Ê
c
m !m"#$% & ' ( ( m ( (
M
V VV
D
DHL is the world leader in mail and logistics services. DHL corporate brands provide a unique business portfolio of logistics and communications services. DHL is the world market leader in global express transport and air freight. It is also no .1 in ocean freight and contract logistics. Almost 500,000 employees in 220 countries and regions form a world network emphasis on service, quality and stability that crosses customer's perceptions in 120,000 locations in all continents. [1] Three companies joined the brand of DHL in 2003, to set new and better standards in the courier business the world over. These companies are: 0 The worldwide leader in air express. DHL Worldwide Express 0 àlobal leader in sea and air freight , Danzas 0 European leader in parcel services. Duetsche Post Euro Express.
] ustomers trust DHL as the preferred global express and logistics partner, leading the industry in terms of quality, profitability and market share.´ [2]
]aking the most of scale experience and passion DHL¶s mission is to be the first choice worldwide.´ [3]
DHL is customer conscious and working upon the strategy of ] ustomer is King´. Therefore their corporate goal is to get the customer satisfaction by providing good quality, reliability, and accepting the challenges« Also 6 6 6 6 6 6
To provide superb values To act with honesty externally and internally moster openness Act in entrepreneurial way To act according to specific priorities Accept social responsibilities [4]
ince the company operates globally, company has a distinctive responsibility to avail their knowledge, experience for the improvement of society and to control any bad influence that their business may have on the environment. Living Responsibility appreciated DHL¶s struggle in the field of education environmental protection and disaster relief. DHL took many steps in ào àreen, ào Help and ào Teach programs supported by the skills and devotion of their 500,000 employees. [5] DHL¶s business emphasizes on health, ethics, safety, and protection of cultural differences. People, environment and community are basis of DHL philosophy of citizenship. ompany brands are true representative for commitment and honesty. ompany efficiently avail its logistics expertise by using its resources and managing disaster in the affected areas. ompany tried their best to support victims of the 2005 and 2008 earth quakes by delivering donations to victims. ompany also supports a variety of social welfare organizations one of these are mamily Educational ervices moundations and hildren¶s Village. [6]
DHL Pakistan started its operations in Pakistan in 1982 headed by arfraz iddique country and director manager of DHL. After the acquisition of Exel Inc., the company started its logistics operations in 2002, headed by Imran heikh, who is the anaging Director. [7] 6 Employees more than 600 6 àateway:4
DHL is the largest service provider in Pakistan and also largest air express company with 65% market share. perating in more than 40 location and have above 200 vehicles and over 300 employees. DHL delivers documents and heavy weight parcels efficiently. Besides this, it also provides unique services that add value to their customers. DHL Logistics presents end to end Logistics solutions to clients. Head office of the company is in Karachi, with branch offices in Lahore, ialkot and Islamabad. There are 48 branches of company in different cities of Pakistan as Express enters, ervice enters and àateways. Dominantly company operates in four locations with a workforce of above 300. [8]
·
The main cities where DHL has its service centers are 0 Karachi 0 Lahore 0 Islamabad 0 ultan 0 ialkot 0 Peshawar 0 maisalabad Besides these it is operating with its Express Pakistan.
enters which are located in different cities of
w
c !"#$%#& 0 0 0 0 0 0 0
DHL International anufacturers and service provider ustomers. Pakistan & country Business community àovernment of Pakistan ¬nited Nations (ào Teach Project) Logistic Providers Airline Express
"'$()($(& 0 0 0 0 0
Research & Development arketing ales(Product &ervices) minance perations IT and Procurement.
