Case Analysis Of Canada Post

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EXECUTIVE SUMMARY
Canada Post is one of the largest Crown Corporations. In this report, we have to determine the organization structure and objectives of the Canada Post followed by the audience and market segment being targeted by the organization along with identifying the key success factors and the type of dealings the organization has with the government. With the worldwide growth of Ecommerce Sales, the demand for residential delivery is also increasing thus, Canada Post is operating as primary postal operator all over Canada headquarter in Ontario offering a full range of delivery and fulfillment services to customers. This paper will emphasis on the current environment and capabilities of Canada Post necessary to evaluate its position …show more content…

1.Bargaining power of Suppliers: LOW
Suppliers must maintain good relations with the companies in the industry. This is low because there are multiyear service contracts and the delivery industry uses items such as vehicles, employee benefits, general goods and airline contracts associated with overhead of running business, but all contracts are rewarded through an RFP process. There are enough players in the market and had high fixed cost and thus have substantial buying power.
2.Bargaining power of Buyers: MEDIUM
The industry has loyal customers with broad customer base that lowers the collective bargaining power of buyers to medium. The switching cost is very low and thus the customers can turn to a service provider who provide faster and innovative service but this is overcome by customized services and integrating into their customer supply chain.
3.Threat of New Entrants: LOW
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail …show more content…

Government/Union: Canada post has reached provisional short-term agreements with the Canadian Union of Postal Workers. The agreements turn-over work disruption bringing which is needed most for the employees and the postal system of the company.
Furthermore, there agreements are now of only two years rather than of four years. These agreements which are made, these are firstly confirmed by the members of the company.
Recently, government announced Canada post’s new vision in which services provided to the customers will be front and center moreover, to support this government defined some actions to implement this new vision.
The decisions which government is making will take the corporation to meet challenges and to grab the advantages of opportunities and meet the expectations of the customers to which the company serves.

General Analysis
PEST ANALYSIS
PEST (political, economic, socio-cultural and technological) is a framework of macro environment factors used in the environment scanning component to analyze the impact of these factors on an industry. Canada post is under pressure from all the above forces and ultimately these have direct influence on organization ability to achieve its goals and their strategy

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