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Example research essay topic: Strategic Alliances E Commerce - 1,170 words

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... er the quality of service provided by these franchises. This may lead to possible bottlenecks and decrease service quality. Letter-mail volumes, which still provide the bulk of Canada Posts business, face competition from courier services and electronic alternatives such as fax, electronic mail and electronic funds transfer.

The dominant users of Canada Post's letter-mail services are banks, utilities, credit card companies and other businesses. These companies are likely to adapt to more innovative electronic alternatives. This situation poses an acute threat to Canada Post Corporation unless they are able to innovate. In the distribution market, multinational courier companies, such as United Parcel Service (UPS) and Federal Express, have used their massive United States networks and advanced technology to expand into Canada and provide stiff competition to Canada Post. One of the key strengths that Canadian Post Corporation has is that they are a monopoly in the Canadian postal service market. For over a century Canada Post has successfully met the needs Canadian citizens by the delivery of letters and parcels.

Time has allowed them to refine and sophisticate the mail processing and distribution system. Today, they are one the highest rated postal services in the world. Canada Post Corporation also conducts International Consulting operations and the system they have in place acts as a model for the postal service needs of other countries. About ten years ago CPC made a strategic decision to purchase a large part of Purolator Courier. This allowed them to diversify their business into an area that was relatively familiar to them. This strategic move in todays world of e-commerce and parcel delivery, will allow them to capitalize on the new evolving retail markets online.

Canada Post has recognized the need to improve customer relations and modernize company image. They have extended the companys philosophy to be In Business to Serve. Recognizing the need for change is hard for companies to do, but it will be worthwhile in the long run. Over the years, Canada Post Corporation has remained constant in the area of revenues. Last year alone they increased their net profit by $ 14 million resulting in an annual net income of $ 50 million dollars. Many of Canada Posts weaknesses are found directly within the organization itself.

With over 46, 000 employees belonging to the CUPW, the concern of the union places great stress on the corporation. There is a constant battle between the corporations need for labour stability and operating flexibility as well as the unions need to improve their members working conditions and terms. Actions, such as a strike, can be detrimental to the survival of Canada Post in this highly competitive industry as evidenced by a $ 100 million loss of revenues in 1998 directly related to a union strike. In addition, by having a unionized corporation, Canada Post is limited in its hiring policy.

The mail distribution industry is constantly changing with innovation and the increase in technology. Canada Post is slow to adapt to this fast pace of a changing environment. They have the capital and resources to be able to compete in this environment, but always seem to be one step behind everyone else in the market. Canada Post realizes the importance of customer acceptance, but they havent been able to making customers aware of their superior service. Throughout the years, Canada Post has made significant changes and improvements to their service, but has done little to make the consumer aware of them. Marketing is a major weakness of Canada Post.

Most long-term alternatives are derived from both the opportunities and weaknesses of the corporation. Canada Post Corporation has many alternatives that revolve around e-commerce. With a majority control of Purolator and a basic monopoly in the letter delivery business they should focus on capturing a larger share of the small parcel delivery market. With long-term marketing plans pushing the use of Purolator and Canada Post the two could increase substantially their hold on this market. Canada Post Corporation should look to create strategic alliances within the e-commerce world and market themselves as the delivery vehicle within Canada for the internet.

An additional focus of the CPC could be that of un-addressed mail. The junk mail market is increasing rapidly and should also be a focus of CPC. Secure document transfer market should be a major focus of CPC. This is a virtually untapped market and can be easily marketed across borders.

CPC needs to perfect this technology and market itself as a world leader in this field. Create strategic business units to flatten CPC business structure and minimize the detrimental effects of unions. This will also facilitate Cpc's ability to react quickly and be more innovative. CPC will benefit by doing the following: Management should remain liquid and constantly readjust and evaluate the direction of their company and the industry. With CPC as the parent corporation, strategic business units should be created to flatten the business structure. Other SBUs could be added as new opportunities arise or create first mover advantage in an emerging market.

Allow each SBU to be independent for development, maintenance but have all SBUs responsible to CPC and accountable. Offer comparable wages to allow for SBUs non-union labor personal to be as good, if not better than the competitions. Expand the e-commerce capability buy offering existing products as well as new innovative services and products. Examples: Package pickup (utilizing Purolator more blatantly), garnering strategic alliances with additional companies to secure more small package deliveries.

Incorporate a secure email delivery system appealing to differing degrees of security required. The cost to the consumer will be a fraction of current costs and can be accomplished with less hassle (bank and bill statements, documents requiring signatures, etc). The costs for CPC in utilizing this strategy will be a significant cost savings compared to that of regular letter delivery. CPC should then see a steeper decline in the use of regular letter deliver.

CPC will then be able to reduce costs by using less unionized labour (costs) while making a larger profit margin on the secured delivery. The Canada Post Corporation has recognized the need and importance of being innovative and responding to change. Today they are trying to keep up with the pace of technology as well as trying to improve their public image. We have identified that a major obstacle that presently faces them lies within union and management. We found that the union is holding them back with respect to the rate of change and as a result we recommended that they should limit the unions influence by diversifying into separate SBUs. In order to be successful tomorrow, we have also recommended that Canada Post expand operations to include e-commerce and strategic alliances as well as secured email delivery.

The Canada Post that you know today will not be the same tomorrow, if they can put words into action we wouldnt be surprised to see them shake off the reputation and come out a solid leader in the years to come. Bibliography:


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Research essay sample on Strategic Alliances E Commerce

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