With time the company grew rapidly operating in over 200 countries with 110,000 employees and very recently the company was renamed as Deutsche Post DHL and established a new innovation centre division for more innovative and sophisticated way of logistic system (DHL, 2011). This research is concerned with the in depth study of the company for critical analysis of the core competence of the firm and the competitive analysis for DHL. Background of the company (DHL) and its problem with competitors The two companies under DHL are the exclusive delivery agents of the other company and the reason behind the domestic shipping of the company within US is mainly to reduce the cost and on the other hand increase reliability of the international shipping of the company. During the year 1990 the company on experienced 3% of the shipment inside the country but about 20% of the overseas shipment from US is accounted under DHL. From the beginning the company is focused towards delivering excellent services to the customers and is always committed towards its activities. The success factor of the company is mainly its employee base that is always acting according to the needs of the customers and serving with a customized approach. Today the company is operating in over 220 countries worldwide with a wide network and diversified business expertise in express, ocean freight, contract logistics, international mail services and overland transport (DHL-a, 2011). The company’s main competitions in the market are Federal Express, UPS (Silverstein, 2011). The competitors’ strategies of using third party help during the logistic process is one of the problem faced by the company as the company follows a network of self owned agents which takes time for the company to enter into new market for establishment of the business. Another issue is intense price competition in the industry which needs to be evaluated by the company to implement an effective pricing strategy. Differentiation in the pricing strategy of documents and parcel should be there for the company and the company needs to evaluate its pricing techniques for different industries also which the competitors are taking advantages of. Interview Review The interview conducted with the different members of DHL also reflected the problems that are prevailing within the organization and its competitors. As the Regional Manager of DHL, Dean Jones mentioned that the company is mainly focused towards quality service rather than concentrating on the pricing of products or service. Due to this the company is losing market share to its competitors with competitive pricing strategies. Johnson Par, the country manager of Africa on the other hand mentioned about a problem on the logistic system. The company has their own logistic systems which sometimes fail to serve on time as the competitors use their third party service for faster delivery of products. But DHL believes that customers will trust in the companies on logistic system than on any third party channel. Analysis of the resources and capabilities of DHL DHL broadly comprises of four divisions which are mainly operated by their divisional headquarters. All the groups are managed by the centralized centre all under one group. The centralized internal services
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Company critical analysis - DHL Table of Contents Table of Contents 2 Introduction 3 Background of the company (DHL) and its problem with competitors 3 Interview Review 4 Analysis of the resources and capabilities of DHL 5 Competitive Analysis 5 Industry Evolution 7 Recommendations 8 Reference 9 Introduction DHL was founded in the year 1969 by Adrian Dalsey, Larry Hillblom and Robert Lynn at San Francisco (DHL, 2011)…
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