Dhl’s American Adventure

1673 Words Mar 22nd, 2009 7 Pages
DHL’s American Adventure

1. DHL used several strategies for entering market of the United States, they can be divded into corporate level ,business level and operational level strategies.

For the corporate level strategies, Globalization Strategies are adopted, DHL invests $1.2 billion in entering the U.S. market. DHL is the largest express carrier in Europe with a 40% share, and the largest international express carrier in Asia, also with 40%. There is a global economy now, all businesses involved in foreign trade, world trade has to be transported, and DHL thinks that they have to be everywhere for providing the transport. If DHL did not enter in the U.S. with a completed network, it would be very difficult for them to hold
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DHL has a better situated in terms of air transport after completing the integration of Airborne Inc.. DHL is a company that capable to change, innovate, be flexible, adapt and learn. DHL changes its focus to U.S. customers who want to cut costs by sending parcels overland rather than by air, it is a case of changing itself to adapt the U.S. trend. Learning to employ and train staff as Starbucks can show its capability of learning.

Moreover, DHL provide personalized service to customer and it becomes one of its most important competitive advantages. Focused Differentiation is used by DHL to provide high perceived service benefits to selected market segment. It can be explained by the case of Skechers USA Inc., “UPS and FedEx are more reluctant to go to remote locations. DHL will just do it. If their driver has to sit in the parking lot and fill out the air bills, he’ll do it.” says Michael Cardenas, Skechers’office services manager.

All of the competitive advantages of DHL are best suited to aa mature industry. In this mature industry, it is under Hypercompetitive conditions. As to sustain competitive advantages, organization have to focus on ability to change, speed, flexibility, innovation and disruption of market. DHL is an expert in express carrier, and all above-mentioned competitive advantages of DHL are suitable in this mature industry with hypercompetition.

There are some weaknesses of DHL