Analysis of the Strengths, Weaknesses and Threats of FedEx

Analysis of the Strengths, Weaknesses and Threats of FedEx FedEx Corporation (FedEx) provides a comprehensive suite of services such as transportation, e-commerce and business services. The company offers printing, copying and binding services as well as video-conferencing services. The company has presence in more than 1,950 locations worldwide including Australia, Canada, China, Japan, Korea, Kuwait, Mexico, the Netherlands, the United Arab Emirates, the UK, and the US. These locations include 135 locations in seven foreign countries, as well as 30 commercial production centers. The company classified its operations under four reportable segments, namely, FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. In the FedEx Express segment, the company operates chiefly through Federal Express Corporation, which serves more than 306 countries and territories by delivering packages and freight through a single global network. The segment also includes FedEx Trade Networks, Inc., which provides customs brokerage, international trade se rvices, and global ocean and air cargo distribution. It operates around 49,000 ground transport vehicles, including pickup and delivery vans, larger trucks known as container transport vehicles and over-the-road tractors and trailers. It owns and leases about 700 facilities for city station operations in the US. In addition, 400 city stations are owned or leased throughout FedEx Express’s international network. Further, in May 2010, the segment had around 46,000 Drop Boxes, including 5,000 Drop Boxes outside U.S. Post Offices. As of May 31, 2010, the segment also had around 13,000 FedEx Authorized Ship Centers and other types of staffed drop-off locations, such as FedEx Office centers. Furthermore it had around 4,000 drop-off locations internationally. During 2010, FedEx Express purchased jet fuel from an assortment of suppliers under contracts that differ in length and supply for specific amounts of fuel to be delivered. Under the FedEx Ground segment, the company provides s mall-package ground delivery services, principally through its FedEx Ground Package System, Inc. It principally serves domestic residences through its FedEx Home Delivery across the US and Canada. This segment also comprises FedEx SmartPost, Inc., which deals with the transportation of less time-sensitive business to consumer packages via the US Postal Service and Canada Post Corporation, and the delivery of high volumes of low-weight. Its corporate offices and information and data centers are located in the Pittsburgh, Pennsylvania, area in a 500,000 square-foot building. As of May 31, 2010, the segment had about 30,400 company-owned trailers and owned or leased 520 facilities, as well as 32 hubs. The hub facilities average approximately 325,000 square feet and range in size from 54,000 to 715,000 square feet. In addition, around 26,300 owner-operated vehicles support FedEx Ground’s business. FedEx Freight Corporation operated around 60,000 vehicles and trailers and 492 serv ice centers. These facilities range in size from 850 to 221,300 square feet of office and dock space. The company’s FedEx Services segment is engaged in selling and marketing, besides providing information technology support and customer services support through FedEx Corporate Services, Inc and FedEx Customer Information Services, Inc. In addition, it operates through FedEx Office and Print Services, Inc., which offers document solutions and business services. Through its FedEx Global Supply Chain Services, Inc., the company provides a wide range of supply chain solutions. FedEx Office centers are located in strip malls, office buildings or individual structures and average around 4,000 square feet in size.