&*+#'& 0 Human resource. *,!$($*#& 0 0 0 0 0 0 0
medEx ¬P T , Leopard`s Pakistan Post (ail) NL
Î
M *&$$#+'$+# 0 ost incurred in delivering all services and basic cost incurred in transportation. 0 Air freight charges and rent charges of warehouses. 0 DHL invested up to $8 million in construction of Logistic enters in Karachi and Lahore, new and modern Airside Express and in improving its facilities. 0 Investment of DHL assures DHL¶s honesty and commitment towards partnership with Pakistan and toward business community of Pakistan. )%+$#", 0 ales from all channels throughout the company 0 National ales profitability by an efficient operation of the Priority upport ervice
D
0
àlobal ail of company is directly connected with 40 production centers in 5 continents and with 100 sales offices in 200 countries and also in touch with cross border solutions for global mail shipments. DHL provides cross border mail and parcel solutions and variety of added value services to make cost reducing customized mail solutions for you and to your customers from each country in DHL network. [9] ail service includes: 6 ! DHL works to create a flexible, cost reducing solution to match with your distribution and mail fulfillment needs in areas of (1) àeneral correspondence (2) direct mail (3) catalogs (4) publications ((5) invoices (6) parcels. [10]
0 " Is the world leader in global Express hipping and ships more global packages as compared to rest of them. Result is more customers trust DHL with their package no matter it¶s around the world or around the corner.#cc
ÿ
$ %% & Express hipping of DHL support area for both new and old customers. [12] '% !( '%!! ) DHL offers reliable and variety of delivery options to other countries in export services. Including incase of emergency same day to guaranteed time to next day and offer certain options for less urgent days. [13] *% !(+ ,- '%!! ) DHL offer variety of delivery options in import services to Pakistan ranges from time critical guaranteed next day to days which are not urgent with certain choices. [14] *! !( '%!! ) In Pakistan domestic service offers wide range of delivery options including emergency same day to guaranteed time critical next day to less urgent. [15] 0 DHL Logistics included: 6 Warehousing and distribution 6 upply chain solutions freight transportation. Because of which DHL is the globally largest logistics expert. [16] &$!% DHL is a logistics partner because of which it is able to deliver cargo of any type to any location through air, ocean, road or rail. DHL has the capability of giving its customers the personal attention they require. [17] $ ,! &- ! +, pecialist of DHL provides uncountable and quick solutions that will drive value for your business. ake sure that businesses can deliver their service promise to their customers worldwide DHL provides dedicated warehousing and distribution services. [18] ,%% )$ , ! DHL provides a variety of services on their global network local insight to provide value covering your supply chain. As the world's largest logistics specialist, from the initial consultancy and design, to last mile delivery and reverse logistics; they provide tailored supply chain solutions covering all industry sectors. [19]
A
-,!) , ! ompany emphasis on specific industry sectors like customers benefit working with experts. [20]
"$(*%&-(!.($-'+&$*,#& DHL¶s customers come from across the commercial spectrum and the public sector.DHL is customer conscious and working upon the strategy of ustomer is King therefore there corporate goal is to get the customer satisfaction based with providing good quality, reliability, and accepting the challenges.
DHL is enthusiastic regarding sustainable competitive advantage for our customers by delivering their products to market as fast as possible effectively and more efficiently. Regardless of their size DHL customers can rely on company to draw on our international scale and domestic insight to provide value covering every area of their supply chain. Deutsche Post DHL is built upon two strong pillars to strategically position for the future. 6 An integrated international logistics business 6 olid mail business with new electronic value added services.[21]
c
. n the basis of prices, strong competition is found between the transportation firms. These firms frequently cut prices to secure their market share. The large companies in the global transportation industry are medEx, ¬P, and . . To become leader in the international transportation business the companies must have large distribution network, well capable hub for parcel organization all around the world and have contact to a huge number of planes, truck, trains and ship. Any new entrant who want to come in the market oh having specialize in one of the sub division of the market, not necessary to be in the competitive situation. Entrant having obligatory market capitalization has to fight for making brand image. A very important matter that large companies have with big organization is the long term contracts and commitment. Entrants also experience big revenge from existing competitors on the considerable level. ubstitute does not appear with the probable threat on the transportation business. Though present all feasible shipping solutions, competitors ensure their market share whether the user decide to alternate his air fright operation with a land or marine fright operation. Yet one market division, the sudden text delivery marketplace is in front of a considerable risk of alternative by facsimile and email. IP train more individuals about the email and online text delivery.
cc
Businesses and companies are more convivial than before to allow and time.
