Strategic analysis of DHL express companyExecutive summary
DHL express is a German based logistic company that provides services at international level such as mail and products delivery. It is one of the world's largest logistic companies. It is a leader in sea and air mail. Founded originally in 1969, in San Francisco, it was meant for delivering the documents to Honolulu. The company expanded its services in the entire world in the late years of 1970s. This was after heavily investing on the offshore and intercontinental deliveries and mostly in the United States (Infrastructure, 2008, p. 86).
The DHL expresses humble start was shipping the papers and documents using the air transport from San Francisco to Honolulu. This extended to the shipping of other products around the world. The company has penetrated to most of the countries and operating in the shipment of the goods and merchandise by road, rail, air and the seas depending on the convenient channel. It has transport courier and express shipments that operate over 220 countries. The company has more than three hundred thousand employees. The company's main aim is to ensure connectivity and the deliveries of the products are convenient. This is through enhancing the accessibility and information dissemination (Burgess & Connell, 2007).
History of the DHL express
The founder of the DHL courier company is Larry Hillblom who was studying law at the university of California. He started running a courier duty between San Francisco and Los Angeles of picking the packages that were meant for the last flight of the day. Then they would come back using the first flight the following morning. This was to go for the five times a week. After his graduation, he decided to get to the courier business. It was after realizing that there is no other business was filling the gap(Neuwirth, 2011). He started to fly the couriers from San Francisco to Honolulu. He developed a strategy of flying the documents ahead of the freight thus they could be processed before the arrival of the vessel hence saving time. This strategy worked well for him to the point he set part of his student loan to start a business. He introduced two of his friends in the courier business.
His friends were Adrian Dalsey and Robert Lynn and they became the partners. They combined their last names resulting to the business name DHL. They drove around the San Francisco picking the documents on the suitcase then rushing to the airport to book flights. The business started to pick up and they decided to hire new couriers to join the business.In early 1970s the company started expanding the services in the Philippines then to Japan, Hong Kong, Singapore and Australia. In the lower volume routes, the company hired a courier that they had to provide the airline ticket for the delivery (Kefalas, 1990). This proceeded until they had several agents who became the regular couriers for the business.
Methods of data collection
There are wide ranges of techniques used in data collection. These methods vary according to intentions, tastes and how available they are for the researcher (Gamm, 2011). As the source of the data, the use of the questionnaires is the detailed and provides the collected information that is intended in the research. The respondents have to answer as per the choice of the options indicated. This provides a high level of certainty and accountability leading to the formulation of the intended policy (Gore, 2013). The questionnaire is presented to the worker of the DHL express at the respective countries and their stations of work.
The second method of the data collection is the use of the registrations. This targets the drivers of the logistics couriers drives. The use of the driving licenses and the registers applies as the sources of information needed. In additional to this, the business registration license also provides the data to complete the enumeration (Rajadhyaksha, 2007). Interviewing is the third method of data collection. This entails visiting the stations where the DHL logistics warehouse and interviewing the employees. The response is extended to the clients where they compare the results. This helps in assessing on the findings and the satisfaction of the clients from the DHL express services.
Interviewing provides the direct forward answer and the recommendation that should be applied as the same time (Rajadhyaksha, 2007). It is faster and easier as well it gives the respondent a chance to reveal their emotions. The fourth method would be direct observation where the observer would collect data by observing the trend of the operation in the station. This is at the organization level and how effective they are in undertaking the duties. This extends to the management of the business as well as the arrangement of the schedule depending on the shipment. This shows the capability of learning the institution and enhancing the competitiveness in the entire industry (Shuman, 2006).
Finally, reporting as the process of the data collection entails in making direct measurement of the quantity of the delivered goods and the merchandise. This helps in getting the information of the reported work and strategizing on how to improve in the service delivery. The data collected on this method are clear and factual as the source of the intended information. This can be from the document and recorded sources (Pablos & Lytras, 2009).
Strategic analysis
CPM Matrix
Fedex UPS DHL
SWOT analysis
There different strategies that are involved in the DHL courier services that have made it successful (Rajadhyaksha, 2007). They are comprehensive cost leadership, concentration on the focal or the main areas and the combination of the both strategies. Beginning with the cost leadership, the DHL in the logistic field, it has been able to earn profit by selling large quantity of the item using the lower price than a competitor in the logistic field. In the logistic system, there are many couriers providers of which cause the competition in the business. The DHL management came up with the tactics of competing effectively (Logistics, 2011).
The second strategy is the concentration of the focal area of the service provision. The DHL has focused on the service of the courier services that has earned it the full success. In so doing, the company's management has extended the service into the international market (Eltschinger, 2007). The last strategy that has been widely used by the DHL Company is the combination of the differentiation and the cost leadership. This is the hybrid that has made the company cope with the market in an easy manner. This has made it penetrate in the international market due to the specific field targeted and the consideration of the price.
