DHL is a global service that is headquartered in Bonn, Germany, with operations running in 220 countries. Due to the exponential increase in the demand of logistic services post the 2009 recession, DHL has gained a foothold due to its talented pool across the world making it highly competitive in its niche (Liu & Wen, 2012). The following services are the stars in the BCG matrix: DHL Express, DHL Parcel, DHL Freight, and lastly, DHL Supply Chain. The E-Commerce department is still evolving and as such is a question mark in the BCG matrix.
The main competitors of DHL include FedEx and UPS. As far as the size and number of employees are concerned, UPS has the maximum number of employees, with DHL closing in at the second position. FedEx is still developing regarding the employee size (Lasserre, 2004). It is apparent that UPS is also a leading global provider that is a strong competitor of DHL with FedEx being a young competitor. Also, DHL ensures that it gives competition to UPS via its Carbon-Management and Environmental Management Systems. As such, the three mentioned companies provide similar services to the consumer, though DHL ensures that it uses the highest-level technologies to track the mails and goods, as opposed to FedEx and UPS. The quality of DHL services in Asia and West Europe are considered highly efficient, as opposed to FedEx, with positive staff attitudes (Garcia‐Romeu‐Martinez et al., 2007). However, in Southern America and the United States, DHL is not considered as efficient as FedEx or UPS due to the variability in the staff cooperation and management sales.
The strengths and opportunities are considered as DHL’s competitive advantages. For example, DHL ensures that the customer satisfaction, good salary, hi-tech transportation services, Green initiatives are applied (Cureau, 2016). The weaknesses include the liability insurance that leads to loss of the customers. The workload is also high. Overall, the SWOT analysis is imperative, and the factors ensure that the customer is happy, safe and that DHL continues to make economic benefits. There is severe competition by UPS and FedEx. As far as the marketing campaigns are considered, DHL does not boast of excessive expenditure in branding as compared to UPS and FedEx.
Due to the TV ads that DHL released with the ‘bright yellow vans,’ FedEx and UPS are likely to be impacted. DHL has spent around a billion in TV ads, but the opposition that is received by FedEx and UPS, they are not highly successful in the marketing department. DHL has also maintained a competitive edge by aiming to attract market shares by adding new services. Slight additions such as providing information via text message and updating delivery/shipment aspects promptly allow it to overpower the rest.
Essentially, DHL as a more significant share in the global market and transports to more countries than UPS. Moreover, DHL makes sure to focus on aspects such as international stability in expansions. However, there are some issues in DHL’s tracking system that allows UPS to ensure better tracking of shipments. On the whole, DHL is more exceptive than UPS, but that attracts a different segment in the market.
As far as FedEx and DHL are considered, FedEx is stationed primarily in the US, and it makes its dominant share of revenue there. However, DHL is stationed globally. DHL is yet to ensure an unbeaten run in the US market, as opposed to FedEx that is widely preferred there. FedEx is highly preferred in the US due to the recognition of the brand name and trust that the customers have; however, DHL ensures its operations via experience and reliability.
Despite the varied competencies of each, they have continued to operate successfully because they have their specialties. UPS specializes in land deliveries, while FedEx has maintained its effect on air delivery. DHL has maintained a combination of both services. DHL has a more geocentric approach as opposed to FedEx’s ethnocentric one. Overall, DHL has emerged as the reliable service as opposed to FedEx but it lags being consumer relations in some regions more than the others.
References
Cureau, A., 2016. The Use of Logistics Service Providers (LSP) to Gain a Competitive Advantage-A Case Study (Doctoral dissertation, Webster University).
Garcia‐Romeu‐Martinez, M.A., Singh, S.P., Cloquell‐Ballester, V.A. and Saha, K., 2007. Measurement and analysis of international air parcel shipping environment for DHL and FedEx between Europe and the United States. Packaging Technology and Science, 20(6), pp.421-429.
Lasserre, F., 2004. Logistics and the Internet: transportation and location issues are crucial in the logistics chain. Journal of Transport Geography, 12(1), pp.73-84.
Lobo, I. and Zairi, M., 1999. Competitive benchmarking in the air cargo industry: Part I. Benchmarking: An International Journal, 6(2), pp.164-191.
Liu, J. and Wen, Y., 2012. Study of Competitiveness: A Case Study of DHL.
Wong, C.Y. and Karia, N., 2010. Explaining the competitive advantage of logistics service providers: a resource-based view approach. International Journal of Production Economics, 128(1), pp.51-67.