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SWOT Analysis of FedEx
BusinessManagementMarketingSWOT & PESTLE 

FedEx SWOT Analysis 2022 – A Powerful Entrepreneurship

by Shamsul January 14, 2022

FedEx SWOT Analysis 2022 – A Powerful Entrepreneurship

 

The founder of FedEx, Frederick W. Smith, generated the idea of FedEx as his term paper while he was a student at Yale University. This idea became a powerful entrepreneurship plan facilitating freights, logistics, and couriers. Let’s read the FedEx SWOT Analysis.

Company Name: FedEx Corporation.

Founder:  Frederick Wallace Smith.

Founded:  April 17, 1973

Parent Company:  Headquarters: Memphis, Tennessee, USA.

CEO:  Frederick W. Smith

Type:  Public Company

Sector:  

  • Transportation
  • Services
  • E-commerce

Sticker Symbol: FDX

Total Employees: 289,000 (2021)

Revenue:  US$83.96 billion (2021)

Net Income:  US$5.21 billion (2021)

List of Services and Products:

  1. Logistics and Courier.
  2. Freights.
  3. Sales, marketing, and information technology.
  4. Customer service, communication, and technical support.
  5. Billing and collection facility.
  6. Back-office facilities.

Main Rivals:

  1. DHL International.
  2. United Parcel Service (UPS).
  3. CEVA Logistics.
  4. Kuehne + Nagel.
  5. Blue Dart.
  6. Deutsche Post.
  7. Royal Mail.
  8. DB Schenker.
  9. C.H. Robinson.
  10. XPO Logistics.
  11. GLS.
  12. Purolator.
  13. Amazon.
  14. Uber Freight.
  15. YRC Freight.

SWOT FedEx


Find a complete swot analysis of the FedEx brand. Download several other SWOT Analysis of the world’s leading brands for free from our page dedicated to SWOT Analysis.


Strengths of FedEx:

Brand Reputation:

This company is a popular brand when it comes to high-quality service with reliability and speed. According to a report published by Forbes in 2019, FedEx has the following titles.

1- FedEx is #35 among the best-regarded services.

2- FedEx is #51 among World’s Top Employers.

3- FedEx is #89 among the Most Valuable Brands.

Service Variety:

The customers can find their best choices with FedEx. It has a large network of more than 428,000 workers. It makes FedEx a powerful freight and logistics service for national and international clients. Moreover, it offers a wide range of facilities with a guarantee. FedEx owns the following corporate categories.

1- FedEx Express: It is an Express Transportation Service.

2- FedEx Ground: It deals with small-package delivery.

3- FedEx Freight: It offers economy and freight priority facilities.

4- FedEx Services: It delivers print facilities, business options, marketing, sales, and technology choices.

Brand Value:

According to the reports by Interbrand in 2019, FedEx has a total brand value of $6.9 billion.

Largest Supply Chain and Global Network:

FedEx has business in more than 220 countries. It has opened 2150 offices worldwide in more than 370 locations. It owns 1950 operation express stations, 39 ground hubs, and 13 air express hubs. From Asia to Europe, America, and anywhere in the world, it has a brilliant service network.

Competitive Rates:

Price is always a subject of significance for the customers. FedEx always utilizes national and international economic strategies to keep the service prices in a competitive range.

Time-Critical Delivery:

Customers prefer the services such as FedEx, DHL, and others just because of the speedy delivery of parcels and documents. When it is about the delivery time or duration, FedEx is the most important choice. FedEx offers a real Time-Tracking facility at the doorstep. In most cases, it delivers the parcels within 24 hours, depending on the distance.

Read More: SWOT ANALYSIS OF UPS | UPS SWOT ANALYSIS

Profitable Acquisitions:

Through economic acquisitions, it is increasing the service network worldwide. It also used the subsidiaries in order to improve the service quality. Following are the notable subsidiaries of FedEx.

Kinko’s Inc. (2004).

GENCO (2015).

