Stakeholder Analysis of DHL's Entry into the US Courier Market

This discussion board post examines the entry of DHL into the US courier market and its impact on various stakeholders. The assignment analyzes the perspectives of Federal, state and/or local governments, FedEx and UPS management. From the perspective of the government, the entry of DHL would mean more jobs and taxes, along with enhanced competition and service quality. However, from the perspective of FedEx and UPS management, the entry of DHL, a large foreign company, may lead to price manipulation, job losses, and the need for costly investments in new technologies. This analysis provides insights into the strategic implications of market competition and stakeholder responses.

Oligopoly 1
Assessment Task 1 – Project Outline
Research in Business
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The case basically discusses about the entry of DHL in USA and the perspectives
that would be important from a competitor's viewpoint (dhl.co.in, 2019).
From the Federal Government or local government's perspective, they would
definitely support the idea of DHL entering into the USA's courier, postal and parcel services.
DHL entering the market would mean creation of more jobs for the US people. Moreover,
creation of more jobs and entry of a huge company like DHL would mean more professional
and corporate taxes for the federal and local governments. Also, having more players in the
market would avoid the creation of monopoly market and more competition would also help
to enhance the services for the customers. The pricing would also be competitive and low for
the end consumers. A fair competition in the market will improve quality of delivery of
couriers and also facilitate better use of technology (economicsonline.co.uk, 2019).
However, from FedEx and UPS management's perspective, they would choose to
oppose the entry of DHL. DHL, being a huge foreign company may try to manipulate prices
and keep them as low as possible initially. This can move the customers of FedEx and UPS
towards DHL, causing huge financial losses for FedEx and UPS and effectively job losses in
the country. DHL may also bring high tech equipments and technology for courier and parcel
delivery such as robotic warehouses, augmented reality, drone based parcel delivery, etc.
Hence, FedEx and UPS may have to make urgent costly investments to sustain in market.
References
dhl.co.in. (2019). DHL express. Retrieved April 15, 2019, from www.dhl.co.in:
https://www.dhl.co.in/en/express/shipping.html
economicsonline.co.uk. (2019). Oligopoly. Retrieved April 15, 2019, from
www.economicsonline.co.uk:
https://www.economicsonline.co.uk/Business_economics/Oligopoly.html
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