Topics: FedEx, United Parcel Service, United States Postal Service Pages: 5 (1448 words) Published: November 5, 2012
FedEx 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 Services
FedEx Customer 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 organization’s resources and capabilities to the requirements of the environment in which the firm operates. The major SWOT considerations in FedEx's 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 for on-time delivery * Lots of planes, well-located hubs, great routes/landing rights * Ranked as one of the best companies to work for many years in a row * Great R&D, 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 industry 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...
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