Strategic Management in DHL

This essay discusses the strategic management practices of DHL, a global courier and delivery services organization. It explores their innovative approach, corporate social responsibility, and market analysis. The essay also highlights the strengths, weaknesses, opportunities, and threats faced by DHL in the highly competitive courier service industry.

Strategic management

ESSAY
The current market conditions are changing continuously which also increases the
competition and challenges within the market for the various organisation. For surviving
within the market, it is necessary for the organisation to focus on strategic management so
that it can achieve its goals and objectives as well as perform with full efficiency. DHL,
international German courier parcel and express mail services organisation which delivers
approximately 1.3 billion parcels per year. Company was originally founded in United States
in 1969 and continuously increasing its services for reaching the worldwide Moto in 1970. It
is headquartered in Bonn, Germany. It is performing its function worldwide where the
founder of the organisations is Adrian Dalsey, Larry Hillblom and Robert Lynn.
DHL is originally operating within the industry of courier services where it offering its
services at worldwide level. Organisation is famous for its fastest delivery system as well as
international delivery system which helped the firm in maintaining a proper change within
different nations to serve its customer in a better way. The main process which is followed by
the organisation is airborne express delivery system where the current number of employees
working within the organisation is 380000. In relation to profit, organisation is increasing its
revenue but 2.7 % in 2015 as well as it is also improving in earnings before interest and tax
by 11.3% over 2015 to 1.5 billion (Benjamin, 2018).
As it is mentioned above that DHL express global headquartered is situated in Bonn,
Germany. In relation to the current market conditions, the major competitors of DHL are
FedEx ups and national post carrier like United States Postal services and royal mail. in
relation to United States Postal services DHL has a minor partnership with the organisation
which helps the DHL in delivering some small packages to the resistant through the network
of United states Postal services. These services are also known as DHL ecommerce and DHL
global mail which health organisation in improving its supply chain network but maintaining
relationship with USPS mail. DHL offer the worldwide services which include different kind
of deliveries to the country such as Iraq, Afghanistan, Myanmar, India and many more other
countries which allowed the organisation to expand its business strategies.
DHL founders of always believe in bringing innovation within the organisation this is
because innovation is an important part of the firm. innovation help the organisation in
achieving goals and objectives in an appropriate manner by reducing the wastage of resources
and improving the performance of the phone by improving the quality and services which it
offered to the customers within the market. Under the process of innovation help purchase the
street scooter company in December 2014. It is a small manufacturing organisation which is
famous for manufacturing electric vehicles (Bruijl, 2018). The major concern of DHL for
purchasing this electric organisation is to bring innovation within the services of the
organisation as well as fulfil the requirements of the firm related to corporate social
responsibility. Under this function organisation prefer its long term goals of reaching zero
emission in the delivery operation. For this organisation set target that it has to produce 2000
vehicles by the end of year 2016. This is also an innovative idea because electric Van with

much greater range are the perfect system which can be implemented by the organisation to
replacing its old system of petrol cars.
In relation to fulfilment of corporate social responsibility of the organisation towards
the society and environment, DHL is performing its roles and responsibilities in an
appropriate way where the organisation has 4 interim goals to be achieved by 2025 related to
the reduction of emission of greenhouse gases and local air pollutants. All these goals related
to fulfilment of corporate social responsibility is are covered under the GO green program
plan of DHL. Frank Appel, CEO of DHL also stated that organisation is going on a mission
which is related to zero emission of the firm from the current time to 2050. This is a future
perspective goal of the organisation within the transport sector in which the firm is dealing
which help the organisation in increasing its community reach as well as fulfilling the goals
regarding global warming by less contribution of the firm factors impacting global warming.
In relation to DHL group, management within the organisation always follow proper
code of conduct where it use respect tolerance honesty and condor as a social responsibility.
Organisation used to provide guidelines which are applied to all the employees within the
firm so that they can perform in a proper code of conduct and achieve the organisation goals
in an appropriate way. organisation use a proper code of conduct system which is based on
the international agreements and guidelines which include the guidelines issued by universal
declaration of Human rights, the different conventions of the international Labour
organisation and global compact of United nation (George, 2019). This help the organisation
in achieving a proper code of conduct within the firm where it also use the fundamental
principle which are observed under the Human rights equal opportunities transparency and
players trends in the battle against the discrimination, bribery and corruption.
In relation to DHL, the management within the organisation always invest in trend
research and solution development so that it can easily collaborate with the current business
environment and can achieve the business objectives in appropriate manner. In relation to this
DHL also use innovation centre where a separate research and development department is
formulated by the organisation and used by the organisation to develop different research and
innovative ideas in relation to improving customer relations and services of the firm.
DHL is operating in a highly competitive market within the courier service industry
where there are various organisations which are also providing equal services to DHL. It does
help DHL in maintaining a separate image within the market as well as achieving its goals
and objectives bus serving in more than 220 countries at a global level. According to the spot
analysis of DHL it can be seen that organisation has various kind of weaknesses opportunities
and threats within the market in which it is operating (Goedeke and Fogliasso, 2020).
The major strength of DHL is its large network Innovation and strong brand equity.
The largest network feature of DHL is because it is serving in more than 220 countries which
have the organisation in making larger level of connections which also provide advantage of
working as a global player. Innovation is also key strength of DHL, this is because
organisation projects itself was leading logistics industry. This is because it develop
innovation centre which provide a platform to the customers and different stakeholders in