Watkins Motor Lines (2006).

Parcel Direct (2004).

Flying Cargo Group (2019).

Prakash Air Freight (2007).

TATEX (2012).

TNT Express (2016).

Effective Marketing:

From Hollywood to sports and TV campaigns, FedEx uses solid marketing strategies with a compelling style.

Some of the main sponsor events include:

  • FedEx cup on PGA Tour.
  • ATP World Tour (Men) tennis circuit.
  • NASCAR Sprint Cup.
  • French Open (Tennis Tournament).
  • National Football League.

 

Electric Trucks:

FedEx is going to bring new vehicles to the industry. It has joined hands with Tesla to bring electric trucks for logistics and other services. This is a big step towards sustainability. These Green Vehicles will add more savings on fuel consumption.

Weaknesses of FedEx:

Overreliance on US Economy:

As a matter of fact, FedEx earns more than 685 of revenue from the US markets. This is an amount of $47.5 billion. This is a huge amount that’s why the US economy has a great influence on FedEx’s overall income. Any mishap in the US markets may drop the sales of FedEx.

Lack of Diversification:

FedEx lacks diversity. It is necessary for the company to enhance diversification in order to gain more growth.

Delivery Driver Behavior:

Rude behavior, improper package handling, and rash driving are some risk factors for FedEx. The reputation of this organization is at stake because of these factors. It is due to the fact that most of the drivers are on contract and they are not direct employees of FedEx.

Read More: HOW TO CREATE A WINNING STRATEGY WITH SWOT ANALYSIS

Increasing Cost of Transportation:

In order to meet the increasing demand and customer requirements, FedEx is hiring third-party contractors. These are handling 24% of the total delivery system. This is why transportation costs are increasing. It may go up in the future if the fuel prices and other costs increase.

Poor Claim Policy:

Due to the poor handling of packaging, damage claims are common. More and more clients are reporting the poor claim policy of FedEx. Customers are not happy with the claim policy because the company doesn’t support this matter. The companies may lose reputation when they don’t address such issues.

Bad Capacity-Demand Management:

While using a substantial capacity to deal with a big package in the logistics industry is the winning policy, poor management always undermines capacity building. FedEx has a prominent investment in package facilities, technology, vehicles, aircraft, and more. These are fixed costs, but any uncertainty can badly affect the profitability of an organization.

Opportunities of FedEx:

Expanding in Emerging Markets:

FedEx is curious to develop new service stations. It has hundreds of franchises and outlets in more than 220 countries. It knows how to expand into special markets such as Latin America, Africa, and Asia. FedEx is ready to see new business opportunities in the rural areas where no other courier service wants to go.

Preferring Retail Ecommerce:

International retail ecommerce revenues are predicted to go up from $3.5 trillion to $6.5trillion in 2023. FedEx sees it as an opportunity to invest more in the online industry. It is focusing on establishing more retail ecommerce hubs to catch more shares of the predicted profits.

Diversity Portfolio:

With an increasingly international market with a high operation network, FedEx gets more advantages over numerous digital retailers. It is diversifying the portfolio by acquiring more online retail portals.

Read More: REEBOK SWOT ANALYSIS WITH UNIQUE SELLING PROPOSITION

Acquisitions and Mergers:

Instead of investing in new setups, FedEx takes more interest in acquisitions and mergers. Certainly, this is an exploitation of huge financial resources. FedEx acquires small as well as medium courier businesses in the markets to expand the network.

Innovation:

FedEx consistently advances to satisfy client needs. It has acquired the trust and business of large companies and common purchasers. FedEx is presently one of the most creative organizations in operations and cargo. For instance,

  • Package Tracking: FedEx was the main coordinated operational organization to give bundle tracking.
  • SameDay Bot Delivery: This company has teamed up with DEKA (founder of Segway) to foster an independent conveyance robot “iBot.” Likewise, FedEx is in business with retailers like Walgreens, Pizza Hut, Walmart, and Target to deliver their products.
  • Blockchain Innovation: It will be a fundamental instrument to monitor and decrease misrepresentation in cross-line shipments.
  • Platooning of trucks to develop security plans: This organization is trying the idea of platooning of trucks. So, this platooning enables the truck drivers to maintain a close (safe) distance with the help of innovative technologies.

