Strategic Management Analysis: DHL's Competitive Advantage Essay

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This essay provides a comprehensive strategic management analysis of DHL, a global logistics company. It examines DHL's market position, competitive advantages, and strategic initiatives, including its focus on innovation, CSR (Corporate Social Responsibility), and STP (Segmentation, Targeting, and Positioning) strategies. The essay delves into DHL's strengths, such as its strong brand equity and global network, while also addressing its weaknesses, such as market limitations and the need for significant investment. It explores the company's responses to market threats and opportunities, including political environments and the launch of new products. Furthermore, the essay analyzes DHL's marketing channels and STP techniques, highlighting how these strategies contribute to customer satisfaction and brand image. The analysis also covers DHL's commitment to sustainability, including its zero-emission goals and the implementation of green initiatives. The essay concludes by emphasizing the importance of innovation, ethical conduct, and strategic investment in DHL's continued success within a dynamic global market. This essay is a valuable resource for students studying strategic management and business development, offering insights into DHL's approach to navigating the complexities of the global logistics industry.
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Strategic Management
(Assessment 1)
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Table of Contents
Essay................................................................................................................................................3
REFERENCES................................................................................................................................8
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Essay
The current marketing situation tends to change as per the improvement regarding the
prominent issues, competition and challenges within the market area undertaking various factors.
In regard of this, for having prominent and smooth survival in market, it is important for
company to effectively focus on the probable management of strategies undertaking the
achievement of suitable goals and objectives in terms of performing with full potential. Along
with this, DHL is considered that tends to undertake approximately 1.3 billion parcels each year
and company was founded in US in 1969 in order to enhance their overall services in order to
reach at the global level. Along with this, organisation also need to perform suitable functions at
the global level and the founder of entity is Adrian Dalsey, Robert Lynn and Larry Hillblom.
Away with this, DHL also tends to effectively operate their courier services in order to
provide suitable services at the international level. Apart from this, company prominently well
famous for the fastest delivery system which is helpful for them to maintain suitable change for
several nations in order to offer suitable services to their customer in effective manner
(Velikorossov and et. al., 2020). This process tends to followed by company for airborne express
delivery system for the existing number of workforce who tends to work in company which is
around 380000. In regard of effective profitability, organisation tends to enhance their total
revenues by 2.7% in 2015 and also leads to improve their earning before interest.
Along with this, it is mentioned in the preceding part that DHL leads to express towards
the global headquarter undertaking the prominent location in Bonn, Germany. In regard of
current market conditions, the suitable elements of DHL undertake FedEx ups for the national
post carrier undertaking the United States Postal services. For this, DHL also tends to have
effective minor partnership for the company which is helpful for respective company in terms of
delivering small packages regarding the effective resistance by the overall network of US carrier
services (Teece, 2019). Along with this, prominent services are well known for DHL online
platform and DHL international mail services for the health company to enhance the overall
supply for the chain networking in order to maintain effective terms with USPS mail. Besides
this, DHL also leads to provide suitable services at the national level by considering the several
kinds of nation including, Myanmar, Afghanistan, India and so on that tends to allow
organisation to effectively expand their prominent business strategies.
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Apart from this, the founder of DHL tends to believe regarding the effective bringing of
unique and innovative things for company which is considered as the essential part of company.
For this, innovation is helpful for company in terms of accomplishing their suitable objectives
and goals to reduce wastage of prominent resources and also tends to improve the performance
of company by undertaking the effective quality and services which is offered to their customers
respectively. Along with this, the suitable process tends to consider prominent innovation which
is useful in order to have effective purchase for the vehicle of company and undertaking the
small production organisation which is also known for the developed electric vehicles. In regard
of this, the prominent concern of DHL is to have suitable purchase of electric commodities as it
leads to bring prominent innovation in the working and suitable services of company. It also tens
to undertake the prominent growth and development of company regarding the CSR (Okumus
and et. al., 2019). Besides this, the effective function of company also tends to prefer things for
the long term goals and objectives in order to reach towards the zero emission for the delivery
operations. Besides this, organisation also tends to set suitable objectives and standards in order
to develop 2000 around vehicles at the end of 2016. For this, the innovative ideas is important
for the electric van considering the suitable range and suitable execution of perfect system for the
better working of company in terms of replacing old petrol car system.
