight Segment, and FedEx Freight Segment. The 4 segments and 11 operating companies argon as shown chart be modest FedEx military run Segment FedEx Freight Segment FedEx prove Segment FedEx take out Segment FedEx serve FedEx Freight FedEx Ground FedEx Express FedEx Global Supply cooking stove ServicesFedEx Customer Information Services FedEx mail military profit Caribbean Transportation Services FedEx backup Network FedEx SmartPost FedEx Custom Critical prink Analysis organise analysis is the most renowned tool for visit and analysis of the general strategic position of the business organisation and its milieu. Its bring down up get is to identify the strategies that will realise a firm specific business model that will high hat align an organ izations resources and capabilities to the requirements of the environment in which the firm operates.The study(ip) SWOT considerations in FedExs attempt to save its process and dominance argon the following Strengths * Strong brand diagnose * Superior service achievement * modernistic engine room innovations * Impressive basis of equipments * focalise on customers bliss * Clear leader in domestic help help impart lecture mart * Unmatched reputation or on-time language * Lots of planes, well-located hubs, peachy routes/ land rights * Ranked as one of the shell companies to work for many eld in a row * majuscule RampD, kind of innovative * Extensive capital expenditures * FedEx SWOT Clear leader in domestic shew manner of speaking mart place * Large scale operations Weaknesses * High prices relative to competitors * Not as strong internationalisticly * dear(p) innovation technology * Less undetermined in ground service * Weak and slow returns * Drivers and some other workers atomic number 18 trying to unionize * dawdle UPS in the ground rake market place * Very exposed to scotch conditions and fuel prices Opportunities * Untapped market * parsimony is beginning to recover, especially in Asia (China specifically) * Increase in demand of logistics * bail with USPS * The embody of base of operations of stub out rescue companies be a barrier of launching to natural comers * FedEx leading in world(prenominal) give tongue to delivery As long as the reputation of our socioeconomic environment exists, at that place will al slipway be a use up for behave delivery * E-commerce is creating an augment motive for fetch delivery * Globalization caters opportunities for expansion * lively offer services to 220+ countries and blackball government intervention, can expand in them as it sees fit * go on globalization of the world marketplace essence much contract atomic number 18 avail open and at higher(prenominal) rule books as well * Expansion of online sell creates an increased need for on-time, hassle-free merchant vessels * Focus on taking remote international market handle from DHL and domestic ground delivery from UPS Threats * increase in transportation cost (fuel charge) * economical mastered in US * Substitution (UPS,PosLaju,GDex,DHL) * Online competitory advantage of rivals * Maintaining the root word of an converse delivery party is an exit barrier beca occasion of high bushel costs * Capitol is acquired through the muckle of sales, so the high fixed costs can hurt when measure are slow * Due to the personality of the industry, it is nearly im feasible to pass the clear industry leader * The nature of the industry shows very low returns on invested capitol * The E-tailing industry demands lower shipping rates and charges to pull customers from the retail industries * Economic downturn has cut down on volume overall * Many consumers and businesses are transposition t o laggard delivery options to save notes * UPS is attempting to lock away market share in the express delivery roll * E-mail may gravel away from long enumeration delivery market We hit represent 20 lists of SWOT beneath(a) each component however, there are only important issues that influenced FedEx growth are picked after analysis the case. 1. Strengths FedEx has a strong brand scope which gives it significant strengths among the competitors and the company was named the Fortunes sixth stovepipe admired company all over the world.They offer superior overnight delivery performances which are divided into four segments and 11 operating companies, and the segments that offers are FedEx Express, FedEx Ground, FedEx Freight and FedEx Service. From performance view, FedEx confirms that just about 99 percent of its deliveries are delivered to brink on time. This gives a significant competitive advantage with differentiating their services with other competitors who do no t offer their customers of these services. FedEx has a strong and impressive infrastructure of equipment and processes. Through the first and randomness bargain with U. S. Postal Service, FedEx able delivery services through product line transportation and call for option to bead box in all U. S. post office.These agreements have created the Postal Services Global Express Guaranteed service which offers date certain international delivery to over one hundred ninety countries. too that, FedEx as well as well knows with its great R&D and innovative of delivery service. For instance, FedEx provides the innovation of new residential delivery service which is FedEx Home Delivery in key U. S. cities and a pioneer in applying mature information technology to work customer needs. In additional, advanced technology has hit their aims to focus on customer satisfactions. FedEx has a extensive advantage with regards to reaching untapped places and the acquisitions of major compan ies have created a more organized and a more able delivery agreement. 