...DHL: MORE GLOBAL THAN LOCAL Since the early 1970s, DHL has been the leading (or often only) overnight carrier in many markets around the world. Founded in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn (hence, the D, H, and L) to transport letters of credit across the Pacific, DHL expanded rapidly in Asia and Europe (the early 1970s), the Middle East (1976), Latin America (1977), Africa (1978), Eastern Europe (early 1980s), China (1986), and Albania and the Baltic States (1992). Today, DHL has more than 53,000 employees, 209 aircraft, 2,381 stations, 12,203 vehicles, and 32 hubs and subhubs serving more than 675,000 destinations in 227 countries. In one year, it handles 95 million shipments—not bad for a company approaching its thirtieth birthday! To handle all these shipments, DHL uses a worldwide hub and spoke system. It collects packages, documents, and letters from individual local business offices and sends them to the nearest service center. The service center then sends the parcels to a hub that serves a larger geographic area (such as Australia or the Middle East). There, the items are sorted by destination and shipped to service centers in each country, where they are resorted for the last leg of the journey to a local destination. The Brussels hub is typical. Each night, starting at 10:30 P.M., the first of more than 120,000 documents and packages begin arriving at the hub. As they are unloaded, workers throw them onto $15 million worth of sorting machines...
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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 this company status is under the business group of Deutsche Post World Net (DPWN) Germany. Deutsche Post then effectively absorbed DHL into its Express division, business units and subsidiaries. Currently they delivering to over 70,000 destinations in 227 countries with 6,500 offices around the world, the company had over 150,000 employees globally. Belgium-based DHL International (DHL), in collaboration with its Chinese partner; Sinotrans which was also known as the China National Foreign Trade Transportation (Group) Corporation, launched an international express service, in China. Its core business was transporting documents and packages, which was a door-to-door delivery service particularly targeting parcels and freight items. The service...
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...Master TEW International Business cases - Van Hoof Q 186 uickprinter Koningstraat 13 2000 Antwerpen www.quickprinter.be 2.90 EUR International Business: Cases Case 1: Whirlpool Whirlpool’s Dramatic Turnaround through Internationalization Whirlpool exemplifies how internationalization can rejuvenate declining sales and optimize cost structures. Background Headquartered in Benton Harbor, Michigan, Whirlpool Corporation makes washers, dryers, refrigerators, dishwashers, freezers, and microwave ovens in 13 countries and sells them in 170 others, under brands names such as Whirlpool, Maytag, Magic Chef, Jenn Air, Amana, KitchenAid, Kenmore, Brastemp, and Bauknecht. In 2006, Whirlpool acquired competitor Maytag (horizontal integration) and its brands (Amana, Jenn Air, Magic Chef, and Maytag). Whirlpool generated over $19 billion in 2006 annual sales: 60 percent from North America, 25 percent from Europe, 15 percent from Latin America, and 2 percent from Asia. Operate with 60 manufacturing and technology centers worldwide and 80,000 employees. International Expansion Domestically: (1) The U.S. appliance market matured in the 1990s, and Whirlpool faced low profit margins, intense competition, and more demanding buyers, pressuring management to consider international markets. Internationally: (1) Trade barriers fell, consumer affluence grew, and capitalism flourished. (2) A “global” approach would yield economies of scale in manufacturing, assembly, appliance technology...
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...Introduction The world is standing at the threshold of a new millennium. We expect it to be full of successes, discoveries, developments and happiness and this will be possible due to globalization, technological advancements (changes) and the dramatic economic changes. Whenever we talk about economy, we mean financial performance of a country, company or a firm. So in this case the most used and the important term is technology. The term technology is the most crucial part of the business world as it helps us to give logistic supports on time. Origin of the report The report titled as, “Marketing Activities of DHL”, is to be submitted on 18th August 2008 to the course instructor Nazia Nabi (Lecturer, School of Business) who authorized and assigned us to do this report. Background of the report The report titled as, “Marketing Activities of DHL”, is originated from the partial requirement of the course Services Marketing. It is actually a joint student – faculty learning experience, where the students learn the Marketing Activities of several business service organizations or firms. Objective of the report This report seeks overall information about marketing activities. By this report we tried to represent the actual relevant use of marketing activities in business. Basically there are two objectives behind doing this report, and they are as follows: * The first and the foremost objective of the report is to fulfill the partial requirement of the course Services...
