Essay on Business-Level Strategy of Dropzone.Delivery

 It is important for Dropzone.Delivery to understand that they have to come up with a specific business-level strategy so that more planning can be developed accordingly. The companies tend to choose one business-level strategy to achieve their certain goals so that they can earn more revenue and profits. Such a policy also allows them to move forward in the right direction, where they get more worth in their industry. The business-level strategy is important to target the customer base and get their attention. It is basically associated with the product or service that which strategy will be used to sell products or services to customers. There are five major business-level strategies, which can be used by Dropzone.Delivery as per their overall objectives. These five strategies are cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated low-cost leadership or differentiation. Each of these strategies can be helpful for Dropzone.Delivery to get a particular competitive advantage [1]

7.1 Identifying the Business-Level Strategy

   It is a fact that there is intense competition in the logistics and transportation industry, so it is vital for Dropzone.Delivery to come up with a dedicated business-level strategy, which helps them to stand out by getting the attention of more and more customers. There is not much room to differentiate in this industry so considerable business-level strategy for Dropzone.Delivery is cost leadership. In cost leadership, the companies tend to lower their prices for products/services. They should introduce low prices for shipments to local as well as international destinations. It will increase their customer base, which would also allow them to get more space in the market. It is certainly hard to accomplish this strategy as there are many high-level competitors who can compete in this strategy, but this is the only way for Dropzone.Delivery to come up with an aggressive move to get a competitive advantage. The great benefit for the company is that when prices are lower, more customers are attracted, and with the increase in customer base; the market share and revenue are increased. Moreover, this strategy will make things difficult for new companies to start this business with much lower prices, which helps existing companies to share and enjoy the market share without any viable threat [2]

7.2 Competitive Risks associated with Cost Leadership Strategy

     It is important to realize that cost leadership strategy has few associated competitive risks and disadvantages as well, which must be kept in mind, while opting for this strategy. One of the major risks for this strategy is that the Dropzone.Delivery will have to lower its costs and they will have to cut various business expenses, which may harm them in the long term. For instance, the lower price of the products/services can also lower the profit margins, and a situation can come where profits are too low to manage financial aspects o the business. Moreover, when lower costs are associated to lower prices, then companies forget to go with new technologies and innovation, which is a great competitive risk as competitors may adopt new technology and innovation, which can put them ahead in the competition. Moreover, a lower price may reduce the quality of product/service, which means that customer feedback is not taken, and it is assumed that they are just happy with lower prices. Such risks must be kept in mind while coming up with this cost leadership strategy; otherwise, things can get difficult for the Dropzone.Delivery to handle their business strategy on long term basis [3] 

11. Analysis of Operational Plan of Business-Level Strategy of Dropzone.Delivery

     There are many aspects associated with the overall business strategy and one of them is the operational plan. There are various things, which are based on operational terms like what kind of operational matters will be carried out to handle certain areas of the business. It is important to analyze the operational plan so that a company can get a better idea of its overall business. There are various business operations, which should be analyzed before things are practically started so that any loophole or possible issues can be identified earlier. It helps in keeping things on the right track. For instance, the operational analysis makes a close look at resources, which are going to be used in the business process. So, analysis helps to know which resources are available and what resources will be attained from outside so that everything moves forward in the right direction [4]

11.1 Resources and Production of Business-Level Strategy of Dropzone.Delivery

      Dropzone.Delivery will require certain resources as well as production material to expand their business so that they can continue with their business process. These resources will be essential in so many ways, and operational process cannot be started without certain required resources. So, it is important to look at those resources in brief manner to understand the level of operational plan for Dropzone.Delivery.

11.1.1 Process and Capacity Planning of Business-Level Strategy of Dropzone.Delivery

      It is necessary for Dropzone.Delivery to realize the fact that they need certain processes as well as capacities to expand their business in the UK market, otherwise they cannot continue with their growth and development plan. In terms of processes, they will have to improve their capability to handle delivery and logistics services by having enough human resources. They will have to hire enough people to complete their processes in time from an initiated request of service from the customer until delivering it to its target place. Moreover, they have to increase their capacity for transportation. The timely and quick delivery of parcels and courier is the key value proposition for any logistics company, so they will have to manage enough transportation means in this regard. They can do it with two methods. First of all, they can buy their own vehicles and trucks for the delivery, but this method can be costly as they will have to bear expenses such as salaries of drivers, maintenance and fuel costs of vehicles. The other considerable option is to have a partnership with any third party transportation company, who will provide delivery and transportation services. This method is more feasible for them to improve their processes and capacity [5]

11.1.2 Location, Facilities and Equipment of Business-Level Strategy of Dropzone.Delivery

        The company will have to cover different locations with required facilities and equipment. The idea is to expand the business to more areas especially looking to expand to international destinations, but first, they will have to target considerable locations, where they can set up their offices, arrange facilities as well as required equipment. They will need human resources to work in those new facilities at different locations, and they will need office equipment, logistics equipment as well as relevant resources to get things done in the proper manner.

11.1.3 Material Sourcing and Supply Chain of Business-Level Strategy of Dropzone.Delivery

               The company will need to have material sourcing as well as a comprehensive supply chain so that the overall process is done efficiently. It is important to understand that all parts of the supply chain cannot be handled alone by the Dropzone.Delivery, so they will have to make partnerships with other companies for various processes of their supply chain. For instance, they will make partnerships with other freight partners, transportation companies to deliver their parcels and courier to the desired locations. They will have to make partnerships with airline companies so that they can carry goods from one country to the other in quick time for the timely delivery of goods to customers. The supply chain process starts when a parcel or courier is booked from one destination of the company, and it ends when the parcel reaches the required address or customer in the end [6]

11.1.4 Operations of Business-Level Strategy of Dropzone.Delivery

               Dropzone.Delivery will have to manage various other operations which are part of their operational plan. For instance, they will need to manage their inventory with a proper system, which is integrated and connected with all relevant facilities. They will have to make sure that all locations have a connected inventory system, where the list of customers with their desired locations is shared with all centers. Moreover, inventory should have a system to see the availability of transport and other location facilities before the order of the customer is submitted. On the other hand, they need to have warehouses of their own, or they need to hire warehouses, where goods are placed until they are dispatched for delivery. For instance, customers can ask to deliver valuable things such as their laptops, watches, gifts, computers or any such kind of products, so the company needs a proper warehouse to dispatch these things to required locations. Moreover, they will have to maintain their logistics effectively by having an integrated and connected network [7]

11.2 Application of Management Information Systems of Business-Level Strategy of Dropzone.Delivery

               Dropzone.Delivery should understand that it is essential for them to have a great management information system so that they can have uninterrupted as well as rapid transmission of information across its centers within the UK and outside the UK. A management information system is key for the company to keep its process in the right direction because technology will allow them to handle tasks efficiently and accordingly. The flow of information, as well as efficiency, is task performance is positively affected by a good ERP or CRM system. So, Dropzone.Delivery should analyze the systems used by its competitors such as DHL so that they can adopt a proper IT logistics system to get a competitive advantage. A good IT system will bring more quality and efficiency in their business processes, making their operational plan and effective one for long term success [8]

 References of Business-Level Strategy of Dropzone.Delivery