Weaknesses of FedEx comprised of higher debts to service. The operating model implemented by FedEx is unpredictable and the quality of processes for earning is also not up to the standards of a competitive business. The organization’s decision to follow a B2E strategy failed to perform according to the expectations of management (Hayes, 2014). Consumers prefer ground shipments rather than air shipments which proved to be a blow on FedEx’s strategies. The comparison of market shares of FedEx with those of competitors revealed disappointing numbers and the domestic market share of the company was also diminished.
Opportunities for FedEx comprise of the growing economic and enterprise services for global businesses. The organization has succeeded in achieving cross marketing services with RPS. The B2B approach towards business has promoted the increase in frequency of cargo transfer activities on ground. Along with the developments in ground cargo activities, FedEx has the opportunity to capitalize on the possibility of growth for air cargo freight in the next twenty years (Goetsc h& Davis, 2014). The company’s access to global supply chain services is a credible opportunity for adapting to changes. Finally, FedEx has the competitive advantage of being the first international mover in China and other countries of the world.
Threats for FedEx exist within the expansion of competitors in domestic markets. The evolution of internet can be a possible threat to the need of courier service. Non-asset based online providers of courier services which are well adapted to current information technology and the internet are credible threats to the organization. Projections of domestic growth have been diminishing and European competitors are gaining pace in meeting the needs of air cargo travel. Customers belonging to the investment sector have alternatives in form of UPS.
The evaluation of factors such as political, economic, social, technological, environmental and legal will also lead to proper estimation of the impact of change management and relevant implications (Kuipers et al., 2014). The analysis of the above mentioned factors is also known as PESTEL analysis which is described as follows.