SWOT Analysis of DHL, strength, weakness, opportunities, and threats of leading logistics company DHL. small surprise reward at the end of the article but before starting with anything, you must have some questions in your mind: what is a SWOT analysis of DHL?
Let’s start by the introduction of both:
DHL IS a leading international logistics company founded by three people who used to work at port -Adrian Delsey, Larry Hillblom, and Robert Lynn founder of DHL. The idea of DHL was coming up as a solution for the late documentation problem at the port. As a result, an air courier company was established.
DHL is part of the world’s leading postal and logistic company Deutsche post-DHL group, in simple language, it is an international transportation company. DHL offers a range of parcel and international express service and supply chain management services as well as some e-commerce logistic solutions.
Deutsche post-DHL Group generated revenue of more than 66 billion euros in 2020. DHL is providing its services in over 220 countries and territories across the globe, making it the most international company in the world. With the working force exceeding 350,000 employees. DHL provides solutions for almost every need of logistics.
SWOT Analysis of DHL
What SWOT exactly stands for? SWOT is used to find out positive and negative things in a person or company.
SWOT represents Strengths, Weaknesses, Opportunities and Threats
Let’s dive right in.
1. Strengths of DHL
- Brand Partnerships:
DHL is the specialist for delivering globally around the world. As an official logistics partner, DHL is committed to offering innovative solutions for complex logistics challenges in sports, arts, and culture.
DHL has partnerships with some of the most popular and leading brands in motorsports, music & arts, fashion & lifestyle, and sports, some of them are:
a. motorsports:Formula 1, ABB FIA Formula E, MotoGP,
b. Sports: manchester united, rugby, ESL One
c. Music and arts: exhibitionism, BTHVN on Tour.
d. Fashion and lifestyle: fashion
DHL Launched its new brand campaign with the tagline “The power of global trade” global trade gives people access to ideas, technology, and opportunities, by globalization DHL has to expand business worldwide,
- First mover advantage
DHL was the first company to start an air courier service worldwide, which gives monopoly in delivery industries.
- Range of products
DHL offers a large range of products to get more customers. DHL office parcel and international express services, freight transport, supply chain management services, and e-commerce logistics solutions.
- Trademark and patents
DHL owns several intellectual property rights that include trademarks and patents. That allows it exclusivity over its products and competitors can not copy or reverse engineer them.
- Customer trust
DHL’s customers are all around the world.. DHL always listens to its customer’s voices. DHL received the customer service award for best B2B customer service in Sweden in 2011.
- Worldwide service
Every year, the firm delivers about 1.5 billion shipments. It is also the sole provider for transferring USPS mails in and out of Iraq, Afghanistan, and Myanmar. They also provide service in North Korea with strict codes.
- Right investments
DHL has invested in fast-developing countries to become a large part of grooving markets from the beginnings
2. Weaknesses of DHL
- Several employees
DHL does not have as many UPS.which means DHL has way more capability to do more tasks but not without required human resources.
- Culpability policy
liability insurance is also known as a culpability policy protects against claims resulting from injuries and damage to people or properties. Compared to DHL’s competitors, DHL lacks liability insurance. It probably might cause customer loss someday.
the most serious problem is price. Indeed DHL is more expensive than its competitors. And in some areas, quality of service is difficult to guarantee. DHL can make a discount for customers to inspire sustainable business.
bad attitude of staff might affect the image of the company, in today’s world of online business, most peoples do their purchase after reading reviews so the company might lose some future customers.
3. Opportunities for DHL
- Access to worldwide opportunities
DHL is the largest international logistics company which means the company has access to all the opportunities available in different nations.
- Learn from competitors
Different companies have different exclusive strategies and there are still a lot of things DHL can learn from other companies. For instance, DHL can establish its liability insurance by taking examples from its opponents.
- Employee cooperation
regarding employee cooperation Key Performance Indicator I(KPIs) states that the credit of cooperation in 2010 is 74%.it is not enough for such a large international company. In my opinion, DHL has way more ability to improve cooperation between employees. Moreover, DHL must innovate its services to surprise customers.
- Go Trade
DHL has come up with the idea of GO TRADE, by giving small and medium-sized enterprises from developing countries access to the global market.
- DHL innovation centre
DHL group extends its role as an innovation leader in worldwide logistics with the openings of the DHL innovation centre. The goal of this centre is to create new, highly innovative, and commercial goods based on the future logistics trend.
4. Threats to DHL
- Supply chain cyber attacks
it is nothing but a network or computer hardware that is delivered with malware installed on it already. supply chain cyber-attacks include cyber-terrorism, malware, data theft. Companies might lose the private information of customers of private company data which might lead to huge damage.
- Climate change
DHL is a cargo shipping company which means weather plays a very important part in every task. A higher frequency of natural disasters can affect the performance of the company or any kind of extreme weather event.
- Port congestion
port congestion means when ships arrive at the port and can not load or unload, as the port capacity is already full. The only option is to queue up and wait for their turn.
- High fuel prices
strikes and protests over high fuel prices causing fuel shortage and disruption to road aviation freight. which has increased the overall cost of DHL
- Cargo theft
cargo theft can cause huge losses. This is caused by instability and a new modus Operandi of truck theft. Cargo theft can range from stealing trailers, or vehicles. We can prevent cargo theft by carefully selecting transportation partners.
- Small local courier companies
a major threat to DHL is brand suffers local courier players which might be operating at a lower price. These small local businesses are also able to give excellent service.
In this blog, we saw what DHL is as a company and we also analyzed the strengths, weaknesses opportunities, and threats that DCL possess. They have been one of the leading logistics companies.
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