Thursday, October 8, 2009

Failing to Act is Acting to fail

It is interesting and at the same time a pity to read how a company can drive away huge clients and lose money without taking immediate action to tap the source of the problem. I'm speaking about Royal Mail and the strikes which have been on and off since last July. This left a sizable dent on the image of Royal Mail, a reliable postal partner, as well as its bottom line.

Two huge companies, and have take action to avoid being caught in the issue both directly and indirectly. Whereas Amazon has decided to act directly (given that it contract the postal provider itself) ebay is using lobbying to try to diminish the impact that such strikes are having on sellers depending on Royal Mail.

It was announced that Amazon is searching an alternative mail partner that will ensure as minimal disruption as possible to its services in the run up to the Christmas period, which is seen as vital after the recession. This could lead to Royal Mail losing a contract of a reported value of about £25 million (Amazon is the second largest client of Royal Mail). Apart from this, one needs to consider the extensive damage that these strikes are having on the brand of Royal Mail. While companies are starting to look at alternatives (which will give a boost to competition), many customers are trying to avoid Royal Mail as it is slow and inefficient.

In my opinion, although the company should not give in to any request made by Unions (who sometimes use strike measures as a threatening tool), it must sit around a table with the representative of its employees and Unions and try to find a solutions as quickly as possible. The sooner this is done the less the harm Royal Mail will suffer...Should it decide to wait and see it might face a higher damage then if it gave in to union request.

P.S. This will be my last article for the next two weeks as I won't be having access to Internet...will see you soon.

1 comment:

  1. Letters being lost in the post... letters taking 15 days to reach Malta when the website indicates 3 days.

    No wonder I received a letter from my bank today which was sent through DHL Globalmail.