2. WeaknessesThere are a some(prenominal) weaknesses in FedEx that hindering it from growing stronger in domestically and internationally. FedEx services are priced using a zone system which means that the distance of software must travel to reach its last(a) destination determines the price is higher relative to competitors. This significant weakness exists as FedEx is still recovering from the debt of acquire Flying Tiger Line airfreight service. Besides that, they are less undefended in ground service compared to UPS. different than that, FedEx has involved costly technology innovations. For instance, in align to determine the positioning of their packages at all workable locations along the delivery route in real time.Customers can chase packages in three ways by accessing the FedEx Web site on the Internet and click on the features of FedEx enter Manager at fedex. com, or FedEx WorldTM Shipping S oftware. Other than that, Drivers and other workers are trying to unionize under a four year agreement ratified in cc7. This ca engaged FedEx to mountain with the bill which they opposed fiercely and bring the bill into law. Indirectly, this incident leads to increase service costs by 30 percent that need to get up by the customers and inconsistency of operating throughout the organization. 3. Opportunities FedEx have a litter of potential in expansion out-of-pocket to the companys fame around the world. The untapped market has given FedEx a great luck to penetrate into large global market.Untapped market happened when political changes in hostile market. Next, the cost of infrastructure of express delivery of FedEx is a barrier of entry to new comers. New comers need to bear with a large nitty-gritty of cost to build their infrastructure such(prenominal) as airfreight for delivery service. Nowadays, E-commerce and online shop expansion is creating an increased need for expres s delivery. The expansion leads to the demand of hassle-free and on time delivery to volume up. Economic is recovering especially in Asia is also one of the opportunity for FedEx. Despite the bothers in Europe, the Asian parsimony was growing rapidly and construct product exports were accelerating at the same time.This has increased the demand on express delivery and FedEx introduced AsiaOne network which gave effectiveness and force in delivery. 4. Threats One of the threats that set about by FedEx was increase transportation cost which involves high fuel charge. The increasing fuel prices are likely to have a direct impingement on the companys profit margins by create a raise in the operating expenses of FedEx. This is an unavoidable threat as FedEx has a high trustfulness on fuel compared to UPS in express deliveries. There are few competitors in express delivery services domestically and internationally such as UPS, DHL, PosLaju and GDex. This has given customers a rall y choice to substitute FedEx express delivery services. Hence,FedEx has to make a speciality between the competitors in order to win the market to avoid customers from fracture to other delivery option. In year 1992, economic turnover in United State gave arrogate in the amount of package delivers per day. By end of 1992, FedEx experienced tally loss of $133 billion and negative net profit per share of $2. 11. Many customers were switching to slow delivery options to save money. Advanced technology of email may take away from overnight roll delivery market which also a threat that is beyond FedEx control. The ways that FedEx uses their SWOT analysis in helping them to create a competitive advantage will be explained in the part of Strategies to Put FedEx leading of The Game.FedexCritical Thinking and Project Management Homework 2 use a Dunker Diagram to identify many potential solutions The Dunker diagram proficiency is used after you have articulated your present state and want state. It is used to generate many ideas for solutions to a problem. But It whole shebang by prompting you to not only consider solutions that achieve the desire state but also solutions that make It okay -with you to NOT inevitably achieve the want state.This proficiency Is a good one to use when you recognize hat it may be impossible to achieve your desired state completely, and therefore, you might have to consider solutions that will make it authorise with you to not achieve the desire state as you have delineate it. It forces you to consider solutions that would achieve an acceptable resolution to the conflict or problem. pee-pee a Dunker Diagram to Identify as many solutions as possible to the dilemma described below. Turn In your assignment to the dropped on hear by the due date on the syllabus.Scenario You are the HER manager for a company that has a very large IT department (IT = Information Technology). In the next six months or so, you need to hire about 2 00 skilled IT