Strategic analysis of DHL post (5 forces model, PESTEL analysis, DHL spider-web analysis, VRIO analysis, SWOT analysis, 7s framework, Business model canvas)

1. Deutsche post DHL
external and internal
analysis
Julie Rooney
Jonathan Francx
Piyush Virmani
Ahmad Fahmy
13th of February - Global strategic management

2. Deutsche post DHL
•
2000: Deutsche Post going public
2002: The journey towards full
ownership of DHL
2005: The largest acquisition in
history
2013: Five years of green

3. Figures, performance &
competitors
UPS
20%
DHL
15%
FEDEX
14%
TNT
4%
OTHER
47%
Market Share
UPS
DHL
FEDEX
TNT
OTHER

4. 0
1
2
3
4
5
6
Supplier
Power
Buyer
Power
Threat of
New
Entrants
Threat of
Substitutes
Industry
Rivalry
Structure:
Oligopoly
5 Forces Model
Context:
Price-sensitive,
Moderate
Differentiation,
Market Power
Performance:
40 Billion Euro
market,
Ecommerce
innovation
Economies
of Scale
Price
Sensitivity
Presence of
Substitutes
Switching
Costs
Product
Differences

5. Political:
• Liberalization
CEP Market
• Schengen Zone
Economical:
• Reverse Logistics
• GDP
• Economic Crises
• Emerging Markets
• Automatization
• Exchange Rate
Social:
• Generation Gap
• Urbanization
• Seasonality
PESTEL
Analysis
Technological:
• E-Commerce
• Efficiency
• Important
Innovations
• Self driving cars
• Drones
• 3D printing
• Tracking
Ecological:
• Carbon Footprint
Legal:
• Data Protection
• EU Regulations
• Transport Laws

6. DHL Spider-web analysis
Cost to customer
Quality of service
Distribution Network
E-commerce
Brand and Reputation
Financial stability
Innovation
Custom Services

7. VRIO Analysis
Valuable Rarity Costly to
imitate
Exploited by
organisation
Competitive
implication
E-commerce Yes No Competitive Parity
Quality Of
service
Yes No Competitive Parity
Brand and
reputation
Yes Yes Yes No Sustainable
Competitive
advantage
Distribution
network
Yes Yes Yes Yes Competitive
advantage
Financial stability Yes Yes Yes No Sustainable
Competitive
advantage
Innovation Yes Yes Yes Yes Competitive
advantage
Custom services Yes Yes Yes Yes Competitive
advantage

8. SWOT Analysis
Diversified Business
Model
Market domination in
Europe
High price compared to
the competitors
Weak presence in the
US market
The B2C market is
experiencing double-digit
growth
Creating partnerships
Declination of traditional
services due to electronic
communication
Strong competition from
other companies

9. 7s Framework • Key partnerships
• Strategy 2020
• Cost leadership
• GoGreen
• Roadmap to value
• Track and Trace
• WMS
• RFID
• Customs
• Innovation
• Proprietary routing
system
• Diversity management
• Development programs
• Visionary approach
• Top down strategy
• Hierarchical organization
• Centralized warehousing

10. Parcel shops Private
BusinessESRI
Fixed Prices
Bulk Discount
Direct mail
Door-to-Door
Delivery Options
Customs Services
Bulk Shipment
Fast and Reliable
Return Shipments
Business
Integration
Low Cost
Self-Service
Personal
Assistance
Entertainment
Sponsorships
Airlines
Last Mile
Logistics
Ecommerce
Global Network
Transport
Vehicles
Economies of ScaleFuel Prices
Buying and Maintaining
Vehicles
R&D
Labor
Business model canvas

11. First recommendation:
Expanding in Africa
• DHL Post – Ecommerce - Parcel expansion in
Africa by acquiring different local postal
offices where possible and opportune.
• We recommend DHL to initially focus on
those markets with the highest growth rates
to start from.

12. Second recommendation:
Establish complete liability insurance
• Main competitors like UPS and FedEx provide services like auto
liability insurance to its customers
• DHL should focus on implementing this to become more diversified
• Insurance assures the customers and makes them confident about the
company

13. Third recommendation: The circular economy