DHL External Analysis
Company Overview
,
,
Company Overview
,
,
:
1. Apply the five forces model to the industry in which your company is based. What does this model tell you about the nature of competition in the industry?
Company Overview
,
,
:
1. Apply the five forces model to the industry in which your company is based. What does this model tell you about the nature of competition in the industry?
1. Apply the five forces model to the industry in which your company is based. What does this model tell you about the nature of competition in the industry?
Porter’s Five Forces Model Risk of Entry by Potential Competitors
aining Power of Suppliers
Intensity of Rivalry among established firms
Bargaining Power of Buye
Porter’s Five Forces Model Risk of Entry by Potential Competitors
aining Power of Suppliers
Intensity of Rivalry among established firms
Bargaining Power of Buye
Threat of Substitutes
Risk of Entry by Potential Competitors Low due to:
•
•
•
High cost of entry High existing brand loyalty amongst consumers High absolute cost advantage
Risk of Entry by Potential Competitors Low due to:
•
•
High cost of entry High existing brand loyalty amongst consumers
•
High absolute cost advantage
•
Customer switching cost
•
Government Regulations
•
•
Rivalry among established companies High due to:
•
Similar industry competitive structure
•
High industry demand
•
High cost conditions
•
High exit barrier
Rivalry among established companies High due to:
•
Similar industry competitive structure
•
High industry demand
•
High cost conditions
•
High exit barrier
Th re a t o f Su b s t it u t e Products
eeds
Th re a t o f Su b s t it u t e Products
eeds
Threat of Substitute Products Low due to:
High barriers to entry
Lesser new entrants
Lesser substitutes
Threat of Substitute Products Low due to:
High barriers to entry
Lesser new entrants
Lesser substitutes
Bargaining Power of Buyers Refers to the ability of buyers to bargain down prices charged by companies in the industry or to raise the cost of companies in the industry by demanding better product quality and service.
Bargaining Power of Buyers Refers to the ability of buyers to bargain down prices charged by companies in the industry or to raise the cost of companies in the industry by demanding better product quality and service.
Bargaining Power of Buyers High due to:
•
•
High dependence in consumers Switching cost is low in this industry, however for DHL, the company has high brand loyalty due to good and consistent services in delivery.
Bargaining Power of Buyers High due to:
•
•
High dependence in consumers Switching cost is low in this industry, however for DHL, the company has high brand loyalty due to good and consistent services in delivery.
Bargaining Power of Suppliers Refers to the ability of suppliers to raise input prices, or to raise cost of the industry in other ways, for example, by providing poor-quality inputs or poor service.
Bargaining Power of Suppliers Refers to the ability of suppliers to raise input prices, or to raise cost of the industry in other ways, for example, by providing poor-quality inputs or poor service.
Bargaining Power of Examples of Suppliers DHL suppliers:
- Planes and Transportation: - Powerful - Low number of substitutes due to low number of suppliers
- Packaging and Labeling: - Less Powerful
Bargaining Power of Examples of Suppliers DHL suppliers:
- Planes and Transportation: - Powerful - Low number of substitutes due to low number of suppliers
- Packaging and Labeling: - Less Powerful - High number of substitutes due to high number of suppliers
Nature of Competition •
Intense competition •
•
Competitors have similar business nature to one another DHL strives to serve consumers better in order to maintain their position as one of the leading logistic company in the industry
Nature of Competition •
Intense competition •
•
Competitors have similar business nature to one another DHL strives to serve consumers better in order to maintain their position as one of the leading logistic company in the industry
SWOT
SWOT
Source: DHL Company Profile (2009). Retrieved from www.datamonitor.com
2. Are any changes taking place in the macroenvironment that might have an impact, positive or negative, on the industry in which your company is based? If so, what are these changes,
2. Are any changes taking place in the macroenvironment that might have an impact, positive or negative, on the industry in which your company is based? If so, what are these changes, and how might they affect the industry?
