Introduction
Aramex has established itself as a global brand whose services are valued by consumers across a global scale. Even though it is based in the United Arabs Emirates, the strategic positioning of Aramex in the Gulf Cooperation Council has provided a platform for it to effectively provide logistics solutions to both regional and global consumers. Conversely, the high demand experienced in the global shipping and logistics sector has provided Amarex with a wide range of competition from different organizations across the globe among them being DHL and FedEx.
Consequently, Aramex experiences increased competition across all angles hence it must develop and undertake competent measures to cement its positioning (Abdullah et al., 2020). However, Amarex has boosted its competitive advantage and cemented its strategic positioning by maintaining its operation ability by enhancing its diversified business model, and fostering its robustness in the finance sector. For instance, its significant investment in digital transformation placed it in a good position to effectively adapt to the forced spike of e-commerce activities triggered by the COVID 19 pandemic. Its competence in e-commerce and digital transformation has laid a strong foundation while providing it with broad opportunities for Amarex to ensure its sustainability and business growth.
Undoubtedly, high-level technology and e-commerce platforms have ensured that Aramex attains broad benefits while providing solutions on transportation and logistics (Aramex, annual report, 2015). To enable them to maintain their competitive advantage, Amarex should heavily invest in both the employees and customers through developing effective measures in its hiring, selection, and placement practices, reinforcing employee retention, and observing customer needs through monitoring the dynamic trends in preferences and fostering customer satisfaction. The purpose of this study is to analyze the strategic positioning of Amarex, the strategic decisions it undertook regarding COVID 19, and to develop strategic alternatives and orientations that would provide it with a competitive advantage and strategic positioning.
The Strategic Positioning of Aramex
Over the years, Aramex has grown into a well-recognized and established global brand whose services have proved to play a pivotal role for customers across the globe. Based in the United Arab Emirates, the organization is well situated to effectively provide logistics solutions to both regional and global consumers. Further, its unique positioning enables it to effectively monitor the regional markets together with the global market while focusing on changes in the global trends to cement its global position (Aramex, annual report, 2015). Among its significant strengths in pursuing business growth opportunities across emerging global markets and ensuring profit maximization. Further, the organization is driven by its approaches to sustainability across its business across the dynamic global market.
Additionally, its competence in e-commerce and digital transformation has laid a strong foundation for the growth of Aramex. The company has effectively partnered with local and global networks to acquire significant benefits in meeting customer needs. This has enabled organizations to effectively attract both regional and global customers while effectively meeting their needs. Its high-level technology and e-commerce platforms have ensured that Aramex attains broad benefits while providing solutions on transportation and logistics. In addition, the organization is guided by the belief that heavily investing in e-commerce platforms ensures efficient movement of its goods and services across the globe. Due to significant developments across the globe, technology has become a significant opportunity for the growth of different markets (Aramex annual report, 2020). Hence, Amarex has heavily invested in technological advancement since has heavily transformed the global market and influenced the lives of consumers. On the other hand, technological growth has presented broad opportunities for Amarex to ensure its sustainability and business growth.
Conversely, Amarex is driven by its huge organizational culture that fosters its continued success and business continuity. The culture developed at Amarex is driven by innovativeness and investing in people and technology. In addition, Amarex is guided by the implementation of innovative solutions that enable it to effectively satisfy the evolving customer needs while observing its business objectives. For instance, it enables Amarex to effectively provide door-to-door solutions for consumers across the globe timely and professionally. Its strong digital capacity enables consumers to effectively track all the processes involved in the transportation and delivery processes.
The Strategic Decisions of Aramex regarding the COVID 19 Pandemic
Without a doubt, COVID 19 was a global menace that shook the majority of institutions and companies the world over due to poor preparedness and limited knowledge and capacity on how to effectively respond to this disaster. In this context, the COVID 19 pandemic proved to be a vital threat to the sustainability of Aramex with it threatening its operation ability, its diversified business model, and robustness in the finance sector. Consequently, the annual report for Aramex noted that 2020 was a different year in its history that threatened the survival and adaptability of all departments across the organization together with the commitment of its customers (Abdullah et al., 2020). Due to its complex nature and its unpredictability, the COVID 19 pandemic ravaged countries while threatening human survival and the sustainability of livelihoods. This was a similar scenario in the Middle East which forced governments and organizations to undertake radical measures that would ensure human survival and the continuity of key operations.
Notably, the CEO at Aramex indicated that the key role of the organization during the COVID 19 pandemic was channeled towards safeguarding the health and safety of all individuals affiliated with this organization. Protecting the lives of all employees and customers was a matter of urgency and critical initiative that would foster the sustainability of Aramex. Through the creation of an able Crisis Management Team, Aramex ensured the development of quality measures that it would follow to oversee the installation of effective health protocols across all departments. The imposed lockdown rules significantly affected the habits and practices of customers due to increased fear of the COVID 19 pandemic and their limited financial capacity.
Resultantly, organizations across the globe including Aramex were forced to conduct their services across social commerce platforms where they could effectively interact with their customers (Aramex annual report, 2020). Additionally, online platforms proved to play a pivotal role for Aramex especially in safeguarding the lives of its key stakeholders while ensuring business continuity. This is because it ensured minimized physical interactions during business operations and transactions thus ensuring the well-being of all individuals.