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...How does POSLAJU allow Logistics practitioners to send a parcel locally or overseas? This question basically requires us to identify and explain how the parcels are delivered to their specific destinations inside and outside of the country. PosLaju is offering a few types of services to their customers ranging from Next Day Delivery, Same Day Delivery, Time Certain Services, Borneo Economy Express and Putrajaya Express for the domestic market. For the international market, the options provided are the International Delivery, Time Certain Service Singapore, PosLaju International Premium, and Pospriority Express. We will first start to talk about domestic delivery. Domestic delivery only includes in-country deliveries. Firstly, we have to select which type of service that we want to choose. If it is an urgent parcel, then we can opt for the same day delivery where the company ensures the parcel will be delivered on the same day. If the parcel is not so urgent, we can opt for the next day delivery or other services available. The next step is to get our packages ready for delivery. The packages have to be packed only in white papers and in good manner. Any packages not up to the standard will be rejected by PosLaju. Then, we can proceed to the nearest post office to drop the packages. In the office, we will have to fill up a form to identify the receiver and the sender. Phone numbers have to be included because it is very crucial for the office to call you if something happens...
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...[pic] Introduction FedEx Corporation (FedEx) is a US based company mainly engaged in offering logistics solutions. The company, through its subsidiaries, provides transportation, e-commerce and business services under the FedEx brand. The major benefit of using the company is its ability to provide “day-certain” service to every business address in the US and Canada, as well as provide “time-certain” delivery to those areas within one to three business days. The company was founded in 1973 by Frederick W. Smith, whose vision was to provide overnight delivery services for his clients. The company is divided into eight major divisions: [pic] The mission of FedEx is to provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer needs will be met in the highest quality manner appropriate to each market segment served. FedEx strives to develop gratifying relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations and all activities will be conducted to the highest ethical and professional standards (FedEx Corporation – Financial and Strategic Analysis Review, 2011). FedEx’s vision is a world where goods and information move quickly and seamlessly. The company’s goal is to connect the world in such a way that consumers will view them as a provider of convenient...
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...transporting goods and services. The businesses that can leverage technological advances are in a position to garner market share and add value to their shareholders. FedEx has become a world leader in the parcel delivery business. The name FedEx evokes thoughts of getting packages to customers the next day. FedEx now is used as a verb to tell customers that a shipment will be sent so that it is received the next day. Delivering a product on-schedule is the result of multiple business processes working seamlessly to create a Value Chain that yields a firm greater profit over costs (Dess, Lumpkin, & Eisner, 2007). A primary activity of the Value Chain is Supply Chain Management (SCM). Supply Chain Management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer ((2006). Supply Chain Management Retrieved April 24, 2007, from http://searchcio.techtarget.com/sDefinition/0,,sid19_gci214546,00.html ) Running the full spectrum of products and services, companies rely on sound SCM procedures and techniques to move goods expediently, i.e. Levi promising next day delivery of Dockers to a retail store, or the Department of Defense shipping needed equipment to front line soldiers in the Global War on Terrorism. FedEx is in the business of providing businesses the ability to manage their supply...
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...1.0 INTRODUCTION An American global courier delivery service, Federal Express (FedEx) Corporation was founded by Frederick W. Smith in 1971 (Ferrell & Hartline, 2011). Formerly known as FDX Corporation, its headquarter is in Memphis, Tennessee, U.S. There are four segments that the company is divided into which are FedEx Express Segment, FedEx Ground Segment, FedEx Freight Segment and FedEx Services Segment. The FedEx Express Segment includes two companies which are FedEx Express and FedEx Trade Networks. In the FedEx Ground Segment includes FedEx Ground and FedEx SmartPost, For FedEx Freight Segment consists of FedEx Freight, FedEx Custom Critical and Caribbean Transportation Services. As for FedEx Services Segment comprise of FedEx Services, FedEx Office, FedEx Customer Information Services as well as FedEx Global Supply Chain Services. FedEx has experience tremendous success domestically and internationally since it began operations, however FedEx is still does not has the main market share in both markets as UPS dominates the ground delivery and DHL dominates the international express delivery. So in this paper, we will be answering three questions regarding FedEx’s methods of expansion, reasons for its global operations problems, SWOT considerations, competitive landscape and recommendations to encroach upon the two competitors. 2.0 QUESTION 1 Evaluate the methods used by FedEx to grow domestically and internationally. Why do you think that the company initially...
