- 1 Company Overview:
- 2 About DHL
- 3 Strengths In The SWOT Analysis of DHL
- 4 Weaknesses In The SWOT Analysis of DHL
- 5 Opportunities In The SWOT Analysis of DHL
- 6 Threats In The SWOT Analysis of DHL
- 7 Limitations of SWOT Analysis for DHL
- 8 Weighted SWOT Analysis of DHL
- 9 References / Citations & Bibliography
- 10 Conclusion
A SWOT Assessment of DHL concentrates on strengths, weaknesses as well as threats, and opportunities. DHL is among the biggest logistics businesses.
The strengths and the weaknesses that are present in DHL Swot are internal factors as well as risks and opportunities are external variables.
The SWOT analysis is a valid management tool that allows an organization such as DHL to assess its performance against its competitors and in the market.
DHL is a German express parcel, mail as well as a courier services provider. DHL is an affiliate to Deutsche Post DHL.
DHL is a provider of around 1.6 billion parcels annually. DHL was established in the year 1969 and has expanded its operations throughout the world. DHL currently employs 380000 people.
Major Competitor of DHL is FedEx and UPS. DHL employs 5 airlines as subsidiaries and 271 aircraft to deliver packages. DHL offers a speedy delivery system.
Based in Bonn, Germany, DHL was established in 1969 by Robert Lynn and Adrian Dalsey along with Larry Hillblom in the year 1969.
DHL is a major international courier, package delivery, and express mail provider. Based on DHL (2021), DHL is able to deliver over 1.6 billion parcels every year.
It is currently operating in more than two hundred countries, with the assistance of 400,000 employees which allows it to offer services that span boundaries. According to Yahoo Finance (2021), the company’s market capitalization is EUR 65.37 billion.
That’s which indicates that the company has a significant percentage of market shares in the logistics and delivery sector.
|Name||DHL International GmbH|
|CEO||Dr. Frank Appel|
|Revenues||€ 76.12 Billion, 2021|
|Profit||€ 3,40 Billion, 2021|
|Competitors||FedEx, TNT, Neovia Logistics, UPS, Royal Mail|
DHL is a renowned international logistics company that was founded by three men who worked at the port – Adrian Delsey, Larry Hillblom along with Robert Lynn founder of DHL.
The idea behind DHL was born as a solution to the problem of documentation that was not completed on the docks. In the end, an air courier service was created.
DHL belongs to the largest logistics and postal service provider, the Deutsche Post-DHL group. In simple terms, it’s an international company for transportation.
DHL provides a range of international express and parcel services as well as supply chain management solutions along with a few logistics solutions for e-commerce.
Deutsche post-DHL Group raked in more than the 66 billion euro mark in 2020. DHL offers its services in more than two hundred countries around the world which makes it the largest internationally-oriented company worldwide.
With an employee count of over 350,000 employees. DHL offers solutions to virtually every logistics need.
Strengths In The SWOT Analysis of DHL
❤️ Big Network DHL is a global company with a footprint that spans over 220 countries, which makes it the largest freight company in the world career. This is what gives DHL an edge over other players in the global market. A strong internal communication system and a high-quality consultation have been instrumental in helping DHL increase its coverage.
❤️ innovation: DHL is establishing itself as an industry thought leader in the logistical industry. It has invested structurally in the latest research trends and solutions development and has created a DHL Innovation center that provides an opportunity for customers and other stakeholders can interact in dialogue with DHL experts. SmartSensor and Resillience360 were both successful logistics solutions developed by the Innovation Centre.
❤️ Affirmative brand equity: DHL has been ranked 77 on the global top brand list from Interbrand in 2016, with an estimated value of 5708 dollars.
❤️ growing in developing countries: DHL has invested massively in developing countries to expand and establish their services to expand their presence in emerging markets. For example, DHL has invested about 16.3 million dollars in India and will use it in the development of new technologies such as drones for delivery and logistics.
❤️ Excellent financial standing: DHL has an excellent financial background and is recognized for having a lot of resources to back it. In the end, businesses are increasingly relying on DHL for their service. The company’s financial standing is aiding DHL to increase its revenue each year.
