Strategic Options : Aramex 's Main Strategic Issue Essay

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Strategic options
Aramex 's Main Strategic Issue
Despite the fair pricing method and the excellent customer service that Aramex offers to its customers, research indicates that it is still struggling to achieve a significant market share. According to Balakrishnan, (2015), the company 's market performance is significantly lower as compared to the Big Four (DHL, FedEx, UPS, and TNT) players in the express and freight forwarding market. For instance, a recent study indicates that the firm 's current market share is only 14% as compared to DHL 's 60% (Balakrishnan, 2015). It has been observed that Aramex employs a value-based pricing approach by charging its key account customers lower than its normal customers. This approach ensures profitable pricing for the company because it has been successful in understanding, creating and nurturing appropriate value for such customers. However, high profitability does not necessarily result in increased market share. Hence, the strategic issue remains that Aramex is unable to gain a competitive advantage by acquiring high market share like the rest of the major players in the market. Thus, it can be inferred that using the most superior approach of understanding and creating the value perceived by customers is not helping the company gain a competitive advantage. In line with this, Aramex has been struggling with the maintenance of an innovative culture and careful adoption of creative technology, which would help it to excel amidst

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