Further, changes in the fiscal policies across the Middle East due to COVID 19 pandemic threatened the survival of Aramex. With sustainability being a significant factor for its business growth and economic development, Aramex had to step up to the challenge of adapting to the broad changes in the economy while ensuring business continuity. According to its annual report, the Aramex chairman noted that this organization had witnessed a 42.7 percent loss in its overall profit due to its increased costs which are affiliated with the COVID 19 pandemic (Aramex annual report, 2015). Resultantly, this tested the organization’s resilience and agility to effectively respond to the significant changes set in the United Arabs Emirates’ financial and monetary policies leading to higher costs due to COVID 19. The sustainability witnessed at Aramex was due to its competent management team, strong and modernized infrastructure, high-level commitment, and its strong financial capacity which enabled the organization’s effectiveness during the COVID 19 pandemic.
Finally, Abdullah et al. (2020) indicated that significant changes in travel and other COVID-19 related restrictions tested the capacity of Aramex to effectively adapt to societal changes. These changes made it difficult for Aramex to effectively interact with its broad customer depth while fostering business continuity. Resultantly, Aramex turned to e-commerce platforms to ensure effective interaction between customers and key stakeholders which ensured continued shopping of goods and gifts hence fostering its sustainability. Luckily, Aramex had previously invested in the digital transformation which had placed it in good positioning to effectively adapt to the forced spike of e-commerce activities during the COVID 19 pandemic.
Relevant studies indicated that Aramex was the most tweeted shipping service across the Gulf Cooperation Council thus revealing its prowess in the e-commerce platforms. Besides, the leadership at Aramex contested that this organization must continually enhance and expand its e-commerce operations to foster its sustainability during the COVID 19 pandemic. This reveals that regardless of the unpredictability of the COVID 19 pandemic, Aramex was well prepared to foster its sustainability and business growth due to its competent leadership and financial capacity.
Strategic Alternatives and Orientations that would provide the Competitive Advantage and Strategic Positioning of Aramex
Conversely, Aramex can cement its positioning at the helm of the Gulf Cooperation Council with its strong financial capacity, strong infrastructure, and its competent leadership. As such, Aramex should explore the broad spectrum of opportunities it possesses due to its capacity to maintain its competitive advantage and reinforce its strategic positioning. Due to the high demand experienced in the global shipping and logistics sector, Aramex has a wide range of competitors among them being DHL and FedEx. Consequently, Aramex experiences increased competition across all angles hence it must develop and undertake competent measures to cement its positioning. For instance, Aramex should be at the forefront of predicting and effectively adapting to the ever-changing global market to maintain its competitive advantage and strategic positioning. This would be effectively realized through monitoring the market trends and developing ample strategies to effectively meet the diverse market needs and demands.
Additionally, Aramex should heavily invest in its employees across all levels to ensure that it cements its strategic positioning and provide it with a competitive advantage over its competitors. Aramex should develop effective measures in its hiring, selection, and placement practices to ensure the addition of highly qualified and competent employees in its operations. This would ensure that Aramex possesses a high level of employee skills and decision-making capacity which is crucial in ensuring business growth (Aramex annual report, 2015). Further, Aramex should heavily invest in frequent and quality employee training to improve their capacity for company operations and performance levels. Undoubtedly, frequent employee training ensures that all employees possess quality skills to effectively undertake their tasks and ensure good performance levels. Besides, this ensures that employees develop high-level decision-making skills that are vital in fostering the organization’s competitive advantage.
Moreover, it is essential for Aramex to develop appropriate strategies aimed at reinforcing employee retention. This would ensure that the organization retains its highly qualified and competent workforce hence safeguarding its competitiveness and positioning in the global market. Aramex should safeguard its highly qualified and competent employee base by developing appropriate measures that ensure employee satisfaction. For example, Aramex can increase its salaries and remuneration, health insurance, and reward good performances among other incentives that would increase employee motivation and retain them in their workforce thus enhancing its strategic positioning and maintaining its competitive advantage.
Finally, Aramex should invest heavily in its customer base to strengthen its global position while maintaining its competitive advantage against its wide competition in the global market. Hence, Aramex should effectively monitor the dynamic trends in the global market to effectively understand customer needs and changes in their preferences. This would ensure that Aramex is at the forefront of meeting customer needs thus strengthening its positioning. Further, Aramex should maintain constant communication with its customer base even in the future to ensure that they effectively respond to customer feedback thus fostering customer satisfaction. Also, Aramex should invest in its marketing strategy which reinforces its financial positioning by attracting large numbers of customers. With increased digital transformation across the global market, Aramex should invest in innovativeness and practices that enhance its marketing capacity hence ensuring business growth and continuity.
Conclusion
The paper analyses the strategic positioning of Amarex, the strategic decisions it undertook regarding COVID-19, and the development of strategic alternatives and orientations that would provide it with a competitive advantage and strategic positioning. Aramex is a well-established company with a global brand valued by its customers. However, the company experienced increased competition across all angles hence it must develop and undertake competent measures to cement its positioning. However, high-level technology and e-commerce platforms have ensured that Aramex attains broad benefits while providing solutions on transportation and logistics. To enable them to maintain their competitive advantage, Amarex should heavily invest in both the employees and customers through developing effective measures in its hiring, selection, and placement practices, reinforcing employee retention, observing customer needs through monitoring the dynamic trends in preferences, and fostering customer satisfaction.
References
Aramex annual report, 2015. Web.
Aramex annual report, 2020. Web.
Abdullah Shaar, Andrew Edward, Houda Bouamar & Savanid Vatanasakdakul (2020). Measuring the impact of COVID 19 on the shipping in the GHH countries. Web.