This case study investigates the strategic choices that Mr. Lim Teck Chai, the proprietor of the Kelantan-based courier business Top Science Tech Network, must make. When the business was first founded in 2019, it collaborated with Ninja Van Express, taking use of its vast network to establish a significant market presence. Recent issues have surfaced, though, such as Ninja Van's policy change that lowers the commission rates provided to franchisees like Top Science Tech Network. The company's profitability and long-term viability are under more strain as a result of this shift, growing competition, and rising operating costs.
In order to overcome these obstacles, Mr. Lim is thinking of expanding the range of services he provides by bringing in new courier companies like J&T Express and Flash Express. Through less reliance on a single brand, increased service offerings to cater to a variety of clientele, and increased operational effectiveness, this approach seeks to strengthen the company's resilience.
Although this strategy offers chances for enhanced risk management and market differentiation, it also brings with it additional difficulties, like handling the intricacies of several brands and negotiating increased operating expenses. However, with proper preparation and implementation, this diversification approach has the ability to solidify Top Science Tech Network's standing as the top courier service provider in Kelantan, guaranteeing sustained expansion and competition in this challenging market.