D to accumulate money
Profitability of shipping industry is strictly distressed by the changeable prices of fuel. il suppliers are in strong bargaining position which is due to the prices that are indomitable based on the political as well as economic concern. n other hand the transportation business fighting with this issue on collecting fuel charges due the continuously increase in fuel prices. uppliers that wrap tools like plastic and boxes are not in position of having high bargaining power. The vehicle supplier will not be in a high bargaining position due to the competition of automobile assembling business. Workers of shipping vehicle with limited power such as train have some bargaining power. Bargaining power of check providers can be reduced by making investment in the technology that automates the wrap-up arrangement process. .
To offer delivery services to the large businesses and firms, the shipping firm faces severe fight. hipping firms are facing large competition to arrive at storage and ware houses as well as spare parts. The users of these corporations don¶t have the lightness to select their shipping supplier but they have used the services of other shipping firms to take advantage of transportation solutions. murthermore switching cost is also low. This condition laid these firms in a very high bargaining situation. ¬sers want to select the companies that provide low prices. But by providing competitive advantage to the users, companies can capture them. Also many supply centers as well as warehouses are combined with shipping firms each user with some bargaining power.
cM
Political environment of Pakistan is very weak and unsure. The problem there is the security condition and has clear impact on the sustainable expansion of DHL Pakistan. As an example the high security risk in Pakistan, most of the embassies, consulates and international organizations (e.g. Nà 's) cease their operations temporarily, thus crafting a direct impact on the business of DHL Pakistan. The country's import and export regulatory authority (Pakistan ustoms) has a direct interaction with DHL Pakistan as all their inbound and outbound shipments must be accepted by custom authority. The company has contracted an independent broker to get all their inbound and outbound shipments cleared through Pakistan ustoms but the delays are still occurring on standard basis. It generates a detrimental pressure on the company's repute and customer base.
Pakistan is an agrarian country with a large number of populations associated with agriculture. tate Bank of Pakistan decides the monetary issues. Till 2007 the economic conditions of the country were flourishing, while the country maintained a growth rate of 6% third highest in Asia after hina and India. àovernment policies made the country got rid of Im dictation for the first time ever in history. It also favored foreign investors. Lots of money was coming in the country as foreign aid. mor the past few years, there has been virtually no moreign Direct Investment. Inflation rate is 12.9% and the interest rate is 14%.Dollar reached record high of Rs87 severely deteriorating the debt management. Pak`s role in War on Terror costs billions of rupees leaving very few funds for development work. Although many countries and organizations like mriends of Pakistan promised huge amount of aid but actually they just turned out to be loans on extremely strict conditions putting the country¶s sovereignty in question. Electricity, gas and water shortages have become a common thing. any areas of the country especially north and south westerns region have been untapped. They can turn out great markets. As the economy of Pakistan becomes more and more service oriented, there are huge prospects of growth for DHL as people all over the country want faster communication.
cD
Pakistan's economic forecast, flawed by aggressive human development indicators, low levels of foreign investment, and dependence on international creditors for hard currency inflows, were however on an upswing during most of 2001. usharraf government made considerable progress in macroeconomic reform. While Pakistan has exploited its international standing after the 11 eptember terrorist attacks on the ¬, long-term prospects remain unclear. àDP growth will continue to turning point; oil prices also goes high and foreign and domestic investors remain careful of starting new projects with Pakistan. oreover the level of trading system decline as a reason of global economic recession. The facts recommend that maximum of population is very price aware and because of great rivalry in the courier business, DHL suffers in the context of profit with certain limits. Technology is important as main driver of globalization as well as for the competitive advantage. It also provides way to the firms to be in touch with the users, for example R. Because of the low income level and literacy rate the technological environment in Pakistan is simply old fashioned as compared to the developed countries. The employees of the company are provided training on regular basis to help them understand and digest the new systems in place and how to use them effectively. murthermore, DHL Pakistan also keeps its customers up-to-date of any new developments. An example of this is the launch of a new software by the company for its customers ("mast morward") enabling them to track down their shipments in transit plus also be able to monitor the exact route of their shipment. This software also permit clients to carry out a comparison between the Air mreight prices being charged by different Airlines and DHL's prices for different weight slabs. In addition, a training session was also organized to educate the clients as how to use the software.