imaging with experts. Logistic solutions projects like smart sensors and others will help the
organisation in managing this innovation centre (Ardley, Taylor and Hardwick, 2020). Strong
brand equity is also a strength of organisation this is because DHL is ranked 77 on the best
global brand ranking by inter brand in 2016 with the brand valuation about 5708 dollar.
There are different kinds of weaknesses of DHL which are related to limited market
share growth, require heavy investment, dependency all the external agencies and
dependency on regulatory bodies. the major weakness of the organisation limited market
share growth this is because the market is highly competitive where the share growth become
difficult especially in case of large local competitors. The centre also require heavy
investment which impacting on the performance of the organisation. In this organisation
require high level investment which requires a return on investment which is not intermediate
in case of DHL. Another main weakness of DHL is that the price of goods delivery is usually
higher as compared to express mail service. Due to this weakness it becomes difficult for
DHL to attract customer for their business. Also, the competition intensity in the sector is
rising which is creating issue for the company to change their prices (Prieto, Phipps and
Kungu, 2020).
Main threat of DHL is that the density of competition is rising at rapid scale such as it
has many computers in market which are TNT UPS, FedEx etc. These computers are coming
up with new strategies which can dominate the market of company. Another threat is that it is
located globally which leads to higher operating expenses due to which they are using old
technology and which can lead to higher cost of production. As in 2015 they have changed
their strategy of their business and have divided business activities into two main areas which
are logistic as well as mail delivery. Because of this access many other new opportunities in
market.
STP signifies segmentation targeting positioning of company full stop it is necessary
for business organisation to target last number of customer for achieving profit margin in
future period of time. It help in increasing brand image of repetition of company in front of
customer at Marketplace full stop therefore the company adapt STP analysis which is going
to be mentioned as Segmentation, the organisation focuses on segmenting its market as per
age Lifestyle or education as well as income of an individual person that help in targeting
large number of customers during the particular phase of time period. Therefore It helped
them in increasing brand loyalty and trust of consumer towards product as a service is
provided by company. Targeting here in the organisation focus is on targeting ample of
customer towards their product is a list of businesses which is provided by company. The
main focus is to achieve leading position at Marketplace. They also focuses on conducting
market research in order to analyse the need of customer that help in satisfying providing
them product as per their need in order to satisfy them (Duncan, 2020).
Positioning signifies building the brand image in the mind set of customer at
Marketplace full stops it helps in achieving competitive advantage of a rivalry that
Marketplace full stops the organisation conduct appropriate research in order to analyse
competitive strategy adopted by competitive forms that help in increasing success as well as

growth of Organisation in future period of time. It also helps in building appropriate strategy
for satisfying the need of the customer. They provide innovative and unique product with
customer for satisfying their name therefore the company adopt STP analysis for targeting
ample of customer at marketplace.
There are various factors which impact the marketing system of DHL. This is because
company is going to use a proper management system within the firm which is innovative
system to manage different individuals and courier services for eliminating the human error
within courier services. For improvement within the courier services of the organisation the
management staff uses a newly formed software which help the company and dividing the
work according to the area so that it can easily implement a particular strategy on single
market. There are also very scared of factors which are related to the performance of DHL
within the market which used to be identified by the management of the firm. These are
political social economic and environment factors which are mandatory for the management
of the organisation to be identified for increasing the opportunities as well as taking
corrective actions regarding the courier services of the firm and improvement within the
customer satisfaction (Denoncourt, 2020).
In the end it can be seen from the information that there are various factors which are
directly related to the performance of DHL within the courier industry. In the current market
situation, DHL is performing at fuller efficiency with proper utilisation of resources so that it
can achieve the goals and objectives by combining all the resources. This is helpful to the
organisation because it developed the chances of success by using the proper internal analysis
as well as marketing approaches of the production services.

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