Courier in Australia

Courier in Australia

Student Name

Date

Table of Contents

Part A 3

SWOT Analysis 3

Strength 3

Weakness 3

Opportunities 3

Threats 3

Opportunity for Virgin Group 4

Part B 4

Strategic intent of Virgin group 4

Strategy to start Courier Service in Australia 4

Reference 5

Part A

SWOT Analysis

Strength

In Australia, the courier industry consists of businesses primarily engaged in providing door-to-door pickup and delivery of high-value goods or urgently required documents. The Courier industry is growing at a compound annual rate of 2.4% through 2012-13, which estimated to be worth $6.62 billion. As such, revenue in 2012-13 projected to be 1.5% higher than in 2011-12 exceeding $ 7 billion. Virgin group is far less integrated than other big groups, thus giving an advantage of higher flexibility and an increase in net profit of up to 3.5% - 7%. (Pahl & Richter, 2009).

Weakness

In Australia, the courier companies struggle to meet deadlines due to competition with other competitors, the high rental cost have let them problems in holding their stock. There are no specific laws attached to the Courier business in Australia, however Insurance companies do not cover risks. Virgin group will have to overcome the weaknesses of its competitors; delivering all types of shipment with delivery guarantees, discounts offers and insurances. (Faarup, 2010)

Opportunities

This industry in Australia has experienced rapid growth in demand, with online retail growth increasing at a compound rate of 7.7%. New comers as Virgin group will be encouraged, as it will help the economically deprived industry to survive. Only 11% of MNC’s are operating and a vast amount of space is available to step in. With a $ 7 billion, projected market share; labor requirement and rental wages are on the rise with an average $ 14.34 spent on wages in 2012-13. If Virgin group intends to invest, the capital intensity of this industry increases marginally to the extent that $...