Threats of FedEx:

1. Tough Competition:

From UPS to Old Dominion, CEVA, YRC, DHL, Kuehne + Nagel, XPO, and some more, FedEx is facing a decline in its market share. It is due to the strong competition with these courier and logistics services. As a matter of fact, this stiff competition will increase and it may affect the business of FedEx in the coming months. It may be more challenging for FedEx to deal with these competitors.

2. New Opponents: Uber Freight and Amazon:

Amazon was a client of FedEx. Today, Uber Freight and Amazon are equipping to compete with FedEx. For instance, Amazon is gradually breaking agreements with FedEx Ground transportation. At the same time, Amazon has been building up an organization of franchises, vehicles, and airplanes to grow its planned operations and transportation capacities. Assuming Amazon develops its in-house transportation abilities, it can represent an extreme danger to FedEx’s income and market share of the overall industry.

3. Anti-Globalization Movement:

FedEx’s development depends intensely on globalist approaches. Thus, In 2020 and 2021, more countries have embraced anti-globalization belief in a backward and misinformed endeavor to safeguard their national interests against globalization. This is a condition for FedEx. In the event that the anti-globalization system spreads further, the organization might be compelled to withdraw back to operate as a public US company.

4. Shaky Fuel Prices:

The production cuts are reducing the cost of fuel all around the world. Oil costs remained profoundly unstable, with exceptional drops and spikes in 2021. Vulnerability in the business industry is terrible for all the impacted players.

5. Labor Laws:

State-run administrations progressively secure their residents working for worldwide organizations by embracing more work laws. With countless workers worldwide, even a slight expansion in wages can undoubtedly mean billions.

6. Government Relationships:

FedEx is profoundly defenseless against worldwide trade wars and anti-trade strategies. Moreover, exchange pressure between China and the USA, bans, exchange control, and restrictions can have severe unfavorable consequences for FedEx’s global transportation business.

Read More: SWOT ANALYSIS OF AMUL WITH UNIQUE SELLING PROPOSITION

7. Dubious Occasions:

With trucks, trains, planes, and transport across the world actually attempting to restart after the covid-19 lockdowns, FedEx’s activity will keep on being compromised until the world completely returns towards normal business.

8. Approaching Global Recession:

A few business sectors that FedEx relies upon with unsure economies internationally are now sliding into a downturn. FedEx’s benefits declined definitely in 2020, and it can deteriorate later on the off chance that the worldwide downturn endures. 

 
 

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January 14, 2022 6 comments
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Green Logistics
BusinessHealthManagementMarketing

Impact of Green Supply Chain on Performance

by Shamsul November 6, 2021

Impact of Green Supply Chain on Organizational Performance

Introduction

Environmental issues and Green Supply Chain are now the main focus of all economic, political, social, and entrepreneurial debates (Arvis et al., 2010). The result of this was that environment, which was in the previous decade, not a major priority of industries and businesses have now until recently, has gained a great deal of momentum with respect to strategic planning and interest and which will also revolutionize both industrial as well as logistics systems (Yeung, 2008). 

Almost all companies, especially during this period of major economic difficulties, are constantly waging war against all sources of waste and favoring all sources of cost optimization in a continuous improvement process. This is how “green” logistics attempts to reach the topmost levels of corporate management (Sydor, 2006). 

This state of affairs has the requirement to integrate a more competitive and sustained integration of actions that focus on protecting the environment at all levels of Corporate Management (Operational, Tactical and Strategic). The result of this is that the Supply Chain Management, which is the “spinal cord” of every business and industry as well as of the logistical service providers, will serve to be a major source of improvement and optimization opportunities. It works to protect the environment and achieve overall performance (economic, social, and environmental) and sustainability (Arvis et al., 2010). 