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...the move toward closer economic integration in Western Europe.This situation offerred a good opportunity for the booming demand of international transimisiion. Therefore most of the air express companies started to pay attention to international air cargo business.According to forecasts, the market for international air express is expected to grow at approximately 18% annually from 1996 to 2016. 1995-1996 the Four Big Players In the business of international air express there are four main companies did well in this area and kept most shares of the market. They are DHL,TNT,FedEx and UPS. [pic] DHL DHL held the most shares compared with other company, with the investment of Lufthansa and Japan Airlines,the top five air freight haulers in the world,DHL got huge strengths. TNT TNT was controled by an Australian conglomerate, its shares declined from 18% in 1990 to 12% in 1995, with the competition. FedEx |Strengths |Weaknesses | |Enough funds |Lack of experience in international market | |A big fleet and landing rights by acquisition | | |Good experience in air express | | |Opportunity ...
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...well as lower market entry barriers attract enterprises within the same industry and the outside ones. Bright perspectives drive the competitors, including state-owned enterprises, private enterprises and foreign enterprises, into a fierce competition. This article mainly discuss three logistics service providers: FedEx (USA), Maersk Line (Denmark) and Shun Feng Express (China) Federal Express Corporation (FedEx) Background: Federal Express Corporation (FedEx) is an international express delivery group, providing overnight courier, ground courier, heavy cargo , file copying and logistics services . The headquartered in Tennessee In the first beginning, FedEx provide services to 25 cities after moved to Tennessee, but difficulties, however, a few years later, the business started to improve. In July 1975, the company begin to earn the profit. In 1978, the company went public and was listed on The New York Stock Exchange In 2003 , FedEx announced the acquisition of (Kinko's), this merger ended in February 2004 . Later Kinko's renamed "FedEx Kinko's". In 2008, FedEx abandon the "FedEx Kinko's" brand, changed its name to FedEx Office (FedEx Office). FedEx now having 300 million...
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...Business Strategy United Parcel Service (UPS) Overview United Parcel Service, Inc. was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry and the premier provider of global supply chain management solutions. It deliver packages each business day for 1.6 million shipping customers to 8.2 million receivers ("consignees") in over 220 countries and territories. In 2014, it delivered an average of 18.0 million pieces per day worldwide, or a total of 4.6 billion packages. Total revenue in 2014 was $58.2 billion. It are a global leader in logistics, and it create value for its customers through solutions that lower costs, improve service and provide highly customizable supply chain control and visibility. Customers are attracted to its broad set of services that are delivered as promised through its integrated ground, air and ocean global network. Its services and integrated network allow shippers to simplify their supply chains by using fewer carriers, and to adapt their transportation requirements and expenditures as their businesses evolve. Across its service portfolio, it also provide control and visibility of customers’ inventories and supply chains via its UPS technology platform. The information flow from UPS technology drives improvements for its customers, as well as for UPS, in reliability, flexibility...
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...COURIER: A courier delivers messages, packages, and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of express services, and swift delivery times, which are optional for most everyday mail services. Considering it as a premium service, couriers are usually more expensive than standard mail services, and less typically faster delivery. Courier services operate on all scales, from within specific towns or cities, to regional, national and global services. Large courier companies include DHL, FedEx, EMS International, TNT, UPS, and Aramex. These offer services worldwide, typically via a hub and spoke model*. *NOTE: The hub and spoke model is a system which makes transportation much more efficient by greatly simplifying a network of routes. It is extensively used in commercial aviation for both passengers and freight, and the model has also been adopted in the technology sector as well. SOME TYPES OF COURIER SERVICES: 1. International Courier: The name of the service somewhat gives it away, but the International Courier service is all about providing customers with a solution to get their package from one country to another no matter the requirement for transportation by air or sea. 2. Same Day Express Courier: This service includes the delivery of the parcel/freight/mail within one working day. This service can often come in different disguises...
