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  • Essay / DHL's American adventure - 1654

    DHL's American adventure1. DHL has used several strategies to enter the United States market. They can be divided into corporate level, business level and operational level strategies. For corporate level strategies, globalization strategies are adopted, DHL invests $1.2 billion to enter the US market. DHL is the largest express carrier in Europe with a 40% share, and the largest international express carrier in Asia, also with a 40% share. There is now a global economy, all companies involved in foreign trade, global trade must be transported, and DHL believes it must be everywhere to provide transportation. If DHL did not enter the United States with a comprehensive network, it would be very difficult for it to maintain the number 1 position in Europe and Asia. Acquisition and integration strategies are adopted by DHL. DHL has integrated more than 100 companies, horizontal integration with Airborne Inc. helps DHL expand its global network as well as its land network. This helps increase the ability to attract U.S. customers who want to reduce costs by sending packages by ground instead of by air. Diversification strategies are adopted to penetrate the American market. The American market is moving towards a terrestrial network, DHL has diversified a new terrestrial network market in order to capture American customers of small and medium businesses. A good ground network is necessary for the new market, DHL is investing more in developing and improving its infrastructure to satisfy the new market. For business level strategies, DHL adopts differentiation strategies. DHL differentiates itself from its competitors by identifying strategic customers and knowing what they value. To increase DHL brand awareness in the United States, DHL spends $150 million a year on promotions that tweak UPS and FedEx. DHL offers different advantages than its competitors, such as going to remote locations where UPS and FedEx are more reluctant to go. DHL provides better services at the same price by improving its infrastructure. This includes expanding trucking routes, creating air hubs and improving sorting centers and drop-off points. Additionally, targeted differentiation is adopted, DHL offers high perceived service benefits to a selected market segment. DHL focuses on mid-sized and small businesses because to offer high perceived service benefits in this niche, DHL offers them more personalized service. For operational level strategies, DHL grows its business by improving its customer service..