DP World: Strategic Position and Competitive Strategies Report

This report provides a comprehensive analysis of DP World's strategic approach, competitive strategies, and adaptation to the COVID-19 pandemic. It examines the company's vision, mission, and business segments, highlighting its focus on customer service, global trade, and digital transformat...Read More

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Contents
Introduction..................................................................................................................................2
Competitive strategies.................................................................................................................2
Strategic Approach Before and After Covid – 19.......................................................................4
Before Covid-19......................................................................................................................4
After Covid-19.........................................................................................................................4
Logistics gets a digital makeover............................................................................................5
Strategic Position of DP World...................................................................................................6
Conclusion and Recommendation...............................................................................................7
References........................................................................................................................................8

Introduction
DP World Ltd. is a holding company that operates and develops worldwide maritime terminals,
as well as provides logistics and related services. Dubai's governing royal family is ultimately the
owner of DP World. The company's chairman and CEO is Sultan Ahmed bin Sulayem.. The Asia
Pacific & Indian Subcontinent, Australia, America, Middle East, Europe, and Africa are the
segments through which the organization conducts business (Syed., 2019). DP World is based in
Dubai, United Arab Emirates, and in 1972 it was initiated with a single port. Since then, they've
grown to become the Middle East's largest marine port, with approximately 150 firms spread
across six continents with the following vision and mission:
Vision: the vision of the company is to become the customer's first choice in each of their
sites, and to improve the status of the surrounding communities and nations in which
they operate as global trade gateways by excelling in operations, sales, and customer service for
their clients.
Mission: Its mission is to deliver world-class port services while also running and managing
ports across the world. Through motivated and innovative personnel, they believe to supply their
clients with value-for-money, high-quality services. Workers will be given the tools they need to
make the most of modern facilities, technology, and resources while still getting a good return on
their investment.
The purpose of the report is to highlight the strategies being used by the company. The
approaches that Dp world has used in the past and after the pandemic Covid to provide all the
services to the customer. The report will also examine the strategic position of the company.
Competitive strategies
When looking at DP World's competitive strategy, there are four primary criteria to consider.
The company's top strategic aim is to increase long-term shareholder value. For instance, the
corporation establishes difficult but attainable financial goals that propel the organization
forward via means of strategy improvement. DP World also invests in the types of high-priority
terminals that will enable expansion and improved engagement with key stakeholders. The
company's second strategic aim is to provide clients with an effective and economical experience
(Ponce Andrade., 2019)

This objective is realized by dominating the global transportation sector with stable, high-quality
services that fulfill consumer expectations. The establishment of an efficient and safe framework
for global commerce management is the third strategic aim.
This approach has three components: DP World consistently controls risks and optimizes
performance, builds and maintains a sustainable and profitable portfolio, and implements an
appropriate investment plan that benefits both customers and the firm. The company's last
strategic aim is to create an atmosphere that encourages ongoing development and learning by
fostering a learning culture and an open work environment, as well as to preserve its status as an
"employer of choice" (Miller, & Verhoeven., 2020).
The growth of the digital world is the fourth differential strategy fold. They've also established
the Digital Freight Alliance, an online organisation that brings together freight forwarders from
all around the world on one platform, giving them access to new tools, routes, and services.
They've also put money on technologies in a completely unrelated field: DP World Cargo speed,
the world's first hyperloop-enabled freight system, was built through cooperation between DP
World and Virgin Hyperloop to allow rapid, sustainable, and efficient transportation of palletized
cargo throughout the world.
The hybrid technique allows for lower pricing than competitors while retaining a higher degree
of product quality. The hybrid approach combines distinctiveness and cost-cutting to provide
competitively advantaged products to customers. The ultimate goal of the DP world corporation
is to enable efficient cargo movement throughout the world by cutting prices, boosting speed and
transparency, and reducing environmental effects. The organization tries to make consumers'
lives easier by incorporating technology departments in their inquiries and product bookings.
They recognize that when it comes to moving your important goods, there is no one-size-fits-all
solution. That's why they provide cross-border multimodal and intermodal solutions that can help
customers to reduce emissions. All of this is backed up by cutting-edge technology that allows
customers to follow their shipments from start to finish.