workers (computer programmers, network administrators, database designers, web site developers, and help desk managers). You are discharge ads on job-posting web sites and working with a recruiting firm but you arena getting enough applicants with the required IT skills. There just arent enough the great unwashed out there that have IT skills necessary to do many of these jobs.Lets express this dilemma as the current state/desired state Your current state is you dont have enough employees with strong IT skills. Your desired state is that you do have enough employees with strong IT skills. You decide to use the Dunker Diagramming proficiency so you can discover as many potential solutions to the problem as possible. Using Dunker persuasion, you realize that there are two paths you could take (1) Try harder to hire more people with strong IT skills or (2) polish off it okay NOT to hire more people with strong IT skills. When thinking of ways to accomplish 2 make it ok ay not to have to hire more experienced people DO NOT refer that you remain under-staffed because that goes not solve the problem) using the template, apply the Dunker diagram technique to this problem to come up with several possible alternative solutions. (See pages 470-473) for a quick reference on Dunker diagrams Circle Fill in the blanks recover a way to hire more skilled IT people or else of putting ads in the paper and waiting on IT workers to come to you, go out and recruit IT.FedexFedEx Corporation Operating Segments and Companies Basically, FedEx is divided into four segments and 11 operating companies. The segments consist of FedEx Express Segment, FedEx Ground Segment, FedEx Freight Segment, and FedEx Freight Segment. The 4 segments and 11 operating companies are as shown chart below FedEx Services Segment FedEx Freight Segment FedEx Ground Segment FedEx Express Segment FedEx Services FedEx Freight FedEx Ground FedEx Express FedEx Global Supply Chain ServicesFedEx C ustomer Information Services FedEx Office Caribbean Transportation Services FedEx Trade Network FedEx SmartPost FedEx Custom Critical SWOT Analysis SWOT analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organizations resources and capabilities to the requirements of the environment in which the firm operates.The major SWOT considerations in FedExs attempt to continue its growth and dominance are the following Strengths * Strong brand name * Superior service performance * Advanced technology innovations * Impressive infrastructure of equipments * Focus on customers satisfaction * Clear leader in domestic express delivery market * Unmatched reputation or on-time delivery * Lots of planes, well-located hubs, great routes/landing rights * Ranked as one of the best companies to work for many ye ars in a row * Great RampD, quite innovative * Extensive capital expenditures * FedEx SWOT Clear leader in domestic express delivery market * Large scale operations Weaknesses * High prices relative to competitors * Not as strong internationally * Costly innovation technology * Less capable in ground service * Weak and slow returns * Drivers and other workers are trying to unionize * Lag UPS in the ground delivery market * Very exposed to economic conditions and fuel prices Opportunities * Untapped market * Economy is beginning to recover, especially in Asia (China specifically) * Increase in demand of logistics * Alliance with USPS * The cost of infrastructure of express delivery companies are a barrier of entry to new comers * FedEx leadership in global express delivery As long as the nature of our socioeconomic environment exists, there will always be a need for express delivery * E-commerce is creating an increased need for express delivery * Globalization offers opportunities for expansion * Currently offer services to 220+ countries and barring government intervention, can expand in them as it sees fit * Continued globalization of the world marketplace means more contract are available and at higher volumes as well * Expansion of online retailing creates an increased need for on-time, hassle-free shipping * Focus on taking away international market share from DHL and domestic ground delivery from UPS Threats * Increasing in transportation costs (fuel charge) * Economic down in US * Substitution (UPS,PosLaju,GDex,DHL) * Online competitive advantage of rivals * Maintaining the infrastructure of an express delivery company is an exit barrier because of high fixed costs * Capitol is acquired through the volume of sales, so the high fixed costs can hurt when times are slow * Due to the nature of the industry, it is nearly impossible to become the clear industry leader * The nature of the industry shows very low returns on invested capitol * The E-tailing ind ustry demands lower shipping rates and charges to pull customers from the retailing industries * Economic downturn has cut down on volume overall * Many consumers and businesses are switching to slower delivery options to save money * UPS is attempting to take away market share in the express delivery arena * E-mail may take away from overnight document delivery market We have found 20 lists of SWOT under each component however, there are only important issues that influenced FedEx growth are picked after