Strengths and weakness of the home delivery industry
Home delivery industry aims at increasing the revenue generated from their sales and reducing the expenses. Home delivery organizations’ key objective is to reduce the warehouse costs, which are incurred during delivery of goods to the stores from the manufacturers. Their systems are designed to operate 7 days a week in the entire year hence providing continuous services to their clients. The firm implements strategies aimed at increasing their orders and revenue every month. These strategies include favorable prices and competent employees who provide excellent services and satisfaction to customers hence meeting the needs.
Expansion of their business to other regions increases its market share and sales hence strength in meeting their needs. However, home delivery industry faces many weaknesses in meeting their needs that include high cost of building distribution centers and monitoring their design and software. The operations of the firm had a long duration before breakeven point illustrating that there are low returns. The industry did not meet its forecast because their average order size was not appropriate.
Competitive advantages of home delivery and problems it may face
Home delivery industry may obtain a competitive advantage in the long run in several areas such as profitability, cost structure, labor and markets. The industry has many alternatives of covering their infrastructure costs such as groceries and general merchandise. The firm intends to sell their products in different consumer categories, which may reduce their comparability of product performance. Their distribution systems may fail to accommodate many clients who will be gained from the expansion of their markets and other revenue generation projects. The emerging issues in e-commerce may lead to the failure of the firm because their competitors aim at overcoming them.
Recommendations to the home delivery case study
The industry should introduce mobile phone transactions to improve the security of their operations among their employees. It should ensure that goods ordered are delivered to customers within one day in order to create convenience and effectiveness. The industry should form mergers and affiliate companies during the launch of new hubs in order to share the costs and acquire a higher market share. The firms should synchronize their website and search engines to provide customers with various alternatives for them to make a choice. The firms should also improve their order size in order to meet their sales forecast and profitability. The industry should improve their distribution system through incorporation of diversified products in the industry.