The need for the services of logistic companies has experienced a geometric increase in recent times, fueled by the spike in online shopping. Our company focus on this strategic analysis is the Federal Express (FedEx), established on April 17, 1973, by W. Smith a Yale graduate.
However, logistic companies have not been able to meet up with the demand for their services because they lack the capacity to fulfill these deliveries. This is largely due to the firm’s limited resources and unpreparedness for such geometric increase for parcel delivery. Even though the company was not able to meet all its scheduled parcel deliveries, the firm still recorded a substantial gain in 2017, the majority of which came from ground delivery.
Therefore, our strategic plan includes repositioning the FedEx ground delivery service to capture this externality and increase ground delivery services revenue by 20 percent. Using the EFE and IFE matrices, we determined that Amazon accounts for about half or 53 percent of the United States online sales. Although the company is entering the logistics business, we believe the rate of shop-and-ship commerce will double that of last year.
However, the existing system is not capable of meeting the demand for on-time delivery, especially during the peak period. To address the above problem, we recommended a strategic alternative for FedEx based on the results of various strategical analysis tools used that converged to the same conclusion i.e., the need for FedEx to expand its ground delivery service. Further, this strategic alternative consists of opening new Hubs, increasing ground delivery vehicles and delivery drivers. However, adopting these alternative strategies has its associated advantages and threats. Some of the advantages of expanding its ground delivery system are for the firm to effectively capture the benefits of the spike in online purchases.
Furthermore, opening more Pickup/Delivery Stations and (Hubs) can ensure speed of shipment and delivery. However, one of the major impediments to this strategy is the cost associated with increasing its delivery fleets and drivers. Therefore, channeling a portion of the Tax cut windfall to purchasing these vehicles and hiring new delivery drivers will yield a return on investment in the long-run based on the result of the strategic analysis.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Introduction
- The History of Federal Express (FedEx)
- Vision and Mission Statement
- FedEx External Assessment
- FedEx External Factor Evaluation matrix (EFE Matrix)
- Analysis of External Evaluation (EFE) Matrix
- Competition Profile Matrix, (CPM)
- Analysis of Competition Profile Matrix, (CPM)
- Internal Assessment/Audit
- FedEx Internal Strengths
- Internal Evaluation Matrix of FedEx
- Financial Ratio
- Analysis of Result
- FedEx's SWOT Matrix
- Analysis of Result
- FedEx BCG Matrix
- BCG Matrix
- Internal Evaluation Matrix
- FedEx BCG and IE Matrix Analysis of result
- SPACE Matrix
- Analysis of Space Matrix Result
- Alternative Strategy
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines FedEx's current strategic positioning and explores potential alternative strategies to enhance the company's performance. Utilizing a range of analytical tools, including the EFE and IFE matrices, SWOT analysis, and other matrix methodologies, the paper delves into FedEx's strengths, weaknesses, opportunities, and threats.
- Analyzing FedEx's external environment and identifying key opportunities and threats.
- Assessing FedEx's internal capabilities and identifying its strengths and weaknesses.
- Developing strategic alternatives based on the analysis of FedEx's internal and external factors.
- Evaluating the effectiveness of various strategic options and recommending the most suitable alternative.
- Exploring the potential advantages and disadvantages associated with the recommended alternative.
Zusammenfassung der Kapitel (Chapter Summaries)
- Executive Summary: This section highlights the increasing demand for logistics services fueled by the rise of online shopping. It focuses on the competitive landscape and the need for FedEx to address the growth in ground delivery demands. It introduces a key objective: to increase ground delivery services revenue by 20 percent.
- Introduction: This chapter outlines the paper's objectives, which include analyzing FedEx's current strategy using a variety of analytical tools and recommending strategic alternatives to maximize return on investment.
- The History of Federal Express (FedEx): This section narrates the founding of FedEx by Frederick W. Smith and its initial focus on addressing the need for time-sensitive shipments. The chapter outlines Smith's visionary concept and the origin of the company's name.
- Vision and Mission Statement: (This chapter is not included in the provided text, but should be summarized if available in the complete document.)
- FedEx External Assessment: This chapter begins the analysis of FedEx's external environment. It likely examines the broader industry trends, key competitors, and potential threats and opportunities that FedEx faces.
- FedEx External Factor Evaluation matrix (EFE Matrix): This section focuses on quantifying the importance and likelihood of occurrence of various external factors, such as market trends, regulatory changes, and competitor actions, that impact FedEx.
- Analysis of External Evaluation (EFE) Matrix: This section analyzes the results of the EFE matrix, providing insights into the strengths and weaknesses of FedEx's external environment.
- Competition Profile Matrix, (CPM): This section likely analyzes FedEx's key competitors, evaluating their strengths and weaknesses in relation to FedEx.
- Analysis of Competition Profile Matrix, (CPM): This section examines the insights gained from the CPM, identifying competitive advantages and disadvantages that FedEx possesses.
- Internal Assessment/Audit: This chapter begins the analysis of FedEx's internal environment, focusing on the company's strengths, weaknesses, and capabilities.
- FedEx Internal Strengths: This section likely outlines FedEx's key internal assets, such as its brand reputation, operational efficiency, and technology infrastructure.
- Internal Evaluation Matrix of FedEx: This section quantitatively assesses the importance and performance of FedEx's internal factors, providing a structured view of the company's strengths and weaknesses.
- Financial Ratio: This section analyzes FedEx's financial performance, examining key ratios and metrics to understand the company's financial health.
- Analysis of Result: This section interprets the results of the financial ratio analysis, providing insights into FedEx's financial position and potential areas for improvement.
- FedEx's SWOT Matrix: This section combines the results of the external and internal analysis, creating a comprehensive SWOT matrix that identifies FedEx's strengths, weaknesses, opportunities, and threats.
- Analysis of Result: This section analyzes the insights gained from the SWOT matrix, identifying key strategic implications and potential areas for action.
- FedEx BCG Matrix: This section likely utilizes the Boston Consulting Group matrix to analyze FedEx's product portfolio, classifying products based on market share and market growth rate.
- BCG Matrix: This section likely presents the BCG matrix itself, visually depicting FedEx's product portfolio.
- Internal Evaluation Matrix: This section likely presents a matrix that evaluates FedEx's internal performance in terms of key factors, such as financial strength, operational efficiency, and innovation.
- FedEx BCG and IE Matrix Analysis of result: This section analyzes the insights gained from the BCG and IE matrices, identifying potential strategic implications and areas for action.
- SPACE Matrix: This section utilizes the SPACE matrix to assess FedEx's competitive position, considering its financial strength, competitive advantage, market stability, and environmental stability.
- Analysis of Space Matrix Result: This section analyzes the results of the SPACE matrix, identifying strategic alternatives that are appropriate given FedEx's competitive position.
- Alternative Strategy: This chapter likely presents a proposed strategic alternative based on the analysis conducted in previous chapters. It may outline the specific actions that FedEx should take to achieve its strategic objectives.
Schlüsselwörter (Keywords)
This strategic analysis focuses on FedEx's competitive landscape in the logistics industry, particularly in the context of growing online shopping. Key areas of focus include external factor analysis, internal assessment, SWOT analysis, BCG matrix, SPACE matrix, and the development of strategic alternatives for expanding FedEx's ground delivery services.
- Quote paper
- Oluwagbenga Afolabi (Author), 2018, Strategic Management Analysis of FedEx, Munich, GRIN Verlag, https://www.grin.com/document/426889
