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DHL's Business Strategy in China

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on 30 October 2014

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Transcript of DHL's Business Strategy in China

The name DHL is derived from the Initials of the names of three entrepreneurs Namely :
D
alsey
H
illblom
L
ynn

Opening up of the Chinese Economy in the early 1980's.
In 1986 DHL Foreign Express company enters China with a Joint venture with Sinotrans
Heavy domestic competition and foreign competitors enter the market .
2001 WTO agreement
DHL's Business Strategy in China
Background
Future
Strategy for Expansion
Innovative Services
ADVERTISING
In 2003 tried to create an advt campaign in China
One stop services – Campaign
New Logo
Eye catching TV Commercials
Print advts
Launched 360-degree
advertising campaign
in early 2004
No one knows
Asia Pacific like we do

By 2003 – 37% of China’s
express delivery market
2008 Olympics
Completed 160 delivery centres
3000/hour -> 10000/hour Packages
Planned to set up delivery setup in every planned city in China by 2005
50- year-long contract with Sinotrans .
3 largest market – Expected to be the largest by 2006

• Increased investments in Chinese market
COMPETITOR IN LOGISTIC MARKET
China's entry into the WTO led to sustained improvement of its international trade
There are four leading logistic companies in the market: DHL, FedEx, UPS AND TNT.
• Establishment of new
gateways
and
Electronic Data Interchange (EDI)
to increase
capacity
and
efficiency
Source:
https://www.3plogistics.com/DHL-China_11-2009.htm
DHL Supply Chain China Domestic Road Network
• Gave priority on
ground services
rather than
airliner
services for express delivery
• “Asia overnight” express service to enhance
connectivity
and enable
faster
service
V Benny Purwanto (52114001)
Abey Tojo Kainady (52114005)
M. Nasir Sidiqee (52114603)
Faysal Ahmed (52114611)
THANK YOU
Import Express (2000)

To meet new demands
Easy delivery from any where (from supplier to doorstep)
First in Asia
Design to shortening delivery time inside Asia
To Help increase business in Asia


Jumbo Box (2001)
E-Solution (2003)
Designed for heavy Freight
Lower prices offered in China
Increase Safety level during delivery
SMS Tracking System
Web Shipping
Faster, Easier and more efficient
Easy Access to DHL Data base
US $200 million 5 year
“China Expansion Programme”
• Open up several new branches to expand its domestic network

• February 2003 -> 5% Equity stake in Sinotrans
May 2004 :
4700 Employees
225 branches
4 gateways
1100 Vehicles
Serving 318 Cities
40% Market Share
Full transcript