History While Larry Hillsboro was studying, he had little money, so he decided to start a courier duty between San Francisco and Los Angels, picking up packages for the last flight of the day, and returning on the first flight the next morning, up to five times a week. When he graduated, he found a niche, which no other company was filling. He flew bills of lading from San Francisco to Honolulu, so that they were at the port of arrival, before the Shipment was.
This saved valuable time after the ship with the shipment arrives. To start the company, he uses a part of his student loans and brought in his two friend Adrian Daley and Robert Lynn, this was in 1969. Those three boys were sharing a Plymouth Duster to pick up the documents In suitcases. When the company took off, new couriers Joined the company. The first couriers were Max and Balance Karol, who had an apartment In Hawaii, where the couriers can sleep during their stay in Honolulu. In the early sass they started to expand their business.
First to the Philippines, then Japan, Hong Kong, Singapore and Australia. 1998 Deutsche Post began to acquire shares in 1998 and finally reaches the 51% in 001. Following the completion of the purchase in 2002. 1. 2. Key Facts Now DEL Is of the largest logistic providers In the world, It Is build-up of the departments DEL Packet, DEL Express, DEL Freight, DEL Global Forwarding, DEL Supply Chain and DEL Mails. This assessment is about DEL Express. DEL has more than 285,000 employees, who provide their service in 220 countries all over the world.
That means that DEL is the most international company in the world. For its contribution In the past 40 years, DEL has become the global leader of the International logistics Industry and Is the global market leader In Sea freight and Alarm right and the top-selling logistics company in the world. Since DEL is a division of the German logistics company “Deutsche Post DEL” , it is named “DEL International Gumbo”. 2. Situation Analysis 2. 1. Customers DEL accepts any kind of delivery requirements, no matter who the clients are.
So DEL has customers all over the world. To know the customers life cycle better, DEL Relationship Customer and Normal Customer. The Strategic Customer has large amounts of logistics needs or complex supply chain requires. Usually this are the top 250 customers in the world. Long-Term Relationship Customers have regularly recently needs, which are simpler than the logistic needs of the Strategic Customer. The Normal Customers, are customers who are not loyal and would choose other Express provider, if they are cheaper or the eyes of the customer better.
That means, to build strong relationships, DEL always provides the best service and best technologies to their Strategic Customers. But the main task for DEL is to focus on the Long-Term Relationship Customers to maximize their profit. Furthermore, they will do something for the Normal Customers to turn them into loyal customers and someday into Long-Term Relationship Customers. . 2. Product DEL Express 9:00 includes a Door-to-Door delivery on the next possible business day.
It is perfect for time critical international shipments and includes a money-back guarantee and a proactive delivery notification. It’s possible to book with the standard booking procedure and the shipments can be picked up at every place, it doesn’t matter if it is a small specific location or a major business centre. DEL Express 12:00 same as DEL Express 9:00, with a delivery at 12:00 p. M. On the next possible business day. DEL Express Worldwide includes a Door-to-Door delivery by the end of the next Seibel business day. All pick-up locations all over the world are possible.
DEL Jumbo Box is ideal to ship dutiable goods around the world. The boxes are available in two dimensions. (Up to keg and up to keg). Another positive point in this service is the price. In this service you have simple fixed prices, which are based on destination zones. 1 2. 3. Competitors The main competitors of DEL are UPS, Fed & TNT. In the following table you can see the comparison of these four companies by considering Size / Number of employees, revenue 2012, service / logistics, sustainable strategy and number of vehicles and aircraft.
This led to a liberalizing of international trade which increased the volume of trade. That had to follow a huge economic growth. Nowadays logistics companies such as DEL have the opportunity to work all around the world. The European Union has developed and created one of the biggest single markets for trade in the world. EX. enlargement has removed border lines and has made trade and business more accessible for its members. EX. has created closer links with immediate neighbors and enables bigger exports and imports and free movement of services. If DEL has to transport shipments, they don’t need all the customs things, which makes work easier for them. But there are also restrictions of the government, that slow DEL down.
This are regulations like the night flight ban at airports that are near the city, the ban on driving of trucks on Sundays and holidays on German motorways and the driving regulations for truck drivers. Furthermore there was a liberalizing of the postal market in Europe, which was finished in 2012. The liberalizing started in the ass’s because there were many national postal companies, who got benefits from the government, which are acting as monopolies. The postal reform has enabled the private postal companies to enlarge their business portfolio into parcel and express market. So it brought more competition in the market especially on domestic level. 3. 2.
Economic The COPE-market (Courier, Express, Parcel) has high potential and the growth is directly related to the level of the gross domestic product. Because of the industrialization and the rising of global trade, express services became more and ore important for the industry. Additionally, the customer want high quality standards and products from overseas, e. G. Fruit that is not grown in their own country and which has a short life period. Through the global economic crisis 2008/2009 the volume of shipments decreased rapidly as well as the shipping rate in every transport mode. Even big companies like DEL had to fight with decreased earnings and changed business strategies.
But on the other hand companies with strong brand and a good position in the market, like DEL, had the opportunity to expand into emerging markets, which arose because of the industrialization. Smaller companies didn’t have the potential to expand, because they were in bigger risk to lose money. DEL is able to absorb that risk much easier. Reduction of costs is restructuring of the company structure and outsourcing of some functions. So did DEL, they outsourced their IT functions to T-Systems. 3. 3. Social The social and cultural behavior of DEL affects customer’s attitudes, interests and opinions. Offering products and services, which meet and complement the needs and wants of the customer.
