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FedEx Corporation Business Strategy Analysis

Table of Contents

  • Executive Summary
  • Introduction
    • Introduction to the FedEx Corporation
  • Strategic Analysis
    • Industry Profile
    • Organizational Purpose
    • Internal and External Environment Analysis
    • Competitive Advantage
  • Strategy Development
    • Existing Strategy
    • Strategic Options
    • Evaluation and Ranking of options
    • Choice of Strategy
  • Strategy Implementation
    • Implementation and Issues
    • Risk Management Strategies
  • Conclusion
  • References

Executive Summary

Strategic management has been the essence of new dynamic environment, where its scope of application is huge. The purpose of this report is to apply its concepts in context of a real life organization, where the strategies are formulated and implemented after a comprehensive strategic analysis. For this, FedEx Corporation is selected, which has a great name in USA especially and also working in more than two hundred countries. It is involved in the shipping business and a portfolio of segments, such as FedEx Express, Ground, Freight, and Services. The strategic research is carried out with the aid of SWOT analysis, PESTEL analysis, evaluating financial ratios, and also with the five Competitive Advantage powers of the porter. The company’s business is the maritime sector, where it has a range of rivals, but UPS is the biggest competitor. With regards to the UPS, FedEx has a poor financial role, and because of the larger purchasing strength of the consumers, it still has multiple challenges from its rivals. The research illustrates a variety of possibilities in other global markets. Owing to its competitive premiums and higher operating expenses, the main risks come from rivals. Yet a great deal has been spent in money, which has been a source of competitive advantage. According to the generic tactics of Porter, the company’s new approach is distinction, and BCG Matrix indicates that the stars for the company are the FedEx Express and Field, where the Express will eventually be the cash cow. A variety of strategic alternatives are suggested, analyzed and ranked after evaluating the current strategies. A mixture of three competitive choices, i.e. cost containment, demand growth and pricing strategy for bundling, is therefore suggested. These are advised to decrease costs, raise sales, grow ROCE, and also to contend with competitors by lowering rates and growing market share. The execution problems of the plan and threats associated with these policies are often described, such as disapproval from top management, agitation from the labour union, and loss of operation. The Gantt map is presented for any operation describing and the risk control techniques in execution are often recommended for FedEx.

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