COMPANY OVERVIEW

The FedEx Corporation founded in 1971 in Memphis is a logistic company which

provides transportation, e-commerce, and business services. The company is globally
presence in 220 countries and has more than 260,000 employees. In 1973 FedEx
introduced the next-day delivery revolutionizing the distribution industry. Since the
foundation FedEx made large investments in research and development as well as in
its logistic infrastructure. As of January 2000, FedEx created a worldwide network
consisting of 34,000 drop-off locations, 10 million square feet of warehouse space, 648
aircrafts, and 60,000 vehicles. In addition FedEx introduced several technological
innovations which in turn have given the company an enormous competitive
advantage.
FedEx is made up of six independent business units: FedEx Express,
FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks, and FedEx
Services, each compete in different sectors of the transportation industry in order to
tailor the entire FedEx service to best fit each customers needs. Its parent company is
the FedEx Corporation, which offers all of the strategic leadership, as well as the
financial accountability for all of the business units. The business model that is
followed at FedEx Corporation is Operate independently, compete collectively. The
Chart below lays out the decision making tree at FedEx Corporation.

ORGANIZATIONAL CHART

Executive Committee

Fred Smith,
CEO, Chairman

T. Michael
Glenn,
VP Corporate
Communications

Alan B. Graf,
Chief Financial
Officer

Robert Carter,
Chief
Information
Officer

Christine P.
Richards
General Counsel
Secretary

The board of Directors sits in conjunction with the vice presidents and is
responsible for an array of activities such as auditing, executive compensation,
information technology oversight, and governance. Although FedEx Corporation is a
parent company of the six independent business units, FedEx Corporation offers
strategic leadership at a corporate level and the operate on their own and are
therefore solely responsible for their decisions and ultimate success. The top two
performing companies, as well as the most widely known FedEx companies are FedEx
Express and FedEx Ground.

FEDEXS SIX CORE BUSINESSES

FedEx Custom Critical is North America's largest time specific critical shipment carrier
providing the fastest, door-to-door same-day and next-day delivery of urgent freight,
valuable items and hazardous goods.

FedEx Express is the world's largest express transportation company, providing fast
and reliable delivery to every U.S. address and to more than 220 countries and
territories. FedEx Express uses a global air-and-ground network to speed delivery of
time-sensitive shipments, usually in one to two business days with the delivery time
guaranteed.

FedEx Ground specializes in cost-effective, small-package shipping, offering

dependable business-to-business delivery or convenient residential service through
FedEx Home Delivery and FedEx SmartPost.

FedEx Freight is doing distribution and consolidation or an exact release-to-market

date for customers latest product, or for a total-solutions approach to supply chain
management, FedEx Freight is a Customized Solutions.

FedEx Services coordinates sales, marketing, information technology, customer

service, and worldwide supply chain services support for the global FedEx brand. This
includes the data management and networking expertise behind the package tracking
capabilities for FedEx Express, FedEx Ground and FedEx Freight, along with ecommerce services, customer contact services, and other functions of the
corporations professional services company.

FedEx Trade Networks helps simplify international shipping for customers of all sizes by
providing flexible end-to-end services that include customs brokerage, global cargo
distribution and trade facilitation solutions. Customers can utilize FedEx Trade
Networks services as an entire package, or take advantage of individual services as
needed.

