Strategic Management of Australia Post

This report discusses the strategic management of Australia Post, including competitor analysis, macro environmental factors, corporate business strategy, and strategic leadership.

Strategic management

Strategic management
Table of Contents
Introduction......................................................................................................................................2
Background of the company............................................................................................................2
Industry analysis..............................................................................................................................2
Porter five forces Model..............................................................................................................2
Competitor analysis.........................................................................................................................4
Macro Environmental Factors.........................................................................................................4
Corporate business strategy.............................................................................................................6
Company business strategy: Ansoff matrix.....................................................................................7
Strategic leadership evident.............................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Strategic management
Introduction
In this report, the emphasis is given on the concept of strategic management related with the
Australia post. In the report, the competitor analysis will be elaborated and it will discuss about
the different competitors such as TNT, FedEx and DHL. Also, the discussion will be on the
different aspects concerned with macro environment such as political factors, economic factors,
socio cultural factors, technological factors, legal factors and also the environmental factors. The
paper will also elaborate the different corporate strategies in context to the Australia post which
will discuss the business strategy by considering the Ansoff Matrix. The strategic leadership of
the Australia post will be taken into consideration.
Background of the company
Australia Post is an organization that provides the services related to postal in the market of
Australia and also out of country. The company conducts the activities at the name of the
Australian postal corporation. It is examined that company was established on 25 April in 1809
and headquarter of the company is in Melbourne, Australia. The overall operations of the
company are controlled and managed by the government of Australia. It is ranked on the 23rd
position and it is among the 100 financial brands in the Australian market. There are different
services such as mails and parcels, money and insurance and the solutions of the business that
are operated by the company. It is seen that Australia post has 4400 post offices and 11.4 Million
delivery centers and the operations are managed in the different located in the market of
Australia (Australia Post, 2017).
Industry analysis
Porter five forces Model
 Bargaining power of the buyers
It is examined that there are many companies in the sector of courier that are located in
Australian market. There is high level of competition in relation to the postal services. The
Australian post has various customers who have diverse bargaining power in relation to market
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Strategic management
and it can be stated that their power is low. On the other hand, it can be seen that corporate
consumers also have the high power that empowers the bargaining power of the buyers. The
services in the Australian market in context to the postal services are mature as there are many
customers who are aware of the high rates provided to the organizations in the courier sector.
Also, just because of the low switching cost the overall bargaining power of the customers is
high (Australia Post, 2017).
 Bargaining power of the suppliers
The Australian post states that there are many suppliers that exist in highly competitive business
environment so there is low dependency on the suppliers. Just due to different suppliers, it can be
said that the bargaining power of the suppliers is low. In relation to logistics, the overall power
of supplier is weak as there are many owned vehicles that are used in the process of
transportation. So, there are many other dealers for the vehicles and the reliance is on the few
players which is low (Ansoff et al., 2019).
 Threats of Rivalry
It can be said that threats of rivalries in the market is high as there are many postal service
providers that exist in the market of Australia. The competitors who are present in the market are
FedEx, DHL, United parcel service and TNT. These competitors are present in the market for
long time and due to this they have a good market share (Ansoff et al., 2019).
 Threat of substitutes
There are many competitors who exist in the postal service. The threat of substitutes is high in
relation to the Australia post as the price charged for the postal service is one of the important
aspects in relation to the competitors. The consumers are aware of the process of postal services
that relates with the price. The prices are taken into consideration so that the organizations
offering the different services at low price are having the advantage of the good market share
opportunity (Anda, Brueckner and Haigh, 2016).
 Threats of new entrants
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Strategic management
It is seen that threat of new entrants is high in this industry. For Australian post, it is analyze that
the threat of new entry is low only because of the high cost of investment that is related with the
new postal service. There is also need of the transportation vehicles that are considered as the
important requirements. It can be said that in the competitive market, there are many competitors
who are present in the market such as DHL, Fed EX and Australian post. It can also be
considered as good brand and also extra ordinary services which are difficult to be considered
(Rothaermel, 2015).
Competitor analysis
Australia Post is one of the largest companies in the Australian market. The company has
captured 60% of the overall market share in relation to the overall activities of delivery of the
parcels. There are main competitors who are related with the Australian Post and the competitors
are Fed-EX, TNT and DHL. These are considered as the private organizations that are offering
different challenges to the Australia Post. The TNT also covers 10% and DHL have 5% of the
overall market share in the sector of trade of delivery of the parcels. According to the overall
evaluation, it can be stated that Australia Post is considered as the leader in the market of
Australia but the market share of the company is decreasing only because of the different
competitors present in the market (Höglund et al., 2018).
The competitors also enhance the market share by maintaining the margin with the giant
companies such as Fed EX who focused on TNT express to enhance the market share in the
market of Australia. It is analyzed that there are many competitors also such as FedEx and
United Parcel who offers the services on the international platform and also they are dominating
the different organizations. The Australia Post is also conducting the activities on the
international platform but it has the scope to enhance its share in the different countries. FedEx is
also not offering domestic parcel services in the market of Australia but after gathering TNT, it
also offers domestic parcel services in the market. So, it can be stated that Australia Post in the
present scenario are now losing the overall market share but juts due to innovation and research
and development the company has maintained the large market share in the highly competitive
market (Swan, 2016).
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Strategic management
Macro Environmental Factors
The company has to change and also it controls the strategies and decisions in relation to the
