TNT is one of the largest delivery companies in the world and their service network covered most of the countries in the world. It obviously enjoys the advantages of ‘Economy of Scale’.
To reinforce the competitiveness of the company, TNT provides on-job training to the staff to enhance the staff’s qualities. By mean of staff training, the efficiency and effectiveness would enhance and the staff who understanding what the customers desire for, hence to build a stronger allegiance and loyalty TNT concerned about environmental protection and reduce the carbon emission by means of optimizing the load efficiency of vehicles and planning the shortest possible routes and concentrating operations. By these means, her positive image is reinforced and the operation costs are reduced. Moreover, Buyer bargaining power is high because there are several strong express services company in Hong Kong providing similar international delivery services. However, compare with their competitor.
Their market share in Hong Kong is relatively weaker. This is because TNT put the lesser resources on advertising in the local market and not many of the buyers notice the existence or the services which covers by TNT. Also, TNT has only 47 aircrafts, 7 operation sites and 2 depots which limited the service area in the Hong Kong market. In this market, threat of new entrants is low because of tremendous investment required in the industry.Therefore it is not easy to entry this industry. In cope with this enormous volume expansion, the Airport Authority Hong Kong has drawn up a master plan which released in mid 2011, introducing a 3-runway system in the HKIA to meet the foreseeing demand.
With the expansion of the HKIA, it is definitely an opportunity for TNT to increase the freight frequency and the number of the aircrafts linking between Hong Kong and other cities, allowing the expanding of the business in the local market. FedEx UPS, DHL are currently not strong in China delivery market, with the signing of the CEPA agreements and the increasing of business activities between Hong Kong and China enterprises, TNT may take this opportunity to increase the market share in the China market.
Courtney from Study Moose
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