Australia Post analysis

Australia Post analysis

Australia Post analysis

Industry, product segment and value chain:

Australia Post is a dominant player in the Australian Postal Services (APS) Industry. The industry is comprised of Mail and parcel delivery services, messenger services and mail box rental and post office facilities.

Mail and Parcel delivery value chain:
Postage stamps  mail collection  sorting  distribution

Australia post also provides agency services outside of the industry.

Industry life cycle
APS industry Life Cycle
The APS industry is at the maturity stage of its life cycle. This is demonstrated by the low average growth rate of industry revenue. Over the last 7years the industry revenue has increased by 13.2% (an average of 1.89% per annum)

Life cycle position for various segment
Mail
The mail segment of APS industry has reach decline stage of its life cycle. This is demonstrated by the steady decline in mail segment over the last 7 years, the mail segment revenue has an accumulate decrease of 20.75% (an average of 2.96% per annum)

Parcel
The Parcel segment of APS industry is at the growth stage of its life cycle. Over the last 7 years, the parcel segment has increased 47.17%, where the growth started to pick up in year 2008-09. Between 2008 to 2012, parcel segment revenue has increased by 27.87%, an average of 7% per annum. There have been new competitors joining the segment, as the growth has been strong. This is evidence of a high growth environment, wherein the segment is at the growth stage of its life cycle.

Factors influencing future growth
Economy
Signs of growth in finance and business services sector and from the wholesale and retail sectors will increase the demand for parcel delivery services, as these sectors requires delivery of original documents.
Technology
Advances in communication technologies, business is conducted over the internet, this will negatively affect the messenger and small document market. However this will be offset by...

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