Is Fedex Packages Marketing for Overnight Success?

Is FedEx Packages Marketing for Overnight Success?

Case Summary:

FedEx is world's second-largest package delivery company based out of Memphis, Tennessee and controls over 50 percent of the overnight market. The case includes how FedEx has stayed a trend setting leader in the package delivery business and what makes the company so successful. FedEx is committed to and understands the value of effective marketing and will continue to build relationships by adding new and improved services for the customer.

Personal Case Analysis

I learned that FedEx has succeeded and gotten where they are today by being prepared, whether it's from a breakdown of assets or a natural disaster. Not only have they continued to expand and grow, they do it by continuing to market each year. They are not afraid to spend millions of dollars a year on their marketing campaign. They have even tapped in to the sports market by sponsoring the PGA, NFL, NASCAR and College Football as they feel this is one of the hottest markets for building relationships with their customers.

Case Questions

1- Which three environmental forces are likely to have the greatest effects on FedEx?

a. Political/Regulatory - Primary political factors affecting an organization are government rules and regulations. Being an international company, FedEx interacts with various nations around the world that don't enforce tough trade regulations, granting them the privilege of getting better international services. Some other political factors of concern are political stability, industrial limitations and business standards.

b. Competition - Competition from the DHL Worldwide Express; United Parcel Service, Inc.; United States Postal Service, Email and Fax has forced FedEx to always look for new ways to expand and stay on top in the overnight delivery business.

c. Economical - FedEx could be strained by economic forces like the cost of jet fuel which suddenly spiked because of OPEC cutting its operations or an embargo enforced by its countries.

2- What are the major strengths, weaknesses, opportunities and threats (SWOT) associated with FedEx?

Strengths - Its ability to use latest technology effectively to add value to its offerings. Strong marketing abilities to identify customers needs and address them quickly. The major strength of FedEx is the loyalty in which employees of the company have. The fact that they have employees have stated that they have purple blood alone lets you know what kind of dedication and commitment they have towards their company.

Weaknesses - They are in competitive segment, the market share