Porter's Five Forces Model in the Postal Industry
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The paper provides an overview of the global postal industry, and uses Porter's five forces model to examine how this industry's operating environment has influenced the competitive strategies of three multinational postal firms; UPS, DHL, and DPD. The paper analyzes the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat of substitutes and finally, the rivalry amongst competitors. The paper includes two graphs.
From the Paper:"As is the case with other businesses, globalization of trade has led to a radical shift in the manner in which businesses operate. In addition to their concerns for profitability, firms have to pay cognizance to other factors within both their internal and external environment so as to maintain competitiveness and overall relevance of organizational objectives and goal-setting(Palmer, 2011). Consequently, market success of multinational business appears dependent on the firms' ability to maximize efficiency in all operations and the creation of new sources of revenue generating services so as to counteract the effect of lowering returns due to rising and emergent competition and falling prices (Baron, 2009).
"The global postal industry has survived despite the high criticisms thatheralded the digital age at the turn of this century.Despite this sustained resilience, the industry has suffered major setbacks in light of the recent financial crisis; the global economic slowdown that arose due to this crisis and the exponential growth in demand for digital alternatives(Accenture, 2011). As a consequence, the volumes from mail users dropped, profitability crumbled and prices of core services by postal corporations shot up where the larger the player in the industry, the greater the negative impact due to the crisis."
Sample of Sources Used:
- Accenture. (2011). Achieving High Performance in the Postal Industry. Accenture.
- Baron, D. P. (2009). Business and Its Environment. Prentice Hall.
- Boulton, W. R. (1999). United Parcel Service: Moving at the Speed of Business. USW and William R. Boulton.
- Fleisher, C. S., & Bensoussan, B. E. (2007). Business and Competitive Analysis: Effective Application of New and Classic Methods. FT Pres.
- Ltd. Plunkett Research. (2010). United Parcel Service, Inc. (UPS) Profile & Transportation Industry Trends Analysis 2010. MarketResearch.com.
Cite this Analytical Essay:
Porter's Five Forces Model in the Postal Industry (2014, January 23) Retrieved August 18, 2022, from https://www.academon.com/analytical-essay/porter-five-forces-model-in-the-postal-industry-153797/
"Porter's Five Forces Model in the Postal Industry" 23 January 2014. Web. 18 August. 2022. <https://www.academon.com/analytical-essay/porter-five-forces-model-in-the-postal-industry-153797/>