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DEUTSCHE POST WORLD NET AND DHL
CONSOLİDATİON
Automative
Engineering/Manufacturing
Healthcare
Chemical
Technology
Retail
Consumer Goods
IFE MATRIX for DHL
Strengths Weight Rating (1-4) Weighted Score
10. Creativity and innovations are encouraged for improving the .07 1 .07
effectiveness of DHL.
OPPORTUNITIES THREATS
Expansion Globally Relations With Foreign
Joint-Ventures Countries
Expansion Of E- Economic And Political
commerce Conditions
Increase In The Number Restrictions
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
Weak Strong
Competitive Competitive
Position Position
Quadrant III Quadrant IV
Slow Market Growth