Strategic Analysis and Recommendations for Australian Post

This report provides a comprehensive strategic management analysis of Australian Post. It begins with an introduction to the company, its operations, and its position in the logistics industry. The analysis includes an examination of the macro-environmental factors using PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors influencing the company. An industry analysis is conducted using Porter's Five Forces model to assess the competitive landscape, including the threat of new entrants, bargaining power of buyers and suppliers, the threat of substitutes, and competitive rivalry. The internal environment is evaluated through a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. The report then discusses the current strategy of Australian Post and concludes with recommendations for future strategic improvements, aiming to enhance its market position and address challenges in the evolving e-commerce and logistics sectors. The report references key publications and data sources to support its findings and recommendations.

STRATEGIC MANAGEMENT

Contents
Introduction...........................................................................................................................................2
Environmental analysis..........................................................................................................................2
Industry analysis....................................................................................................................................5
Internal analysis.....................................................................................................................................7
Current strategy of Australian Post........................................................................................................8
Recommendation in the construction of future strategy.........................................................................9
Conclusion...........................................................................................................................................10
References...........................................................................................................................................12

Introduction
Australia Post has lawmaking domination while transporting bulk mails. The company has
changed its outdated business of bringing mail to find it additional broadly in logistics
industry. The company is ordered at the 23rd position amongst the top 100 financial products.
The company deals in parcel, business solution, prepaid cards, e-commerce solutions,
finance, payment, and mail (Nowak, and Paton, 2018). It was founded in April 25 1809 and it
has been headquartered in Melbourne. The report avails a clear understanding regarding the
strategic management of Australian Post. In order to conduct a competitive analysis,
competitors named as TNT, DHL, and FedEx have been evaluated. The company operates
more than 4400 post offices and 11.4 million distribution centres that are achieved at diverse
sites in Australia (Chubb, and Watermeyer, 2017).
This analysis will bring out a tactical analysis of the Australian Post including SWOT
analysis to analyse the internal business, as it is a tool for Australian Post to benchmark its
business performance (Rhoades, and Smart, 2018). It will also conduct a PESTLE analysis
that includes the analysis of six external factors such as legal, political, technological,
environment, social and economic factors. The report will conduct competitive analysis
through porter`s five forces model which is an tool to examine the level of competitiveness as
experienced by the organisation while evaluating the profitability (Rhoades, and Smart,
2018). It constitutes several factors such as threat of substitution, Threat of new entrants,
bargaining power of suppliers, bargaining power of buyers, and threat of competitive rivalry.
Further, there is a discussion on current strategy formulation and recommend the
improvement in the future strategy so that it can enhance the future strategy (Rhoades, and
Smart, 2018).

Environmental analysis
Macro-environmental factors are uncontrollable and changeable as they affect the
organisation and influence the decision-making. PESTLE analysis is a technique through
which a company can evaluate the external factors including political factors, social factors,
legal factors, economic factors, environmental factors and technological factors (Chubb, and
Watermeyer, 2017).
Political factors- Australian political environment is stable that affect the occupied of
organisation. Australia is an industrial country with lot of opportunities to improve the
business and finally increase the market sharing with the help of modernization and better
facilities when it is associated with the competitors (Chubb, and Watermeyer, 2017).
Australian political conditions support Australian port. Business operating in Australia has
high degree of the certainty, as political conditions are progressive, open, stable and with
high degree of certain and confidence. The nation operates with transparent and efficient
legal framework with strong system of balances and checks (Rhoades, and Smart, 2018).
Economic factors- Australia has solid economy with high per capita GDP (Gross domestic
product). The nation is the attraction of diverse natural resources with high scope of FDI due
to extensive reserves of iron ore, natural gases, renewable energy, with extensive uranium. It
operates in larger service sector that is significant exporter of energy, food, and natural
resources (Connell, 2016). Each year, GDP Growth rate is nearly 0.5 percent and annual
growth of 2.5 percent. With campaign, it is seen that Australia is a strong economy. Australia
is at 13th rank among 50 nations while considering GDP. It is a mixed economy with GDP of
1.69 trillion dollars. The nation is comprised of service sector inclusive of 61 percent GDP
with retaining 79.2 percent of labour force in 2016 (Rastogi, and Trivedi, 2016).