Despite from this, the prominent accomplishment of CSR on the side of company and its
overall society and environment, DHL leads to suitably perform concerning roles and
responsibilities in prominent way by which organisation tends to have effective interim
objectives which are being accomplished by 2025 with the suitable reduction of emission of
greenhouse gas and local air pollutants. Besides this, the effective objectives are developed by
considering CSR which is undertaken as the GO GREEN programmes and strategies for
company. Despite from this, the CEO of DHL Frank Appel, depict that organisation tends to
undertake its overall mission which is concerned with the Zero emission of an organisation from
the current time to 2050. in relation with this, undertaking the effective perspective of future and
concerning objectives of company they tends to depict suitable deal which is helpful in order to
enhance the overall community in order to fulfil the concerning goals which are related with
global warming by minimum contribution of company (Wan and et. al., 2019).
Away with this, DHL leads to effectively follow prominent code of conduct regarding the
suitable use of tolerance and honesty as the prominent CSR for company. In relation with this,
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organisation also tends provide suitable guidelines which are effectively applied to their
workforce by which they can perform under the suitable code of conduct to achieve prominent
objectives and goals. Along with this, company also leads to consider suitable code of conduct
which depends on the international agreement and suitable guidelines which are issued by the
universal statement for the global compact of the United States (Wang and et. al., 2020).
Therefore, it is helpful in terms of achieving prominent code of conduct by considering the
effective use of fundamental principles which is identified by the suitable human rights in order
to provide clarity and equal opportunities in order to fight battle against the discrimination and
corruption.
In relation with DHL, their overall management tends to undertake effective investment
in terms of having suitable solution and research regarding the prominent and development in
order to collaborate with existing business environment and tends to achieve their suitable
business objectives in an effective manner. For this, DHL tends to opt effective unique centre by
which they tends to conduct effective research and development for the formulation of strategies
of company and also tends to use it for company to develop suitable research and unique ideas to
improve their customer relations and services of company (Darling and et. al., 2019). In relation
with this, DHL tends to operate with in the competitive and dynamic environment by
undertaking the courier services by undertaking several organisations to provide suitable services
to DHL. In regard of this, it is useful to maintain good image in market and also tends to
accomplish prominent objectives and goals by providing suitable services in more than 220
countries at the international level. Along with this, DHL also leads to undertake various types of
weaknesses, threats and opportunities of market in which they operate effectively.
Besides this, the suitable strength of DHL is for their prominent innovation and strong
brand equity undertaking the wide networking features of an organisation which is because of
essential serving in more than 220 nations in regard of making prominent level of connection by
providing effective benefits of working for the global players. Along with this, the unique and
innovation depict the strength for DHL due to the suitable project of an organisation and tends to
consider logistics sector. It is because of effective growth and development of innovation centre
that leads to offer effective platform of customers and several stakeholders. Besides this,
logistics solution of the project undertake smart sensors which is helpful for company in terms of
managing their innovation centre (Cescon, Costantini and Grassetti, 2019). Besides this, the
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strong brand equity is prominent for company and by which DHL ranked for 77 which is quite
best for the brand ranking undertaking the brand in 2016 for the brand valuation considering the
5708 dollar.
It tends to depict suitable and several weaknesses of DHL which are related with limited
area of market, heavy investment and growth for the external agencies for the regulatory bodies.
In regard of this, the significant weaknesses of an organisation which is identified because of
competitive market that tends to share suitable growth which become difficulty for the large
local competitors (Ketchen Jr and Craighead, 2020). It also tends to need suitable level of
investment regarding the return on investment which is intermediate for DHL. Besides this, DHL
depict the suitable price of products regarding the effective comparison for the expressing the
mail services. Due to the suitable weaknesses, it leads to depict the challenges for company in
order to attract large number of customer and also tends to represent the intense competition to
enhance and create issues for company in terms of having change in the pricing strategy.