DHL being an international company has also expanded its scope that earns revenue for the company. It has used the target of providing the courier services to many numbers of the countries in an efficient way that in return provides a profit (Rajadhyaksha, 2007). It has used economies of scale that makes it specialize in the courier services and having the ability to fix cost all over in the market system. This has made it easier in setting the background that is strong in the market of which the strategies is to earn a profit.
The mode of the DHL of competition has gained it high revenue. This has made it efficient in the outdoing other companies in the logistic field (Stonehouse, 2004). Concentrating on the delivery services and doing excellent work has gained popularity hence having a wider market thus increasing its profit margin. The company has also employed other tactics of the advertisement (Lee & Lee, 2007). This is making it identifiable and earning the international recognition. It has invested on the motorsport like the formula one where by it earns a percentage of the revenue.
Pressure for cost reduction in the logistic field has made the DHL Company employ it as an advantage. It has it as the one of the strategy to counter the pressure. This is by making sure it used the mass provision of the delivery service in the courier industry in many countries in increasing the revenue. In the pressure of the local responsiveness, the company has been able to control the demand and successfully emerging with the solution. It has served the local as well the international services on the delivery of the good. Even though it has to incur the cost of establishing in the international market, it did not forego the local market for the support.
The culture integrations are one of the effects that the DHL Express has used in coping with the international market. It has lead to high understanding among other races and exchanging of the ideas. It has been easy to invest in different countries (Lee & Lee, 2007). So, this gives the company chances to venture in a different area and regions with ease. This leads to open up for such reasons as some of the traditional products find their way to penetrate to the world market easily.
Before the globalization, the mode of communications was much low compared to the today communication. Electrified trains are much faster to connect in the logistic services. This mode of transport is the one of the safest thus even the insurance of the cargo is considerate low (Lee & Lee, 2007). Connection of the different countries has been made easier through air transport. So, perishable products are transported and get to their destinations safe, early enough and on time. Globalization has opened up the world to be as a global village of which the DHL Company has taken advantage off. This has opened the way to conduct the logistic and the transport business in a manner that suits the discovered region. The flexibility of the company gives it an advantage of the business.
Graph on industrial analysis
Recommendation
The DHL Express should consider the economic development of the countries they are operating. This would help in the price setting of the products on the delivery. This depends on the urgency and the perishable goods. Diversification of the management to the respective countries would enhance proper delivery services. The matters arising would be affected with the immediate and the urgency as they may save much of the revenue and the time. The management should apply the research finding in making their decision concerning the wellbeing of the firm. This makes the incorporation of the results from the clients and their suggestion on the improvement of the logistics to enhance their satisfaction.
The valuation of the technological development depends on the location of the station of the logistic firm. It also depends on the development of the involved country in the mode and the channel of transportation. Therefore, the management should consider the fastest mode of transport to enhance the delivery of the products and the services to the clients. The satisfaction of the clients is the determinant of how successful the firm is. In conclusion, the competitiveness of the company in the future depends on the strategies that are laid on the time. To make the company competitive in the logistic industry, the management should ensure the proper corporation in the firm and with the clients.
References
Burgess, J. & Connell, J., 2007. Globalisation and Work in Asia. Burlington: Elsevier Science.
Campbell, J. I., 2001. The rise of global delivery services. Washington: JCampbell Press.
Eltschinger, C., 2007. Source code China : the new global hub of IT outsourcing. Hoboken, N.J: John Wiley & Sons.
Gamm, C. O. -P. F. v., 2011. Multi-national and intercultural services organisations and the integration in front of global clients. Frankfurt am Main: Peter Lang.
Gore, A., 2013. The future : six drivers of global change. New York: Random House.
Infrastructure, U. S. C. H. C. o. T. a., 2008. Effects of the proposed arrangement between DHL and UPS on competition, customer service, and employment. Washington: U.S. G.P.O..
Lee, H. L. & Lee, C.-Y., 2007. Building supply chain excellence in emerging economies. New York: Springer.
Luftig, J. T., Ouellette, S. M. & Authority, Q. F. C., 2012. Business performance excellence. London: Bloomsbury.
Neuwirth, R., 2011. Stealth of nations : the global rise of the informal economy. New York: Pantheon Books.
Pablos, P. O. d. & Lytras, M. D., 2009. The China information technology handbook. New York: Springer.
Rajadhyaksha, N., 2007. The rise of India : its transformation from poverty to prosperity. Chichester: John Wiley & Sons.
Shuman, M., 2006. The small-mart revolution : how local businesses are beating the global competition. San Francisco: Berrett-Koehler.
