Detailed SWOT Analysis of FedEx – Popular Courier Company

Updated on: Sep 27, 2021
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My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

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The company with the slogan ‘the world on time’ has been tremendously growing since the first night. FedEx is the company that bought changes in the market.

If you are also eager to know how this company grew so big and what is the secret behind the growth of this company, then we have done a SWOT analysis for you in this blog, through which you will be very easy to understand.

The blog will also help you understand how you have to do a swot analysis and how you can find out your organisation’s strengths and weaknesses. We have done a brief analysis by which at the end you will know every aspect about the organization and how they earn profit. 

So, before we jump into the SWOT Analysis of FedEx, let’s look at the company’s journey from the first night till now.

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About FedEx
FedEx Logo | SWOT analysis of FedEx | IIDE

The company providing services across 220 countries in the world FedEx was founded by Frederick W. Smith on 5th May 1971. The headquarters of FedEx is situated in Memphis, Tennessee, United States. 

FedEx has proven itself as the best in the market. The FedEx company has given the easiest way to the people to expand their business through its services and which is true also. It is noticed in a survey that FedEx delivers more than 1.2 billion packages every year in more than 200 countries across.

The company has generated 146.693 billion dollars in revenue in 2020. The company has 1,950 express stations. The numbers of FedEx speaks everything about the company, in which they have 600k team members, 200k motorized vehicles, and the one interesting thing about the company is having 1.8 million daily package volume. 

The company mainly stands for Tech & Invention, Trade, Transportation, and aviation and is also recognized as one the admired brands in the world and one of the best places to work for 50 years. 

The company has got numerous awards and recognitions in previous years in which they were awarded as one of the Fortune “100 Best Companies to Work For” list in 10 of the past 11 years and was named to the Fortune “100 Best Companies to Work For” Hall of Fame in 2005. Ranked the 24th Best Multinational Workplace in Europe 2012 and also named as super Eco-Airline of the year 2012 by Air Transport World.

As we have seen deeply about the company, let us now look at the company’s SWOT business.


SWOT Analysis of FedEx

FedEx Planes | SWOT analysis of FedEx | IIDE

SWOT analysis makes it easy to understand the Strengths, Weaknesses, Opportunities and Threats of the company. With the help of swot analysis, you can easily figure out the opportunity that your business could take advantage of and can make more profit.

We have also done the SWOT analysis of FedEx in which we have shared all the strengths, weaknesses, opportunities and threats about the company. So, let’s have a look at the SWOT analysis of FedEx. 


1. Strengths of FedEx

The strengths are the resources or capacity that an organisation can use to achieve its goals or objectives. We have shared the strengths of FedEx briefly: 

  • Brand Reputation: The company has had a good reputation from the beginning and has a network in more than 200 countries across the world and running the business smoothly for the last 50 years. FedEx offers the best services to their clients and also has a record to be accurate in delivering the product end to end from one place to another with their various transportation services. Giving these types of numerous services FedEx has made a special place in their customer’s hearts and that is the reason they are on top. 

  • Affordable pricesFedEx has affordable prices which make people attract to their company and also created trust among their clients. Everyone can take advantage of their services because of affordable prices.

  • On-Time deliveries: FedEx has made its name due to their deliveries from the start itself. They care for their customer and also understand the importance of time and never disappoint their clients in giving deliveries. 

Global Network and supply chains across the world: FedEx operates in 220 countries across the world, with 2150 offices, 370 service locations, 13 Air Express hubs, 39 Ground hubs, and 1,950 operation express stations. The numbers are enough to make you understand how the company has roots across the world and serves every part of the world smoothly.


2. Weaknesses of FedEx

As we have look at the strengths of the company let’s have a look at the weakness of FedEx.

  • Damage in Transportation: It is the major possibility in transportation and delivery services that the products may get damage some time which is commonly seen. It also directly affects the reputation of the company which is not good.

  • Over-dependence on the U.S market: FedEx is overly dependent on the US market which is not a bad thing but depending on only 1 market may cause a high risk in generating revenue. There should always be a substitute for revenue generation if the company has a big name like FedEx.

  • Increasing fuel ratesThe increasing fuel rates are also a weakness for FedEx because as the fuel rate increases the company have to make changes in their delivery prices to survive in the market. 

Complicated Claim procedure: The complicated claim procedure leaves a big negative impact on the customers which is not good for the company. The customers want a good and trustable claim against the loss or damage of their product. 


3. Opportunities of FedEx

Every business has strengths and weaknesses as we have looked further but they have opportunities as well to grow more and more profit so we have also listed the opportunities of FedEx. 

  • Bringing innovation in the company: Innovation is the key to open the lock of future opportunities such that FedEx also has to take further steps in making changes in their company and have to acquire modern things in their company.
  • Making system faster: The company has to make their system faster than they are having and try to reduce the time of delivery and have to try to give best services in less time.
  • Use digital marketing: FedEx has to use digital media for their promotion and advertisement. Digital marketing has created a boom nowadays and has been very cost-effective and targeted which should help the company to generate more revenue and show its presence everywhere.

Strategic tie-ups: FedEx already has tie-ups with all e-commerce companies but limiting them to one place is not good if they will try to tie up with all small and large organizations they will surely benefit and it also helps the country to make their presence across the world.


4. Threats of FedEx

FedEx Trucks | SWOT analysis of FedEx | IIDE

Now its time to look at the threats of FedEx

  • Currency fluctuations: Currency fluctuation is one major problem. As the currency keeps changing the revenue of the company gets affected by it and also a reason that they cannot charge the same amount in every part which gives a negative impact on the customers. 

  • Intense competition: Many companies originated before FedEx and are performing well in the market which is also a big drawback for FedEx to maintain its position in the market as the company was having before some time.  

We have deeply looked at the SWOT analysis of FedEx. Now, it’s time to walk towards the end of the blog and have a look at the conclusion. 


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FedEx is the world’s one of the most leading companies at present no one can compare it with it. But from our perspective, the company has to look after its marketing strategies and have to focus on making its presence everywhere.

They have to adopt a new marketing technique in their company for marketing which is digital marketing which can help them to generate more revenue in less amount and also help to make their presence across the world.

Let’s end this here and if you are also having an interest in doing business like FedEx and have to do digital marketing to make your brand stronger then, you can join the free masterclass of IIDE’s founder and Ceo Karan shah.

Thank you for reading this blog if you found it informative, share it with your friends and do not forget to leave a comment.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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