Air Cargos Integrators Analysis

Air Cargos Integrators Analysis

Introduction

DHL is a logistics company that offers package delivery, courier, and express mail services. The German-owned company was founded in 1969 in San Francisco and has since been expanding its services worldwide. It uses the DHL Same Day Proprietary to establish the fastest route when shipping packages. The company has also developed an algorithm known as the Green Plan, which ensures that the capacity of the company’s delivery vehicles is used efficiently and that routes are calculated with the best delivery conditions, including traffic flow and start time. The company also has a DHL aviation department that offers air transport. The department has several airlines that are either chartered, co-owned, or owned by DHL Express, such as DHL International, which delivers packages to destinations in the Middle East, European Air Transport Leipzig, which delivers packages to the Middle East and Europe, and Blue Dart Aviation which delivers packages to India. The company also owns various smaller subsidiary airlines, such as DHL Aviation South Africa.

Strategic Advantages

DHL holds a top position in the logistics market. The company has managed to maintain a competitive advantage over major competitors such as UPS and FedEx due to various strategic advantages. The main advantage is a large market share in the global markets. According to Liu & Wen (2012), DHL has invested in maintaining global stability by expanding to various markets, thus growing its market share. The second advantage is good technology.DHL has invested in technology, research, and development to increase service efficiency. For instance, it has implemented technology to track goods and establish the best routes to avoid package loss and delivery delays, unlike competitors such as UPS and FedEx (Diallo et al., 2016). The third advantage is using both land and air deliveries. This has significantly expanded the company’s customer base because it can deliver packages to customers worldwide. The fourth advantage is good customer service. The company received a customer service award in 2011 for offering the best business-to-business customer service in Sweden, thus creating a good image and reputation among customers worldwide (MacGillavry & Wilson, 2014). The company also offers safety insurance services and timely delivery, thus creating customer loyalty.

Disadvantages

One of the main disadvantages that could reduce DHL’s competitiveness is the lack of liability insurance that UPS and FedEx offer. The second disadvantage is the price. DHL’s prices are higher compared to competitors. Therefore, customers looking for cheaper logistics services may prefer UPS or FedEx. The third disadvantage is an overreliance on external agencies.DHL has a wide network, thus collaborating with local private agencies to serve customers. This may limit the company’s efficiency due to poor coordination between the company and the agencies. The fourth disadvantage is poor marketing.DHL has not invested in advertising and branding, thus limiting the company’s acceptance and popularity. This could significantly reduce competitive advantage by reducing the company’s market share.

Conclusion

Overall, DHL is one of the main logistics companies dominating the global market. The company has maintained a top position by leveraging strengths such as good customer service, technology, research and development, and service efficiency, including offering same-day air and land deliveries. However, the company needs to improve its marketing strategies to enhance its popularity and reduce prices to attract more customers. The company should also consider offering liability insurance to avoid losing customers to competitors. The company also needs to stay updated on new technologies that can be used to improve the coordination of various routes.

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References

Diallo, A., MacGillavry, K., & Uhl, A. (2016). Digital transformation at DHL freight: The case of a global logistics provider. Digital Enterprise Transformation, 263-277. https://doi.org/10.4324/9781315577166-10

Liu, J., & Wen, Y. (2012). Study of Competitiveness – A Case Study of DHL [Unpublished doctoral dissertation]. University of Gavle.

MacGillavry, K., & Wilson, A. (2014). Delivering loyalty via customer experience management at DHL freight. Global Business and Organizational Excellence, 33(6), 6-20. https://doi.org/10.1002/joe.21569

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Please pick ONE of the following integrators to research and report on: FedEx, UPS, DHL, or TNT.

Please number and state each question/statement and give each answer its own separate paragraph(s).

Introduction: Include the name of the integrator, a brief description of the company, a specific start date, route structure, high technical solutions, and aircraft.
Strategic Advantages: Describe the company’s strategic advantages and market position over the other three.
Disadvantages: Describe any disadvantages and/or competitive pressures you observed.
Conclusion

The paper should include a minimum of 500 words, not including references or a cover page.
-Apply current APA style rules; use the Writing Style Guide for guidelines.
-Observe written assignment formatting requirements.
-Times New Roman font
-12-pt font size
-double-spaced text
-numbered pages