Assignment Help on DHL Business System Analysis
Brief Company Overview:
DHL is a wholly owned subsidiary of Deutsche Post World Net (DPWN). The company is one of the leading players providing major freight forwarding, logistics, and supply chain management services. It primarily operates in Europe, the US, and Asia. The company is head quartered in Bonn, Germany and employs about 285,000 people. The Express division is the core operation of DHL that provides courier and express services, through a network that covers more than 200 countries across the globe. The company’s Global Forwarding and Freight division is the largest air and ocean freight forwarder in the world (Data Monitor, 2009).
DHL Australia’s Current Strategy for Competitive Advantage
Competitive advantage can be traced back to resources as explained in Appendix A according to the resource based view. In the past decade, 3PL’s have been engaged in a number of activities including organic expansion, merger and acquisitions and building alliances. Through these activities, firms in this sector gain access to tangible and intangible resources including land, logistic hubs, aircrafts, skilled work forces, technological systems, expertise and competencies in order to achieve growth and competitive advantage (Das and Teng, 2000).
DHL Australia’s competitive advantage can be attributed to network presence in all regions of Aistralia and ensuring resulting in high level of customer service. DHL has been present in Australia since 1969 offering full product suite of express, logistics and mail services. DHL Australia has a relational intangible resource of highest level customer satisfaction that allows DHL to charge a premium for its service. Second competitive advantage is the strength of DHL brand that has been created through strong marketing and corporate social responsibility campaigns. (DHL, 2013)
Internal (SWOT) Analysis of DHL
SWOT analysis allows a firm to identify and critically examine its internal resources through which it can remain competitive. SWOT stands for internal Strengths and Weaknesses along with external Opportunities and Threats (Datamonitor, 2010).
Strengths (Datamonitor, 2009, 2010):
- Leading logistics player in the global market
- Diversified business model catering to different market segments
- High level of brand recognition and awareness in relation to competitors
- Strength of parent company i.e. Deutsche Post World Net
- Strong supply chain services specialized across many industries
Weaknesses (Datamonitor, 2009, 2010):
- Weak operating margin as compared to direct competitors
- Limited service offering in few economies as compared to competitors
Opportunities (Datamonitor, 2009, 2010):
- Generate business opportunities in the domain of online shopping and e-tailing
- Growth through acquiring direct and indirect businesses such as marketing execution company called Tag which DHL has already acquired
- Growing express marketing in Asia Pacific and European countries
- New contracts and agreements with signing up of global mandates