SWOT Analysis of XPO Logistics

XPO Logistics is the most famous US Corporation and considered as one out of ten world’s biggest transportation and the logistics service providers. It was established as the Express-1 Expedited solutions in 1989 and specialized in the time sensitive freights. It is known to be a one of a leading company in this industry, and able to maintain its position in the market. It consistently review and analyze its SWOT analysis as it is the interactive process that require efficient coordination of different departments of the corporation (XPO Logistics, 2018). Here is the SWOT analysis of the XPO Logistics;

Strengths

XPO logistics is successfully able to make its brand image in the consumer sight and its position in the industry. It has Good Returns on the capital expenditure, which is due to the successful implementation of the new projects. It has successful and good track record of the integrating firms with the help of acquisitions and mergers. It has integrated various technological companies for streamlining the operations. Its customers are satisfied with the services and the company has the dedicated team to the customer relationship. The activities of the XPO logistics has consistency because of the automation and this enable the corporation in scaling up the market demands (Fern fort, 2018).

Weaknesses

There are many weaknesses of the XPO Logistics. The percentage of net contributions and profitability ratio is below industry average. Product range of the company has many gaps which are sold by company. This provide the chance to the competitors to grow and grab the consumers of the XPO logistics. In the workforce there are high level of attrition rate as compare to the competitors in the industry. The company needs to invest more in the technology and innovation. The positioning and marketing of the products are weak (Essay, 2018).

Opportunities

XPO Logistics need to avail the opportunity of the growing access of internet by the users, as this could help in increasing the customer base from across the globe. This can also help the company in growing at the online platform and continuously interact with the consumers. It can also increase its sales through e-commerce industry. It can earn profit y operating through online stores. It can use the social media platform for the purpose of marketing and engaging with the customers. It should invest more in the research and development, along with the training and innovation for the benefit of the company (Wiki wealth, 2018).

Threats

There are continuous technological developments in the industry, and it might be difficult for the company to make the fast space in this segment, and so competitors might take the leading position. The suppliers’ bargaining power has been increased these days which reduces the suppliers, and increase the costs for the company. There are no barriers to entry, which is why there are tough completion in the industry (Fern fort, 2018).

References

Essay, 2018. SWOT analysis of XPO Logistics. [Online], Available at: http://www.essay48.com/term-paper/12960-XPO-Logistics-Swot-Analysis, [Accessed on: 30th November, 2018].
Fern Fort University, 2018. SWOT analysis of XPO Logistics. [Online], Available at: http://fernfortuniversity.com/term-papers/swot/1433/353-xpo-logistics.php, [Accessed on: 30th November, 2018].
Wiki Wealth, 2018. SWOT analysis of XPO Logistics. [Online], Available at: http://www.wikiwealth.com/swot-analysis:xpo-logistics, [Accessed on: 30th November, 2018].
XPO Logistics, 2018. About Us. [Online], Available at: https://www.xpo.com/, [Accessed on: 30th November, 2018].