HISTORY
1971 Federal Express Corporation is founded in Little Rock, Arkansas.
Frederick Smith realized the tremendous need for one to two day package and airfreight delivery that was better than the current distribution system.
1973 - Federal Express relocates operations to Memphis, Tenn.
On the first night of continuous operation, 389 Federal Express employees and 14
aircrafts deliver 186 packages overnight to 25 U.S. cities and the modern air/ground
express industry is born.
1975 - Federal Express installs the first Federal Express Drop Box.
1977 - After two years of lobbying led by Federal Express, Congress passes Public Law
95-163 enabling FedEx and other cargo airlines to use larger aircraft with no
geographic restrictions on routes.
1978 - Federal Express Corporation is listed on the New York Stock Exchange; ticker
symbol is FDX.
1981 - Federal Express introduces the Overnight Letter.
Federal Express begins international delivery with service to Canada.
Federal Express opens its Super Hub adjacent to Memphis International Airport.
1983 - Federal Express becomes the first U.S. company to reach revenues of $1 billion
without merger or acquisition.
1984 - Federal Express acquires Gelco Express International and launches operations
in Asia Pacific. The first PC-based automated shipping system, later named FedEx
PowerShip, is introduced.
1985 - RPS Inc. (now FedEx Ground) is founded in Pittsburgh, Pa., and introduces bar
code labeling to the ground transportation industry.
1986 - Federal Express introduces the SuperTracker, a hand-held bar code scanner
system that captures detailed package information.
1989 - Federal Express purchases Flying Tigers to expand its international presence.
1990 -Federal Express becomes the first company to win the Malcolm Baldrige
National Quality Award in the service category.
1993 - RPS (now FedEx Ground) exceeds $1 billion in annual revenue in its ninth year
of existence, recording the fastest growth of any ground transportation company.
1994 - Federal Express officially adopts "FedEx" as its brand for recognition as the
worldwide standard for fast, reliable service.
- FedEx launches fedex.com as the first transportation Web site to offer online
package status tracking, enabling customers to conduct business via the
Internet.

- FedEx Ship software (now FedEx Ship Manager QuickShip) allows customers
to process and manage shipping from their desktop.
1995 - FedEx acquires air routes from Evergreen International with authority to serve
China.FedEx opens the Asia Pacific Hub in Subic Bay, Philippines, launching the FedEx
AsiaOne Network.
1996 - RPS (now FedEx Ground) achieves 100 percent coverage of North America.
1998 - FedEx acquires Caliber System Inc. and creates FDX Corporation.
1999 - FedEx Marketplace launches on fedex.com, providing easy access to online
merchants that offer fast, reliable FedEx express shipping.
- FedEx Corp. acquires Caribbean Transportation Services.
2000 - Parent company FDX is renamed "FedEx Corporation." Services are divided into
companies that operate independently yet compete collectively: FedEx Express, FedEx
Ground, FedEx Global Logistics, FedEx Custom Critical and FedEx Services.
- FedEx Ground launches FedEx Home Delivery, an innovative business-toresidential service, in major U.S. markets.
- FedEx Trade Networks is created with the acquisitions of Tower Group
International and World Tariff.
- FedEx Custom Critical acquires Passport Transport.
- FedEx teams with Amazon.com on a major e-commerce event, delivering the
book "Harry Potter and the Goblet of Fire" to 250,000 eager customers on the
Saturday of its release.
- FedEx introduces customer technology solutions including a redesigned
fedex.com, FedEx e-Commerce Builder, FedEx Global Trade Manager and FedEx
Ship Manager.
2001 - FedEx Express and the U.S. Postal Service forge a public-private alliance. FedEx
Express provides air transportation of some U.S. mail and places FedEx Drop Boxes at
post offices nationwide.
- FedEx Corp. acquires American Freightways, a less-than-truckload carrier serving the
40 eastern states in the U.S.
2002 - FedEx Corp. brands two of its LTL companies, American Freightways and Viking
Freight, together as FedEx Freight.
- FedEx Trade Networks reorganizes; Tower Group International becomes FedEx
Trade Networks Transport & Brokerage Inc., and a new subsidiary is created,
incorporating the services of WorldTariff, called FedEx Trade Networks Trade
Services.
- FedEx Home Delivery completes its expansion to serve virtually 100 percent of
the U.S. population.
2003 - FedEx marks a 30-year milestone; Federal Express (now FedEx Express) began
its first night of continuous operations in 1973.
- FedEx teams again with Amazon.com - FedEx Express and FedEx Home
Delivery delivered over 400,000 copies of "Harry Potter and the Order of the
Phoenix" (up from the previous release of 250,000) in a single day. (

2010- Company spreads its business in UAE.

