XPO logistics SWOT Analysis

Document Type:Research Paper

Subject Area:Business

Document 1

E. It is a useful tool to access the companies present situation basing it on the current market dimensions, management can be able to easily identify the companies strength in the market setting, the weakness that it has, the available opportunities and the available threats that the company will encounter in future and ways to strengthen or to avoid the situation depending on the available possibilities. Since XPO logistics is one of the leading companies in the logistics in the logistics industry, it has to maintain its position in the market by providing the best logistics services and meeting its long term goals and objectives (Betties, R. A. , & Hall, W. E. The competitors usually look for the company strength in order to perfect it and in the process outdo them, the strengths of XPO logistics company do not only help it to maintain and protect its market share but in the process it can as well help in penetrating into new market at ease.

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XPO Logistics Company can stand tall and confidently enter into new markets without hesitation due to its capabilities created by the realization of its strengths. The following are some of the strengths associated with XPO Logistics Company. Good returns on capital expenditure In the past years XPO Logistics Company has successfully executed some of its new initiated projects which have so far generated good returns on expenditure through building new revenue streams. E. XPO Logistics Company due to its operation should go as per the current technology so that it can be able to deliver timely deliveries hence maintaining this strength. Strong brand portfolio XPO Logistics Company has in the recent years invested a lot in building a strong brand portfolio hence this SWOT analysis of XPO Logistics Company clearly underlines the fact (Betties, R.

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A. , & Hall, W. XPO lacks a well laid financial planning method which raises a lot of concern on the future of the company, from the company annual statements the current asset ratio and the liquid asset ratio suggests gives an indication that indeed the company can easily use the cash more effectively more than what it is actually doing at the present Williamson, O. E. This is a serious consequence that is awaiting the financial statements of the company analysis (Porter, M. E. The company in its own capacity should consult the assistance of a specialist who can come in and give a way forward on how to handle and contact financial planning effectively. The accessibility of stable free cash flow provides opportunities in the company for more investment opportunities in the adjacent company products, the availability of more cash in the market gives the company an open opportunity to invest and venture into new markets analysis (Porter, M.

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E. This should be an open window which XPO Company can use to penetrate into the market at ease without necessarily straining to raise or to explore new sources of capital; this could be an added advantage for them unlike its competitors who must first of all look for capital sources. The presence of new customers from online channels creates an opportunity for XPO Logistics Company to meet new customers without necessarily going to the ground to look for customers. Product marketing can be best be done here since there is a pool of new customers who can be informed of the existence of the product as well as being exposed to the company production. The current increasing prices in china for instance can easily lead to serious pressure on the profitability of XPO Logistics Company, this prices might affect the revenue generation of XPO Logistics Company in the long run hence there is a need for a serious intervention on the analysis.

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The possibility of highly profitable products which are usually seasonable in nature is a threat to the operations of XPO Logistics Company; being a leading logistic company any unlikely event which can occur during the peak season may impact the profitability of the company in short to medium term (Chandler Jr, A. D. The nature of the products can easily determine the future of the company because of the methods which can be applied to make sure that there are well laid strategies to overcome any delay of the product hence ensuring timely deliveries and customer satisfaction (Bourgeois III, L. J, 1980). Competitive strategy: Techniques for analyzing industries and competitors (Vol. New York: free press. Chandler Jr, A. D. 1998, Strategy and Structure: Chapters in the History of the American Industrial Enterprise.

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