Handling the issue of sustainable and green logistics within businesses and amongst logistics service providers is not that easy. This report attempts to present the role of green logistics over organizational performance, to present a typical approach for its implementation through a restructuring of the supply chain from upstream to Integrating environmental and societal requirements. 

Supply chain management and organizational performance

Does there exist a link between good supply chain management practices and the productivity levels of businesses? The answer to this question relates to the results of different empirical research (Beaulieu and Roy, 2009). From this analysis, it was seen that: 

Environmental friendly logistics and delivery practices surely have a deep and positive impact on the operational performance of businesses (the speed of delivery, flexibility, responsiveness as well as the delivery capacity) also over their commercial performance (the average growth on the part of the market, average sales volume growth, average sales growth with respect to dollars). The results were derived from research in the US manufacturing sector. Here, they collected samples from 142 participants from those organizations that hire employees above the ratio of 500 (Ilgin and Gupta, 2010). 

The use of effective logistical practices (outsourcing, integration, and customer service), as well as the placement of logistics skills (services and quality, distribution and operations as well as design efficiency), might impose a positive effect on the organizational performance of companies, specifically with respect to their competitiveness level. The survey was carried out amongst more than 100 manufacturing companies operating in Taiwan and the US (Chow et al., 2008). 

The implementation of quality control practices with that of the suppliers helps to solidify their participation and collaboration, which translates into improved organizational performance. The results are obtained from a survey of about 103 businesses operating in Taiwan and Hong Kong (Lambert and Cooper, 2000)

Finally, strategic logistics management, supported by quality improvement initiatives, positively links service performance. The indicators are (speed and reliability, cycle time, stock rotation) and operational efficiency (operating costs), which translates into increased customer satisfaction along with improved business performance (sales volume, market share, and profitability). This data is obtained from 225 research respondents located in Hong Kong, but 75% of these respondents have their headquarters in Japan, the United States, Netherlands, along with others (Walker et al.,, 2008). In general, effective practices should result in improved organizational performance. Moreover, these best and effective practices need to be linked with a particular context. Their study should be carried out from a holistic perspective (Sheriff et al. 2012), which tends to confirm the impact of the deployment of best practices on the performance of the company.

From these studies, it can be concluded that effective logistics practices do have a very positive impact on the business’s operational performance. Nevertheless, the influence over the financial standing of any business might rather be indirect. There are some studies that determine a direct link. Among these is the survey by Ballou (2001) in which 636 companies are in the top 3,000 global companies.

The same study discloses that almost 90% of the research respondents have considered supply chain management to be a crucial dimension towards the performance of an organization. In addition to this, experts also present the fact that there is a strong connection between the financial performance of a company and supply chain management. Other investigations show that firms with more established logistics practices tend to be 40% more lucrative in comparison to manufacturing concerns that lack such advanced logistics practices (Beaulieu and Roy, 2009).

Alongside this, apart from the positive impact on companies’ financial and operational performance, it is increasingly recognized that supply chain management is also an important source of attaining competitive advantage for the organization that surpasses within their activities. As examples, we can cite world-famous companies such as Dell, Wal-Mart, and the clothing brand Zara, whose success is primarily based upon forward-thinking logistics strategy. Additionally, companies like L’Oréal, Groupe Dynamite, and Uni-Select also stand out by adopting innovative logistics practices in their respective markets.

Aims and objectives

The report aims to determine the effect of the green supply chain on business performance.

In order to achieve this aim, the following objectives are 

  • Explain the literature review over green logistics; 
  • Present the state of play of green logistics in different industries; 
  • Propose an approach for the implementation of green logistics among manufacturers and logistics providers 
  • Present successful experiences of green logistics 

Research questions

The research will attempt to answer the following research question:

Q.1 What is the impact of the green supply chain on organizational performance?

