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Dhl

Submitted by downi on September 5, 2006

Category: Business
Words: 5223 | Pages: 21
Views: 755
Popularity Rank: 7,205
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Executive Summary
Deutsche World Post Net is the world’s leading provider of express delivery and logistics services but on the US market the Express division DHL is only the number 3. The stratgic plan for the Express division DHL of Deutsche World Post Net explores how DHL can
become the leader on the US market within the five years.
Within the strategic plan the internal and external environment are reviewed and evaluated to define a grand strategy
to accomplish the goal. A SWOT analysis shows strenghts, weaknesses, opportunities, threats, and trends of the DHL operation on the US market. The generic strategie which should be defined for the grand strategy are to lower the operation costs and to differentiate from the competition to gain a competitive advantage. Build on these a grand stratgey is defined which should be market development, this is one of the least costly and least risky strategies. To accomplish the long-term objective of become the leader of the industry several short-term objectives are defined and their implementation is described. The main short-term objectives are to reduce the operating costs by 5% each year, and to increase the efficiency of the network each year.
Critical Success Factors are that DHL does not accomplish the defined long-term goal because the US operation is not rentable and not profitable. Further on can DHL loose market share and is perhaps no longer the number 3 on the US market. Control and evaluation is an important point; therefore that the parcel business is dependent to several regulation and laws, like FDA, union, and flight restrictions. Further more heavy cost driver of the operations like insurance, gas prices, and others have to be observed. Since 9/11 the regulation and laws for the transport companies became tighter and have to be observed. Other issues are the increasing gas prices which increased the operating costs, and the strength of the US dollar to...

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