XEQaF
Well-Known Member
When we think about what is an active threat to the business interests of FedEx we are short sighted if we think that direct competitors and even new emerging ones (Amazon) pose the greatest fear in this company. I believe FedEx has done well to insulate themselves from the impact competitors may have. They are well diversified in not only their customer base, but also in the divisional structures they have made to provide value added specific service.
Overall they proved to weather the storms; they have a solid network and have provided an exceptional service that is a household name in their industry. They are crafty and innovative in staying ahead and surviving. The financial metrics for the company historically are strong. They will not be severely impacted by competitors. As long as there is a US economy or a North American economy intact, FedEx will keep moving along despite anything that will come in their way. It is almost safe to assume, FedEx can control the market, its position and economics.
When there is a turn in the economy they will readjust in terms of curbing spending, focus on key areas to improve, and damage control. The acquisition of TNT didn’t go as planned in many ways for the moment and the adjustments are being made. Stock price decline has dampened their performance and we will see how the market interprets that with the earnings release Mar. 19.
The only way a slow down can impact FedEx is with a perfect storm ie. Competitive, economic, industrial shift. A dynamic shift in doing the job better, cheaper and faster as a trend will impact their results. As of now we haven’t seen this emerge, even though some will say Amazon has the clout to do so. If they do it will take some time to surpass the network efficiencies built by FedEx, UPS over the years.
The greatest disparity will be with the employees. It seems by moving business forward, they haven’t progressed in terms of their very own workforce. So herein lies the biggest threat. Being confident controlling those external forces, FedEx seems to find difficulty in controlling the biggest threat being its own people. This is why you see such a rigid structure in the hierarchy to in fact control its biggest unknown which lies right beneath them. Organizing itself will be the ultimate factor that FedEx workforce can do to shake the corporation to its core. Each employee, contractor, agent must align together to seek harmony in their environment. The only way to change in a country, ideology, society etc is by collective movement. This will be true in the case of FedEx if serious change is to happen.
Overall they proved to weather the storms; they have a solid network and have provided an exceptional service that is a household name in their industry. They are crafty and innovative in staying ahead and surviving. The financial metrics for the company historically are strong. They will not be severely impacted by competitors. As long as there is a US economy or a North American economy intact, FedEx will keep moving along despite anything that will come in their way. It is almost safe to assume, FedEx can control the market, its position and economics.
When there is a turn in the economy they will readjust in terms of curbing spending, focus on key areas to improve, and damage control. The acquisition of TNT didn’t go as planned in many ways for the moment and the adjustments are being made. Stock price decline has dampened their performance and we will see how the market interprets that with the earnings release Mar. 19.
The only way a slow down can impact FedEx is with a perfect storm ie. Competitive, economic, industrial shift. A dynamic shift in doing the job better, cheaper and faster as a trend will impact their results. As of now we haven’t seen this emerge, even though some will say Amazon has the clout to do so. If they do it will take some time to surpass the network efficiencies built by FedEx, UPS over the years.
The greatest disparity will be with the employees. It seems by moving business forward, they haven’t progressed in terms of their very own workforce. So herein lies the biggest threat. Being confident controlling those external forces, FedEx seems to find difficulty in controlling the biggest threat being its own people. This is why you see such a rigid structure in the hierarchy to in fact control its biggest unknown which lies right beneath them. Organizing itself will be the ultimate factor that FedEx workforce can do to shake the corporation to its core. Each employee, contractor, agent must align together to seek harmony in their environment. The only way to change in a country, ideology, society etc is by collective movement. This will be true in the case of FedEx if serious change is to happen.