Q.2 What are the practices which can be learned from theories in the actual implementation of the green supply chain?

Q.3 What is the impact of laws and regulations on the implementation of the green supply chain?

Research problem

Green supply chain management has received a great deal of interest from researchers and industry over the past decade due to pressure from various stakeholders to adopt a commitment to -visible sustainable development. The scope of the green supply chain covers the entire life cycle of a particular product, straight from the abstraction of the raw materials to its end-of-life processing. This implies that the companies committed to it must now review their business strategies to find a better compromise between traditional economic objectives and environmental objectives (Chow et al., 2008).

In addition, the design of the logistics network is a crucial factor in the success and management of the supply chain. In fact, some experts argue that the majority of the costs and environmental impacts of the supply chain can be reduced during the physical structure of the logistics network (Aronsson and Brodin, 2006; Watson et al., 2013; Green et al.,2008) Although the field of closed-loop supply chain design is increasingly attracting the attention of researchers due to the economic and environmental benefits that such a network can offer, most of the work assumes that improving the environmental performance of the supply chain implies a direct improvement in economic gain. However, in practice, this assumption is only valid when the constraints of recovering value in the reverse supply chain are removed (Neto et al., 2010)

Methodology 

As part of our methodological approach, and through the observation of phenomena, we will try to synthesize the work done on the subject studied to present the phenomena in the business context and then propose the approaches likely to remedy the problem. For the implementation of the methodological approach, we will base ourselves on: 

  • The collection of data from several studies made on the phenomenon in question (green and sustainable logistics) 
  • Documentary analysis (books, articles, conferences, conferences, reports) 
  • Proposition of a conceptual model for the implementation of green logistics among industrialists and logistics providers

Research limitations

The study excluded certain aspects of organizational culture and the interaction between suppliers/major customers within the supply chain.

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References

  1. Aronsson, H., &Brodin, M.H.(2006). The environmental impact of changing logistics structures. The International Journal of Logistics Management, 17(3), 394-415
  2. Arvis, J.-F., M. A. Mustra, J. Panzer, L. Ojala, and T. Naula (2010), “Connecting to compete 2007: trade logistics in the global economy”,Washington, DC: World Bank.
  3. Ballou, R.H. (2001). Unresolved issues in supply chain network design. Information Systems Frontiers,3(4), 417-426
4.     Beaulieu, M. and J. Roy (2009), “Optimization of the logistics chain and business productivity”, Center on Productivity and Prosperity, HEC Montréal, September 2009.
  • Chow, W. S., C. N. Madu, C. H. Kuei, M. H. Lu, C. Lin, H. Tseng (2008), “Supply Chain Management in the US and Taiwan: An Empirical Study”, Omega, vol. 36, n° 5, p. 665-679.
  • Green, K. W., D. Whitten, R.A. Imman (2008), “The Impact of Logistics Performance onOrganizational Performance in a Supply Chain Context”, Supply Chain Management: An International Journal, vol. 13, n° 4, p. 317-327.
  • Ilgin, M.A., & Gupta, S.M. (2010). Environmentally conscious manufacturing and product recovery (ECMPRO): Areview of the state of the art. Journal of Environmental Management, 91(3), 563-591.
  • Lambert,D.M.,& Cooper,M.C. (2000).Issues in supply chain management.Industrial Marketing Management, 29(1), 65-83
  • Neto, J.Q.F., Walther, G., Bloemhof, J., Van Nunen, J.A.E.E., & Spengler, T. (2010). From closed-loop to sustainable supply chains:The WEEE case. International Journal of Production Research,48(15), 4463-4481.
  • Sheriff, K.M.M., Gunasekaran, A., & Nachiappan, S. (2012). Strategic perspective. International Journal of Logistics Systems and Management, 12(2), 171-194.
  • Sydor, A., (2006), “Global Value Chains and Emerging Markets”, Global Supply Chains Conference, Industry Canada, Ottawa, February 15-16.
  • Walker,H., Di Sisto,L., & McBain,D.(2008). Drivers and barriers to environmental supply chain management practices:Lessons from the public and private sectors. Journal of Purchasing and Supply Management, 14(1), 69-85.
  • Yeung, A. C. L. (2008) “Strategic Supply Management, Quality Initiatives, and Organizational Performance”, Journal of Operations Management, vol. 26, n° 4, p. 490-502.
November 6, 2021 89 comments
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Marketing Strategy of DHL
BusinessManagementMarketing