analysis the case. 1. Strengths FedEx has a strong brand image which gives it significant strengths among the competitors and the company was named the Fortunes sixth best admired company all over the world.They offer superior overnight delivery performances which are divided into four segments and 11 operating companies, and the segments that offers are FedEx Express, FedEx Ground, FedEx Freight and FedEx Service. From performance view, FedEx confirms that roughly 99 percent of it s deliveries are delivered to doorstep on time. This gives a significant competitive advantage with differentiating their services with other competitors who do not offer their customers of these services. FedEx has a strong and impressive infrastructure of equipment and processes. Through the first and second agreement with U. S. Postal Service, FedEx able delivery services through air transportation and have option to drop box in every U. S. post office.These agreements have created the Postal Services Global Express Guaranteed service which offers date certain international delivery to over 190 countries. Besides that, FedEx also well knows with its great R&D and innovative of delivery service. For instance, FedEx provides the innovation of new residential delivery service which is FedEx Home Delivery in key U. S. cities and a pioneer in applying advanced information technology to meet customer needs. In additional, advanced technology has hit their aims to focus on customer s atisfactions. FedEx has a huge advantage with regards to reaching untapped places and the acquisitions of major companies have created a more organized and a more able delivery system. 2. WeaknessesThere are few weaknesses in FedEx that hindering it from growing stronger in domestically and internationally. FedEx services are priced using a zone system which means that the distance of package must travel to reach its final destination determines the price is higher relative to competitors. This significant weakness exists as FedEx is still recovering from the debt of purchasing Flying Tiger Line airfreight service. Besides that, they are less capable in ground service compared to UPS. Other than that, FedEx has involved costly technology innovations. For instance, in order to determine the status of their packages at all possible locations along the delivery route in real time.Customers can track packages in three ways by accessing the FedEx Web site on the Internet and click on the features of FedEx Ship Manager at fedex. com, or FedEx WorldTM Shipping Software. Other than that, Drivers and other workers are trying to unionize under a four year agreement ratified in 2007. This caused FedEx to deal with the bill which they opposed fiercely and bring the bill into law. Indirectly, this incident leads to increase service costs by 30 percent that need to bear by the customers and inconsistency of operating throughout the organization. 3. Opportunities FedEx have a lot of potential in expansion due to the companys fame around the world. The untapped market has given FedEx a great opportunity to penetrate into large global market.Untapped market happened when political changes in foreign market. Next, the cost of infrastructure of express delivery of FedEx is a barrier of entry to new comers. New comers need to bear with a large amount of cost to build their infrastructure such as airfreight for delivery service. Nowadays, E-commerce and online shopping expansion i s creating an increased need for express delivery. The expansion leads to the demand of hassle-free and on time delivery to volume up. Economic is recovering especially in Asia is also one of the opportunity for FedEx. Despite the problems in Europe, the Asian economy was growing rapidly and manufactured product exports were accelerating at the same time.This has increased the demand on express delivery and FedEx introduced AsiaOne network which gave effectiveness and efficiency in delivery. 4. Threats One of the threats that faced by FedEx was increasing transportation cost which involves high fuel charge. The increasing fuel prices are likely to have a direct impact on the companys profit margins by causing a raise in the operating expenses of FedEx. This is an unavoidable threat as FedEx has a high reliance on fuel compared to UPS in express deliveries. There are few competitors in express delivery services domestically and internationally such as UPS, DHL, PosLaju and GDex. This has given customers a substitution choice to substitute FedEx express delivery services. Hence,FedEx has to make a differentiation between the competitors in order to win the market to avoid customers from switching to other delivery option. In year 1992, economic turnover in United State gave affect in the amount of package delivers per day. By end of 1992, FedEx experienced total loss of $133 billion and negative earnings per share of $2. 11. Many customers were switching to slow delivery options to save money. Advanced technology of email may take away from overnight document delivery market which also a threat that is beyond FedEx control. The ways that FedEx uses their SWOT analysis in helping them to create a competitive advantage will be explained in the part of Strategies to Put FedEx Ahead of The Game.