Fedex Market Swot In-Depth Analysis

Executive Summary

Federal Express pioneered the modern air and ground express industry in 1971. In 1998, the corporation was created as FDX Corporation and in January 2000, became FedEx Corporation. FedEx provides a broad portfolio of transportation, e-commerce and business services to customers and businesses all over the world. FedEx maintains the highest professional and ethical standards, and has a strong commitment to safety. With over 290,000 employees in over 220 countries worldwide FedEx continually delivers exceptional services that other businesses can only hope to emulate. ("FedEx Facts")

It is with this already developed corporate structure that we have decided our strategic recommendation is to expand our business into a new division called FedEx Moves. FedEx Moves will sell portable storage “pods” to businesses and consumers, complementing our already existing freight related product line that includes FedEx Express, the world’s largest express transportation company, and FedEx Freight, the leading North American provider of regional LTL (less than truckload) freight services.

This new division will be an internal start-up that we will finance through a long-term debt issuance. We will have many advantages right from the start, a major one being the large market share which FedEx has already achieved as well as operating under the well-known and well-respected FedEx name.

We will continue to use the M-Form Cooperative structure that has been so successful for us in the past. By aligning our value chains and resources with our other existing divisions, we will be able to keep our costs low and pursue a low-cost provider strategy.

I. Analysis

1. Introduction

A) Company Profile

The FedEx Corporation was founded in 1971 by Mr. Frederick W. Smith who is also the Executive Chairman, CEO and President of the Corporation which is headquartered in Memphis, Tennessee. Fedex provides transportation, e-commerce, and business services in the United States and internationally. It operates in four divisions: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. (“FedEx Corporation”)

FedEx Express is the world's largest express transportation company, providing time-definite shipping to more than 220 countries and territories, as well as domestic express services in the United States, Canada, United Kingdom, China and India. FedEx also offers international trade services, customs brokerage and global cargo distribution through FedEx Trade Networks. This company division is headed by Mr. David J. Bronczek, CEO and President. (“FedEx Express”)

FedEx Ground provides low-cost,