c
"
Price minancial Position ervice Quality ustomer Loyalty Innovation anagement Reach and frequency arket hare Advertising
0.11 0.10
3 4
0.33 0.40
2 4
0.22 0.40
3 2
0.33 0.20
0.15 0.09
3 3
0.45 0.27
4 3
0.60 0.27
2 3
0.30 0.27
0.12 0.10 0.10
4 3 4
0.48 0.30 0.40
4 3 2
0.48 0.30 0.20
2 2 2
0.24 0.20 0.20
0.11 0.12 c
4 3
0.44 0.36 D D
2 2
0.22 0.24 MD
1 1
0.11 0.12 c
, !! ! ritical uccess factors are factors important for a company¶s success. They are identified after an analysis of the firm. A high rating means that the firm¶s strategy is supporting the critical success factors well and lower rating means that the strategies do not match them well.
& The rating represents the firm¶s response towards the m. Higher rating means better response and vice versa. Rating ranges from 1 to 4. 1 means poor response 2 means average response 3 means above average response 4 means superior response
c·
&$ The weight assigned in the P indicates the factor¶s importance in the industry in which the company operates. The weight ranges from 0, which indicates not important and 1, which indicates important. The sum of all the weights should be 1. &$- The weighted score is obtained by multiplying each factor weight with its rating. &$- The sum of all weighted scores gives the TW. Its value can be from 1 (low) and 4 (high). If a company¶s TW is higher than 2.5, it is considered to be in a strong position. In P, the firm with the higher TW is deemed to be most successful among its competitors.
DHL¶s total score is higher than its competitors which show that it has an edge over its competitors in terms of the m, due to which it is the market leader in the industry.
cw
1. àlobal reach
0.11
4
0.44
2. Brand image
0.15
4
0.6
3.
orporate symbiosis
0.10
2
0.2
4. Technology and eservices
0.13
3
0.39
5. Innovators
0.15
3
0.45
1. High Prices
0.15
2
0.3
2. Less revenue from import service
0.10
2
0.2
3. Weak Visibility
0.11
1
0.11
c
M
/
0 0 0 0
Rating 1 ± ajor Weakness Rating 2 ± inor Weakness Rating 3 ± inor trength Rating 4 ± ajor trength
The ImE matrix results show that the company has a score of 2.69, which indicates that the company has an above average internal position and is strong internally.
cÎ
1. àlobal Expansion
0.10
4
0.40
2. Expansion of e-commerce
0.10
3
0.30
3. Joint Ventures with local transportation companies 4. Expansion of customer base
0.10
1
0.10
0.09
3
0.27
5. Products and ervices Expansion
0.10
3
0.30
1. Economic Recession
0.09
3
0.27
2. Political ¬ncertainty
0.09
3
0.27
3. Increase in fuel prices
0.10
3
0.30
4. Threat of new entrants
0.06
3
0.18
5. Lower ost ompetitors
0.06
2
0.12
0.11
3
0.33
c
M
6. Rules And Restrictions In moreign countries
0 0 0 0
Poor - 1 Below Average- 2 Above Average- 3 uperior- 4
The EmE matrix results show that the company has a score of 2.84, which indicates that the company is strong in position and responds well to the external environment.
cÿ
/
c
àlobal reach
W1
High prices
M
trong Brand image
W2
Weak Visibility
D
orporate symbiosis
W3
Low revenues from import services
Technology and e-services
0
Innovators
c
àlobal Expansion
T1
Economic Recession
M
Expansion of E-commerce
T2
Political ¬ncertainty
D
Joint Ventures with local transportatT3 companies
Increase in fuel prices
Expansion of customer base
T4
Threat of new entrants
0
Product and service expansion
T5
Lower ost ompetitors
*/""'- DHL has a global network and a presence in 220+ countries. They operate in a large market and provide remarkable services and solutions to fulfill the needs of their worldwide customers. Therefore they are able to earn outstanding revenues. They are also able to achieve global economies of scale through their worldwide network.
cA
$#*%0#"%1 ,"0 In 1997, DHL became the transportation and logistics company to acquire concurrent I 9001certification in International Quality tandards. DHL also has its own quality system to ensure that they meet their customer¶s requirements. *#!*#"$,/(*&(& DHL has developed its own executive structure, to enhance its position in the global market, which is known as ] orporate ymbiosis´. This technique requires the empowerment of the DHL personnel at a local level and simultaneously acknowledging the interdependence of the units of DHL, which combined together, form a corporate and cohesive whole.