Weaknesses In The SWOT Analysis of DHL
❤️ Limited market share growth Since it is a highly fiercely competitive market growth of market share is difficult, especially when you consider the number of local and big competitors.
❤️ Requires a significant investment This is an industry that relies on investment so to establish and expand, substantial investment is required. The return on investment may not be immediate.
❤️ External agencies’ dependence: With such an extensive network, DHL is dependent on a variety of private organizations in the local area with which it works. This has an immediate impact on the effectiveness that is DHL and, consequently, coordination becomes extremely important.
❤️ Dependence on regulators: DHL has to comply with the regulatory standards and local authorities. The rules in the source and destinations may differ so observing the different laws may be challenging.
❤️ Poor marketing: When compared with FedEx and UPS, DHL does not invest in marketing as much and doesn’t invest much in branding and advertising. This impacts the brand’s popularity and acceptability.
Opportunities In The SWOT Analysis of DHL
❤️ Emerging markets: DHL is able to set its feet in all emerging markets, but it must grow to make use of the potential of these markets. It is essential to concentrate on their customer-focused worldwide distribution chain.
❤️ Inorganic Growth DHL is an established name in the field and is able to acquire local players to broaden its reach to the market of choice.
❤️ Electronic commerce: Increase in electronic shopping offers the possibility to enter this market too. E-commerce is thought to be an exciting future for shopping, consequently, it is essential for DHL to be a part of this marketplace as well.
Threats In The SWOT Analysis of DHL
❤️ Competitiveness: FedEx and UPS are DHL’s main competitors and provide DHL with an uphill battle across all markets. Local brands also have the potential to challenge DHL within its particular region.
❤️ Economic Slowdown Logistics is among the sectors that are most severely affected by the economic slowdown.
❤️ Traditional services are being eliminated: Traditional services such as letters and posts have decreased with the development in technology both in developed as well as developing economies.
❤️ Local couriers: A major threat to DHL is the fact that the brand has to contend with local couriers that may operate at lower prices and at a lower cost. Local couriers are capable of providing excellent service.
Limitations of SWOT Analysis for DHL
While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely as a tool for strategic planning however, it does have some drawbacks.
- Certain abilities or aspects of an organization can be both a strength as well as a weaknesses at the same time. This is among the most important limitations in SWOT analyses. Changes in environmental regulations can be an opportunity and a threat to the company. However, as well as an opportunity in the sense that it allows the company to compete on the same level or even gain an advantage over competitors when it can develop its products quicker than competitors.
- SWOT is not a method of determining how to gain competitive advantages and therefore it shouldn’t be a complete solution.
- The matrix is merely an initial point of reference for an analysis of how the proposed strategies can be implemented. It offered an evaluation window, but not an implementation plan based on the strategic competitiveness. DHL
- It is a static evaluation that analyzes the current conditions with only a few potential modifications. As the environment, circumstances, and threats alter, the dynamic of a competitive setting cannot be analyzed in one matrix.
- SWOT analysis can make a firm overvalue one external or internal element in formulating strategies. There are interrelations between the most important external and internal elements that SWOT cannot reveal that could be crucial in determining strategies.
Weighted SWOT Analysis of DHL
Due to the previously identified shortcomings of the SWOT analysis/ matrix, the management of the corporate determined to give an appropriate amount of weightage to every internal strength and weakness of the business.
Companies also evaluate the probability of happenings in the near future, and what the effect can be on the performance of the company.
This technique is known as a weighted SWOT analysis. It’s better than basic SWOT analysis since using weighted SWOT analysis DHL managers can concentrate on the most crucial aspects and eliminate the less important ones.
It also eliminates the long list issue that causes organizations to make an extensive list, but none of the elements are considered to be important.
References / Citations & Bibliography
- M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
- A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
- O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
- L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
- R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
This blog examined the characteristics of what DHL can be as a business and then we looked at its strengths and weaknesses, opportunities, and threats DCL has. They are one of the top logistic companies.
Thank you for taking the time to read this case study about Kelloggs’ SWOT Analysis from Kelloggs. To read more blogs on SWOT analysis of various businesses Click here