Strategic Analysis of Australia Post: Business Development Report

This report presents a comprehensive strategic analysis of Australia Post, examining its business operations and competitive environment. It begins with an executive summary outlining the report's purpose, importance, and key findings. The introduction provides a brief overview of Australia Post and the challenges it faces. The report then delves into a macro-environmental analysis using the PEST framework to identify political, economic, social, and technological factors influencing the company. Industry analysis is conducted using Porter's Five Forces model to assess the competitive landscape. A detailed company analysis incorporates SWOT and VRIO analyses to evaluate Australia Post's internal strengths, weaknesses, resources, and capabilities. The report also includes a competitor analysis, identifying key rivals and their strategies. Finally, the study offers strategic recommendations for Australia Post, focusing on areas such as digitalization, global expansion, and supply chain management. The report concludes by summarizing the key findings and implications for the company's future.

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Executive summary:
The following study is base on the strategic analysis of Australia post. The aim of the study is to
evaluate the business of the AP and to identify the strategy of the company. The scope of the
discussion is to identify the macro economic factors infusing the company. The porter’s five-
force has used to understand the industry of the business. To understand the business model and
strategy SWOT and VIRO analysis has done. The VRIO, analysis addresses about the resources
use by the company and their significant to the company. In addition to the above analysis, there
also identification of competitor and the strategy of the company evaluated. The study conclude
that Australian post should concern towards the digitalisation and expansion of the company.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Macro environment analysis of AP:............................................................................................3
Industry analysis:.........................................................................................................................5
Porter’s five-force analysis:.....................................................................................................5
Company analysis:.......................................................................................................................6
SWOT analysis:.......................................................................................................................6
VRIO analysis of Australian post:...............................................................................................7
Competitor analysis:....................................................................................................................9
Strategy analysis:.......................................................................................................................10
Recommendations:........................................................................................................................10
Conclusion:....................................................................................................................................11
References:....................................................................................................................................13

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Introduction:
Australian post is a public owned Australian logistic and postal service company. The
company has started in 1809 and is operating on the large population of Australia. This is the
self-funding firm deliver around 60 million per week (Auspostenterprise.com.au, 2019). After
introduction of telegram, the Australian post has divided into two parts one is Australia post and
other is telecom Australia. There are about 36000 worker are working over the company. After
evolving of the new technology and innovation, the importance of the company in post segment
has reduced. The present study has involved a complete strategic analysis of the business. The
discussion has used a number of models to analyse the company and its environment. The study
model comprises of PEST analysis, porter’s five-force model, SWOT analysis, VRIO model,
strategic analysis of the company, competitor’s analysis. In addition to this based on the analysis
there has some strategic recommendation given in company points of view.
Discussion:
Macro environment analysis of AP:
Macro environment analysis comprises of the PEST framework, which help in enhance
an organisation’s performance. Macro environment focuses on the external environment factors
that influence or affect the organisations operation and performance of the company (Armstrong
2015). In order to identify the factor infusing the Australia post PEST analysis has carried out.
Political factors:
Australian post is the public sector company but in the meanwhile, it commercially run
and has not influenced by the political environment.

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Economic analysis:
The income statement of Australia post from 2011 to 2014 has shown that there is a
stability that has slowed down in the growth of the company has observed. The reason behind in
the economic slowdown is reduction in the mail sent which is main function of the company.
There is reduction around 5 percent in the volume of letter every year since 2011. There is also a
influence of inflation and exchange rate for decreasing in the volume. The lowering in the
service quality that is increasing in the time to deliver a non-urgent mail is two days more than
previous service while the customer are charging for the premium service(Ansoff, et al 2019). In
addition to the above factors there is a stress of competitors has affected the performance of the
Australia post.
Social factor:
Life style, change in the customer taste and preference and evolving of the ecommerce
market that makes struggling to the Australian post in the consumer market. The Australian post
has made a strategic partner with the emerging powerhouses like Chinese wholesaler Alibaba
that increase the Australia post’s export rate. In the domestic ground Australia, post ha a strategic
alliance with the DHL and FedEx.
Technical factors:
Development in the tale-communication, social media and billing process has
significantly influence in the reduction, as the larger scale would once use austral post for all
customer, Clint communication and billing. Thus, the Australian post has to evolve in order to
update and its service process by adopting the new technologies. This can be achieving by
previously discussed strategic alliance, implementation of the digital mailbox and billing process

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by using digital technology. Rate of transfer in technology for Australia post need to faster due to
the external market development. In the present scenario maximum Australian company are
using the online billing and digital communication.
Industry analysis:
Porter’s five-force analysis:
Bargaining power of customer:
The world communication has changed and there is threat for the Australia post after
introduction of telegram, telephone and social media. The facilities of text messaging and email
have a significant impact of the supplier. In the present scenario around 1 percent of the mail has
send through post out of this 97 percent is comprises of government and the government related
mails. This statics indicate that there is a high bargaining power of customer(Kotler, 2015).
Bargaining power of supplier:
The Australia post has started to gain advantage in the digital world. The organisation has
stared tie-up with the e-retailers like amazon that will send its order to its customer by post. This
is a booming sector in the digital world. This shows that company has expand its business as 57
percent of it as Parcel Company, 28 percent associate as Letter Company and 17 percent
associate as post office.
Intensity of existing rival:
There is competition in this area. FedEx is a globally active courier company that is a
fourth largest company. It has its own aircraft which enhance it operate globally with a faster rate
and efficiently. The company has recently acquired TNT that is Australian company. There also

