When I was a child, my grandparents would tell me stories about how milk and ice would be delivered periodically to their homes. This delivery service was lucrative because refrigerators simply cannot keep dairy products fresh for an extended period of time. In the 70s, 80s and 90s, this type of delivery service went the way of the dodo bird, practically perished. No pun intended. However, thanks to Amazon, Uber, and our “need it now” cultural trends, our business plan writers have found that delivery services are a booming business in large and small communities alike. To support this thought, here are some prime examples and ramifications based on research from our business plan writers.
FedEx will Deliver Seven Days a Week
Recently, an article was published stating that FedEx will deliver packages seven days a week. The strategic move offers a multitude of benefits for FedEx. First, FedEx should gain more market share from Amazon due to their extended delivery opportunities. In addition, other retailers, especially online retailers, will utilize this service because customers will be able to get the goods faster. A second benefit would be that of the delivery services will need to employ similar strategies in order to regain market share, which will inevitably be lost to FedEx. Namely, UPS will now have to follow suit. Unfortunately for UPS, following suit will also require hiring additional people, training individuals, and then informing their customers and potential customers of extended delivery hours. All of these actions will inevitably take time and money.
Online Retailers Want Same Day Delivery
A second argument to support the thought that delivery businesses are expanding is another recent article published about online retailers and their craving for same-day delivery. Our business plan writers have noted that customers would prefer to have products delivered to their homes as compared to running to the store and retrieving items. However, most customers need to weigh their need for the product with time of delivery. For example, if the customer is out of milk, the net enable wait two days for delivery. However, if retailers are able to get to the point where products are delivered same-day, this will inevitably drive more consumers to utilize online retail stores as compared to traditional brick-and-mortar establishments.
Published Books by Paul Borosky, Owner, MBA., Doctoral Candidate
In summary, delivery businesses are on the rise. This is evident from FedEx expanding their services to demands from online retailers for same-day delivery. As demand and established competitors make strategic changes to accommodate these needs, opportunities in the marketplace will be presented to new entrants such a small business owners. With this said, small businesses entering the delivery market should always have a professional business plan done with a supporting strategic plan. This may increase the likelihood for success when entering this industry or any other for that matter.
Author: Paul Borosky, Doctoral Candidate, MBA., Author