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Porter's five forces for DHL
Transcript of Porter's five forces for DHL
Background on DHL
1969 Founded by: Adrain Dalsey, Larry Hillblom and Robert Lynn in San Francisco.
San Francisco --> Honolulu
Now deliver shipments by air, rail.road and sea.
over 220 countries
more than 300 000 employees
Number 1 in Europe with 25% market share
Threat of New Entrants - High
Large + attractive market
Growth of GDP = Growth of demand
Favourable economies of scale
Complex and high bureaucracy for large companies.
Bargaining Power of Customers - High
Logistic companies outnumber customers
Differentiate and provide added value
Customer loyalty = very important
Provide benefits for the customer
Increase customer switching costs.
Threat of Substitute of Products or Services.
Similar products offered
Role of Research and Development Department = important.
Marketing and Advertising important.
Bargaining Power of Suppliers - High
Suppliers in IT
Front office and back office technology
Outsourced IT either expensive and good or bad and cheap
Threat of falling behind
Supplying from already existing suppliers.
Both can use buying power.
Rivalry Among Current Competitors - High
High and extensive especially internationally.
Small/ middle companies represent danger and increase rivalry on local/ international level.
Differentiation by innovation