The company has witnessed a heavy cost of 98 million dollars in current fiscal year. The
highest authorities of the company claims several reasons for the contrary situation of
organisation, which arose due to numerous macro environmental factors legal factors, social
factors, economic factors, environmental factor, and technological factors. For the
deregulated market Post, which may not be able to keep the total sum of profitability in the
industry named as “revenue of nearly 86 percent because of mail delivery” but at the same
time, it is open to the competition, which would lead to less operating costs and being
operated with low quality standards.
Social factor- increase in the use of digital email business options in the world has affected
several business processes of Australia Post. Some of specific issues relate to rise in internet
medium associates accomplished with the community factors leading to the decline in the use
of operations of business (postal package organisation). Internet has remained inexpensive
mode and easily accessible for the users where customers find it quite easy to converse the
interpretations with the usage of internet. This situation and factor has aligned to the
economic factor.
Technological factor-
The technological factor will include the receiving of new mode of transmission and
exchange of words, which will include utilisation of internet as their initial step or choice to
connect to several customers in the nation. Ease in the accessibility, exchange of words where
the user’s utilisation the internet and customers are availed with new mode of transmission.
Environmental factors-
The environmental factors will include choice, will, and decision of the users where a
customer can prefer digital message and internet is the major source of communication.
Legal factors-

The legal factors will include the carelessness as being shown by the administration of
Australia, where the regime delays the procedure of reducing the stamp prices and do not
assist the Australian Post in the restoration procedure. Australian Post strives and recognise
the management of economic, environmental, and social impacts that is central to the
continuous success in terms of strategy formulation and easily executed. The company aims
to meet and exceed community, inculcate the principles for the sustainable development and
regulatory standards within the business operations and culture.
Industry analysis
Competitor analysis
Porter`s model is a tool to analyse and evaluate organisational competitive environment. It
includes power of bargaining power of customers, competitive rivalry, substitute products,
bargaining power of suppliers, and also the power of innovative products, which affect the
profitability of the organisation (Mathooko, and Ogutu, 2015).
Threat of new entrants
This threat of new entrants is a defined level of complexity of a corporation in order to catch
industry. For the Australian Post, there is a danger of the new entrants (new companies) while
entering the new industry. Australian Post also suffers from low threat because of investment
cost while starting a new postal service (Mathooko, and Ogutu, 2015). The postal company`s
requirements will include transportation vehicles, and fleet. In order to enter with the big
players (competitors) including DHL, Australian Post and Fed ex, which is quitter important
to have brand and opt for extraordinary services.
Bargaining power of buyers

As there are several carrier businesses available in Australia as competition among the
mailing service provider is quite greater. Australian post has diverse kinds of consumers who
actually hold diverse level of the bargaining power (Mathooko, and Ogutu, 2015). An
individual customer does not have the power to influence the diverse level of bargaining
control. Whereas, contract and corporate consumers do have the highest power and this
empowers the corporate customers. Postal services in Australia is already a mature market
where customers are quite aware of price and rates offered by courier organisations
(Australian Postal Corporation, 2018).
Bargaining power of suppliers- Australian Post have great number of suppliers to the postal
services so it is so much reliant on on precise contractors. With the great number of the
suppliers, the bargaining power for Australian post is quite low (Aithal, Shailashree, and
Kumar, 2016). In evaluating the logistics, there is a force, which is depends on supplier’s
force, which is quite weak, as they have to use numerous owned vehicles for conveyance.
There are many other traders for the vehicles where the addiction for the single or the few
supplier is already low (Australian Postal Corporation, 2018).
Threat of competitive rivalry-
Australian Post is a massive organisation in Australia. The company has took 60 percent of
the market share in the process of business distribution. The core participants of Australian
Post are Toll, DHL, TNT, and FedEx. Various organisations have been giving major
challenge to the Australian Post (Takata, 2016). TNT holds nearly 10 percent and DHL
grasps with a 5 percent of the total market share in trade of distribution of parcels (Australian
Postal Corporation, 2018). As per competitor`s analysis, Australian Post is an emerging
leader organisation in the country but it is quite disappointing that the market share of
Australian post is decreasing due to its competitors (Takata, 2016). The competitors will

