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Extensive SWOT Analysis of Xpressbees – An Indian Logistics Service Provider

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Last we looked into the SWOT Analysis of Blue Dart, this time let us learn about the SWOT analysis of Xpressbees – an Indian logistics service provider. 

Xpressbees is an Indian logistical company providing end-to-end logistics solutions to its clients. It is one of the fastest-growing express logistics providing services in India. The company was established in 2015 and now has more than 35,000+ on-ground delivery partners. It has excellent supply chain management all over the world.

Xpressbees has been successful in achieving this position in just 5 years due to its excellent marketing strategy and efforts. It has won over consumers and its partners’ trust. With everything and everyone shifting online during this digital age and pandemic, digital marketing has gained prominence now more than ever. 

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Before we begin with the SWOT analysis of Xpressbees, here’s a deep dive into the company’s history, founding, products, financial status, competitors.

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About Xpressbees

SWOT Analysis of Xpressbees - Xpressbees Delivering Happiness

(Xpressbees Delivering Happiness, Source: IndianStartupNews)

Xpressbees is an Indian company specializing in e-commerce logistics services. It was founded in 2015 by Amitava Saha and Supam Maheshwari. It is a subsidiary of the parent organization named Busybees Logistics Solutions Private Limited. The company has its headquarters in Pune, Maharashtra.

The company has a strong network of providing logistics services in 2500+ cities across the globe with 52+ airports connected with their network and 3000+ offices and service centres. Xpressbees handles 3 million+ shipments daily.

 

Quick Stats on Xpressbees
Founder Amitava Saha
Year Founded 2015
Origin Pune, Maharashtra
No. of Employees 2,515
Company Type Private
Market Cap $ 276.5 Million
Annual Revenue $ 5.4 Billion (2019)
Net Income/ Profit $ 1.2 Billion (2019)

 

Products & Servies by Xpressbees

SWOT Analysis of Xpressbees - Image of Xpressbees Delivery Boy

                                    (Source: Xpressbees)

  • B2C Express
  • B2B Express
  • Cross-border Logistics
  • 3PL (Third Party Logistics)
  • Shipment Tracking
  • Same Day Delivery for selected products


Competitors of Xpressbees

  • Delhivery
  • Ecom Express
  • Future Supply Chain
  • Ekart Logistics
  • DTDC
  • DHL
  • Blue Dart

After understanding the core of the company, let us now proceed to the SWOT analysis of Xpressbees. 


SWOT Analysis of Xpressbees

A SWOT Analysis is a summary of a company’s strengths, weaknesses, opportunities and threats. This method allows an organisation to get a clear picture of their current market position and compare its performance to its competitors. It serves as a base for planning marketing strategies to improve and meet organizational goals, both short term and long term.

To better understand the SWOT analysis of Xpressbees, refer to the infographic below:

SWOT Analysis of Xpressbees - SWOT Infographics of Xpressbees

So let us first start by looking at the strengths of Xpressbees from the SWOT analysis of Xpressbees.

Strengths of Xpressbees

Strengths refer to the characteristics and capabilities that differentiate an organization from others in its target market and help maximize market share, customer base and eventually the profits of the organization. Following are the strengths of Xpressbees:

  • Huge Investments & Business From Foreign Companies: Alibaba Group, a Chinese E-commerce giant has invested more than INR 2.3 Billion in Xpressbees. This means that Xpressbees works for many other companies funded by the Alibaba Group.
  • More Capital Efficiency: The company has 3.5-4X more capital efficiency than its competitors.
  • Huge Market Share: In the pin codes that they currently cater to, they hold a bigger load than their competitors.
  • OPEX Variable Cost Model: Xpressbees uses Operating Expenses (OPEX) driven variable cost model instead of a Capital Expenditure (CAPEX) driven fixed cost model.
  • Try & Buy Service: Xpressbees offers their potential clients the try & buy service, this allows them to build credibility with them which in turn leads to long-lasting partnerships. 
  • 24×7 Availability: Xpressbees allows their customers to track orders at any given point of time and day. Not just this they offer 24×7 customer support to report any issues.
  • Diverse Portfolio: Xpressbees has a diverse portfolio containing clients from industries like e-commerce, pharma and healthcare, banking and finance, heavy machinery and manufacturing, food and groceries, automotive and auto parts and consumer goods.
  • Wide Network:  Xpressbees has its services all over the world in more than 2500+ cities, connected with 52+ airports and over 100 hubs.