2011- FedEx Express was named among Top Five of the Worlds Best Multinational
Workplaces by the Great Places to Work Institute.
2012- FedEx Express named as Business Super brand in the UK for 2012.

Porters Five Forces Analysis For FEDEX:

Risk of new entry by competitors:
There are high barriers to entry because of the high fixed cost required to
establish a transportation network on international level. Apart from this the
companies which are already operating in the industry have the advantage of
operating cost because of the economies of scale.
Extent of rivalry between existing companies:
The shipping service industry is highly competitive in nature and there is an
ongoing battle among the companies for market share like FedEx and UPS. The
switching cost in the industry is considerably low for the customers which in turn also
contribute in increasing the level of competition. Apart from this the high exit barriers
because of the cost of the transportation infrastructure also results in increasing the
rivalry among the companies operating in the industry.
Bargaining power of buyers:
The bargaining power of buyers or customers is high in the shipping service
industry because of the low cost of shifting from one company to another. The
customers can shift to the company which will provide on time delivery at low cost.
Apart from this the big companies and corporations have high bargaining power for
quantity discounts as they ship large volumes.
Bargaining power of suppliers:
The bargaining power of suppliers is considerable low and the shipping
companies have influence on the suppliers prices. The shipping service providers buy
in large volumes and have direct impact on the prices quoted by the suppliers.
Threat of substitute products:
There are very less substitute products to the shipping services. The growing
international businesses require services to ship their products and documents from
one place to another and there are no other fast and reliable mode of shipping the
goods.

Risk of New Entry

Low to Moderate

Supplier Power
Low

Existing Competition
High

Buyers Power
High

Substitute Products
Low

Porter's Five Forces for DHL

Courier Express Market is highly competitive market and its growth is directly related to
growth of GDP. Customers of logistics companies are demanding. Technology improvements
reduce product life cycles, quality awareness among customer is growing and in order to
succeed companies are forced to maintain high quality standards.
DHL Express has three biggest competitors in CEP market. They are UPS, TNT and FedEx.
As you can see in the Picture 2 below DHL Express has the highest market share of 25% as
a single company in Europe. All four major competitors operate internationally and have
global network with good and modern technology behind them. The picture below also
shows us that third of the European market is dismantled among small and medium sized
companies that operates independently.
Express services are timesensitive, usually guaranteed services and have delivery
time a specific day (in general the next day) and/or specific time.
Parcel services are the transport of largely standardized packages with usually non
guaranteed delivery time of 23 days (Timedefinite and Daydefinite)
Porter's Five Forces mode will help me to analyze five forces that influence the logistics
industry and better understand the environment in which DHL Express operates in and
competitive advantage the company has or could gain.

Threat of New Entrants HIGH

In summary, logistics market is large and is attractive to business because when GDP
grows the demand for services grows. There is no special barrier to entry. In fact, it is very
easy to entry. The market is still growing and there is an assumption that will grow further.
Successful companies have built networks that enable them to operate on local and
international level. Good network requires time and financial investment. High technology
standard is must. Historical experience and appearance in the market is an advantage for
companies like DHL.
Big companies and corporations use economies of scale in their favor. Bigger company can
provide higher discount and has lower profit. Customers' loyalty is another important factor
that increases barriers to entry for other competitors because of longterm partnerships and
contracts.
On the other hand there are also disadvantages for big companies that must be taken

into account. Large companies are very complex and with higher complexity the product
range is widening. Specialization is an answer to it. Large companies are also known for
their high level of bureaucracy which gives smaller companies big advantage. Bureaucracy
slows down the whole process. Strong workers unions decrease power of the company and
make its operation more difficult especially in time of restructuring.
Modern technology helps to gain competitive advantage and be ahead of new
entrants. Companies should take advantage of outsourcing or off shoring companies and
use their buying power in favor of specialization and development.

Threat of Substitute Products or Services HIGH

The range of offered products and prices in logistics industry is similar. Therefore threat of
substitute products is very high. Role of Research & Development department is important
and helps to identify what customer wants and needs, the problem of substitute products or
answers what substitute product customer considers. Its role is also to get knowledge about
competition and their offer. Based on that information, company can defend the threat easier
and attract customer by the added value (innovation for example). Investment in Marketing
and Advertising cannot be forgotten. These departments communicate and educate
customers about brand and image of the company, about products that are in the offer. They
help to gain competitive advantage.

