Porter’s five forces in the delivery industry



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mis 12

Weaknesses – FedEx

Overdependence on the US


FedEx depends on the US market for a very large part of its revenue. In both 2017 and 2018, US accounted for more than two third of the brand’s revenue. Its international revenue in both the years was just around half of its revenue from US. This shows its over dependence on the US markets.

Seasonality of business


Its businesses are cyclical in nature. As seasonal fluctuations happen, they affect volumes, revenues and earnings. US business peaks in late November and December whereas its international business peaks before the Holiday season. So, seasonality can have a major effect on its business and revenue.

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