DHL Case Study
Dhl continued to grow in am inredible space where it expanded from Hawaii into the pacific rim then to the middle east, Africa and Europe. By the year 1998, DHL had established to more than 170 countries, and a capacity of 1,600 employees. At the beginning of the year 2002, Deutsche Post World Net became the major shareholder in DHL. By the end of 2002, DHL was 100% owned by Deutsche Post World Net. In 2003, Deutsche Post World Net consolidated all of its express and logistics activities into one single brand, DHL. Dhl business strategy In april 2014 dhl introduced its strategy 2020 the strategies being focus, connect and grow. Focus entails continued focus on logistics as the core business, which should generate more than 85% of total revenues by 2020.
The divisions are well-positioned to take advantage of world growth markets and reach this goal. Connect on the other hand entails fully tap the company's potential through the internal exchange of expertise, experience and talent, and finally grow entails growth in new market segments where it pinpoints the strategy for growth markets and segments, specifically emerging markets and e-commerce. The e-commerce strategy has already proven successful n the German parcel business. Social and cultural factors affect customers opinions and intersts. By not responding quickly to changes in society. Eliminating boarder lines makes trade and business in Europe more accessible. Good infreustructure development improves economic growth though Europeans infrastructure is not developed as that of wetern world. This provides a forefront for the dhl as compared to the environment in developing countries Technology factors.
Therefore it is the duty of the company to know customers needs and preferences in oe=rder to keep them satisfies bythe services. Its therefore important for companies to better position themselves in the market and among customers, uncover customers perceptions, improve customers loyalty, or help to make technology and product improvements. dThreat of new entrants The logistic market is large with a free entry exit characteristic of a perfect market. Everyone in the world needs to deliver a package or parcel, use the courier services, this makes it easy for entry and also there being no existing barriers, patents or licences to the entrance. There are also no boarder lines in the European Union that world threaten a new entrant.
A tight and l=loyal relationship with the customers by offering highly differentiable and quality services. Offering some special offers, favourable financial arrangements, will help maintain the customers loyalty. With the high rate of new entrant to the logistics industry, ranging from individual to cooperation, this gives the dhl a stiff competition. Companies has to invest in modern technologies for example internet which has completely changed the world of logistics. Market portrait. TNT is another major competitor of dhl. It is trusted by many beacause it established exclusive service enterprise such as express shipper, and express manager. On the other hand, FedEx can design a special package for customer’s high-tech items, it provides the safety of goods during delivery time.
Such service can make customer happy and enable shipping easier. All four companies focus on environment impact through respective sustainability policy. DHL ocean freight service) Road and rail freight. DHL road and rail service) Dhl offers a fast, reliable and environmentally friendly rail network to deliver all major European business centres. DHL’s network provides high quality integrated service with terminal services, transport and IT solutions. All types of rail equipment is available, quality control system guarantee the top level service from pick up to delivery and it will also ensure the environmental impact and try to minimize it as possible as it can. Dhl capabilities Dhl capability tool is used to determine origin pickup ready time availability as well as to calculate the shipment estimated transit time the greatest challenge of dhl is to break into emerging markets or to grow in existing territories.
Understanding the goals of your competition one of the first steps in the process of figuring what to do next. It is important that a company’s knows who are trying to get into the market and where they are currently in. this current position in the market plays a huge role on how they are likely to respond to perceived threats and opportunities. A market leader is usually going to work hard in order to remain on the forefront and to defend their position. B knowing that it will enable the company will respond to market pressures, and build this into a strategy and marketing in order to outweigh them. It is also important to think about success at this point in time.
If your competition is being successful with their current strategy, there is very little chance that they make any significant changes. A successful company tend not to make drastic changes to their current strategy but being carefully monitoring their actions will give the company an early warning of innovation strategy changes. It is proven that it’s rare for business to make drastic changes to formulas or strategies and produce great results. Action capabilities. Modern technology and environment is key to success of the company that helps to maintain or gain competitive advantage. IT is the most important technology factor for logistics business because speed and reliability are equal to success Companies has to respond to changes in society quickly not to lose market share and demand for services.
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