The aim of this report is to make an in-depth research on TNT Asia region. In first part, we will analysis the internal influences by Porter's Five Forces model. In second part, PESTEL model will apply for external influences. Lastly, SWOT analysis will be provided as a conclusion. Content Page
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TNT (Thomas Nationwide Transport) was founded by Ken Thomas in Australia in 1946. Today, TNT is a global company that possesses 26,000 road vehicles and 47 jet freighter aircraft operating in 200 countries around the world. TNT’s Asian Pacific revenue was €1656 Million in 2010.
To begin, it is important to note that TNT’s major competitors include FedEx, United Parcel Service (UPS), DHL, and national post carriers such as US Postal Service and Royal Mail. They are well implanted and strong, they have strong marketing management to stay competitive. Thus, TNT needs to have high-level skills to cover a wide range of functions, including distribution, sales and marketing, finance, customer services and human resources. This will result in the use of highly trained staff, and technologies that provide a better experience for customers.
As a solution, TNT segmented its customers according to their respective requirements. Depending on the segment, TNT adapts its service to meet the consumer’s demands. For example, TNT peruses sophisticated technology, enabling customers to check exactly the location of their deliveries at any time. Additionally, TNT regularly monitors customer satisfaction through the use of Customer Loyalty Measurement (regular contact and structured surveys).
Barriers to enter this market are high with many competitors well established in this industry. The intensity of rivalry is high, and as the demand is slowing, the threat of new entrants is very low therefore it makes no sense for a new company to try to enter this market.
TNT needs suppliers who can provide them good quality packaging material and low in cost. If for example a supplier provides a poor service this could increase the delivery time or lower the quality of the product. An increase of the raw material prices will affect the marketing strategy of TNT and may even force them to increase their prices. Close relationships with the supplier would also provide better understanding between both parties. TNT’s main objective is to provide delivery services. This means that they will be directly affected by the constantly changing oil prices. 2.5Substitutes
TNT is operating in a very competitive market therefore there are many available substitutes. To avoid getting substituted, TNT should improve its customer satisfaction or have a differential advantage. TNT is using the concept of “SMART” objectives to efficiently deliver goods and documents on time satisfying customers. 2.6Political
For every country the taxation laws is different, therefore this would affect the gross profit and the risk for a foreign company to invest in the country. In Singapore, that is an exemption on exporting goods to other countries. This will indirectly affect the trade regulation. (Asia Pacific Indirect Tax Country Guide).
TNT has decided to expand into emerging markets despite the downturn in the economy; this could be to their benefit with a first mover advantage and a first of a kind road network that links Asia.
However, ever rising fuel prices, slowing Western economies, productivity issues and rising environmental costs, congestions and pressure are just some of the challenges every...