Dhl Strategy to Enter China Market

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Introduction DHL Worldwide Express headquartered in Bonn, Germany, a privately held worldwide delivery service comprised of DHL Airways and DHL International, is the world’s oldest and largest international air-express company. They begins by operating door-to-door express delivery express, transporting documents only between San Fransisco, California, and Honolulu, Hawaii. DHL was founded by three young shipping executives; Adrian Dalsey, Larry Hillblom, and Robert Lynn who were casting about for a way to increase turnaround speed for ships at ports. On 25 September 1969 they incorporate DHL. In 1998, Deutsche Post began to acquire shares in DHL. It finally reached majority in 2001 and completed the purchase in 2002. Finally, by 2003…show more content…
The rapidly improving business environment in China and its entry into the World Trade Organization in 2001 attracted many multi-nationals to the country. DHL was among those who recognized the potential for growth in the country’s express logistics industry. To capitalize on growing business opportunities, DHL initiated a massive expansion program. The logistics industry is widely recognized by the Chinese government as a critical, strategic industry and a key driver of economic progress. This wide-ranging expansion program will add significantly to DHL’s ongoing investments in China, and illustrates the active role which DHL, as a leading industry partner, is committed to undertake in the country. Major Foreign Logistics Company in China Globalization offered more and more opportunities for companies operating worldwide. To realize these opportunities, global organizations shifted their production sites to low cost developing countries like China. China’s entry into the WTO led to sustained improvement of its international trade. The growth in international and domestic trade also led to the rapid growth of the Chinese logistics industry. The rising demand for international deliveries prompted many foreign logistics companies to expand their business in China. These companies employed modern management practices, aggressive promotion strategies, used advanced technological support and offered high quality services.

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