PESTEL analysis Courier and Delivery market UK - Essay Example

? PESTEL analysis Courier and Delivery market UK The courier and delivery industry in the United Kingdom is involved in providing surface, air or combined courier delivery services. They provide express messenger, delivery, packing and sorting services. Some of their products include mail, domestic and international courier services. The growth and development of the technical courier services has stimulated the market for courier services between 2002 and 2007. There are a large number of courier industries operating in the market due to low entry barriers and high demand for the services. The courier companies in the United Kingdom are turning to outsources and e-commerce services. The aim is to offer specialized and technical services. The economic factors in the United Kingdom courier industry constitute a substantial reason for the general outlook to same (MSI 2000). To expound on this, the courier industry in the United Kingdom operates in different places around the globe. There are many companies from the United Kingdom which command global influence (Campbell 2001). This has necessitated the companies to look for choices that facilitate smooth interactions between their choices (Monaghan 1998). The courier industries in the United Kingdom have an unusually high demand, and this had caused the economic landscape of the United Kingdom courier industry to keep changing. This has caused the airline industry in the United Kingdom to have an economic boom. In the delivery of documents and packages, speed is vital (Crew & Kleindorfer 1999). The environmental factors in the United Kingdom courier industry cover the governmental legislation and regulation. This is because the policies of the government in United Kingdom have created a favourable business environment for the rise of the industry or vice versa. Some government believes in subsidizing local industries with an aim of increasing their effectiveness and global influence (Luff 2009). When the government policies and legislation proposes heavy taxation of local courier industry in the United Kingdom, then the business environment of the industry is altered, and the companies begin to strain (Campbell 2001). According to Campbell, the environmental factors include the population gross domestic product, GDP. This affects the competitiveness of the industry. When ordinary citizens have a string purchasing power, then they are likely to hire the services of the courier industry in the United Kingdom which raises their turnover (Luff 2009). The competition of the courier industry in the United Kingdom is exceptionally high (MSI 2000). The recent spread of recession of the economy that was spread from the United States of America affected the courier industry in the United Kingdom (Monaghan 1998). This indicates that the health of ht economy is extremely crucial for the growth of the industry in the United Kingdom (Crew & Kleindorfer 1999). The rise of oil prices caused many airline industries t cut down the size of their fleet, which affected many courier industries in the United Kingdom. In extreme cases, this led to the closure of some courier companies which could not meet the demands of the industry. Therefore, the company could not be operational (Monaghan 1998). Many others were forced to downsize their workforce, and this affected their capability. This has forced managers to take appropriate actions to make sure their industries maintain a competitive edge over their competitors. Many courier industries in the United Kingdom operate in over 200 countries around the globe. Each country has a different business atmosphere with because of the territorial difference in terms of regulations and rules. Each and every country has different barriers when it comes to new entrants (MSI 2000). For instance, china has extraordinarily high barriers to new entrants compared to countries like Kuwait and Sri-lanka which have low barriers. When it comes to foreign direct investments, many countries have different political perspectives, laws and viewpoints (Crew & Kleindorfer 1999). In Japan and United States of America, foreign companies are only allowed to have 25 and 50 per cent of ownership respectively. When it comes to Asia, countries like Honk Kong and Singapore are remarkably open politically and are inviting in direct foreign investment. In different countries, companies develop policies that depend on the political environment in their surroundings (Luff 2009). A compelling example is the DHL Company which was unable to open in Germany due to Germany’s position on noise pollution (Campbell 2001). After the German government had rejected the proposal by the DHL, the company was forced to open hubs in Bahrain and Hong Kong. There are instances when a government declared a no-fly zone over another. The economic sanctions meant that the companies cannot serve the clients effectively (Crew & Kleindorfer 1999). The United Kingdom’s courier industry cannot serve effectively in Iran due to the UK policy towards the Iranian government. According to Al Jazeera, during the Bosnian war, FedEx was reprimanded for continuing to deliver services in the country. Many courier industries complain of a lot of government interference when it comes to international operations (Luff 2009). The political and legal implications in many courtiers continue to affect the couriers industry, and the United Kingdom has not been exceptional (MSI 2000). The courier and delivery industry in the United Kingdom deals with a lot of logistics. This necessitates that the industry pays a lot of attention to technology (Gilbert 2004). According to Gilbert, the courier and delivery industry in the United Kingdom must be on the lookout for the latest and cutting edge technology due to the nature of its operations. Courier industries deal with information sharing and need to invest a lot in information automation and security if they want to win client trust and confidence (Monaghan 1998). A perfect example is the DHL which was the first to employ cutting edge technology to outwit its competitors. The company launched the world’s first world online shipping transaction services conducted over internet setting a trend for other courier companies. Customers pay high premiums, and companies feel indebted to use the best technology when it comes to services. The technology includes tracking services and WAP enabled mobile devices (Monaghan 1998). Many courier services have turned to using SMS tracking as a service to allow their customers to keep track of their shipments. This has allowed the use of business intelligence when it comes to online transactions (Luff 2009). This is different from traditional business conduct to e-commerce. Many courier industries in the United Kingdom operate under the umbrella of technology. This has helped them to serve different t companies and bridge their different voices around the globe (Gilbert 2004). By offering seamless services and operations, the couriers companies in the United Kingdom have maintained a competitive edge over their competitors. The society has been evolving from medieval times to modern times (Luff 2009). The discovery of the internet has given impetus to the concept of globalization (Luff 2009). The world is becoming one unified society when it comes to needs and operations (Crew & Kleindorfer 1999). The courier industry in the United Kingdom has embrace globalization and broken boundaries. Courier industries in the United Kingdom have made full advantage of the religious festivities like Christmas (MSI 2000). These seasons are accompanied by a massive influx of orders from people who are buying gifts for their loved ones (Campbell 2001). The United Kingdom courier industry has established many financial centers around the globe with an aim to clients from different regions and monitors the changes and strategies in different places (MSI 2000). In conclusion, the United Kingdom postal and courier market rebounded two years ago after struggling during the economic crunch. In the year 2010 alone, the industry grew by 2 per cent (MSI 2000). The grown was fuelled by increased online shopping and improved economic outlook. The rise of fuel prices continues to pose a substantial threat to the growth of the industry. The profits margins are likely to be squeezed in the coming years with couriers being forced to increase charges in order to remain profitable. The forecast on the courier industry in the United Kingdom indicates growth will continue to be experienced in the coming years if the economic recovery continues. Besides, couriers have been coerced to diversify services to improve consumer experience. References Campbell, J. I. 2001. The Rise of Global Delivery Services: A Case Study in International Regulatory Reform 1st ed. JCampbell Pres. Crew, M. A., & Kleindorfer, P. R. 1999. Emerging Competition in Postal and Delivery Services 1st ed. Springer. Gilbert, T. 2004. Tony's Guide to the Courier Industy 1st ed. Trafford Publishing, UK. Luff, P. 2009. House of Commons papers Post offices - securing their future. Post offices - securing their future: eighth report of session, 21, 1-213. Monaghan, K. 1998 Air Courier Bargains: How to Travel World-Wide for Next to Nothing 7th ed. National Book Network. MSI,2000 Courier Services: UK 1st ed. MSI Marketing Research for Industry Limited. Read More