1. Slow operation
When customers want to cancel a request or making additional pickup, the operation of Hermes is slow. This could bring the company bad reputation.

2. losing out in relation to investment in new technologies
Hermes process has taken much management resource; they have not been in a position until recently to look closely at their operating systems on a company-wide basis.
The feeling has been gathering that Hermes are losing out in relation to investment in new technologies and, because they have grown in a rather haphazard fashion, are failing to gain the expected advantages of scale such growth should bring

3. They don’t operate outside UK
Hermes has branches around UK; their business operation has not reach outside the country.

4. Unstructured growth
Hermes sales growth has been maintained within a tough market.

Too many business process
Hermes business process is too much; this can bring confusion to the company and bring the company down.

1. Patriotic Citizen

Hermes should take advantage of how British love something that belongs to their country when it performs up to standard. Therefore, Hermes should give an image of "British is Best" to their customer. It should also advertise to show that they care for their domestic customers more than their giant rivals.

2. E-Commerce
Hermes should consider extending their services online as there is a steady growth of household with internet access in UK with he latest figures showing a 8 per cent growth in 2008 compared to 2007 or an increase of 1.23 Million users. In addition, a mobile compatible site should also be launched to target the increase number of mobile users in UK so that those using high-speed internet on mobile phones or laptops could access their page from wherever or whenever convenient for the user.

3. Interest Rate
The interest rate in UK has been slashed to an all time low at 0.5 % which enables firms like Hermes to invest more in terms of improving their services as borrowings become cheaper than saving. Therrefore, it is an opportunity for Hermes to catch up with their rivals as financial loans are more attractive.

4. Increase in Private Sector
Since most of Hermes' customers are from business, it is therefore an opportunity for Hermes as they now have more potential customers to target. Statistics by the Department for Business, Enterprise and Regulatory Reform shows that there is a 4.8 % increase in private-sector businesses in 2007 compared to 2006.

Not environmentally friendly
Hermes Courier didn’t offer any alternative “Green” shipping services option to their customers. Therefore, the customers might choose other courier companies that environmentally friendly.

Customer’s careful in their spending patterns
Because of the global economic crisis, the household and business will careful in their spending patterns (OECD Economic Outlook Interim Report, 2009, p.87). In this circumstance, it will bring a negative impact for Hermes Courier such as business sales decrease.

European Union implements emission standards on vehicles
The United Kingdom has also followed the initiatives of the European Union to implement emission standards on vehicles (Transport for London, Emission Standards). Therefore, if Hermes Couriers doesn’t follow the initiatives by rival companies, it will negatively impact the company as they will have bad publicity as they have not followed quick enough.

The economy growth is declining significantly
‘The economy growth is declining significantly as output decreasing by 2.2% for the second half period of 2008’ (OECD Economic Outlook, Interim Report (2009, p.87). Therefore, it will bring the negative impact on Hermes Couriers as the companies profit will be affected as they are service based firm by internally and externally.

Economic recession
Due to the current economic recession, hence the Hermes Couriers would indirectly turn into cost cutting and man power retrenchment are to be looked forward in order to stay effectively and efficiently as well as maintaining its services as their output.

Alliance Strategy

Hermes Courier can establish linkage and alliance with United Kingdom Taxi Company. After that, Hermes Courier can outsource some delivery tasks to the Taxi Company where the taxi driver can help Hermes Courier to delivery the parcel during the free time or the taxi driver was always pass by the particular location. This strategy can assist Hermes Courier save cost on deliveries. Furthermore, it also can reduce the workforces and delivery vehicles. For example, Hermes Courier can release some delivery drivers and workers, and they also no need to purchase any extra new delivery vehicles.

In addition, they could also have a joint venture with Royal Mail to ensure they will have economies of scale. In addition, with a joint venture as such, it helps Hermes to focus on parcels or on heavy shipments. Royal Mail then will focus on the letters, documents, greeting cards or smaller parcels less than 5 kg. This helps both companies offer better service compared to rivals and prevent any rejections of possible customers. Customers then will always want to use services of either these companies as convenience is offered.

In the case study, it is clearly indicated that Hermes has an added advantage of offering customizable services (tailored service) to even small to medium size business. Therefore, they can differentiate themselves from their rivals by allowing customsation for any business customers irrespective of business size or shipments made. They can also offer value for money during festive seasons thus encouraging more people to send during these peak times and offering value-added services such as discounts on bulk deliveries or offering customer loyalty programmes allowing customers to collect point and redeem points for gifts. These induces "value for money" into customer's mind.