In our last article, we covered the extensive SWOT analysis of an Indian Logistics Service Provider – Xpressbees. In this article, we are going to break down the SWOT analysis of China Post – the leader of the postal services industry in China.
A wholly-owned state corporation formed in line with the People’s Republic of China’s Company Law. China Post Group Corporation Limited was placed 74th among Fortune 500 businesses and second among postal firms. In compliance with national rules, the Group operates in a variety of activities centred on universal services, parcel, express, and logistics business, banking business, and rural e-commerce.
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In this article, we will learn the SWOT analysis of China Post but before that let us know the company’s history, competitors, services and more.
About China Post
One of the top courier companies in China – China Post Group Corporation was formally reconstructed as China Post Group Corporation Limited in 1949 with the approval of the State Council, becoming a completely state-owned corporation incorporated in line with the People’s Republic of China’s Company Law.
The Party group, board of directors, and executives from the Group, but there is no board of shareholders. The Ministry of Finance, on behalf of the State Council, fulfils the contributor’s obligations by the applicable national laws and administrative rules.
The Group operates in postal businesses by-laws, fulfils universal postal service duties, provides special postal services as delegated by the government, and conducts competitive postal business commercial operations.
Domestic and international letter business, domestic and international express parcel business, distribution of newspapers, journals, and books, stamp issuance, postal remittance service, confidential correspondence communication, postal financial business, postal logistics, e-commerce, various postal agent services, and other businesses specified by the state are all included in the business scope.
|Founder||Government of China|
|No. of Employees||927,171|
|Annual Revenue||964.3 Billion Yuan (2019)|
|Net Income/ Profit||444.09 Crores USD (2020)|
Services by China Post
Following are the services provided by China Post:
- Letter post
- Parcel service
- Freight forwarding
- Third-party logistics
- Deposit account
Competitors of China Post
China Post competes with other companies such as:
- Emirates Post
- UK Mail Group
- La Poste
- Pos Malaysia
Now that we understand the company’s key business, let’s look after the SWOT Analysis of China Post.
SWOT Analysis of China Post
A SWOT Analysis of China Post is a 2×2 matrix that lays out the company’s strengths, weaknesses, opportunities and threats. It is an effective tool that helps in determining the plans and actions to be committed by the company shortly.
We shall do a thorough SWOT Analysis of China Post to gain insights into the internal and external factors that are favourable and unfavourable for a company.
To better understand the SWOT analysis of China Post, refer to the infographic below:
So let us first start by looking at the strengths of China Post from the SWOT analysis of China Post.
Strengths of China Post
Strengths are the factors that help the company to gain an advantage over its competitors thus increasing the market share.
- Cost-Efficient: China Post Mail is often regarded as the most cost-effective and efficient mode of transport by mailing both domestically and worldwide and also offering air and surface shipping services.
- Technology: China Post Technology pooled its three R&D advantages and scientific research people to independently produce “China Post One,” a new product that dramatically enhanced equipment performance metrics.
- Fast Delivery: Because China Post and the USPS have an agreement, receiving a parcel from China normally takes nine to twelve days. For this quick service, the seller must select the ePacket delivery option.
- Award & Recognition: For its “intelligent, efficient, and inventive” research and development strategy, Xinsource received the “China Special Purpose Vehicle Excellence Enterprise Award.”
- E-commerce & Internet: In late April and early May, an e-commerce shopping festival boosted online sales and, as a result, shipping demands. Furthermore, China Post branches have begun using internet platforms to link customers who are unable to visit markets with fresh fruit. Farmers were able to continue operating and produce prices stayed consistent thanks to the effort, which was well-received by residents and featured live streams to sell the items. Within the first three days of the initiative, the Jinhua Post Branch reported receiving approximately 2,000 orders.
- Reliable: Because of its reputation for delivery and the enormous network of postal offices globally that support EMS goods, China Post EMS is widely regarded as dependable.
- Backed By Government: China Post is a state-owned enterprise operating the official postal service of China. The Corporation officially shares its office with the sub-ministry-level government agency State Post Bureau which regulates the national postal industry theoretically including the corporation.
Weaknesses of China Post
The areas in which the company needs to improve themselves to exist in the market and outplay its competitors.
- Expensive EMS: Without a doubt, Post Small Parcel is the lowest, but China Post’s EMS (Express Mail Service) subsidiary is the most expensive.
- Current Delivery Scenario: Because of the coronavirus, China Post and EMS deliveries were being delayed. The travel time to the destination country is generally between 20 and 60 days.
- Update Status: If you use the regular post method, you may track and trace your package online, but the information will not be updated on time.
- Formalities Involved: Customers manage their documentation and customs clearance (unlike courier firms), which may appear unrealistic to many newcomers when the products arrive at the destination airport.
- Delay: The cheapest approach is to convey a shipment only by land and water, but it is also the slowest (it can take months).
Opportunities for China Post
The company needs to grab the available opportunities within the time frame to make the most use of them, making themselves hold a stronger position in the market.
- Expansion: The purchase of a 24.99 percent share in China Post Life Insurance Co., Ltd. (CPL) by China Post Life Insurance Co., Ltd. would increase the group’s exposure to development potential in China’s mass-market life insurance segment.
- Growth: China’s logistics industry has benefited from the “Belt and Road” programme, which has provided new opportunities for China Post, SF, and other logistics companies to grow their global operations.
- Social Media: There has been an increase in internet users worldwide. So, China Post needs to make a presence on the internet using various digital marketing skills to make a reach the new set audience by promoting its services. If you also want to upskill by learning digital marketing skills then do check out IIDE 13+ short term courses in digital marketing to know more.
- Development in a Foreign Market: There has been a rise in the trade of manufactured goods around the globe resulting in increased transportation of goods which can also increase the business of China Post.
- Quality: The degree of service quality and technology is inadequate, although this may be improved with investment.
Threats to China Post
Threats are the challenges for the company which can stop the company from meeting its objectives in the long run.
- Cost: In terms of logistics costs, developed nations’ logistics expenses account for just 10% -15 % of the final cost of finished products, but China’s logistics costs account for up to 30% – 40%of production costs, which has harmed China’s logistics industry’s competitiveness.
- Other Postal Services: According to the United Nations, the World Economic Forum, and other organizations, China Post rated last in 2015 in terms of complete post office postal distribution profile, postman labour efficiency, public appraisal, and other parameters, whereas the United States Postal Service scored first.
- Economical Instability: Lockdowns in the different countries decrease the scope and expansion of the market.
- Fuel Prices: The rise in fuel prices worldwide has increased the cost of transportation of packages which is their core business which might unstable the company in the long run. So the company needs to find an alternative to deal with it.
- Technological Upgradation: The constant technological up-gradation is forcing companies to regularly upskill their employees and the inability to keep themselves updated are resulting in losses.
This ends our complete SWOT analysis of China Post. Let us conclude our learning below.
Based on the information shown above, we can conclude that China Post is rapidly expanding into new nations. This company makes every effort to please its customers. It can utilise marketing to raise awareness of its services among its customers.
According to the State Post Bureau, operators have responded to increased demand for services by recruiting extra employees, improving safety measures, acquiring additional trucks, and creating new operations locations. They’ve also strengthened their engagement with e-commerce platforms to better estimate peak shipping volume and distribute the load across the network. The adoption of new technologies, such as big data, cognitive computing, and automation, has also aided operators in dealing with increased traffic.
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