DHL is the fastest developing company who tends to accomplish growth and success
with the help of various strategies for their customer base. It also tends to depict the suitable
threat for company in terms of launching new products in market. For this, suitable launch of
prominent machines tends to become quite dominate for the industry for having effective
working. Moreover, the other threat for company is with the political environment that tends to
prevail the global market. It also tends to lead to enhance the operating expenses of company in
order to serve at the global level to their potential customers. In 2015, company tends to develop
effective strategies for classifying their working in several departments considering the effective
logistics and mail delivery because of which company tends to identify the effective growth
factor in various fields.
In terms of organising STP undertaking the marketing segment of company and for this,
organisation also tries to effectively use marketing channels for the effective and success
development of customer base. It is also useful for company to enhance the profit margin of
company regarding the suitable management of STP technique. For this, Segmenting technique
is useful for company with prominent management of STP tools. For this, these tools are useful
in terms of focusing on various groups of customers on the grounds of their lifestyle and age. As
it is useful to target audience and offer them suitable products as per their preferences. In terms
of targeting technique which is useful for company by engaging and targeting the focused group
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of customers and also provide them various products which is available for the purpose of
business. It is also helpful for company in terms of leading at the market area and also tends to
focus on the research and development on the grounds of identifying the preferences of
customers in dynamic environment.
In terms of positioning which is useful for developing effective brand image of company
undertaking the mindset of customers by which customer tends to shift to the another brand. It is
also useful in terms of accomplishing the competitive advantage that tends to improve the growth
factor of company for their future (Simandan, 2019). This strategy is helpful to achieve proper
satisfaction of customers. Moreover, STP is essential to perform in terms of maintaining the
brand image among customers as it tends to add unique products for the effective offerings of
customers.
It depict suitable factors that tends to impact the working environment of company and
their marketing system. In terms of DHL, organisation suitably focus on effective marketing
channels which is useful to improve the customer satisfaction. In regard of this, courier services
tends to effectively devise suitable strategy in terms of engaging with the allocation of products
and services as per the defined areas which are useful for management for the suitable addition
for the value and quality methods of working execution (Afanasieva and et. al., 2020). It is useful
for company in terms of using in terms of diverse resources of company regarding the
accomplishment of objectives. For this, the management of DHL tends to focus on the effective
identification of overall progress of company which is useful in terms of finding the deviations
regarding working of courier services. In regard of this, they tends to make sure the prominent
growth and opportunities in terms of enhancing the customer satisfaction.
Lastly, it tends to identify the DHL in order to effectively use suitable resources to
maintain and develop strategic benefits. In regard of the existing market situation, DHL tends to
opt effective expansion strategy with effective use of resources regarding the value chain
network which is useful for effective combination of efforts for the dynamic workforce for
following the marketing approaches in order to identify the internal working conditions. For this,
company tends to identify several opportunities in order to make effective use for developing
successful way regarding the accomplishment of goals of company.
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REFERENCES
Books and Journals
Afanasieva, O and et. al., 2020. Strategic Management Mechanism of Innovative Development
of Industrial Companies. Academy of Strategic Management Journal, 19(4), pp.1-7.
Cescon, F., Costantini, A. and Grassetti, L., 2019. Strategic choices and strategic management
accounting in large manufacturing firms. Journal of Management and
Governance, 23(3), pp.605-636.
Darling, E.S and et. al., 2019. Social–environmental drivers inform strategic management of
coral reefs in the Anthropocene. Nature ecology & evolution, 3(9), pp.1341-1350.
Ketchen Jr, D.J. and Craighead, C.W., 2020. Research at the Intersection of Entrepreneurship,
Supply Chain Management, and Strategic Management: Opportunities Highlighted by
COVID-19. Journal of Management, 46(8), pp.1330-1341.
Okumus, F and et. al., 2019. Strategic management for hospitality and tourism. Routledge.
Simandan, D., 2019. Iterative lagged asymmetric responses in strategic management and long-
range planning. Time & Society, 28(4), pp.1363-1381.
Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective. New Zealand Economic Papers, 53(1), pp.1-43.
Velikorossov, V.V and et. al., 2020. Strategic management.
Wan, W.M.K.F.B and et. al., 2019. Strategic management in fatwa-making process. Academy of
Strategic Management Journal, 18(4), pp.1-6.
Wang, Z and et. al., 2020. Strategic management of product recovery and its environmental
impact. International Journal of Production Research, pp.1-21.
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