DHL Marketing | Marketing Strategy of DHL

by Shamsul July 14, 2021

 

DHL Marketing | Marketing Strategy of DHL

 

DHL is one of the leading courier services globally and due to DHL marketing, the company is operating in 220+ territories and countries internationally. It,s headquartered in Bonn, Germany, and delivering its services to users by fulfilling the changing demands of users. It has a workforce of more than 350000 people working hard to achieve its goal. That’s why it is a famous courier service in the world. It is a market leader in logistics and postal services. Indeed, it has various subsidiaries like DHL Express, DHL ecommerce, Parcel, DHL Freight, DHL Supply Chain, and DHL Global Forwarding. Let’s discuss the marketing strategy of DHL.

Important Factors in the Marketing Strategy of DHL:

Segmentation, Targeting and Positioning:

As DHL deals with various customers of different nations, setting a segment strategy is difficult for such companies. They use both geographic and demographic strategies to understand and fulfill the customer’s needs. DHL uses a differentiated targeting strategy in order to identify and strategize its services accordingly. As DHL is a global company, so, they always use a customer-centric positioning strategy. The main tagline of the company is ‘’the power of global trade’’.

Competitive Advantage | DHL Marketing

Collaborative Partnerships | DHL MarketingThe biggest strength of DHL in the competitive market is its collaborative approach. They believe in working with relative companies and sectors. Moreover, they also focus on major sectors such as automotive, healthcare, technology, energy, manufacturing, and engineering.

Strong Parent Company | DHL Marketing

Deutsche Post DHL Group is the parent company of DHL. This group has a big name in courier service, logistics, and shipping. They earn the majority of their revenue from the logistics business. It is another significant competitive advantage of DHL that it is a division of a strong parent company.

BCG Matrix | DHL Marketing

The company has several SBUs (strategic business units) that are operating in various sectors such as supply chain, distribution, freight transportation, warehousing etc. DHL Freight, DHL Express, DHL Parcel, DHL Supply Chain, and other divisions are in the star category in terms of revenue and market share, while other services like DHL ecommerce are still in question mark category due to the poor performance.

Distribution Strategy | DHL Marketing

The distribution strategy of DHL is really effective, and due to this strategy, they are operating successfully across the world and delivering their services. Its customer-centric approach and supply chain network make it competitive in the market. They use customized logistics solutions and advanced ways in the supply chain that make it efficient and effective. With more than 255 aircraft, they are fulfilling the needs of 3 million customers around the globe.

Brand Equity | DHL Marketing

That’s why DHL is one of the famous brands in logistics and courier services. The company has sponsored many sports events and fashion events like Formula 1 race, Rugby world cup, and other sports and fashion weeks. As an added bonus, they have partnered with several logistics companies and delivery services in order to gain a competitive edge.

Competitive Analysis | DHL Marketing

Due to recent circumstances, the logistic industry has faced tough situations. On the other hand, the logistic sector is stuffed with a range of local and international players such as Amazon Express, TNT Express, UPS, and FedEx.

Market Analysis | DHL Marketing

Due to government regulations, varying economic situations, inflation, and increasing tensions between different countries’ borders, all these things are creating problems for courier and logistic transportation companies. These things are affecting the short product life cycles delivery and other similar items.

Customer Analysis | DHL Marketing

Famous and big companies like industries, individuals, government organizations, and other companies are the primary customers of DHL. Furthermore, they use its services on a daily basis to deliver their products and essentials.