external environmental factors. It can be known as the external environment and for this Pestle
analysis tool is taken into consideration to analyze the external factors through which the
company can take the right decisions and also it helps in managing the different functions. The
Pestle analysis has six different aspects such as Political, economical, socio-cultural,
technological, legal and environmental factors.
 Political factor
The Political factor of the country also impacts the overall working structure of the company.
The Australia is known as the industrialized nation and also the political background is more
stable. There are many opportunities that are related with the Australia Post and it boost its
business in the market of Australia and enhance the market share by assisting to innovation and
offer services in relation to the other competitors present in the market. So, it can be said that the
political factor of Australian post have major support from Australia.
 Economical factors
It also influences the overall decision making process of the company. The economical factors of
the Australia are good and its economic growth is also good. The rates of the government in
relation to the Australia take into consideration tax rate and interest rates that are feasible for the
large organizations. So, it can be stated that economical factors related with the market of
Australia favors the Australia post (Evans and Phelan, 2016).
 Socio cultural factors
It is seen that the individuals living in the Australian market has to take into consideration the
western culture as they are more influenced by the different trends and styles that are present in
the market. The individuals of Australia take use of this e-commerce website to order the routine
products and services. So, it can be stated that the company has more opportunities to deliver the
postal packages (Australia post, 2017).
 Technological factors
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Strategic management
Australia has advanced technology and the individuals are also techno savvy individuals. In
relation to the Australia post it is seen that its matches its business by emphasizing on the new
trends and lifestyles. The company launches different e-services such as track items and hold
mail. It also takes into consideration the different technologies such as Tray management system,
video coding machines, barcode sorting machines and also small packets sorting that helps to
boost the productivity and also profitability of the company (Korporaal, 2015).
 Legal factors
Different country has different rules and regulations. The legal factor consists of the consumer
law, copyright law and also imports and export laws. There are strict rules and regulations that
are favorable in relation to the domestic companies. The Australia post considers different
benefits from the country (Preston, 2018).
 Environmental factors
It also influences the overall process of the business in the competitive market. It also consists of
different factors such as Geographical location and climate. The country is also known as the
prosperous country that is rich in the resources. There are different environmental laws that
should be focused to protect and conserve the overall activities of the company. Australia post
should use the packaging that is recyclable in nature and also which does not affect the
environment (Castle, 2014).
Corporate business strategy
Australia Post emphasizes on providing the important and appropriate services. The business of
the company relies on the satisfaction level of the customers and also it fulfills the basic needs of
the customers. In the present era, the Australian post also renewed the different business strategy.
They have maintained the alliance with Amazon and also with EBay Company for maintaining
better logistics. It has been examined that the change in the different technology is also positively
impacting the courier services. The digitalization has assisted the customers to track the courier
from the home. This also helps to satisfy the faith of the customers towards the company. It is
seen that the Australia post has considered the technique to take entry into the e-commerce and
digital services to service the consumers. This also helps to make sure in maintaining the
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Strategic management
accurateness and speed with the companies in a proper way. The main goal of the company is to
enhance the relations with the customers, community and with the people. The company has also
launched different drone technology for the small parcels that are near to the remotely piloted
aircraft (Hanson et al., 2016).
Company business strategy: Ansoff matrix
Australia Post is considering the diversification as the business strategy and it focuses on
enhancing the productivity and profitability by dealing with the different sectors such as parcels
and mails. In the different segments, the company also offers various services in the countries
such as New Zealand, UK, CHINA and USA. The company also offers new services to the
company such as free parcel lockers that can be accessed 24/7 (Chong, 2015).
Strategic leadership evident
There is a huge competition in relation to the postal service industry and it is important for the
leaders to introduce the new ideas in the market. The company uses different strategies such as
postal parcel and drone technology that has offered the perks and benefits to the employees who
are getting good rating from the customers. Regular feedback also helps to maintain the
satisfaction level of the customers in relation to the strategic decision of the company (Lasserre,
2017).
Conclusion
It is concluded that the Australia post position is good in the market. By considering porter five
force models, it is analyzed that company can maintain the competitive advantage. By
considering the position of the company, it can be stated that organization is enjoying the wide
market share in relation to the competitors. Therefore, it can be concluded that the company
considers the diversification strategy to boost the scope in the different countries.
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References
Anda, M., Brueckner, M. and Haigh, Y., 2016. Transitions to a post-carbon society: Scenarios
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Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2019. Implanting
strategic management. Springer.
Australia Post.,2017. Technology and the future. [Online]. Available at:
https://auspost.com.au/education/ourpost/students/our-post/future.html. [Accessed on: 15 April
2019].
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Chong, F., 2015. Stamping a firm footprint in China: Australia Post defines its future in e-
commerce. Asia Today International, 33(2), p.7.
Evans, G. and Phelan, L., 2016. Transition to a post-carbon society: Linking environmental
justice and just transition discourses. Energy Policy, 99, pp.329-339.
Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
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Höglund, L., Holmgren Caicedo, M., Mårtensson, M. and Svärdsten, F., 2018. Strategic
management in the public sector: how tools enable and constrain strategy making. International
Public Management Journal, 21(5), pp.822-849.
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Korporaal, G., 2015. Australia Post Rivals Picking up the Parcel Business, The Australian
Business Review. [Online]. Available at: https://www.theaustralian.com.au/business/the-deal-
magazine/australia-post-rivals-picking-up-the-parcel-business/news-story/
34c841e719d65d9a75939c65578fbec3. [Accessed on: 14 April 2019].
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Preston, A., 2018. The structure and determinants of wage relativities: evidence from Australia.
Routledge.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Swan, D., 2016. Australia Post launches new drone technology. [Online]. Available at:
https://www.theaustralian.com.au/news/nation/australia-post-launches-new-drone-technology/
news-story/94fb1d20e88e54571462546a88b7cfad. [Accessed on: 14 April 2019].
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