Strategy Analysis: DHL International Diversification and Alternatives

This report provides a comprehensive analysis of DHL International's strategic management, focusing on its diversification and alternative strategies. The report begins with an executive summary, followed by an introduction that outlines the report's objectives and the context of DHL's operations. It then delves into DHL's current diversification strategy, examining its expansion into various services and regions. The core of the report recommends a diversification strategy for DHL, specifically exploring the potential of an e-shop in Ireland. Alternative strategies are also proposed, including marketing mix strategies such as product, pricing, placing, and promotional strategies, with recommendations for product enhancements, competitive pricing, social media marketing, and influencer engagement. The report concludes with an evaluation of DHL's culture and leadership, emphasizing their role in supporting the implementation of the proposed strategies. The report aims to guide DHL in maintaining competitiveness and capitalizing on growth opportunities within the logistics and e-commerce sectors. The analysis includes a focus on how DHL can leverage its existing strengths, particularly its logistics and supply chain capabilities, to enhance its market position.

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Strategy management
[Type the document subtitle]
3/30/2020
student name

Strategy management 1
Executive summary
DHL international is one of the American German parcel, express mail, courier service hi
which reflect the support of German logistic company. The company has considered express
shipping, technological advancement through logistics that is import and export services and
technology advanced payment system. The focus of the report will be towards the
Diversification strategy of the company along with the various alternative strategies in order
to gain competitiveness. . For the diversification strategy of the company the company must
consider continuing enhancing e-commerce activities and diversify in this division. For
further diversification the recommended diversification strategy in this report is E-shop in
Ireland.
Alternative strategy that is recommended to DHL express included various marketing mix
strategies. Product strategy has been recommended to the company that additional benefits
must be offered for the consumers. The company must hire influencers like bloggers, You
Tubers on movie star so as to induce people and create brand awareness among consumers
across the globe. The recommended placing strategy for DHL includes using social media
platform to market and sell the products. The implementation of strategy would be affective
considering the culture and leadership of the company which will provide support in
implementing the strategy developed.

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Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Diversification strategy..............................................................................................................3
Alternative strategies..................................................................................................................6
Cultural and leadership evaluation.............................................................................................7
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
Business strategies reflect the success factor for an organisation. The company is always
looking for opportunities and for which a company needs to exploit and implement strategies
in order to gain the advantage. Considering the strategic management of the organisation the
report purpose is to evaluate an organisation culture and leadership which will reflect
strategic management of the company. The focus of the report will be towards the
Diversification strategy of the company along with the various alternative strategies in order
to gain competitiveness. The organisational considered to be discussed as a case in this report
is DHL international in order to better understand the diversification and other business
strategies (Baker & Bowen, 2015).
DHL international is one of the American German parcel, express mail, courier service hi
which reflect the support of German logistic company. DHL express has been offering
various tracking, shipping and courier delivery services to the consumers across the globe.
The company has considered express shipping, technological advancement through logistics
that is import and export services and technology advanced payment system. The company
has been offering guaranteed one-day delivery and various other options for non-urgent
parcel options. It can be said that the rate for courier could depend on the time that the
customer is willing to deliver the product. Considering the export and import services of the
company the company has been offering time definite delivery, same day delivery, day
definite delivery which is different for consumer’s suitability (dhl.ie, 2019). The
diversification strategy for the company will be analysed and recommended through the
report further.
Diversification strategy
A strategy that a firm consider while developing its business is considered to be a
diversification strategy which involves various organisational score across various market
sectors and products. It is part of growth strategy which is helping of form or a business to
increase its opportunity and grow. Diversification reflects a method for an organisation to
manage the risk that is due to change in specific portfolio and various investments pertaining
to that portfolio. There are various types of diversification strategies like development of new
product, new technology licensing, updating the market, changing the distribution of products