 

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Marketing Strategy FedEx

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July 14, 2021 12 comments
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Marketing Strategy of FedEx
BusinessManagementMarketing

Marketing Strategy FedEx

by Shamsul July 4, 2021

 

Marketing Strategy FedEx

 

The founder of FedEx is Wallace Smith, who founded this company in 1973. Now, it is the most important and reputable name in the logistics and services industry. Due to the Marketing Strategy FedEx, the company is currently operating in 220+ countries internationally. Ecommerce, business service, and transportation are some significant product portfolios of FedEx. In addition, FedEx acquired TNT Express in 2016, which is the biggest logistic giant in Europe. After this acquisition, the company gained a competitive advantage over its competitors and got a name globally in logistics and courier services. Today, we will talk about some of the essential marketing strategies of FedEx.

Important Factors in the Marketing Strategy FedEx:

Segmentation, Targeting and Positioning:

There is no doubt FedEx is a giant in the delivery of goods and logistics. It uses psychographic and demographic segmentation strategies to fulfill consumer demands. FedEx is a global company and operates across the world, so it is tough for them to set a targeting strategy. That’s why they use a differentiated targeting strategy. In positioning strategy, they use value-based and price-based strategies to understand the customer requirements and set the proper process accordingly. The prominent tagline of the company is ‘’the world on time’’.

Competitive Advantage | Marketing Strategy FedEx

Improving Air Fleet: The significant competitive advantage that FedEx has is its improving air fleet. They continuously enhance their aircraft fleet because it helps them decrease operation costs, fuel costs, and structural costs. Plus, it has increased its efficiency and access to other countries.

Spotlight on Retail Accounts | Marketing Strategy FedEx

Due to the changing lifestyle and technology, the company has transferred its attention from small to medium retailers in order to get a return on assets and increase its revenue. It is another significant competitive advantage that FedEx has over its rivals.

SBU’s Working Communally:

Its SBUs work independently in various markets but operate communally, which is one of the major competitive advantages of FedEx. Due to this reason, its operations and delivery system are very smooth and aligned.

BCG Matrix:

The company operates in 5 SBUs (strategic business units). FedEx Business Divisions, FedEx Express, FedEx Freight, and TNT Express are in the star category of BCG matrix. They are the major cash cow in the relative business. In short, FedEx is a successful brand in logistics and courier delivery services.

Distribution Strategy | Marketing Strategy FedEx

In the fiscal year 2016, the company generated 50 billion dollars of revenue across the globe. It happened due to the workforce of 400000+ people and effective working. They purchased more Boeing aircraft to make its distribution more effective. It is a significant competitive advantage that FedEx has over its competitors. As a result, they deliver essentials efficiently and effectively on time.

Brand Equity:

With high visibility and top-of-mind awareness, FedEx has successfully created itself as a famous global company in the logistics and courier delivery service. That’s why it has secured prominent positions at different forums. Thus, it is one of the most admired companies globally and has been secured 12th position in Fortune magazine.

Competitive Analysis | Marketing Strategy FedEx

As mentioned above, the transportation, business services, and logistics industry is filled with many big players like DHL, UPS, Amazon Express, and more. That’s why it is a highly competitive industry, but FedEx has maintained its position and share successfully.

Market Analysis:

It is challenging to deliver those products that have a short life cycle. Moreover, the disturbance in the flight operations, tensions between borders, and other scenarios are continuously threatening the operations and revenues of the logistics companies. On the other hand, the presence of local and international players is another major advantage.

Customer Analysis | Marketing Strategy FedEx

As a result, nearly every organization, individual, and the user is using FedEx to deliver their products and essentials. They are the most significant contributors to the company and one of the major strengths. Similarly, many government organizations are regular customers of FedEx.

 

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Read More:

SWOT Analysis of Yahoo | Yahoo SWOT

Netflix SWOT Analysis | SWOT Analysis of Netflix

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July 4, 2021 13 comments
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