DHL which is a courier and or logistics company was formed by a university student by the name Hillblom early in the 1970s. Hillblom started this company in collaboration with his two friends Dalsey and Lynn. From the start and within those years of the 1970s, it had spread in most parts of the world and it's delivery operations had intensified to a great level such that the stakeholders decided to start another hub at Leipzig. The reason for coming up with this hub so DHL so many advantages and actually this was the turnaround point of the DHL company and its delivery operations.
Background InformationAfter the setting up of the hub for courier and delivery services at Leipzig is the main issue that greatly impacted on the performance of DHL. After this, it was able to spread its operations to nearly all the parts of the world up to and including countries in Africa like Chad, Morocco among several others. It had touched parts of Japan, Philipines, China and many other countries where it worked at the expense of the other delivery companies that had already been in existence. DHL was highly valued in all these countries due to the fact that it offered the best services and worked well within and even before the time confines that were set for delivery. DHL brought about overland transport, sea shipping, and air transport and by this, it was able to dominate the delivery system and it took over the 24 hour business of the United Kingdom. In a day, over 60 flights were made by the DHL air transport to various destinations. A proper strategic and supply chain management is the core factor that made DHL stand out in its operations and beat all the other similar companies which were involved in courier and shipping services overseas.
DHL has not reached the level it is today without competition. Actually, DHL experiences tough competition from its business rivals. The main competitors of DHL in its operations are the companies USPS, FedEx, SAP Logistics Execution and Shippingeasy (Harrison,2017). These core competitors of the company DHL have all what is necessary for logistics and courier companies put in place all with an effort to make sure that they stand out in terms of performance and that in the long run they get control over all the market share available in terms of customers at the expense of the other companies (Merchant, Chand& Michiels,2008). With all these competitors working tirelessly to make sure that they dominate the market over DHL, DHL has remained in a good position to wrestle all of them and maintain its high-level competitive advantage. There are quite a number of factors that DHL management all across the world has been able to put in place so that the company is not brought down by efforts of its competitors.
DHL has employed various concepts of supply chain management and with the help of these concepts, it has succeeded in its daily competition and curbed all the pressure from these rivals. One of the main concepts of resource chain management that has remained utilized by DHL for its great performance is the proper setting and planning of strategies (Chopra & Meindl,2007). Both the long term and short term strategies of DHL have been set up in such a way that the management and stakeholders' bodies are sure that the outcome is going to be positive and in a secretive manner which its competitors are not able to understand easily. Strategies that are put in place for DHL are well analyzed and planned to ensure that they come into fulfillment before or within the range of the expected time. This helps to avoid the total failure or underperformance of strategies which would pose a threat to the competitive status of the company. With the best strategies put in place, DHL is able to always walk a long distance ahead of the rivals as they strive to match.
Secondly, DHL remains in a good position for exemplary competition against all the main competitors because of the fact that in its supply chain management, the best structures of and lookouts of their company is set to stand out from the rest of the logistics companies. For example, the company chose a strategic location when it had planned to expand and begin a new hub (Harrison,2011). The choice of Leipzig was well planned in that the hub location with immediate effect impacted positively on the general operations of the company. Transport facilities were easily available and accessible where the hub was located and this gave DHL a big advantage which the competitors would have taken couples of years to achieve. This is just one among many other benefits that are associated with the location of the DHL hub at Leipzig.
In shipping, logistics and delivery companies that do exist in nearly the entire world, DHL still remains the leading company in terms of the services it offers and the revenue it collects per year while all the other companies lag behind. DHL has earlier received quite a number of awards for its outstanding performance in the delivery and logistics industry and it continues to deliver the best and compete efficiently from year to year out of the powerful strategies that are put in place by its management and stakeholders.
Chopra, S., & Meindl, P. (2007). Supply chain management. Strategy, planning & operation. In Das summa summarum des management (pp. 265-275). Gabler.
Merchant, H., Chand, M., & Michiels, C. (2008). DHL Bangladesh: Managing headquarterssubsidiary relations. Comment on DHL Bangladesh: Managing headquarterssubsidiary relations. Thunderbird International Business Review, 50(3), 201-214.
Harrison, D. (2011). The Judgment of the General Court in the DHL Leipzig-Halle Airport Case T-452/08: Invalidity of an Aid Measure under National Law does not pre-empt Recovery of the Aid. European State Aid Law Quarterly: EStAL, 10(1), 169.
Harrison, D. (2017). The Curious Contractual Consequences of a Finding of Unlawful State Aid: DHL Leipzig-Halle-Case T-452/08. Eur. St. Aid LQ, 487.
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