Bargaining Power of Customers HIGH

There always must be value added for the customer.
Logistics industry is highly competitive and the range of products and prices is similar.
Logistics companies always outnumber customers and customers very easily switch to
competition. Therefore it is important to gain customers loyalty and provide benefits that would
tight them to the company. It is also important to differentiate from competition and to provide
offer with added value for example climateneutral products. There are many tools company
can use to fasten the customer: special offer, favorable financial arrangements, longterm
contracts, etc. Customer's switching costs are dependent on the strength of the cooperation
and linked tasks. Modern technologies are able to tight customer to the company and increase
switching costs.

Bargaining Power of Suppliers HIGH

Suppliers in IT have an advantage of skills and importance. Every company in logistics
industry is dependent on its network and IT systems. Therefore companies and specifically
the large companies spent big amount of money for development of Information .

Technologies to be able to stay on top. Company can either use internal IT organization or
outsources the services. IT knowledge and skills is the core for success of the company in
logistics industry. There is a constant threat of falling behind.

Rivalry Among Current Competitors HIGH

Rivalry among the big players is high and is very intensive especially on international level.
There are many middle or small companies that represent danger and increase rivalry on
local or international level. As mentioned several times it is very important for the company
in order to succeed to differentiate from its competitors. One of the ways, they can do, to
come up with innovative ideas. The role of Research & Development department is then
inevitable. Therefore it is important to employ skilled and committed people with new ideas
that help the company to increase its competitive advantage.

MISSION fedex
FedEx will produce superior financial returns for shareowners by
providing high value-added supply chain, transportation, business and
related information services through focused operating companies.
Customer requirements will be met in the highest quality manner
appropriate to each market segment served. FedEx will strive to
develop mutually rewarding relationships with its employees, partners
and suppliers. Safety will be the first consideration in all operations.
Corporate activities will be conducted to the highest ethical and
professional standards.

Vision fedex:
The vision of FedEx is to become leader in the international
shipping industry. All operations and competencies of the company are
directed towards the attainment of this corporate vision.

Culture fedex:
FedEx focus on maintaining an organizational culture which
focus on innovation through employee participation and
empowerment. The company give high value to the people or
employees of the company and at the same time ensure integrity in all
business processes and operations. The main focus of any strategy of
the company is the end level customers and their satisfaction (FedEx).

SWOT analysis of FedEx

Strength

Weakness

Large scale operations. According to

2014 annual report, the company has
built new hubs, made strategic
acquisition and enhanced services in
the foreign countries.
Strong brand name, FedEx is known
as the largest logistic/transportation
company in the world
Efficient transportation segment as
the company had decided to add
1900 new light weight vehicles and
replace 4000 vehicles in fleet
Strong revenue growth. In the year of
2014, the FedEx revenue and earnings
has increased due to proficient
transportation segment and service
(FedEx Annual Report 2014).
Service expanding in high-growth
countries. currently, FedEx has been
investing
in
growing
countries
including FY14 countries
Concentrating on giving excellent
customer care. The main priority of
the company is the customer. They
need to provide first-rate service to
the people in order to gain profit.

Expensive cost in air freight

business
and in 2013, this had caused
them to experienced 31% of
loss
Weak forecasting, in 2012, the
company shares fell by 3.1%.
The
loss
impacted
FedEx
severely as the deceleration of
global economy was faster than
what FedEx predicted
High dependency on U.S, FedEx
depends on America market to
gain
income
(71.5%
of
company revenue contribute by
America )

Opportunity

Threat

Cost-cutting approaches. In order to

minimize the fuel cost, FedEx plans to
replace their Boeing 727s with Boeing
757s which is more fuel efficient
Aggressive
growth
strategy.
For
example, FedEx will created schedule
according to the manufacturer need.
It shows FedEx is flexible and
prioritizing the customer need.
Alliancing with foreign company. This

New
e-commerce
strategy.
Under
this
strategy,
the
retailers are planning to use
their own delivery vehicles to
ship the packages to their
customers.
Strong competition, this threat
will cause most of the logistic
companies to be involves in

FedEx operating margin is only

at 5.75%, this caused the cost
management of the company
to be very weak and having
slow company annual growth

will bring great opportunity for both

companies to expand their market
and sales.

price war.