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and alliances are also set to be kind of diversification (Muller & Nagle, 2017). There are three
main types of diversification strategy that is concentric diversification, horizontal
diversification and lateral diversification. DHL has already considered diversification strategy
when it comes to product and service diversification and regional diversification. Therefore
the company has expanded the products and services from shipping, Courier, personal to
various exports and import services along with domestic services like local express delivery.
Other than this the company has also consider optional services like go Green Services,
packaging services and insurance services. The company had also considered customer
support services for the customers considering the paperwork and guidelines for customs
formalities considering import and export procedure (dhl, 2019).
Some of the major trends that have considered and help being a leader in digitalised world for
DHL express include four aspects that are some of the major trends that have considered and
help being a leader in digitalised world for DHL express include four aspects that are
digitalisation, e-commerce, globalisation and sustainability. The logistics system has a very
diversify logistic portfolio which reflect express, Post and parcel Germany, global
forwarding, supply chain, e-commerce solution and freight. For the diversification strategy of
the company the company must consider continuing enhancing e-commerce activities and
diversify in this division (dhl, 2019). This division has found to be reflecting opportunities for
dynamic growth as a solution for logistic value chain of a company. From inbound logistic to
delivery of the goods and return of the goods it has been considered a valuable element. The
company e-commerce supply chain is said to be a differentiator for the company. For further
diversification the DHL express will consider modernising integration of new technologies,
IT system, offering employs targeted training and development programmes which will let
them steadily improve the process, services and standards. Moreover greater automation will
improve the efficiency and improve transaction process will help the organisation to further
grow. For instance, considering robotic program and warehouse automation will reflect
increase in operational value and efficiency of the firm. Other than this advanced enquiry
come through fostering routing optimisation, operational value prediction and through use of
optimise resource planning the company will be able to diversify their logistics systems and
enhance the efficiency through the same (Betton, 2017).
Considering this e-commerce diversification strategy for the company, the company will
move forward using its technological capabilities and development of key technologies like
IOT and offering them to all the divisions of the company so as to push forward and leverage

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the strength of digitalisation. Therefore it can be said that the further diversification of DHL
express will be in related industry as the company has been leading in logistic industry and
must diversify further within this industry so as to sustain as a leader and gain competitive
advantage (Earl, 2016).
Considering this diversification strategy the focus will also be towards import and export of
goods and services using e-commerce platform. This diversification will reflect DHL E-shop
business across the globe. For this report the focus of the diversification of the shop will be in
Ireland market. The company has already initiated once such application in Africa. In order to
diversify Island the shop by DHL it will be operated using various alliances within Island so
as to enter into this market considering digital retail application. This arrangement will allow
the shop users to directly purchase goods and services from the application or any website
that is part of applications global partner. The purpose of the shop will be to increase the
speed of delivery what the consumers every day retail products along with make the delivery
economically possible for various partners. Amazon and other online websites could be in
partnership through this diversification strategy for DHL E-shop. Other than this the payment
method would also be included using various online and digital payment options. Digital the
shop will be leveraging the activities of shipping to its existing delivery structure which
would be act as a support to be diversified division through DHL express courier service
(Jaworski, 2018).
Through this diversification the users will easily be able to shop any product from Amazon or
Macy’s.com or such popular retail websites and get the delivery, ship to their doorstep in
Ireland. Other than this this will also include offering various incentives and discounts to the
digital consumers for the first time shopping from digital E shop in Ireland. This reflects an
opportunity to the organisation to expand the business using dear major strength that is the
logistics system and the supply chain of the company while providing base to this division of
e-commerce and expand this division in order to gain competitive advantage. The application
could be easily available on Google play store for android users and Apple store for the
Apple users. Mobile commerce has become the most usable platform for the organisation to
reach up to the customers. Other than this the future scope for this diversification strategy of
the shop will also exist to entering into unrelated bill industry of retailing which will not only
include acting as a delivery partner with the e-commerce websites in retail market but also
become the retailer and offer largest amount of consumer goods and retail goods to the
consumers directly. Being partner with DHL e shop, not only the largest retail websites but