Strategic Approach Before and After Covid – 19
Before Covid-19
DP World Ltd. is a holding company that owns and manages marine ports across the world, as
well as providing logistics and related services. The company's long-term strategic goal was to
include all stakeholders and maximize their value. Through strategy optimization, the company
developed demanding but doable financial targets that move the company ahead. Initially, their
major strategy was to gain a foothold among stakeholders and invest in high-quality terminals
that would aid in the company's expansion.
The organization has always strived to improve the lives of its consumers by delivering all of the
services they require. The firm's main goal was to give high-quality services to consumers in
order to turn them into priority clients and, by exceeding their expectations, to become the
number one supply and logistics company.
After Covid-19
The terminal operator said in its half-year results that its portfolio performed "better than
expected" in the first half of 2020, but that the near-term remained unclear. On a like-for-like
basis, sales fell 11.6 percent, while earnings before interest, taxes, depreciation, and amortization
(EBITDA) fell 4.8 percent. Additionally, it reported a 3.9 percent drop in volume, which is much
less than the industry-wide reduction of 10%. "The COVID-19 epidemic has surely resulted in
one of the most stressful moments in the industry's history," stated Sultan Ahmed Bin Sulayem.
The worldwide pandemic of 2020 had an influence on all of our lives, whether at work and at
play, whether it was directly or indirectly. It also compelled every company to rethink a lot of its
operations. Manufacturers, importers, and exporters in the global commerce industry must
rethink their supply networks and manufacturing points Lofland et al., (2018). Despite the fact
that I do not believe this has resulted in a reversal of globalization, the world may be changing.
Instead, the epidemic is motivating businesses all over the world to diversify their foreign supply
networks, increase their risk tolerance, and focus on growth prospects. Many people may be
considering producing goods closer to home.
The emphasis on technology and innovation has resulted in their firm being more robust than
ever in this new environment. They are combining this with significant physical assets as they

continue to evolve into a huge, data-driven global logistics enterprise. They seek to handle 10%
of the world's commerce with 136 enterprises in 61 countries and competent staff of over 53,000
individuals.
Logistics gets a digital makeover
The investment in digital platforms and automation to intelligently transport freight will provide
huge rewards while also making businesses' lives simpler. They debuted cutting-edge online
logistics tools and services in 2020, spanning global sea, land, and air transportation, and now
offer cargo owners and freight forwarders a new generation of goods and services. Because of
the interconnected network of platforms, freight forwarders, and indeed any company, may book
cargo shipments from anywhere to anyplace. They likewise settled the Digital Freight Alliance,
an internet based association that unites cargo forwarders from across the world on a solitary
stage, giving them admittance to a scope of imaginative innovations, courses, and
administrations.
As a result of the pandemic, they have accelerated the already scheduled implementation of these
new platforms. This meant they were in a good position to assist their clients in dealing with the
crisis's abrupt nature and, more importantly, to keep necessary the flow of food and medical
supplies. The corporation is also investing in hyperloop pod technology, which is a whole new
field. During the year, it made a significant stride forward by transporting its first passengers
Elsayed,et al.,(2017). They want to be a part of the possibilities that this mode of transportation
offers to connect markets and economies while also contributing to the global economy's
development.
The epidemic hasn't merely accelerated already-existing logistics and supply chain trends. It has
also demonstrated that technology is the most effective tool for navigating economic challenges.
The Digital Container Shipping Association distributed information and procedural principles for
an electronic bill of filling. This is essential for bigger work to normalize desk work and digitize
exchange. Cargo booking and monitoring are increasingly primarily reliant on online
transactions, and digital platforms are expected to grow in popularity in 2020.
This power of connectedness, which benefits both economies and people, is something we're
devoted to improving in ever-smarter ways. It will keep integrating acquisitions into our linked
network of ports, logistical firms, and economic zones. Worldwide reach positions us well to