They will lose market share and demand for their products, if they don’t react to the lifestyle changes of the society to the global consumer. In developing countries DEL is Just concentrating on the biggest needs and wants of the business. DEL has to establish its brand and achieve reliable image and service quality among its customers. Another negative point in the social part of the PESTLE analysis are the social costs. These are the costs the society has to bear. Example: The increase of the volume of transported goods has led to higher CA emissions which have direct effect to the global warming. The government and so the society as well has to bear the costs for that. This cost could be fines, taxes and legislation.
Social costs have a negative effect on the customer, their thinking changes to an environmentally friendly thinking, so they would choose the most environmentally friendly company. Dell’s responsibility should be to decrease these costs and work with more environmentally friendly modes of transport. 3. 4. Technological Caused by technological environment companies like DEL can rapidly move forward. The communication is only one achievement of the modern technology. Switching room letter to fax to email made the communication between the company and the customer easier undo much faster. Furthermore, they can and have to react immediately to changes in customer orders that bring extra pressure to the companies, because the customers expect an on time delivery without delays.
The central point of the company is Information Technology. The IT system has to be fast and reliable, because the whole business depends on it. Today most of the companies are working paperless, customer orders are only registered in the system. Besides the security is very important as well, companies have to prevent unauthorized access to data and data manipulation. So they never can stop investing in technological development. It is so important, that even in an economic crisis they can’t stop investing, otherwise there is a threat that they will fall behind. As already mentioned in 3. 2. 2. DEL outsourced their IT-functions, that’s a way to reduce the costs in the IT area.
Usually this companies are specialized in IT development and have to bear the costs of developing new technologies, software and applications. Another aspect are customized logistic solutions to meet customer’s wants. Examples re the transport of sensitive goods like pharmaceuticals in a temperature-controlled drum or Just-in-time solutions for automobile manufacturers. 3. 5. Environmental The global warming and the greenhouse gases are massively determined by the logistics industry. Because of the increasing mobility more and more trucks are on companies to reduce it. For this reason DEL started projects to find ways how to reduce pollutions to the environment. The problem is that logistics companies like DEL are dependent on fossil fuels to run their business.
The Research & Development department plays an important role in these projects, they have to invent and develop alternative fuel or alternative transport facilities. Other ways to reduce air pollution are reducing shipping time, offer climate neutral products and train the employees to make the business more efficient and effective. 3. 6. Legal Legal rules play a role in nearly every part of the company. There are state regulations, like driving times for the truck drivers, contract regulations and the treatment of the employees. It is very important, because on the one hand legislation can place many obligations but on the other hand it can also create market notations, which are beneficial for the business. 4.
Analysts Strengths Effective communication Endless logistics solutions Online growth Loyal customers Global leader of international logistics providing in 220 countries Strong brand, name image Supply chain Excellent In-house Consultancy Weaknesses Many different and large operations means standardized operations even in need of customized environment Dependence on external agencies, ministries and other regulatory bodies Not enough indicators suggesting performance with respect to getting regulatory permissions Opportunities Emerging markets used as hub and expansion abroad Product and services expansion Takeovers Efficient and effective inherent systems to comply with regulatory bodies can create a niche presence Threats Competition Economic slowdown External changes (government, politics, taxes, etc. ) Price wars Massively increasing e-commerce 4. 1 .
Strength The greatest strength of DEL is certainly the excellent reputation as the global leader of international logistics and the strong brand name with the resulting loyal customers. If a company keeps its promises, the customers are satisfied and will use he service again. The company has also a very good website, which is growing and growing. By the growth of the online sector, you can book products via internet, which shows the effective communication, because you can use more than one way to book products. By using the above named departments DEL can offer endless logistic solutions around the whole supply chain for everyone within 220 countries all around the world. Not to mention that DEL has an excellent in-house consultancy. 4. 2. Opportunities Many possibilities can arise by the company’s strengths.
The fact that DEL is the lobar leader in international logistics and they are providing in 220 countries in the world, gives them the opportunity to takeover new companies to grow, besides they can use emerging markets as a hub and expand to other countries. Due to the new markets DEL can also create a niche, by using efficient and effective inherent systems to comply with the regulatory body. 4. 3. Weakness Although many different and large operations are an opportunity, they also are a weakness. Because DEL have to standardize the operations, which means the loss of customized operations, which is so necessary to tie customers. Another weakness of DEL is the dependence on external agencies, ministries and other regulatory bodies. An example for that are the driving regulations for the drivers or the prohibition of starting planes at night in some big cities.
Also DEL is showing not enough effort to get regulatory permissions. So not enough indicators suggesting performance with respect to getting regulatory permissions is a weakness as well. 4. 4. Threats Even if DEL is the most international logistics company and the global leader of the international logistics industry, there a many other companies doing the same equines, such as UPS and local couriers. So the competition is a worse threat, which every time leads to price wars between the competitors. Another threat is the economic slowdown, the people keep their money, they don’t buy as many as they did years ago, so they don’t have things to transport.