DHL is an international courier, package delivery, and express mail service company founded in San Francisco in 1969. It delivers over 1.5 billion parcels per year and has 380,000 employees. DHL's vision is to be a post office for Germany and a logistics company for the world. Its mission focuses on success for customers, employees, and investors. DHL faces competition from companies like FedEx, UPS, and local delivery services. A SWOT analysis found DHL's strengths include a large global network and strong brand, while weaknesses include limited market share growth and dependence on external agencies. Opportunities exist in emerging markets and e-commerce, while threats include increased competition and economic slowdowns.
2. HISTORY:
DHL International GmbH (DHL)is a German international courier, package delivery and
express mail service, which is a division of the German logistics firm Deutsche Post. The
company delivers over 1.5 billion parcels per year.
Founded: San Francisco, California(1969).
Founders: Adrian Dalsey, Larry Hillblom, Robert Lynn.
Headquarters: Bonn, Germany Plantation, Florida.
Number of employees: 380,000 (FY 2020).
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3. VISION AND MISSION:
DHL's vision is to be a post office for Germany and a logistics company for
the world.
DHL’s mission consists of four main elements:
We make our customers, employees and investors even more successful;
We always show respect while achieving high scores;
We facilitate and simplify the lives of our customers;
Contribute to making our world better.
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6. SWOT ANALYSIS OF DHL
Large Network: DHL has a network of over 220 countries, making it the
largest global freight career.
Innovation: DHL projects itself as a thought leader in the logistics
industry. It has structurally invested into trend research and solution
development, It has developed a DHL Innovation centre which provides a
platform where customers and stakeholders can engage with DHL experts.
Strong Brand Equity: DHL is ranked 77 on the best global brands
ranking by Interbrand in 2016 with a brand valuation of 5708 $m.
Growing in developing countries: DHL has invested heavily in
developing nations to set up and expand their services in order to have a
large footprint in the emerging markets.
Excellent financial position: DHL has a very good finance backgroun
and is known to have ample amount of resources backing it up.
6STRENGTHS:
7. WEAKNESS:
Limited market share growth: Being a very competitive market, market share
growth becomes difficult especially considering numerous small and large local
competitors.
Requires heavy investment: It is an investment driven industry and thus to set
up and expand, heavy investment is required and return on investment is not
immediate.
Dependence on external agencies: Due to such a wide network, DHL is
depended on over various other local private agencies with which it collaborates.
Dependence on regulatory bodies: DHL has to work according to the
regulatory norms and the local authority.
Poor Marketing: When compared to Fedex or UPS, DHL does not have similar
marketing expenditure and does not invest much in advertising and branding
activities.
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8. OPPORTUNITIES:
Emerging Markets: DHL has set its foot in almost all the emerging
markets but it needs to expand to utilize the potential in such markets.
They need to focus on its customer-focused international supply chain.
Inorganic Growth: DHL, being a big name in the industry to acquire
several local players to expand its reach in its target markets.
E-commerce: Increase in electronic shopping presents an opportunity
to tap this market as well. E-commerce is considered as the future of
shopping and so it becomes important for DHL to be present in this
platform as well.
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9. THREATS:
Competition: FedEx and UPS are DHL’s prime competitors and are
giving DHL a tough fight in all the markets.
Economic Slowdown: Logistics is one of the industries which is hit the
hardest when it comes to Economic slowdown.
Declination of traditional services: Traditional services such as letter
and posts have declined due to the advent of technology in developed as
well as developing economies.
Local players: A major threat to DHL is that the brand suffers against
local courier players which might be operating at lower and penetrative
prices. These local players are also able to give excellent service.
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