lead the industry disruption, ensuring a brighter future for all cargo owners through smarter
commerce. The company will continue to guarantee that important commerce flows, ensuring
that societies have the resources they require to deal with the crisis. The globe experienced a
production shock in China at the outset of the epidemic, In Europe and North America, there was
a demand shock, which was followed by a supply shock. Our Chinese port's traffic has returned
after a significant dip in volume Mbonimana, & Kwikiriza, (2021).
Although globalization has not slowed, now is the time to assess the situation, change direction,
and re-calibrate supply networks and trade flows. In our increasingly regionalized, post-COVID-
19 environment, DP World is prepared to assist businesses and governments in maximising the
benefits of altering gravity levels. Port operators and shipping lines may be able to become much
more integrated within the supply chain by combining these digital capabilities with physical
infrastructure assets. Damco's air and LCL businesses were amalgamated with Maersk's logistics
division offering to meet its goal of becoming an integrated transport and logistics organization.
The move seeks to improve end-to-end service delivery and scale while also addressing changing
supply chain demands. In 2020, the company purchased many haulage and storage companies to
improve its land-based offering.
Strategic Position of DP World
This week, DP World issued its annual report for 2021, which demonstrated increase in both
sales and earnings. Within the report, it was made apparent that the firm expanded by 8.9 percent
in 2019, while market growth was at 5 percent. The corporation's net earnings grew to USD 675
million, up from USD 604 million in the prior year. The total revenue increased from 3.07 billion
USD to 3.41 billion USD.
The reduction in expenses, investments in quickly expanding markets such as Asia and Dubai,
and the fact that annual economic growth was stronger in the areas of the Middle East, Europe,
and the United States were the primary factors that contributed to the expansion of the firm.
hey ar"Now that they are over three months into 2021, it can be said that they have had a
reasonably decent start that has been in accordance with their expectations. It is thought that they
are in an advantageous position to take on more freight volumes. They established new terminals
in a variety of locations, including Brazil and Jebel Ali, the year before. This year, they plan to

build new terminals in Rotterdam, Turkey, and one new terminal in connection to the current
terminal in Mumbai. But the new projects also involve new investments, and this might lead to
the investments not being obvious in the results since they don't generate output until later,
which would be caused by the fact that the new projects need new investments "says Flemming
Dalgaard. The investment programme that DP World has planned for 2019 is perhaps in the
range of 1.4 to 1.7 billion USD.
The terminal operator is competing with other companies in an area where the environment has
become more difficult. Not to the extent that it has an effect on DP World, which, depending on
how the company classifies the business, is either the third or fourth biggest terminal operator in
the world. The two Chinese operators, China Cosco Pacific and China Merchants, are both
aiming to grow their businesses, which has contributed significantly to the rise in overall
competition. This strategy has been in existence for a number of years, but in recent times, it has
received more attention from the market. Meanwhile, the Maersk Group's terminal subsidiary,
APM Terminals, as well as the companies owned by MSC and CMA, operating under the names
TIL and Terminal Link, are taking on more important positions in the world of terminals.
Conclusion and Recommendation
the conclusion that is drawn from the reports is that the strategic approaches in DP World are
processes that are taken seriously. This is because the company establishes realistic goals in
accordance with its vision, and the company's measures strategy was to incorporate digital
makeover in order to reach out to their customers during the pandemic. The firm is now working
on the long-term viability of the ecosystem, and they are in the process of developing something
that will allow them to utilise energy that can be recycled from waste goods. The second key part
of the company's business strategy was to provide its products and services to clients at the most
competitive prices possible, with the goal of converting them into long-term clients.
It has been said that ports are the primary elements of DP World's business, and that they provide
three-quarters of the company's income. For this reason, monitoring port performance indicators
is one of the most essential suggestions that can be made. These indicators will demonstrate how
well the firm is progressing toward being the most successful transportation company in the
world. Higher management will have a better understanding of how the company runs as

consequence of resolving the difficulties of management and capital shortages, as well as
changing conditions in all of DP World's worldwide coverage ports.
References
Syed, S. 2019 Inside the DP-World in Asian Languages: Structures, movements, and debates.
In The Routledge Handbook of Asian Linguistics (pp. 147-164). Routledge.
Ponce Andrade, J. A. (2019). La motivación y la productividad de los operadores de grúa pórtico
en la empresa Dp World Callao, Callao 2019.
Miller, R., & Verhoeven, H. (2020). Overcoming smallness: Qatar, the United Arab Emirates
and strategic realignment in the Gulf. International Politics, 57(1), 1-20.
Lofland, J., & Stark, R. (2018). On becoming a world-saver: A theory of conversion to a deviant
perspective. In Cults in Context (pp. 159-180). Routledge.
Elsayed, A., & Khalil, N. S. (2017). Evaluate and analysis efficiency of safaga port using DEA-
CCR, BCC and SBM models–comparison with DP world sokhna. In IOP Conference Series:
Materials Science and Engineering (Vol. 245, No. 4, p. 042033). IOP Publishing..
MBONIMANA, G., & KWIKIRIZA, J. (2021). Efficiency of the Integrated Supply Chain
Management on the Stock Management in Rwanda. A Case of Dubai World Port Ltd. Social
Science Learning Education Journal, 6(10), 592-598.