'-%**0"%1 #)('& DHL currently uses and strives to explore new technology. Nearly 10% of their revenues are spent on information technology. DHL also has good e-services that provide access to systems, which ensures that customers can control and are in charge of their supply chains at all times. hipments and deliveries can be tracked and queries can be made online. %%*)"$*#& ustomers of DHL receive innovative products and services which meet the needs of both businesses and individual customers. DHL is the pioneer of the innovative services and solutions in the global courier and logistics industry and has positioned itself at the cutting edge of the growth market.
/ (0-#('& DHL¶s prices are somewhat high in comparison with their competitors. This is a weakness for the company if the customers do not differentiate between the other companies¶ services and DHL¶s. "2(&(/(($ The company has weak visibility in the community as compared to its competitors.
M
*.#)%+&3#*,(,!*#$&#)('& DHL contributes only 10 to 15% of revenue from import services which needs to be improved. They should improve their import services in Pakistan.
*/"!"%&(*% DHL can continue to expand its business globally. This is an opportunity for the company since it operates in many countries and can still tap into some new territories as well as expanding its business in the more remote areas of Pakistan. !"%1(%0 '*,,#'(%"2(&$"% DHL has a major presence of online shipping. They have an opportunity to try and find internet companies to deliver their services on contract delivery. As e-commerce is growing day by day, DHL can earn more revenues and increase their brand name recognition through such ventures. 4*(%$%$+#& DHL can enter into strategic partnerships and joint ventures e.g. with local transportation companies, to benefit from the opportunity and growth of incorporating their customer bases and lower their costs. !"%&(*%*3 +&$*,#"& Pakistan is a country where still large numbers of people are still residing in rural areas. They aren¶t much aware of DHL, so it has an opportunity to capture that market by forming strategic alliances with the organizations like Pakistan Post, as it has countrywide presence and in rural areas people are much aware of it so they can access it easily. #*1+'$&"%1&#)('&!"%&(*% The World Trade rganization has estimated that the rate of world trading in manufactured goods will increase in the coming years. o this is an opportunity for DHL. Also they have an opportunity to expand their business to tap small industries like the hotel industry which are few in number but have high weight or frequent imports.They can also introduce the mart Truck Project in Pakistan. It is a project which allows DHL to deliver faster. The data regarding the location is transmitted directly to the dynamic route planning system, which calculates the most efficient routes, while considering the current order situation and volume of traffic. [22] Mc
'*%*,(''&&(*% Like other countries in the world Pakistan is also suffering from the economic recession. Inflation rate was almost 13% as of meb ¶11, there hasn¶t been virtually any foreign direct investment over the last few years, and purchasing power of people is also decreasing. o it can be threat for DHL. *($('"%'#$"(%$ Political uncertainty in the country always poses threats to investors as they fear laws and regulations that may not be friendly. Besides there is also a risk of operational difficulty. %'#"&(%3+!#('& Nowadays, fuel prices are climbing everyday due to international increase in oil prices. DHL can pass that along to the customer but even then fuel is always a concern, both in price and availability.
-#"$*3.%$#"%$& mall and new coming organizations reduce the business of the DHL. With low cost packaging services offered by competitors are also the threats for the DHL.
*.#'*,!$($*#!#('&o ompetitors of DHL are offering their services at lower prices and lower cost as compared to DHL. This can be a threat if the customers do not recognize a difference between DHL and their competitor¶s services.
MM
/
c Innovators M trong Brand
image D orporate symbiosis Technology and eservices · àlobal reach
c Weak Visibility
2. High prices 3. Low revenues from import services
1 .
1 .
