Dhl strategic analysis

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Deutsche post DHLexternal and internal analysis Julie RooneyJonathan Francx Piyush VirmaniAhmad Fahmy

13th of February - Global strategic management

Deutsche post DHL

2000: Deutsche Post going public

2002: The journey towards full ownership of DHL

2005: The largest acquisition in history

2013: Five years of green

Figures, performance & competitors

UPS20%

DHL15%

FEDEX14%

TNT4%

OTHER47%

Market Share

UPS

DHL

FEDEX

TNT

OTHER

0

1

2

3

4

5

6

SupplierPower

BuyerPower

Threat ofNew

Entrants

Threat ofSubstitutes

IndustryRivalry

Structure:

Oligopoly5 Forces Model

Context:

Price-sensitive,

Moderate

Differentiation,

Market Power

Performance:

40 Billion Euro

market,

Ecommerce

innovation

Economies

of Scale

Price

Sensitivity

Presence of

Substitutes

Switching

Costs

Product

Differences

Political:• Liberalization

CEP Market• Schengen Zone

Economical:• Reverse Logistics• GDP• Economic Crises• Emerging Markets• Automatization• Exchange Rate

Social:• Generation Gap• Urbanization• Seasonality

PESTEL

Analysis

Technological:• E-Commerce• Efficiency• Important

Innovations• Self driving cars• Drones• 3D printing

• Tracking

Ecological:• Carbon Footprint

Legal:• Data Protection• EU Regulations• Transport Laws

DHL Spider-web analysisCost to customer

Quality of service

Distribution Network

E-commerce

Brand and Reputation

Financial stability

Innovation

Custom Services

VRIO Analysis

Valuable Rarity Costly to

imitate

Exploited by

organisation

Competitive

implication

E-commerce Yes No Competitive Parity

Quality Of

service

Yes No Competitive Parity

Brand and

reputation

Yes Yes Yes No Sustainable

Competitive

advantage

Distribution

network

Yes Yes Yes Yes Competitive

advantage

Financial stability Yes Yes Yes No Sustainable

Competitive

advantage

Innovation Yes Yes Yes Yes Competitive

advantage

Custom services Yes Yes Yes Yes Competitive

advantage

SWOT Analysis

Diversified Business Model

Market domination in Europe

High price compared to the competitors

Weak presence in the US market

The B2C market is experiencing double-digit

growth

Creating partnerships

Declination of traditional services due to electronic

communication

Strong competition from other companies

7s Framework • Key partnerships

• Strategy 2020

• Cost leadership

• GoGreen

• Roadmap to value

• Track and Trace

• WMS

• RFID

• Customs

• Innovation

• Proprietary routing

system

• Diversity management

• Development programs

• Visionary approach

• Top down strategy

• Hierarchical organization

• Centralized warehousing

Parcel shops Private

BusinessESRI

Fixed Prices

Bulk Discount

Direct mail

Door-to-Door

Delivery Options

Customs Services

Bulk Shipment

Fast and Reliable

Return Shipments

Business

Integration

Low Cost

Self-Service

Personal

Assistance

Entertainment

Sponsorships

Airlines

Last Mile

Logistics

Ecommerce

Global Network

Transport

Vehicles

Economies of ScaleFuel Prices

Buying and Maintaining

Vehicles

R&D

Labor

Business model canvas

First recommendation:Expanding in Africa

• DHL Post – Ecommerce - Parcel expansion in Africa by acquiring different local postal offices where possible and opportune.

• We recommend DHL to initially focus on those markets with the highest growth rates to start from.

Second recommendation:Establish complete liability insurance

• Main competitors like UPS and FedEx provide services like auto liability insurance to its customers

• DHL should focus on implementing this to become more diversified

• Insurance assures the customers and makes them confident about the company

Third recommendation: The circular economy

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