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Product-market Analysis: Fedex Trade Network Inc

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FedEx Trade Network Inc, is the world’s largest express transportation network. Frederick Wallace Smith is the founder, president, and CEO of FedEx. The company’s headquarters is in Memphis, TN. FedEx services are marketing, communications, sales, technical support, billing, and collection. The way all businesses are able to connect or what they have in common is how they get merchandise from one place to the other in good conditions, and safe. FedEx is connecting people with goods, benefits, and solutions were its serving more than 220 countries and territories which is amazing because it’s covering every U.S. street address.

Reason why FedEx has become the world’s largest express transportation network is because they are so reliable and fast. Some of the marketing of FedEx are managing your shipment, shipping, and tracking including your packages, envelopes, whether its air or ocean. FedEx offers great benefits for their customers. Such as on-time packaging specially when someone needs a package as soon as possible it’s great that FedEx has express delivery, and the good thing about it is that if you do not receive your package back FedEx refunds you your money back. When having any questions whether is about your package, the refund of your money or any question you might have you can always call Customer Service they have centers throughout the world. They also have experienced real time tracking information. that is great for those people who like to keep up to see where their packages are at all times. And another great benefit that FedEx has is that it includes proof of the delivery on every invoice. Whether it’s for your business or you’re receiving a package for yourself FedEx always takes they’re customers very seriously and want them to be satisfied with FedEx services. And when a person has a business they also include multiple discounts on their shipping services, which is helping them grow their business by providing accommodations that work with their choices for FedEx services helping them save money and having great benefits.

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The target market for FedEx would be the leading logistic. Delivery company uses psychographic segmentation as well as demographics. The strategies being used in the market are the ones on the daily live with similar needs and wants. FedEx uses different targeting strategies because they serve different customers that use different segments. Another strategy that is being used is positioning. Positioning is a very important strategic that should be consider in every management. It’s about what you can do to change your own positioning to meet the qualifications to your target market. FedEx logistics also include trucks, planes, vans, air and ocean has access to mostly everything that is why FedEx has expanded over the years and become so broad reaching flexibility and reliability. Having clients all over the world and no needing to wait so long when it comes on time because it has become the fastest logistics company. From sending something so small such as a document, parcel up to large items. FedEx also has a trade network which includes giving insurance and custom services.

All FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, FedEx Logistics, FedEx Office are brands that are related and used by the company FedEx. Even though they are from the same company they all offer different things such as technology services, trade management, printing, shipping, copying, digital printing, it includes solutions for global supply chains and so on. Not only that but the coverage is all around the world throughout the U.S. FedEx is nationwide having service through more than 650 airports which is incredible. Being such a big company means moving millions of shipments every day. Not to mention how many opportunities that gives people for jobs.

External Situation Analysis

The main competitors of FedEx vary, because at this time technology keeps advancing. And so many more people are starting to find different ways of creating and making it possible for people to receive stuff and creating a business that makes a great impact. An example to do that would be Amazon Fulfillment which is a service that is provided by Amazon that is allowing sellers the pliability in their selling practices and is giving them more of an opportunity to be able to expand. The program is giving sellers the opportunity to ship their merchandise to a center where the items are saved in a warehouse until someone buys them. And for people who are starting a business that is a great opportunity. And as they keep expanding Amazon Fulfillment could be a possible substitute.

The other competitor would be UPS which is United Parcel Service. Sometimes certain companies can be big but not known as much to the customers. But UPS is one that is known just as much as FedEx. United Parcel Service and FedEx have been around for a while companies that started very small and throughout the years have expanded so much. UPS has the world’s largest package delivery company as well as having one of the top most leading global providers of specialized transportations and as FedEx logistics services. Both FedEx and UPS are very similar who are two leading delivery services companies and are each other’s main competitors. Yet even though they might seem very similar both companies are different in their business models and the strategies. UPS has its headquarters in Atlanta, Georgia, and UPS was founded in 1907 UPS has single networks, with multiple services as for FedEx who has multiple networks with separate services.

Something to consider in this industry is that there are so many new businesses who are growing and are starting to provide similar services. And it’s starting to become more competitive whether its Amazon, UPS, DHL International, and so many companies that offer either similar or same services and that are also strong competitive. Because the world has been more innovative in its actions and the digital merchandise has been winning that is what needs to be taken into consideration with FedEx. Transportation stocks have failed to meet its broader stock market within the past year. It can become a hassle within the transportation sector, stock underperforming with several airlines, shipping and freight companies.

When presidents are elected the transportation stocks can have a great impact whether it’s good or bad. Like the President Trump having a trade war. Which affects FedEx because one country will raise its tariffs making the other respond meaning retaliation. Affecting other nation’s economy, not only that but tariffs are likely to raise costs in the US. On top of that if FedEx is ninety-nine percent global GDP I’m sure the U.S. economy may show weak GDP growth. The other problem is ground delivery, from business to consumer is usually lower because when a consumer orders something little the customer usually expects for it to be free shipping, and with any small purchase that has become the expectations for the consumers. Which eventually FedEx will declare margin compression and that would be taking a risk. No matter the economic environment or investment it becomes a negative for FedEx because it would also be currency translation risks as well as capital expenditures making to stock low. Something to also keep in mind is that FedEx does all its work through planes, trains, automobiles and so forth which all require oil, gasoline, and jet fuel even though hasn’t been bad having low oil prices are benefits for companies like FedEx. Using over 180,000 vehicles oil plays a large and important price for their operation.  

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