Analysis Strategic Management of New Zealand Post
By realizing that there are many opportunities in the market, the New Zealand Post has embarked into the gathering the knowledge about the market and come out with ways of owning sizable market share to build enough profit for business sustainability and growth. The main aim of gathering intelligence is to understand the challenges and come up with ways to handle them with the objective of obtaining market clarity before venturing into it with new products and services. With the capacity and position in New Zealand market there is adding advantage to the New Zealand Post, and by increasing its approach to the international market, it can thrive well to become one of the most successful New Zealand logistic corporate in the world.
The success of the business must ensure that the other factors such as strengths, weaknesses objectives, and threats are identified and adequately addressed so that a competitive advantage is achieved. TABLE OF CONTENTS EXECUTIVE SUMMARY 2 INTRODUCTION 3 MACRO-ENVIRONMENT ANALYSIS 3 COMPETITIVE ANALYSIS 5 SWOT ANALYSIS 5 CONCLUSION 6 CITATION 7 Introduction New Zealand Post is one of the companies under New Zealand Post Group that consists of some businesses dealing with communication and business solutions with core business ranging from emails. Many multinational companies are spreading their presences in every country which creates many challenges on the services delivery, profit margin and some case lead to compromising on the quality of services to remain relevant in the market by maintaining high market share. For the company like New Zealand Post to retain the share market, knowledge of the best strategic market approach is vital.
Micro- as well as macroeconomic factors, influences the economic activities of such complex company networks. The influencing elements can be seen from the internal point of view of a company, defined as the so-called micro-economic factors (Rausch, 2014) and from the outside point of view, the so-called macroeconomic elements. With these challenges and rapid growth in the global market, New Zealand Post has no option rather than analyzing the market environment and investing the best strategy of capturing the market. The various outlet operations assist the New Zealand post in maintaining a market lead amidst stiff competition with other relevant bodies that trade on the same services or offer the same products to the clients. Other challenges faced by the organization are the global competition in the logistics industry.
Many logistics companies have gone global making the cost of doing business high and market share limited to the cheaper service provider. The race is more compounded by the increase of interest rate that affects the importation and encouraging take-up of technology whereby most customers of New Zealand Post prefer the use of technology compared to manually sending mail to regional branches or customers. New Zealand high rate of 18 percent for the last 15 years has affected the global logistics industry, and this has left many corporate either close up or reduce operates cost. The procedures are envisaged to help in reducing the gaps that exist and challenging the general performance of the company. For purposes of enhancing competitive advantage, the company has resorted to projecting the expectations and identification of strengths to build on, the weaknesses to improve a remedy, opportunities to be exploited and threats that can be addressed professionally.
In the macro level, the company experiences stiff competition globally since various companies have been formulated to offer the same service delivery as that being carried out by the New Zealand post. With the existence of such competing companies in the market, the new, Zealand post company has come up with strategic survival mechanism to help it remain among the competing bodies in service delivery throughout the world. One of the advantages of lack of competition is the opportunity to maximized profit. Understanding strengths, weaknesses, objectives and threats of an institution are crucial in assessing the performance and competitiveness of the organization in question. For instance, the New Zealand Post, as any other corporation needs to have a way of understanding its strength, weaknesses, opportunities, and threats.
SWOT analysis is vital to New Zealand Post since it a chance to exploit the advantage it has as it works on the gap that is threatening the business both locally and globally. It is the SWOT that can help the company operate above the competition in such a way that its ability to draft strategic framework to exploit the weaknesses in the market. The SWOT analysis aids the company in identifying areas that need boosting, strengths to build upon, opportunities to be used and threats that should be addressed more comprehensively. A continuous drop in mail delivery might pose a serious challenge when drastic measure is not taken to provide a way of coming up with a recommended solution to remedy the challenging environment.
Failure to implement proper mechanisms of addressing the challenges might have a negative implication on the retail network due to irreversible and inevitable changes. The financial strengths of the New Zealand post has been partnering with the Kiwibank to strengthen wealth creation and availing insurance services to its employees and the citizen of New Zealand at large. The realization of the use of services by the customers have prompted the reduction in the number of employees as a way of maximizing the profit and reducing the cost in terms of wages that is incurred by massive number of employees. The New Zealand post considers this as strength since it will be able to cut operational cost as it aims at establishing a stronger team that is geared towards steering the organization to a higher level and enable the competitiveness of the company in the world market.
Conclusion The decision about the corporate purpose and company policies are closely linked to two critical sets of strategic decisions- what business the company is in or is to be in and what kind of company it is to be (Sandler, 2003). New Zealand Post stand the best chance of growing and making it to global leadership. For the company to grow and reach its global position, the company need to invest in research on the best strategies to remain in the profit margin level. Both micro- environmental analysis and competitive analysis is vital to enhance the knowledge of the market. SWOT analysis will help the company to know which strength it can exploit and which weaknesses the company need to work on.
Rising operation cost and falling volume is an imminent threat that is soon befalling the New Zealand post company. The company can brave itself to such threats when appropriate and viable solutions are set to counter all the risks that come with service delivery and expansion of the company so that it can be able to compete in the market without dissolution efficiently. Moreover, the increase in the cost of demand and low volume supply is a considerable threat to the New Zealand post company which the company must work on to ensure seamless service delivery and optimal performance. References Grezetsky, W. Strategic Planning and SWOT Analysis. Wage inflation and wage leadership. Mediarelease. New Zealand Post outlines five-year strategy. New Zealand: New Zealand Post Group.
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