5
1 .
1 .
5
c Product and M D
·
service expansion Expansion of Ecommerce Joint Ventures with local transportation companies Expansion of customer base àlobal Expansion
c Lower ost M D ·
ompetitors Political ¬ncertainty Increase in fuel prices Threat of new entrants Economic Recession
55
MD
1 . 5 In order to increase their market share and find new customers, they need to make their advertisements about their new technologies and online ordering system. The company can introduce their innovative smart- truck project which was introduced in Europe in 2009. It is an environmental- friendly, fast and efficient way of transportation, which uses the advanced Radio mrequency Identification (RmID) technology for navigation purposes.
1 . 55 To decrease the negative effect of economic recession they need to focus on more promotions on online ordering system.
1 . To decrease their prices by cutting cost and increase their market share, they can enter into joint ventures and strategic partnerships with local logistics and transportation companies. To offer low price import services, by reducing their costs.
1 . 5 To decrease their prices as the competitors and the negative effect of economic recession and political uncertainty begin to acquire small local companies.
M
.
Return on Investment Leverage Net Income R E ash mlow &
5 4 6 5 5
Inflation Rate Price Elasticity of demand Risk Involved in Business Economic onditions Barriers to entry in new markets
-4 -3 -4 -3 -2
0
&
1DM
.
arket hare Product/ervice Quality ustomer Loyalty &
-1 -2 -2
Ease of entry into market minancial stability Profit Potential Demand Variability àrowth Potential ompetitive Pressures
2 5 3 3 3 5
1c
&
D0
%$#%"$#"$0(' (,%&(*%& 0 minancial trength (mA) 0 ompetitive Advantage ( A) $#%"$#"$0(' (,%&(*%& 0Environmental tability (E) 0Industry trength (I) The A and I values are graphed on the x-axis. 0 A values vary from -1 to -6. 0 I values vary from +1 to +6 The m and E dimensions are graphed on the y-axis. 0 E values range between -1 and -6 0 m values range between +1 and +6. M·
c c
An analysis of the company on the four dimensions of financial strength, environmental stability, competitive advantage, and industry position in the PA E matrix shows that the company needs to follow "%"00#&&()&$#"$0. The company has a strong competitive position in the market with an opportunity of rapid growth therefore it should utilize its internal strengths to develop a market penetration strategy to utilize the opportunities present in the environment. Their strategies can also include product development, integration or partnerships with other companies, acquiring their competitors etc. mor this purpose the company can choose from the strategies developed in the T W matrix.
Mw
&
1. àR W
& 2 2. AND
4. 5. M H LD AND 7. HARVET
3. B¬ILD
&$
6. AINTAIN
8.
9.
R
DIVET
- ,*
3
c Mc
We have obtained the IE matrix by plotting the scores from the EmE matrix and the ImE matrix along y-axis and x- axis respectively. The score for the EmE matrix is 2.84, which shows that the company has an above average ability of responding to the external factors. The total score for the ImE matrix is 2.69, which shows that the company has an above average internal strength. The point where the horizontal line meets the vertical line is in +"1#"%$. This suggests that the company should follow a *1 "%1 "(%$"(% $#"$0 Therefore the strategies of the company should concentrate on market penetration and product development e.g. introducing the mart- Truck project in Pakistan and cutting costs to reduce prices.
MÎ
6
0 "#2$-"#67"#2$ #*.$-"$688 7 B à matrix indicates that in terms of mailing services DHL is placed in '"&-'*.&. It means that market growth rate is low but DHL` market share is high so it should milk as much profits as possible. Increasing investment in supporting infrastructure can help in improving efficiency and increase cash flows for the company.
Mÿ
"
p p
0 "#2$-"#687"#2$ #*.$-"$67 An analysis of DHL Express shows that in express, DHL is a star. It means that it has high relative market share and also high market growth rate, so it should continue in express as there is tremendous potential in it. Increasing investment in Express can help DHL in further increasing its market share and profitability. They can use intensive strategies like market penetration etc. to further enhance their business.
