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COMPANY OVERVIEW

 DHL is the global market leader in international


express, overland transport and air freight,
 It is also the world's No.1 in ocean freight and contract
logistics,
 DHL's international network links almost 220 countries
and territories worldwide,
 Around 285,000 employees are dedicated to providing
fast and reliable services that exceed customer’s
expectations in 120,000 destinations in all continents.
MISSION AND VISION STATEMENTS
 Making the most of scale and experience– and
passion – DHL’s mission is to be the first choice
worldwide.

 DHL’s vision for the future is nothing less than to


transform the logistics industry – and to deliver
beyond customer’s expectations.
DHL CORPARATE STRATEGIES
 DHL’s strategies have six
interconnected components:

• to intensify customer focus

• to deliver consistent service


excellence

• to extend capabilities (creating


local strength and driving practical
innovation)

• to attract, develop and retain


talent

• to relentlessly drive efficiency

• to be proactive in social
DEUTSCHE POST WORLD NET AND DHL
CONSOLİDATİON

At 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. The
DHL brand was further strengthened by Deutsche
Post World Net's acquisition of Exel in December
2005.
MICRO ENVIRONMENT
CUSTOMERS

 In Industry base, Customer’s of DHL Express are includes this


sectors:

 Automative
 Engineering/Manufacturing
 Healthcare
 Chemical
 Technology
 Retail
 Consumer Goods
IFE MATRIX for DHL
Strengths Weight Rating (1-4) Weighted Score

1. Strong Brand Image .08 3 .24


2. Globalism .09 3 .27

3. Well known, good reputation .07 2 .14


4. eServices and technology .08 3 .24
5. Kept the same strategies for years .08 3 .24
6. Deutsche Bank and Deutsche Post adjust structure of Postbank contract .07 2 .14
7. The president and the vice president have significant experiences and .06 3 .18
skills of management.
8. E – business .07 2 .14

9. Deutsche Post is investing € 420 million in mail business. .07 3 .21

10. Creativity and innovations are encouraged for improving the .07 1 .07
effectiveness of DHL.

Weaknesses Weight Rating Weighted Score


1. High Prices .07 2 .14
2. Mistakes in the Market-Share Estimate .07 2 .14
3. Weak Visibility .06 1 .06
4. Loyalty problems on customer behavior. .07 1 .07
Total 1.0 2.28
CPM FOR DHL

FEDEX UPS DHL

Competitive Factor Weight Rating Extende Rating Extende Rating Extende


d d d
Quality of service .13 4 .52 3 .39 2 .26

Price pressure .15 3 .45 3 .45 2 .30

Strong consumer .10 3 .30 3 .30 2 .20


orientation,
segmented approach
Completeness of .09 3 .27 3 .27 1 .09
service
Good quality for a .12 3 .36 4 .48 2 .24
competitive discount
price
Reputation .11 3 .33 1 .11 1 .11

Advertising .10 2 .20 3 .30 4 .40

After sales service .08 2 .16 1 .08 1 .08


Customization .12 2 .24 4 .48 2 .24
Total 1 2.83 2.86 1.92
EFE MATRIX for DHL
Opportunities Weight Rating (1-4) Weighted
Score

1. To Expansion Globally .08 3 .24


2. Creating Joint-Ventures with the foreign countries’ .08 3 .24
local transportation companies

3. Expansion Of E-Commerce .07 2 .14


4. One Of The Largest Sector in the World to Act .07 3 .21
5. Increase In The Number Of Manufactured Goods .08 3 .24
6. Taking The Products Directly From City To City .07 2 .14
7. Top-Ranked Website In Customer Satisfaction .08 3 .16
Among Transportation Sites
8. DHL Was Profitable Major Transportation .08 2 .16
Company In Europe In 2008.
9. They Created A New Market Segment. .07 3 .21

Threats Weight Rating Weighted


Score
1. Rules And Restrictions In Foreign Countries .06 2 .12
2. Competitors Caught DHL Strategies .05 2 .10
3. Economic And Political Conditions .06 1 .06

4. Insurance Costs .08 3 .24


5. New Tax System. .07 2 .14
Total 1.0 2.4
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTHS WEAKNESSES
 Strong Brand Image  High Prices
 Globalism  Market-Share Estimate
 eServices and  Weak Visibility
technology  Not as well known as
 Corporate symbiosis UPS and Fedex
 Smart-truck Project

OPPORTUNITIES THREATS
 Expansion Globally  Relations With Foreign
 Joint-Ventures Countries
 Expansion Of E-  Economic And Political

commerce Conditions
 Increase In The Number  Restrictions

Of Manufactured Goods  Economic Slow-down


 Fuel prices can go up
COMPANY STRENGTHS
 Strong Brand Image: In 1997, DHL became the global express transportation
company to obtain simultaneous system-wide ISO 9001 certification in
international quality standards. DHL has also developed their own quality
system that matches their customer’s standards.