Local Shipper Company. The

local shipper have advantage
as they have the trust of the
locals and get full support from
the local government.

SWOT analysis of DHL

Strength

Weakness

Fully benefit on the advantages

of technology. This can be seen
by the various eService provided
by DHL. The customer are able to
get high control of the process by
this electronic services
Established a long time ago and
have strong brand name, DHL
owned by the German Post and
known as the third largest logistic
company in the world.

Lack of liability insurance, for

any loss or defectiveness of the
shipping packages, the company
will be not fully responsible and
this might cause loss to their
customers
Inadequate of promotion and
advertisement. Compared to
other logistic companies such as
FedEx and UPS, the companies
are commonly seen in the
television advertisements and
even in some football teams.

Innovative and provide smart

service. In the year of 2009, the
company managed to make a
new unit called DHL Solution and
Innovation. This unit will help
customers
in
solving
the
customer problems
Large
customer
base.
DHL
revealed
that
they
had
approximately
8
million
customers
and
the
annual
shipments of their company is
about 850 million.
Good public image. For example,
the
company
had
replaced
almost all of their aircrafts with

more
aircrafts.

environmental-friendly

Opportunity

Threat

Providing E-commerce service, Strong competition, this threat

this will increases the potential
will cause most of the logistic
customers of DHL
companies to be involves in
Making Strategic Alliances with
price war.
other foreign companies. DHL
Local Shipper Company. The
made a partnership with China.
local shipper have advantage as
Due to this alliance, DHL is
they have the trust of the locals
known as the largest logistic
and get full support from the
company in China.
local government.
Developing the company internet
service
and
introducing
electronic
communication
devices. The company want to
use business computerization in
their company management in
the future.

PESTEL FEDEX
Economic
Globalizationas a trend, the world's economy has become more
fully integrated, and barriers and borders to trade continue to
decrease. Steady growth in U.S. gross domestic productU.S.
GDP related to international trade has increased substantially
over the past 30 years and continues to grow. Continuing
recovery in the U.S. economy

The U.S economy grew at an annual rate of 4.2% during the

first quarter, and first-quarter earnings are roughly 23% higher
than they were a year ago.Partially due to Bushs tax cuts that
are fueling the current recovery, economic growth is starting to
look healthy again, and inflation is starting to come
back.Consumer spending rises by 0.4% in March; that followed
another 0.4% increase in February.Americans' incomes also
rose solidly in March, increasing by 0.4 percent; that came on
top of a 0.5 percent gain in Februarythe increase is
encouraging since income growth is a main factor in people's
willingness to spend in the future.U.S. employment jumped in
April with a 288,000 rise in non-farm payrolls. It provides
evidence of a labor market recovery; the national
unemployment rate fell to 5.6% in April from 5.7% in March
2004. Many Americans consider the job market the most
important indicator of the economys health. Although the
reaction is less enthusiastic on Wall Street, these factors are
indicating that more Americans are finding work and making
major purchases.Continued recovery in Asias economyit may
have a favorable impact on the growth of the transportation
industry with the acceleration of domestic as well as foreign
trade.

