Every business will need to complete a SWOT analysis to ensure success, no matter what industry they reside in.
For those who are unsure, SWOT stands for Strengths, Weaknesses, Opportunities and Threats, and these help organisations to understand their business’ greatest assets, as well as the departments that they need to focus on in order to rise above competitors.
With the ability to compare parcel delivery across the web, the delivery industry is highly competitive, so a SWOT analysis will allow your company to stand out among the rest.
Here, we show how you can structure your SWOT analysis, and why every component is important.
Strengths – Loyalty
I’m sure we can all agree that when needing to use a courier for parcel delivery, we tend to stick with the same one every time as long as we’re satisfied with the services that they offer.
For the parcel delivery industry in particular, customer loyalty is essential to ensure that financial goals are met.
Why? People don’t require parcel delivery every day, so when the time does come to ship items across the globe, you’ll want to ensure that they continue to use your services.
Sticking with the same courier can provide customers with a feeling of reassurance, so this will allow you to retain your customers and gradually build your client base over time.
Weaknesses – Lack Of Technological Development
A common weakness for parcel delivery companies is the lack of technology within their services.
As the digitalisation of services becomes more prominent, you’ll want to ensure that you can keep up with the transformations, as chances are your competitors are embracing these technological developments in order to streamline services.
Many couriers have now turned to smartphone apps, giving their customers live updates about the stages of their parcel delivery and where it currently is in the process.
As a customer, being unaware of where your parcel is can be unsettling, so simple technological additions like this can really set you apart from competitors, making this an important component to measure in your SWOT analysis.
Opportunities – Innovations
After identifying your company’s weaknesses, you can then adapt that in order to create an opportunity for your business to evolve.
Therefore, a vital factor to integrate into your opportunities component would be innovations, as these are what customers want when searching for a reputable courier.
You need to have the ability to invent new features to add to your service in order to propel your business to new heights, allowing you to overtake your opponents in the industry.
Threats – Politics/Brexit
As a business, you have unlimited control over internal factors, but external ones? Not so much. As a parcel delivery company, there are several threats that could put you in danger, but one of the largest in political unrest.
For example, the recent Brexit movement could have a real impact on couriers, especially those operating on an international scale.
Shipping goods to the EU now is manageable for many couriers operating within the UK, but when negotiations finally come to a close, shipping to European countries could suddenly become much more expensive for British couriers.
As a result, this threat is definitely something to keep a close eye on if you deliver to European countries on a regular basis.
When beginning a business, a SWOT analysis is fundamental, and certainly shouldn’t be bypassed no matter what.
By identifying these four components, and the impact that they’ll have on your company, you can improve your services to ensure that you meet all of your business objectives, which is essential for any business.