increase the market share with the acquisition of other leading organisation such as TNT
express, and FedEx through which it has increased its market share (Australian Postal
Corporation, 2018).
The competitors such as united parcel services and FedEx have been dealing with the other
companies at international and dominating other companies too (Australian Postal
corporation, 2018). Australian Post has been dealing at international with an aim to increase
its area of operations and level of business (Gürel, and Tat, 2017). FedEx is also not
delegating the national parcel facilities in Australia but after the acquisition of TNT, it also
provided national parcels in Australia. It can be clearly seen that the market share for the
Australian Post has been decreasing as it is losing market share but due to invention,
development and investigation. It has the chance to sustain its market share (Australia Post,
2014).
Threat of substitution
It is important to consider that there are several numeral of competitors in the postal industry
and they possess a high change to be substituted because Australian Post charges high for its
services (SCALED AGILE, INC 2019). Price charging is only the factor for postal services
of alteration among the competitors. The consumers are quite aware of the values of the
postal services where the corporation can provide facilities at very low cost and rate, which
will benefit good business opportunity (SCALED AGILE, INC 2019).
Internal analysis
SWOT analysis
Strength Weakness
The company deals in delivering diverse
portfolio of parcels, money, insurance, ID,
Australian post has its less presence at the
international level as compared to its

travel and mails (Nowak, and Paton, 2018).
The services include postal services, retail
express post, digital services, printing
services, and logistics (Phadermrod,
Crowder, and Wills, 2019).
The government of Australia strong backs
the company (Barik, and Kumar, 2018).
competitors
Technological advancement is not felt the
need of Australia post crucial services such
as delivery and sorting of letters. Australia
Post have lost several opportunities while
developing the organisational structure and
stay relevant with useful (Wolfenden et al.,
2016)
Threat Opportunity
Increase in digital communication lead to
decrease in the letters that resulted in loss in
consequential profit margin (Daspit et al.,
2017).
The company is needed as per law
requirement while delivering specific
number of times every week. It leads to the
retention of 4000 with strong network of the
retail outlets (Australian Postal corporation,
2018).
Development of strategic partnership can
break boarders and finally increase the
global opportunities that can certainly
increase the revenue from the overseas
market (Australian Postal corporation,
2018).
An online Chinese ecommerce market,
which allow organisations to sell the objects
to the Chinese products (Australian Postal
corporation, 2018).
The increase in export market has increased
the need for the Australia Post while
developing the export services of Australia
Post

Current strategy of Australian Post
Australian Post delivers the promises for digital future with SAFe. Australia post will need a
new way to work to sustain and enabling to the organisation as being trusted providing to
delighting the customers with the personalisation of digital services (Australia Post, 2014).
Driving the change with common language and lean structure, Australia Post invested in
technology, people, and the culture to change the way its focus on customer experience
(Cândido, and Santos, 2015). The discipline achieved and structure as stated in SAFe have
the powerful way to communicate in a better way (Cândido, and Santos, 2015). The main aim
of Australia Post is quite sustainable, changes according to the needs of the organisational
approaches and finally delivering for its strategies (Australia Post, 2014). The company
follows an approach where it is environmental management is multi-faced (Chubb, and
Watermeyer, 2017). The company has been reducing the level of greenhouse gas emissions,
drive reduction, reuse the materials, and go to landfills (Omsa, Abdullah, and Jamali, 2017).
The company do have two major key environmental targets in order to achieve the goals in
2020 (Hanson, Hitt, Ireland, and Hoskisson, 2016). It will lead to the reduction in the
emissions through greenhouse gases by 25 percent and enabling the use of 100000 tonnes of
material (SCALED AGILE, INC 2019). It is quite important to remain transparent to the
stakeholders in regards to the environmental effects, which is a priority to drive
accountability, when to drive to run the business and its supply chain activities (SCALED
AGILE, INC 2019).
As a corporate social responsibility, the company is planned to commit sustainable packaging
as a part of Australia post environmental Action plan (Shi, 2016). The company leveraged
towards its digital abilities and the physical network to catch the return more items for the
recycling, supportive growth of circular economy and reuse (SCALED AGILE, INC 2019).
The company has been continually identifying different material types for suitable