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...Introduction Business SegmentsFedEx ExpressFedEx GroundFedEx FreightFedEx ServicesCorporate Strategy“Compete Collectively, Manage Collaboratively” • 3. Brand Planning AssessmentThe FedEx PositionWho is the target market?“anyone who needs to send something anywhere in the world. Whether it’s the one and only package you'll ever ship in your life or you have 1000 packages to ship every day.” • 4. Brand Planning AssessmentThe FedEx PositionWho are the main competitors?UPS • 5. Brand Planning AssessmentThe FedEx PositionWhat are the points of parity?-Both companies ship packagesBoth online services allow you to track packages, order supplies and pay bills.What are the points of difference?-FedEx has 3 times as many planes-Print and ship from anywhere services-FedEx has been known to update technology more frequently than UPS • 6. Brand Planning AssessmentThe FedEx PositionFast Forward MovingPrecise • 7. Brand Planning AssessmentKey Marketing ActivitiesAlliances with NFL, NBA, FedEx cup, FedEx racing, the FedEx orange bowl, and the FedEx field Senior Vice President of International Marketing, Rajesh Subramaniam, said, “FedEx sponsors and associates with several sports that share its attributes of speed, reliability, precision, teamwork and flawless execution.” • 8. Brand Valuation Assessment Building EquityFavorability & Awareness Through Six ElementsMEMORABLEMEANINGFULLIKEABLETRANSFERABLEADAPTABLEPROTECTABLE • 9. Brand Valuation...
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...UPS & Fedex There is increasing trend that customers expected shorter delivery lead time with smaller order quantity requirement. The growth in online shopping and globalization provided the golden chance. These boosted the courier industry to the new level in recent decades. Courier service companies not only help to shorten the delivery lead time, but also stimulated the modern global business transactions. The most popular courier services in the world include UPS, Fedex, DHL and TNT. Here we will compare the top 2 branded networks UPS and Fedex. UPS United Parcel Service is commonly referred as UPS. It is an American package delivery company with global operations. Headquartered in Sandy Springs, Georgia, United States it was founded in Seattle in the year 1907. It delivers more than 15 million packages a day to more than 6.1 million customers in more than 220 countries and territories around the world. In 2012, UPS gross revenue is US$54 billion. Fedex It is headquartered in Memphis, Tennessee, US and is an American global courier delivery services company. The name FedEx is actually an abbreviation for Federal Express. It was founded in the year 1971 and is today one of the top most courier services in the world. Fedex provides fast and reliable delivery service to the United States and around the world in over 220 countries and regions. FedEx Express has a global air and ground transportation network, usually only one or two days. In 2012, Fedex gross revenue...
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...Perspective Alexander Niehues Edward Tse Justin Zubrod Express Opportunities In China Packaging a Strategy For the International And Domestic Express Delivery Market Booz & Company is a leading global management consulting firm, helping the world’s top businesses, governments, and organizations. Our founder, Edwin Booz, defined the profession when he established the first management consulting firm in 1914. Today, with more than 3,300 people in 58 offices around the world, we bring foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage. For our management magazine strategy+business, visit www.strategy-business.com. Visit www.booz.com/cn to learn more about Booz & Company in Greater China. CONTACT INFORMATION Hong Kong/Shanghai Edward Tse Partner edward.tse@booz.com McLean Justin Zubrod Stuttgart Partner justin.zubrod@booz.com Alexander Niehues Partner alexander.niehues@booz.com Originally published as: Express Opportunities in China: Packaging a Strategy for the International and Domestic Express Delivery Market, by Ed Tse, Justin Zubrod, Alexander Niehues, Simon Gillies, and Paolo Pigorini, Booz Allen Hamilton, 2007. 1 Express Opportunities in China Packaging a Strategy for the International and Domestic Express Delivery Market Introduction China is on its way to becoming a global trade...
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