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the small manufacturers and retailers could gain advantage by reaching out to large number
of consumers within the nation and consider exporting or importing the products outside the
domestic boundaries (Oral, 2014).
Alternative strategies
Alternative strategy that is recommended to DHL express included various marketing mix
strategies
Product strategy
It has been recommended to the company that additional benefits must be offered by
company for the consumers purchasing its services and products across the globe that is for
import and export facilities. This may be auto liability insurance which will increase
assurance with the consumers and increase the confidence among the company by various
stakeholders. Other than this it is recommended that the company must consider credit and
delivery, helpline services and after sales services in order to enhance customer satisfaction.
Company must consider entering into unrelated market pertaining to e-commerce that is
entering into retail market for trade of goods and services in retail industry. Another strategy
recommended pertaining to product designing is the packaging of the product that must be
appealing to the customers in order to target customers with sending gifts to their loved ones
within and across the nation (Muller & Nagle, 2017).
Pricing strategy
The current pricing strategy of the company reflects competitive based pricing strategy.
However the recommended strategy reflect include of allowances and discounts for a short
span of time so as to attract large number of consumers and gain market share is specially in
case of the shops which is recommended previously. Other than this the company could also
use psychological pricing so as to reflect a lower price as per the consumer perception.
Through these alternative strategies the company will be able to gain competitiveness within
industry (Chu & Liu, 2017).
Placing strategy
As per the current placing strategy of the company it is using to marketing channels that is
direct selling an online website. However the recommended placing strategy for DHL

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includes using social media platform to market and sell the products. It has been identified
that most of the potential consumers or audience are spending their time on social media
platforms which may generate more opportunity for the company to increase customer base.
Moreover the company could alter or improve online website to make it easier to use and
user-friendly (Oh, 2015).
Promotional strategy
The company has been using multimedia channels however the company has not focus
largely on social media platform. The company must hire influencers like bloggers, You
Tubers on movie star so as to induce people and create brand awareness among consumers
across the globe. Other than this search engine optimisation would be the best way to target
potential audience and encourage the customers to purchase products and services from DHL.
The brand awareness and the brand recognition must be very high for DHL in order to get
orders from the consumer’s at large quantity (Feng & Chari, 2018).
Process strategy
Considering the recommended process strategy for the company it is advice for the company
to consider bulk delivery of goods especially in case of import and export of the products.
Moreover the company could consider various distribution modes in order to offer price
differentiation to the customer like import or export through air and Maritime or various
transportation ways so as to increase the efficiency and suitability of the package that is being
delivered. Moreover this may also reflect cost efficiency for the company which will
eventually lead to lower prices to be offered to the customers (Aksoy, 2018).
Customer relations strategy
It is important to understand the needs and expectations of customers and the feedback from
the best way to understand the changing consumer behaviour so as to keep the process
improving. This may also include building relations through interaction with the customers,
brand reminding through email marketing (Bruns, 2013).
Cultural and leadership evaluation
Organisational culture and organisational leadership is two major aspect of a company that is
impacting strategic evaluation and strategic implementation. Considering the leadership and

Strategy management 8
cultural norms that has been identified for DHL express include learning and supportive
culture. Considering the case of DHL the company consider developing the next generation
leaders. This reflects the initiative of the company towards engaging students and young age
workers in order to help in their career or building their futures pertaining to the business
areas. DHL is considering various individual to be part of its business considering various
ways. The company is considered to be organised with every aspect from formalise
engagement task like taking sessions in schools so as to interact with them related to
relevance of career and work in the logistic industry. The programs like outward bound, teach
first and Apprenticeship programme have also been considered. Through this case it can be
said that the company is really interested in gaining new knowledge, new skill sets and
engage young individuals as part of the employment process. This reflects an open culture
however formal culture of the company (managers.org.uk, 2016).
The company is willing to consider innovation and new ideas from youngsters so as to
consider latest update and ideas which are suitable as per today’s generation. The company
reflect that young people and believe in young individuals when it comes to business
diversity considering the set of skills available to the organisation. The company believes in
digital literacy among the next generation leaders and provision of new perspective towards
the complex problem solving, encouraging culture of innovation and new ideas. Considering
the perspective of organisation it has been analysed that company is currently being
concentrated towards formal work experience. Along with this constant changes in financial
aspects are considered by the company which reflect insuring that the business and young
individuals taking education can gain advantage out of their experience. Organisational
culture also reflects support by the management. Moreover the organisational culture that
reflect advice to the employees of the company include get management by in which reflect
the culture of support from top management in order to get engaged employs and preparation
of the skill set for employs. Another recommendation is recognition of efforts from the
employs and provision of benefits. In order to encourage employees and increase innovation
in the organisation the cultural reflect the beneficial and incentive culture which reflect revert
for the employs were recognised to be supportive, additional effort towards coaching new
individual or employees (Davis et al., 2016).
From evaluation of this culture, understand from this case it can be said that the company is
looking for diversification strategy and is ready to implement the same along with which the
management will be supportive and implementing new strategies and process. Since