MA
6
0 "#2$-"#697"#2$ #*.$-"$67 B à matrix indicates that the logistics operations are placed in question marks. It means that the rate of market growth is high and DHL` market share is low so it should make any decision considering the market conditions. The company can invest more in its Logistics business and can also use the revenues generated by the Express Business to help out the Logistics Business.
D
X 4
/) ' !
&$
!! !
!! !
!! !
!! !
0.11 0.15 0.10 0.13
4 4 3 3
0.44 0.60 0.30 0.39
3 4 2 1
0.30 0.60 0.20 0.13
0.15
3
0.45
3
0.45
0.15
2
0.30
4
0.60
Less revenue from Import services D Weak Visibility
0.10
0
0
4
0.40
0.11 c
3
0.33
4
0.44
àlobal Expansion Expansion of ecommerce D Joint ventures with local transportation companies Expansion of customer Base 0 Product and services expansion c Economic Recession M Political ¬ncertainty D Increase in fuel prices Threat of new entrants 0 Low cost competitors Rules and Restrictions in foreign countries
0.10 0.10
4 1
0.40 0.10
3 3
0.30 0.30
0.10
3
0.30
3
0.30
0.09
4
0.36
4
0.36
0.10
4
0.40
4
0.40
0.09 0.09 0.10
3 1 4
0.27 0.09 0.40
4 2 3
0.36 0.18 0.30
0.06
2
0.12
3
0.18
0.06
1
0.06
4
0.24
0.11
3
0.33
3
0.33
c M D 0
àlobal reach Brand Image orporate ymbiosis Technology and eservices Innovators
/ c
High Prices
M
c M
c
0
D
Dc
$$#"'$()%&&'*# 0 0 0 0 0
1 ± Not Acceptable 2 ± Possibly Acceptable 3- Probably Acceptable 4- ost Acceptable 0- Not Relevant
n the basis of the strategies developed in the T W matrix, we chose two strategies. Either DHL can introduce its mart- Truck project in Pakistan or it can introduce low price Import ervices. mrom the results obtained from the QP matrix, we can conclude that DHL should choose the second strategy of offering low price import services in Pakistan. Because market research shows that DHL is earning lower revenues from its import services ( nly about 10-15% of the total revenues). This is because of high prices, due to which, customers prefer to utilize their competitor¶s services. Therefore DHL should try to lower their operation costs and to differentiate from the competition to gain a stronger competitive advantage. To do this, heavy cost driver of the operations like gas prices, government policies and restrictions etc. have to be observed. They can also create new partnerships and joint ventures with transportation and airline companies, with an aim to reduce their costs. They should also increase their advertising to increase their visibility. These steps can help DHL in increasing their market share and consolidate their status as the market leader.
DM
mrom our analysis, using various strategic management tools and techniques, we have concluded that DHL is the market leader in courier services in Pakistan, since they have the majority market share. Therefore its strategies should aim at holding and maintaining its strong market position. Like any other company, there is always some room for improvement in every company¶s performance but regardless of the tough economic and political situation in Pakistan, DHL seems to be going strong. ¬sing the strategies proposed in the T W matrix, we narrowed down the list to two strategies for the QP analysis, which concluded that DHL should offer low price import services in Pakistan. But the other strategy proposed in the QP should also be kept in mind. If DHL introduces its smart- truck project in Pakistan, it would enhance both their services and reputation, but the current market conditions are not feasible for this project. Therefore, DHL should consider introducing this project in Pakistan in a few years time. In the meantime they should concentrate on differentiating from the competition to gain a stronger competitive advantage and staying ahead of the competition.
DD
c 2 $:
/ " . 1M 12495 DHL
DHL=12747*100= 41.35% 30825
1Mc 12747
T TAL
30546
30825
.
1M
1Mc
5878
6786
T TAL
12154
13515
.
1M
1Mc
10516
11178
31449
32216
2 3$ 30825-30546*100=0.09% 30546
M " 2 $
DHL DHL=6786 *100=50.2% 13515 2 3$ 13515-12154*100= 11% 12154
M 2 $
DHL DHL= 11178 *100= 34.6% 32216
T TAL
2 3$ 32216-31449*100= 2.43% 31449 D