alternatives for product packaging and working as the customer’s state to manage the
packaging (Obeidat, Hadidi, Tarhini, and Masa’deh, 2017). Recently the company has
adopted Australian Recycling label and ultimately formed new partnership with the
REDcycle program. It is a recycling start for the soft plastic with the network of the
supermarkets drop off. This meant for customers to access the REDcycle drop off points with
more than 1800 crucial supermarkets in Australia (SCALED AGILE, INC 2019).
Recommendation in the construction of future strategy
With an aim to increase the market share, Australian Post can offer its services banking and
money ordering post for the credit points and cheaper fees for the service availed will attract
more customers. In order to ensure monopoly for the collectables, Australian Post tries to
protect the industry from the fiscal policies (Connell, 2016). It can strengthen market share in
the Express mail where Post can propose further improvements to deliver advertisement and
performance of the company`s performance (Connell, 2016). Further, new areas for the
development of business joining with great air service that will reduce costs. It will further
advertise more people to the Australians, which can generate by post benefit to the Australian
economy. It further strives to increase automatic as being achieved in distributor centre of
NSW. There is a standardisation of processes where Australian post system consults to
several countries with regulation postage system (Connell, 2016). In regards to the Australia
Post, it is seen that the opportunity lies in creating competitive advantage with maintaining a
strong relationship between government¸ business and consumers. In order to achieve
sustainable change focusing, there are related areas of the organisation. Cross-functional and
long running teams have been aligned to the customer experiences, which is foundational,
and critical change to how people actually work. Australia Post has invested in the evolution
in the culture of the company to the one where innovation, and learning mindset, which will

support shared groups in the aim to deliver business initiatives (Chubb, and Watermeyer,
2017).
Conclusion
From discussion given here, it is visible that Australian post is a self-funded government
organisation associated with the Australian Administration where sole shareholder as
required under APCA (1989), where it can balance the commercial goals with the wants to
meet obligations of the community. Profit earned by company has been invested in the assets
and services where it equips to meet the altering wants of the consumers. As a
recommendation and a future strategy, it is seen that the company adopt the products and
services for both physical and digital world. It can lead to alteration of investment profiles
with a solid focus on improved chances for the ecommerce, digital and trusted services. The
company will further try to become customer centric reform, business efficacy, and
operational excellence. The evaluation strategy will create people`s commitment for the goals
with the adoption of external business analytical tools. These strategies lead to promote job
satisfaction, recognise outstanding services, rewarding the outstanding service for the
customers, and rewarding the outstanding performance. The company has conducted pestle
analysis as a part of external environmental analysis that shows uprising technological
settings have changed the trend related to sending the letters through postal. Economic factor
has reflected severe loss because of hefty issues and loss of trendy technological availability.
The company has gone through SWOT analysis undertaking and identifying its strengths,
weaknesses, opportunities, and threats. Competitive analysis include Porter five forces model,
which indicates analyses of threat of new ventures, buyers, competitors, and suppliers.
Compliance with several organisations, it is seen that business has disrupted and leads to the
transformation in order to adapt to digital era. Traditional pillars of business include letters

that decline in a persistent way leading to the piercing competition and due to the immense
opportunity with the available growth of the e-business.

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