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a rival from Toll handling and DHL in the domestic market with a market share of 8.8 and 6.7
percent respectively.
Threat of Substitute:
The digital platform in term of social media, e-mail and billing are the substitute for the
company’s product and service. Since the company is adopting a digital transformation and
partly become a logistic company so there is a limited substitute (Tanwar 2013).
Threat of new entry:
There is limited threat from the new entrant because Australia post has a strong brand
image and positioning in the mind of customer. New entrants need a strong distribution network,
which gives a competitive edge to Australia post.
Company analysis:
Australian postal corporation is operating in logistic and postal service targeting to the
international and domestic service. The USP of the company is providing the reliable and faster
service with sound commercial performance. To understand the core competence of the company
and strategic advantage of the company of Australian post SWOT analysis has to done-
SWOT analysis:
Strength:
It has a diversified business comprises of mail, parcels, travel & id, money and insurance.
The company has delivered the service in Saturday also. In the present scenario, the company
also enter into the digital business under ‘e-service’. The company is backing by government of
Australia where more than 30000 skilled employees are working.

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Weakness:
The technical transformation into the digital technology is time taking process. On the
other hand, the company has a less international presence in comparison to its competitors
(Cadle, Paul and Turner 2014).
Opportunity:
There is opportunity to expand its business in the global level through the international
strategic partnership (Gürel and Tat 2017). The company can go for the merger and acquisition
to strengthen the position domestic as well as in the in international market.
Threat:
Threat from the competitors like FedEx which is a global business expanding its business
in Australia by acquiring the competitors. Low-charges rival among competitor is also a threat
from the market (Yi, Lodge and McCausland 2013).
VRIO analysis of Australian post:
VRIO is the strategic framework, which concern about the resources of the business and
useful for the business in establishing the strategy. VRIO comprises of the value, rareness,
limitability and organisation (Vom and Rosemann 2014). These strategic planning tools helps in
help the company to take a effective business planning. The following are the dimension in
which VRIO consider the resources of a company-
 Value – this inform about how easy to collect and expansive of the resources in
the market.
 Rareness – is the availability of the resources

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 Limitability – tells about how difficulty to imitate the resources
 Organisation – this is the support of the organisation and the effectiveness with
which company use it
VRIO framework:
Resources/capacity value Rareness Limitability Organisation
Transport vehicle
Maintenance
Fuel
Ancillary branches
Shareholders
Creditor
Government support
Innovation in service
e- billing
customer satisfaction
brand image
patent, logo
staff productivity
strategic planning and partner
trust
practice and procedure
shareholders
retailor
Yes
Yes
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Yes
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As, per 2014 report Australian post has working in 3832 communities and 10000 delivery
contract. There are 4406 post office and 15591 street post offices are operating. There are 48
retail super store and act as agent for more than 750 organisation.
Australian post is a listed company in the Australian stock exchange and it raises the
capital by issuing the share. The company is public sector that is maximum of the share is hold
by the govt. of Australia therefore there is a strong financial support to the organisation
(Chatzoglou 2018).
From, innovation point of view company Australian post is working for adopting the
new digital technology like e- billing. Innovation, towards reduce time duration for shipping
(Leonidou 2013).
There are important imitate resources such as brand image, logo, employee skill and
service quality which gives it a competitive edge (Pesic, Milic and Stankovic 2013). The
company has more than 30000 employees those are highly productive and multi expert like
heaving the knowledge in finance.
Competitor analysis:
Australia post has the three main competitors, which are mention below-
FedEx is the globally active courier organisation that is the nearest rival of the
company. The company has acquired the TNT express with a cost of $63 billion. The company
has under goes a expansion with introducing new technology. The company has its own aircraft
for logistic support and faster in the service provide. FedEx is the fourth largest global level
logistic company with a strategy of low delivery and picking cost particularly associate to
international courier.

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Toll Holding and DHL is two domestic level rival of thy Australia post. Both have the
total market share around 15 percent. They also globally operate like Toll Holding has a strategic
partner with Japan post.
Strategy analysis:
The following are the main strategy of Australia post-
 New organisation structure with digital business under ‘eService’
 Expansion in the global level through strategic alliances
 Low-cost pick-up and delivery charges (Salavou 2015)
 Post office are handling the banking, insurance and serve as a bill paying centre
Although the company has above strategy but there is some limitation like delaying in
the delivery service. There also heaving the hidden charges for premium service (Baker 2014).
The company have delaying in implementation of technology.
Recommendations:
The following points can be recommend to Australian post-
 The company have to create some big client to increase the operation
 Speed up in the implementation of digital technology (Hubbard, Rice and
Galvin 2014)
 Concern more about the supply chain management to increase the efficiency of
delivery
 Company need to go for the global level operation
 To strengthen the business company should go for the acquisition and merger.