Changes in the MacroEnvironment •
Technological Forces (Positive) Changes: Incorporate technology in the operating systems •
•
Effect: Safely delivering goods in a fast manner
Changes in the MacroEnvironment •
Technological Forces (Positive) Changes: Incorporate technology in the operating systems •
•
Effect: Safely delivering goods in a fast manner
Changes in the MacroEnvironment Social Forces (Positive)
Changes: GO GREEN! Effect: New delivery methods to satisfy current consumer trends
Source: Top 50 Supplier Chain Partners (2010). http://www.inboundlogistics.com/digital/top50green_digital2010.pdf
Changes in the MacroEnvironment Social Forces (Positive)
Changes: GO GREEN! Effect: New delivery methods to satisfy current consumer trends
Source: Top 50 Supplier Chain Partners (2010). http://www.inboundlogistics.com/digital/top50green_digital2010.pdf
Changes in the MacroEnvironment Social Forces (Positive)
Changes: Increase trend of online shopping
Effect:
Changes in the MacroEnvironment Social Forces (Positive)
Changes: Increase trend of online shopping
Changes in the MacroEnvironme nt •
Political and Legal Forces
Source:
Effect: Creates business opportunities for logistic companies
Changes in the MacroEnvironme nt •
Political and Legal Forces
Source: DHL website. http://www.dhlusa.com/resources/Prohibit ed_Restricted_Commoditie s.pdf
Changes in the MacroEnvironment •
Global Forces (economic) •
•
•
•
Changes: Rise in fuel prices Effect: High operating cost Changes: Unpredictable natural disaster Effect: Disruption of transportation and communication
Changes in the MacroEnvironment •
Global Forces (economic) •
•
•
•
Changes: Rise in fuel prices Effect: High operating cost Changes: Unpredictable natural disaster Effect: Disruption of transportation and communication
3. Identify any strategic groups that might exist in the industry. How does the intensity of competition differ across these strategic groups?
3. Identify any strategic groups that might exist in the industry. How does the intensity of competition differ across these strategic groups?
Strategic Groups Strategic Groups are groups of companies that follow a business model similar to other companies within their strategic group – but are different from that of other companies in other strategic groups.
•
Strategic Groups Strategic Groups are groups of companies that follow a business model similar to other companies within their strategic group – but are different from that of other companies in other strategic groups.
•
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
DHL Case Study
Dhl Project
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
Press
Accessibility
Our blog
Purchase help
Join our team! Contact Us Join today Invite Friends
DHL Case Study
AdChoices Publishers
Gi�s
LEG A L Terms Privacy Copyright
Copyright © 2018 Scribd Inc. . Browse Books . Site Directory . Site Language: English
Dhl Project
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
Press
Accessibility
Our blog
Purchase help
Join our team! Contact Us Join today Invite Friends
DHL Case Study
AdChoices Publishers
Gi�s
LEG A L Terms Privacy Copyright
Copyright © 2018 Scribd Inc. . Browse Books . Site Directory . Site Language: English
Dhl Project
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
Press
Accessibility
Our blog
Purchase help
Join our team! Contact Us Join today Invite Friends
DHL Case Study
AdChoices Publishers
Gi�s
LEG A L Terms Privacy Copyright
Copyright © 2018 Scribd Inc. . Browse Books . Site Directory . Site Language: English
Dhl Project
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
Press
Accessibility
Our blog
Purchase help
Join our team! Contact Us Join today Invite Friends
DHL Case Study
AdChoices Publishers
Gi�s
LEG A L Terms Privacy Copyright
Copyright © 2018 Scribd Inc. . Browse Books . Site Directory . Site Language: English
Dhl Project
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
Press
Accessibility
Our blog
Purchase help
Join our team! Contact Us Join today Invite Friends
DHL Case Study
AdChoices Publishers
Gi�s
LEG A L Terms Privacy Copyright
Copyright © 2018 Scribd Inc. . Browse Books . Site Directory . Site Language: English
Dhl Project
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
Press
Accessibility
Our blog
Purchase help
Join our team! Contact Us Join today Invite Friends
DHL Case Study
AdChoices Publishers
Gi�s
LEG A L Terms Privacy Copyright
Copyright © 2018 Scribd Inc. . Browse Books . Site Directory . Site Language: English
Dhl Project
Documents Similar To DHL External Analysis
DHL presentationSYNERGY
dhl
DHL
Strategic Analysis of DHL International
ABOUT
S U P P O RT
About Scribd
Help / FAQ
Press
Accessibility
Our blog
Purchase help
Join our team! Contact Us Join today Invite Friends
DHL Case Study
AdChoices Publishers
Gi�s
LEG A L Terms Privacy Copyright
Copyright © 2018 Scribd Inc. . Browse Books . Site Directory . Site Language: English
Dhl Project