FedEx Company: Five Forces Analysis the Company Case Study

Open, View, and/or
Download this Document

Total Length: 657 words ( 2 double-spaced pages)

Total Sources: 1

Page 1 of 2

FedEx Company: Five Forces Analysis

The company examined is FedEx and the relevant industry is the overnight and express ground delivery business. There are a few different types of market participants. The first of these are the overnight and ground providers, FedEx and UPS. These are the market leaders and offer the most comprehensive route networks and packages of services. TNT and DHL offer some competition but have a much more limited market presence. There are other firms in the business as well. USPS does not have an overnight business, but handles express ground deliveries. There are also many local courier companies, handling a range of deliveries including same day service. Many of these offer rapid service, but within a single geographic area.

The bargaining power of buyers is moderate in this industry. Most customers have regular or semi-regular business -- these are the revenue drivers. The switching costs are modest, but with few options the threat of switching is not a major lever more than once. Large customers typically command discounts.

Stuck Writing Your "FedEx Company: Five Forces Analysis the Company" Case Study?

View All Our Example FedEx Company: Five Forces Analysis the Company Case Study

Have A Custom Example Essay Written

Price sensitivity is relatively low, however, because these customers rely on the service as part of their business, but the costs usually are not a significant part of total operating costs.

The bargaining power of suppliers is moderate. Major inputs include labor, fuel and vehicles. The major companies are huge buyers of aircraft and trucks, to the point where they have bargaining power over suppliers. The need for quality labor and the lack of labor specialization moderates their bargaining power over labor. They have low bargaining power over the price of fuel, which is set in the global commodities markets. Sometimes they utilize a fuel surcharge to help mitigate the volatility of fuel prices, leveraging their bargaining power over buyers.

There is a low threat of substitution. Where substitutes are reasonable -- such as sending pdfs over email -- they are typically utilized. The existing demand tends to be non-substitutable. This is good for the industry.….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"FedEx Company Five Forces Analysis The Company" (2014, February 12) Retrieved April 26, 2024, from
https://www.aceyourpaper.com/essays/fedex-company-five-forces-analysis-company-182629

Latest MLA Format (8th edition)

Copy Reference
"FedEx Company Five Forces Analysis The Company" 12 February 2014. Web.26 April. 2024. <
https://www.aceyourpaper.com/essays/fedex-company-five-forces-analysis-company-182629>

Latest Chicago Format (16th edition)

Copy Reference
"FedEx Company Five Forces Analysis The Company", 12 February 2014, Accessed.26 April. 2024,
https://www.aceyourpaper.com/essays/fedex-company-five-forces-analysis-company-182629
   

Open, View, and/or
Download this Document
order custom essay example