Courier Services Industry Analysis Assignment
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Added on 2020-11-13
Courier Services Industry Analysis Assignment
Added on 2020-11-13
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COURIER SERVICES INDUSTRY ANALYSIS1.0 INTRODUCTIONThis chapter aims to provide an in-depth industry analysis of courier operators in Ghana, theirindustry size, growth rates and sales projections over the years, industry structure, nature of participants, industry trends, key success factors and assess the industry’s attractiveness usingPorter’s five forces model.1.1. INDUSTRY SIZEIn Ghana, the number of registered courier operators by the Postal and Courier Services Regulatory commission in 2020 totaled fifty-One(51). There are five (5) large registered courier service operators, five(5) medium size registered service providers, twenty-nine(29) small registered courier firms and only One(1) national postal service provider (http:/pcsrc.gov.gh).1.2. GROWTH RATEThere is high growth rate in this industry. The major industry players, FedEx, DHL, UPS account for 60% of the industry’s revenue. Their growth rate for the year 2020 are as follows;DHL 3.1%, UPS 5.5% and FedEx 4.1% (IBISWorld. Global Courier & Delivery ServicesMarket Size2005–2026).1.3. SALES PROJECTIONThe estimated sales projection for 2020-2021 of DHL is €3.8billion, FedEx $40.0billion andUPS is $899.7million (Globenewswire. Global Data Center UPS Market Report, 2020).
1.4 INDUSTRY STRUCTURE The Courier and Delivery services industry is highly concentrated with larger and smaller firms. Key players in this industry include FedEx Corporation, SF Express (Group) Co. Ltd.,Deutsche Post DHL Group, United Parcel Service Inc.These companies have adopted severalstrategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to maintaintheir foothold in the market. This makes the industry highly profitable for existing firms and new businesses.1.5 NATURE OF PARTICIPANTSThe nature of participants in the industry are innovative. They are recognized for their tracking features, speed, security, and transportation mode. They use software services to provide electronic tracking details and electronic proof of delivery. In Ghana, the digital address system is used by both smaller and larger courier firms to provide real-time tracking of order and easier identification of locations. These innovative features used by courier operators in Ghana makes the industry attractive and generates higher profits for firms.
1.6 INDUSTRY TRENDSThe demand for Courier service operators is booming around the world. Technological innovation in courier serviceis making the headlines, and the market is becoming highly competitive. Digitally-connected customers are believers of instant gratification, ease-of-use, and seamlessness.Surge in demand from e-commerce industry has boosted the global courier service market.1.7 KEY SUCCESS FACTORS Technology and communication:The use of tracking devices on all orders helps customers to find out where their order is and at what time they are going to receive it.Management- Human Resources is a very critical success factor since physical laboris needed to drive vehicles, to load and offload, and other labor intensive activities relevant to the courier industry. Better pay salaries and benefit packages must be given to workers. Prices or rates- Successful courier service providers must find the right price to maintain customers and give a good return of investment. Quality of Service- offering customers a quick, effective, flexible and timely servicedesigned to give maximum comfort to the recipient.Strong leadership:For a successful business good leadership, dedication and commitmentis important.Expansion of e-business: The business should find online shopping companies to contract delivery of their products. Now the growth of e-commerce is very fast. The business can enjoy both profit and brand name from this kind of expansion.Safety- Good storage facilities, insured and licensed drivers and motorcycles, compensation policies for damaged goods must be provided to maintain customers confidence and loyalty to the business
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