Business Strategy Report Essay Example | Topics and Well Written Essays - 3750 words

Business Strategy Report - Essay Example rategic analysis is performed with the help of SWOT analysis, PESTEL analysis, financial ratios analysis, and also with the porter’s five forces of Competitive Advantage. The industry of the company is Shipping Industry, where it has a number of competitors, but the major competitor is UPS. The FedEx has weak financial position with respect to the UPS, and also it has much threats from its competitors, due to higher bargaining power of the buyers. The analysis shows a number of opportunities in other world’s market. The major threats are from competitors due to its higher prices and higher fixed costs. But it has invested much in capital, which has become the source of competitive advantage. According to the Porter’s generic strategies, the existing strategy of the company is differentiation, and BCG Matrix suggests that the FedEx Express and Ground are the stars for the company, where the Express will soon be the cash cow. After analyzing the existing strategies , a number of strategic options are proposed, evaluated and ranked. Then a combination of three strategic options is recommended, i.e. cost reduction, market development and bundling pricing strategies. These are recommended to lower the costs, increase revenues, higher ROCE, and also to compete with the rivals by lowering the prices and enhancing market share. The strategy implementation issues and risks associated with these strategies are also identified, such as disapproval from top management, labor union pressures, and business disruption. The Gantt chart is presented with every activity defining and the risk management strategies in implementation are also suggested for FedEx. With increasing competition and dynamic business environment, it has become quite challenging for the organizations to survive in this new environment. In such situation, the companies are using strategic management tools for analyzing their environment and competitive position in the market, so that they can develop and