Unpredictable energy pricesa substantial reduction of oil

supplies from oil-producing regions or refining capacity and
other events as well causing a substantial reduction in the
supply of aviation fuel. It could have an adverse effect on
FedEx operations.
The rising costs in transportation security and insurance,
especially in international freight due to the continuing threats
from terrorism.
Technological
Improved
information
technologyenabling
FedEx
to
integrate subsidiaries and business functions altogether,

assisting its single-point-of-access concept.Improvement in

wireless technologyFedEx is looking into wireless technology
to cut costs and improve customer service. In Asia, it's
experimenting with a digital/ink pen called Anoto Chatpen.
The cigar-sized device, made by Ericsson, uses Bluetooth
wireless technology to transport written information, such as a
signature or an address, into a database.The Internet
FedEx.com gets about 4.5 million unique visitors a month,
which is saving the company $25 million each month by
eliminating human involvement in processing packagetracking requests.Improvements in aircraftsthe high
capacity, cost-efficiency aircrafts make it ideally for FedEx as
an air cargo carrier to operate globally.
High implementation, maintenance and failure cost
associated with the adoption of sophisticated information
technologies

Due to the complexity of todays businesses, benefit

derived from highly integrated information system may
not be quantifiable for evaluation purposes.Failure in
large-scale information technology systems could damage
a companys image and credibilityfor FedEx, it can also
create a logistic nightmare.Growing concern over hacking
and protection of customer information.Rate of Internet
penetrationto better serve household and small
business customers outside the U.S., the timing and
market readiness for its single-point-of-access concept, or
information-intensive services, need to be assessed from
country to country.
Political-Legal

FedEx Express currently holds certificates of authority to serve

more foreign countries than any other U.S. all-cargo air carriers
FedEx has an opportunity to offer single-carrier service to
many points not served by its principal competitors.
Many of FedEx Express' competitors in the international
market are government-owned, government-controlled, or
government-subsidized carriers.It entails that they may have
greater resources, lower cost, less profit sensitivity, and more
favorable operating conditions than FedEx does.
Sociocultural
Growing Internet users and e-commerce.
o E-commerce is a major catalyst of the economy and
remains a vital growth engine for businesses today.
Change in consumer behavior.
o Consumer purchases over the Internet continue to grow.

o The survey involving interviews with 42,238 people in

37 countries worldwide revealed that almost a quarter
of internet users have shopped online and 15% plan to
do so during the next six months. This represents an
opportunity for FedEx as a provider of small-package
delivery service.
People are increasingly using the Internet as a time-saving
resource.

Change in sales channel combinations used by retailers.

o According to one study, 37% of US retailers are
selling through a combination of the Internet, in
stores, and catalogs, up from 26% doing the same in
2003. This represents a growing demand for the
business-to-customer package delivery service.
o According to recent projections, online retail sales
would reach $88.1 billion, and total business-tobusiness e-commerce revenues will reach $1.3
trillion by calendar year 2005.
Business customers increasingly seek for a single
solution that can meet all of their global transportation
needs, and more businesses are outsourcing their noncore operations.
o FedEx, as a result, provides its customers access
to an integrated set of business solutions and
offers a number of initiatives to enhance
customer experience.
The rise of environmentalism.
o Today, companies are increasingly expected to take
greater responsibility for environmental
consequences. To respond, FedEx uses

environmental-friendly recycled and recyclable

packaging and has attempted to reduce harmful
emissions into the environment through the usage
of hybrid vehicles.
o Such FedExs posture toward environmentalism
gives consumers an impression that FedEx does
make contribution to environmental protection and
safeness.
Customers have become less tolerant of service failures
and likely to expect better services that are more than
the average.
Consumers today demand more for personalized services.
o It can be a difficult task for FedEx and other
businesses to satisfy all customer needs and still be
profitable.
PESTEL For DHL
PESTLE analysis is a view on external environment companies
operates in. There are five external factors that influence life of
organizations: Political environment, Economical environment,
Sociocultural environment, Legal environment and
Environmental factor.
The below PESTLE analysis focuses on CEP companies in
European market.
Political Environment
Europe is stable environment where no major political changes
are expected. Full liberalization of European postal market that
will be finished by 2012 will bring more competition especially
on domestic level. However, there is a potential to merge or
acquire those companies operating in the local markets and
increase market share. Big companies operating on
international level have an advantage of built global networks
and modern technology behind them.