 Globalism: DHL operates on a global scale. They operate in more than 220
countries. They provide services that appeal to most of the world. They have
such a large market in which to operate, and thus realize tremendous revenues.
They can also achieve global economies of scale.

 eServices and Technology: DHL uses and continues to search for new
technology. They spend nearly 10% of total revenues, for information
technology. DHL also has excellent eServices that provide access to systems
that ensure customers have control and visibility of their supply chains at all
times. Products can be tracked, queried and ordered online.
 Corporate symbiosis:DHL has developed its own organizational structure to
serve the global market, which it has called “corporate symbiosis.” This
approach encompasses the empowerment of the DHL personnel at a local level,
at the same time recognizing the interdependence of the parts of DHL as a
corporate whole.
 Smart-Truck Project: It is the programme which allows DHL to deliver faster.
The data are transmitted directly to the dynamic route planning system, which
recalculates the routes, depending on the current order situation and volume
of traffic.
COMPANY WEAKNESSES
 High Prices: DHL’s prices are above their
competitors. This can be a weakness if their
customers do not perceive a difference between
DHL and its competitors’ services.
 Mistakes in Market-Share Estimate: The
biggest weakness is DHL’s market-share estimate.
It is difficult to estimate even when the market is
stagnant and contains few competitors, and all
market-share estimates should be viewed with
circumspection.
 Weak Visibility: It has weak visibility in the
community compared with its potential
 Not Well-known in USA as UPS and Fedex
COMPANY OPPORTUNITIES
 Expansion Globally: DHL can continue to expand globally,
including the other companies under DHL.
 Joint-Ventures: DHL can form joint ventures to enjoy the
growth of integrating their customer bases.
 Expansion of e-commerce: DHL already has a major
presence of shipping online. They should keep finding Internet
companies to contract delivery of their products. Since the
growth of e-commerce is rapid now, DHL could enjoy both
profits and brand name recognition from this kind of
expansion.
 Increase In The Number Of Manufactured Goods: The
World Trade Organization estimates that the rate of world
trade in manufactured goods will increase exponentially up to
2010.
COMPANY THREATS
 Relations with Foreign Countries: Through DHL’ expansions
globally, they are subject to laws and regulations of all foreign
countries. There could be major problems in this area, stunting
growth and raising costs.Everywhere DHL goes, they are at risk for
regulations that hinder their operations or efficiency.
 Economic and Political Conditions: DHL is subject to the entire
world’s economic and political condition in the areas of fuel prices and
supply, customer purchase of their services, and relations with foreign
countries. As a global company, they are subject to much more risk
than domestic companies.
 Restrictions: Some restriction like ‘To prevent import from China’
are big problems in the logistic sector
 Economic Slow-down: Economic slow-down is decreasing the
number of products that are produced.
 Price of fuel can go up: Even if the price of fuel goes up, DHL can
pass that along to the customer but fuel is always a concern both in
price and availability
 S2,3,6 - O4
In order to find new clients and increase their
market share in increasing the number of
manufactured goods all over the World, they need to
make advertisements about their new technologies
and on-line ordering system.

 S1,2,3 – T3,4
To decrease the negative effects of the
economic slow-down and restrictions, they
need to focus on more promotions on using
on-line ordering system

 S2,3,5 – T4,5
Enhance the Smart-Truck project to decrease
the threat of fuel prices can go up
 W1, O2
To decrease their prices by cutting costs and
to increase their market share, they need to
create joint ventures with the local logistics
companies.
 W4, O4

Creating some promotions in China and India


like making discounts in the bigger orders
they can introduce themselves all over the
World
 W1,2, T1,2,3

To decrease their prices as the competitors,


and the negative effects of the restrictions in
the foreign markets, begin to acquire small
local companies abroad.
GRAND STRATEGY MATRIX
Rapid Market Growth Market Development
Market penetration
Quadrant II Quadrant I Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification

Weak  Strong 
Competitive  Competitive 
Position Position

Quadrant III Quadrant IV

Slow Market Growth

•Evaluate present approach


•How to improve competitiveness
•Rapid market growth requires intensive strategy
RECOMMENDATION 1
 ENHANCE THE SMART-TRUCK
PROJECT
Because of the stage of recession and
high competition, the companies need to
make difference to have new customers
and increase their market share. To invent
completely new product can be very
expensive and take very much time. So,
making little difference on the current
product or service can be better. At this
time, we need to talk about innovation.
As a CEO of DHL Logistics, enhancing
the Smart-Truck Project is going to be my
first strategy. This project will allow our
company to deliver faster and cut cost by
using less fuel.To achieve this goal, we will
follow some steps:

a) Increase the budget of R&D 10%.


b) Prepare an office for a new innovation
team and assign a leader to work on this
project.
c) Also pay premium for new and creative
ideas whoever gives it (even juniors). So
this will provide us innovative atmosphere.
RECOMMENDATION 2
 ACQUIRE SMALL-SIZED LOCAL
LOGISTICS COMPANIES
By acquiring small local companies
in different countries like China,
India, USA, will give us precense in
that countries. Also, this will
decrease the threat of restrictions
in those companies.
Even they are small companies,
they can have creative solutions to
different problems. So we are
acquiring new brains at the same
time. We can get some ideas from
them to improve our skills. I mean
we are not firing people who were
working there actually, we are
hiring them to work with us.
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