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innovative culture has been identified the adaptability to new ideas and new execution of the
process would be quicker. Moreover it can be said that the resistance to change would be
lower as compare to other organisation due to the supportive innovative culture of the
organisation (Chatzoglou & Chatzoudes, 2018).
The leadership strategy, leadership attributes and leadership style could be evaluated through
an article by Forbes which reflects the way DHL has instilled a mentality among its
employees pertaining to customer focus. The company consider leaders to be affectively
learning and influence the mentality of the employs towards the customers and the work in
the organisation. This logistic company have considered focusing towards train employees
every day and towards specialisation of every employee is concerning certified international
specialist. This reflects about changing the culture in the organisation. Therefore it can be
said that leadership and culture is directly linked to each other and are supporting one another
while attempt to implement a strategy. The company try to re-focus towards the customer
centricity in which reflects its brand attributes towards service excellence, global expertise
and international focus. This reflects the leadership styles and leadership is for mentally
prepared to involve all the employs in this change and improvement or refocus (insidehr,
2020).
This reflects implementation of training from all the managerial levels that is from top to
bottom. This initiated by training the leaders at the initial stage which reflect leadership
training and leadership development so as to improve all the employs competencies in the
organisation. As per the article it has been identified that the organisational culture of this
logistic company is the major sustainable competitive advantage. This has been supported by
the leadership team and attributes of the leaders of the company. This can be reflected
through employee engagement considered by the leaders of the organisation which increased
by 11% in 2018. Initiative taken by leader for successful employee engagement reflect active
leadership and provide training to the employees which improves the organisational cultural
as well. The leadership has provided a workplace environment to the employees in order to
make them feel valuable and inspire to present their best productivity and efficiency. The
company has invested in three major elements that is active leadership, employee training and
employee engagement (forbes, 2020).
Considering the leadership evaluated, the strategy instrumentation will include considering
training and employee engagement as the base of the implementation of strategy. For

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implementing a strategy it is important to have efficient workforce and recruited Employees
so as to he not only formulate the strategy but to implement at all the levels. For
implementation of the shops in Island and other areas of the globe it is important to have
affective employs which are trained and skilled enough to work under different work
environment and with different processing. The trusting culture of the organisation has
reflected getting the talent acquisition at right aspect. It has been identified that the culture is
supporting for recruiting best employs with a range of recruitment tool. Other than this the
leadership support in the organisation and help the organisation considering training to the
employees and management support to the employees has reflected efficient employee
development. This will help the Organisation in getting the strategy implemented effectively
and followed up effectively by the leaders (Doole & Lowe, 2008).
Conclusion
For concluding the strategic evaluation report of DHL express it can be said that it is one of
the popular logistic company that has been providing courier, parcel services across the
globe. Some of the popular activities or business division considered by the company are
import, export, optional services, parcel, e-commerce, and Courier. Considering the
evaluation of diversification strategy for the company the company has already been
diversifying considering the market development and expands its business in various nations.
However for further diversification the recommended diversification strategy in this report
was E-shop in Ireland. The opportunity in e-commerce has been identified for which the
diversification must consider and logistics system through E shop with partnership with
various retailers across the globe and providing the products with efficient cost and quick
delivery to the customers. Other than this some of the alternative strategies that have been
recommended to the company include change in pricing strategy to include allowances and
discounts rather than only considering competitive based pricing strategy. Other than this the
product Strategy recommended to the company include new product development, innovative
services and additional services to the customer like after sale services or helpline services.
Moreover placing strategy has also been recommended considering use of social media
platform to sell the products and services and increase the brand recognition among the
customers across the globe. Considering the change in process or recommended process
strategy included delivery of bulk products in case of import and export services considering
various transportation ways, it will be so as to offer price differentiation for the customers

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and make their logistics system more efficient and cost-effective. Considering the culture and
leadership of the company it has been identified that one of the sustainable competitive
advantage for the company is its organisational culture which is helping and supporting it
towards innovation, improvement, employee engagement, training facility and employee
development along with active leader’s development.