"We believe the current regulatory
framework does not fully address the problem posed by unfettered direct
delivery competition," Royal
Mail said.
The shares in Royal Mail closed down to 8.3% after the
organization has warned of rivals, including amazon, which is taking in all
with the parcel delivery business.
Through the rise of delivery company Whistl could wipe them
of 200pounds off sales. A pose of threat is also the competition with its
government-mandated Universal Service, with their guarantees to deliver to all
UK addresses for a low price. Through these issues the Royal Mail reported that
there was a small fall in pre-tax profits. For example – dropped to 218punds
for six months until the 28th September. In the last year it dropped
to 233punds at the same time of the year.
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| Profit on 20.11.2014 till 10 |
Moya Greene, who is the boss of Royal Mail, reported that
there is an increased competition. That is threatening the company’s abilities,
to delivery all letter in all part of the UK.
The company has long called for the regulator, Ofcom to consider the
option of expanding the Universal Service Mandate, which also ensure that the
deliveries across the UK have one fixed price. Which includes forcing the
competition to deliver letters to all rural areas, which prices are also
affordable, which maybe will not give any profit.
Since the Company has been privatized in October 2013, it
has been under increased public security, which affects their abilities of
their services.
The royal mail named Whistle named them direct as a threat
to their future profits. As well has the Company stated that the increasing
parcel competition as amazon, which recently launched a lot of deliveries,
could dent the business by much as 2% in a short amount of time. The last 6
months has the Royal Mail´s United Kingdom parcel delivery suffered by a fall
of 1% of their revenues. However did the
company internationally increase their revenue up 7%, by having the overall
revenue to rise by just 5pounds?
As reported has the executive chief
Moya Greene said that if their is no action taken now, Royal Mail's ability to
fund the six day letter delivery service across the UK will come under possibly
unmanageable strain.
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The threat is now –
This Article, although that it is just a small analysis of
the problem that Royal mail is facing, has it shown the focus of marketing and
objectives of their company. As well is it scoping around the income, process
and output situation to increase their profit. These topics scope around this year’s
business management syllabus.
The Label that I would give this article is:
Strategy: The strategy of the Royal Mail would be to
increase their competition by offering a lower price delivery than normally.
