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Royal Mail Group plc SWOT & PESTLE Analysis

ID : 521008353| Sep 2021| 18 pages

COMPANY PROFILE -Royal Mail Group plc

Business Sector :Logistics, Postal and Delivery Services

Operating Geography :United Kingdom, Europe, Global

About Royal Mail Group plc :

Royal Mail Group plc is a multinational company providing postal and courier services headquartered in London, United Kingdom. The company was founded by King Henry VIII in 1516, and was considered to be a part of the British governmental framework. The Royal Mail Group has two important segments namely- the Royal Mail & Parcelforce Worldwide and the General Logistics Systems (GLS). Apart from these, the company owns a few other subsidiaries like eCourier, StoreFeeder etc. The company has a 500 year long history during which it was initially fully owned by the British government. They established Britain’s iconic red pillar boxes all across the country since 1852 to enable people to drop their letters and parcels with ease. The company endured several statutory changes in its structure and working through the years and was finally privatized in 2013. Royal Mail “collects, sorts and delivers letters and parcels”. The company is UK’s only designated Universal Service Provider, its most distinctive feature is its policy of “one-price-goes-anywhere”. The company has received several awards like ‘Mental Health Initiative of the Year’ award at the Workplace Savings and Benefits Awards in 2018, it was listed in the ‘Times Top 50 Employer for Women’ list for the 6th consecutive year in 2019 for its gender-neutral work environment. Royal Mail & Parcel Force as of 2021 have a total strength of 137300 employees; 50800 vehicles, 37 mail centres and a local collection network of 11100. The General Logistics Systems (GLS) collects, sorts and delivers parcels across Europe, US and Canada. It was founded in 1999 and headquartered in Amsterdam, Netherlands. As of 2021 GLS has a total of 21,300 employees, 250,000+ clients and operates across 40 countries.
Royal Mail Group’s vision is to create a more balanced and diversified parcels led, international business with the help of its guiding values which places an emphasis on customers and aims to provide reliable and worthy services. Its mission is to successfully connect customers, companies and countries.

Royal Mail Group plc Revenue :


£ 10,840 million – FY ending 29th March 2020 (y-o-y growth 2.45%)
£ 10,581 million – FY ending 31st March 2019

Competitive Analysis of Royal Mail Group plc

SWOT
PESTLE

The SWOT analysis for Royal Mail Group plc is presented below in a matrix followed by detailed analysis

StrengthsWeaknesses
1. Largest and most accessible letters and parcels network
2. Strong balance sheet ensuring confidence in investors
3. Established technology infrastructure in all businesses
4. Leading brand position in majority of Europe
1. Rate of letter volume declines increasing
2. Decline in B2B activity which has minimal failure rate
OpportunitiesThreats
1. Cross-border proposition to enhance geographical expansion
2. Increased online shopping creating demand for express delivery
3. High growth in B2C delivery activities
1. High network volatility due to Covid-19 pandemic
2. Fall in direct mail advertising’s share to give lower letter volumes
3. High exposure to commodity price risks
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Royal Mail Group plc

Strength

1. Largest and most accessible letters and parcels network: Royal Mail’s letter and parcel network combined, offers leading service to the UK’s Universal Service. The company’s customer service assets involve 1,200 customer service points, 115,000 post boxes and 11,600 post office branches across the UK, making it the most accessible delivery operator in the country as of 2020. GLS Group, which is a ground-based parcel service, works in 36 countries in Europe along with some operations in the US and Canada, making it Europe’s largest deferred parcel networks. The company’s relationships and partnerships with other networks increases its range and presence manifold.

The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

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References used in Royal Mail Group plc SWOT & PESTLE Analysis Report

1. ROYAL MAIL plc RESULTS FOR THE HALF YEAR ENDED 27 SEPTEMBER 2020 - https://www.sharesmagazine.co.uk/news/market/LSE20201119070007_3785347/Half-year-Report
2. Full Year Results 2020-21 - https://www.royalmailgroup.com/en/investors/financial-results-presentations/
3. Policy, Governance & Finance Committee Meeting of Witney Town Council - https://democracy.witney-tc.gov.uk/documents/g1299/Public%20reports%20pack%2022nd-Mar-2021%2018.00%20Policy%20Governance%20Finance.pdf?T=10
4. Dynamics of COVID-19 transmission including indirect transmission mechanisms: a mathematical analysis - https://www.researchgate.net/publication/346366810_Dynamics_of_COVID-19_transmission_including_indirect_transmission_mechanisms_a_mathematical_analysis
5. Deposit and security agreement (pot 2000-4-7) - https://find-and-update.company-information.service.gov.uk/company/04138203/charges/_qFBLZjYh7jHMKfStid0eLEYm_4
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Royal Mail Group plc SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/royal-mail-group-plc/ [Accessed 25 Sep, 2021].

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Royal Mail Group plc SWOT and PESTLE Analysis has been conducted by Divyansh Kharadkar and reviewed by senior analysts from Barakaat Consulting.

Copyright of Royal Mail Group plc SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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