Economical Environment
Conclusion from the Economical environment analysis is that
companies should not stop their investment plans because of
economic crisis. It is important in current situation to
strengthen position in the market and expand if possible.
Emerging markets represent a potential of rapid economy
growth. The risk of loss is the same for all companies but for big
corporations is more acceptable. Reduction of cost is evitable
for every company and restructuring or outsourcing are the
ways of dealing with it.
SocioCultural Environment
Social forces affect customers' needs and wants and it is
important for the company to know it and benefit from it.
Therefore the role of Research & Development is very important.
Company has to respond to changes in society quickly not to
loose market share and demand for services. Customer
satisfaction surveys, market surveys, employee surveys play
important role in building company's brand and image in the
market.
Border lines have been removed within EU and services are
more accessible in the whole Europe. Emerging markets
represent an opportunity for companies to enter and establish
their brand and image.
Additionally, there are also social costs for the society that
companies have responsibility for. The affect on environment is
significant and companies' role is to decrease those costs by
working with more efficient and environmentally friendly
technology which is then balanced by larger portfolio of
environmental friendly oriented customers.
Technological Environment
Modern technology and environment is key to success of the
company that helps to maintain or gain competitive advantage.
IT is the most important technology factor for logistics business
because speed and reliability are equal to success. However,
there is an indisputable constant threat of falling
behind.Investments to the modernist technologies are evitable
and in times of economic crisis are much more important then
anytime before. Company has to decide if it runs internal IT

organization or if it outsources most of the services and reduce

cost
Environmental Analysis
Transportation industry has great effect on air pollution globally.
It is undisputable fact and companies are forced to fulfill the
requirements of governments to reduce their contribution on
pollution of the global environment. Companies have started
implementing projects that help them fulfill those
requirements. Research & Development department is key to
the success of it.
Legal Environment
Legal factor is important for operations of every company.
Companies have obligations like directives, taxes and rules that
they must be aligned with to be able to operate in the market.
Legal factor can either place numerous obligations on the
company or can create market conditions beneficial for business.
Liberalization is an example of the benefit. Removal of border
lines together with liberalization enabled building and
strengthening of positions in the logistics market. There are no
special and expensive authorizations necessary in CEP
industry which is another benefit for companies. On the other
hand there are obligations that balance the above benefits in
terms of fines, taxes and directives that are mainly related to
environment. Companies are forced to invest into
environmentally friendly operations.
PESTEL Summary
Based on the PESTLE analysis I have identified opportunities
and threats that will be taken into account during the SWOT
analysis.
Opportunity: Full liberalization of European postal market that
will be finished by 2012 brings new opportunities to increase
market share by acquisitions or merges with other logistics
companies or newly liberalized companies. Established
companies wit big market share, global network and technology
have competitive advantage. Opportunity: Border lines have
been removed within EU and services are more accessible in the
whole Europe. Emerging markets represent a potential of rapid
economy growth therefore it is an opportunity for companies to

enter and establish their brand and image and gain bigger
market share.
B
Threat: Role of Research & Development department in the
company is very important. Company has to respond to
changes in society quickly not to loose market share and
demand for services. Customer satisfaction surveys, market
surveys, employee surveys play important role in building
company's ge in the market

PESTLE
PESTLE analysis is a view on external environment companies operates in. There
are five external factors that influence life of organizations: Political environment,
Economical environment, Sociocultural environment, Legal environment and
Environmental factor.
The below PESTLE analysis focuses on CEP companies in European market.
Political Environment
European region is stable environment that is not affected by any significant
political crisis in countries and no major changes in political structure are expected in
near future. More than half of European states are integrated into European
community, European Union and create one of the biggest single markets for trade
and investment in the world. EU enlargement has removed border lines and has
made trade and business more accessible for its members. It has brought greater
opportunities for businesses, wider range of companies and benefits for their
customers.
EU has created closer links with immediate neighbors and enables bigger
exports, free movement of services, payments and capital for trade and investment.
Prior liberalization in 90's there were many national postal operators acting as
monopolies. EU decided to start postal reform that firstly completely liberalized CEP
market. Liberalization has enabled both national postal operators (Post Offices) and
private postal companies to enlarge their business portfolio into parcel and express
market.