Weaknesses of Xpressbees

Weaknesses refer to the characteristics of a brand or an organization that needs to be improved. The weaknesses of Xpressbees are stated as below:

  • Labour-Intensive Industry: The logistics industry is dependent on people and is, therefore, a labour-intensive industry. This dependence on people makes it exhausting for the company to manage regular training of delivery partners and performance-based appraisals. 
  • Less Visibility in the Global Market: Xpressbees is lesser-known as compared to the global players. Xpressbees need to work on their brand visibility to compete against other logistics giants in the international markets.
  • Lack of Training: Lack of training to delivery partners is a critical issue as they are the ones who meet the customers in person and hence are the face of the company.
  • Huge Operational Costs: Operating a business in the logistics industry requires big amounts of operational costs from time to time to keep the business process going.
  • Changes in Technology: It requires frequent changes in technology as new and better technology comes up now and then. It gets both difficult to train people and an expensive affair to bring in changes in the technology used frequently.


Opportunities for Xpressbees

Opportunities refer to the areas where the organization can use its full potential to increase sales and maximize profits shortly.

  • Investment in Technology: Investing in good and modern technology provides many opportunities for a brand. Machine learning and data science are booming, brands can utilize them to back their product development and enhancement process. Xpressbees can develop software that enables faster goods clearance saving time.
  • Acquisition Synergies: Acquisitions are a good way of expanding an ongoing business with the help of another one by utilizing its resources. 
  • Consolidate Position in the Market: The company should look forward to consolidating its position in warehousing and cross-border logistics by providing end-to-end cross-border supply chain solutions.
  • New Fulfilment Centres: The company plans to open fulfilment centres across China, and then to South East Asia and the Middle East. 
  • Entering Rural Market: The majority of India’s population still lives in the rural parts making it a huge and untapped market as there are not many international logistic players that have entered it. 
  • Increase in Cross-border Trade: The rise in the global manufacturing of goods will lead to a rise in the transportation of goods. This will provide more and more opportunities to the logistics industry and the companies dealing in that industry.


Threats to Xpressbees

Threats refer to the external factors outside of an organization that affects the performance of the brand or the organization. Possible threats to Xpressbees are as follows:

  • Political Unrest: Political unrest like riots and protests lead to injuries to delivery partners and cause damage to the goods that are to be delivered.
  • International Competition: Xpressbees faces intense competition from big international players like DTDC, DHL, Future Supply Chain and many more.
  • Change in Consumer Trends: There is a constant change in the taste and preferences of consumer goods. Some goods go out of trends real fast and dealing with them would mean incurring losses.
  • Increase in Fuel Rates: Increasing fuel rates globally lead to a rise in operational costs.
  • Country-specific Regulations: Each country has a different set of rules and regulations regarding the transportation of goods. Some goods have very strict restrictions in some countries making it difficult to transport them. 
  • Currency Fluctuations: A company dealing in multiple countries has to constantly deal with currency conversations. Constant fluctuations in these make it difficult for calculations.


This ends our extensive SWOT analysis of Xpressbees. Let us conclude our learning below.

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To Conclude

Xpressbees is a globally growing logistics company with a great distribution of supply chain networks all over the world. The company is equipped with advanced technology in its daily operations. It needs to grow and maintain its brand visibility and focus on expanding to the rural markets to become a logistics leader in India.

Xpressbees has been successful in making its services available to countries across borders. This is due to its excellent operational strategies and marketing efforts. Marketing has constantly been evolving with time and in today’s world, digital marketing is the new trend that allows companies to keep up with their consumers. 

If digital marketing interests you, you can enrol in IIDE’s 3 Month Advanced Online Digital Marketing Course which will help you upskill yourself in all the aspects of digital marketing.

We hope this blog on the SWOT analysis of Xpressbees has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

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Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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