Strengths

Strong Brand Name/Image

Strong Revenue Growth
Large-Scale Operations

Strengths (contd.)
New and growing use of Technology
Three decades of Logistics Experience

Strategic Planning on
Strengths
Meets needs for delivery
Includes overnight shipping

Independent Networks meet different

customer needs
Sustain loyal relationships with customers
and investors
Diversify the workplace

Weaknesses
Relative small size
Lower margin
Less competitive ground shipping

Relative Small Size

UPS is twice the size in terms of market
capitalization
2012 Revenue
UPS: $54 billion
Fedex: $43 billion

Lower Margin
Net Profit Margin 3.1% - 2012 Annual Report

Difficult to tackle rising fuel cost

Current investments yielding lower than cost of
capital

Less Competitive in
Ground Shipping

Strategic Planning
Enhance integration between air and
ground shipping as well as information
systems
Cut environmental costs and launch
environmentally friendly campaign

Opportunities
Intermodal Freight Shipping and Container Storage
Use Cooperative Strategies
Online Shopping
Globalization of trade
Mergers and Acquisitions

Intermodal Shipping and

Storage
Textainer Group Holdings and CAI
International have seen a consistent rise in
demand for container shipping and Storage.

Online Shopping

Opportunities
Local Competitors with less-competitive
service or products.
Cooperative Strategies in Foreign Countries
Acquire smaller companies to increase
market share

Threats
Increasing transportation costs
Rising fuel Prices

Economic slowdown in U.S. causing fewer

purchases
Substitutions
UPS, GDEX, PosLaju, ABS, TNT, USPS

Threats (contd.)
Online Competitive advantage of rivals
Increasing ease for companies to cut out
middle man
Green initiators make it costly to keep up
with standards

Threat Solutions
Ease into more electric transportation on domestic level
Offer deals to promote purchases with less concern for
shipping costs
Market services better. Constantly improve customer service.
Stay ahead of competitors with online shipping technology
and service
Improve areas that lead customers to shipping solutions
other than FedEx
Comply with Green standards to cut costs and attract
customers

Works Cited

http://static.cdn-seekingalpha.com/uploads/2012/9/2214541_13467824927223_2_t
humb.jpg

http://news.van.fedex.com/fedex-named-among-fortune-magazine%E2%80%99s
-2013-%E2%80%9Cbest-companies-work-%E2%80%9D

https://secure.bluenile.com/billing-address.html?track=overlay-guest

http://static.seekingalpha.com/uploads/2012/3/23/104409-13324970482757564-Ba
char-Samawi.jpg

http://www.flightglobal.com/blogs/aircraft-pictures/assets_c/2009/04/Fedex%20Flee
t-thumb-450x322.jpg

http://www.optimizationweek.com/reviews/shipping/fedex.gif

http://www.forbes.com/fdc/welcome_mjx.shtml

http://www.fastcompany.com/1716317/fedex-vs-ups-numbers

http://www.atlasvanlines.com/fuel-costs/fuel-cost-chart.jpg

Works Cited (contd.)

http://www.greenbiz.com/sites/default/files/inline/042010f
edex-inline2.
jpg
http://www.mbaskool.com/brandguide/transport-and-logist
ics/2689fedex.html
http://www.fedex.com/us/investorrelations/financialinfo/2
008annualreport/
msg_chairman.htm
http://tedsgallery.com/pics/ups-fedex-usps- logo.gif
http://corporate.walmart.com/our-story/our-stores/
logistics
http://www.forbes.com/fdc/welcome_mjx.shtml