According to Frank Appel, CEO of Deutsche Post DHL, within its Strategy 2015 framework, DHL will become the logistics company for the world. In times of globalization and economic downturn, the effects of which can be felt in the entire logistics industry, this goal is an enormous challenge for DHL. In order to attain this goal, it is essential for DHL to create a closer linkage of its business areas, to slim down its processes and to put a stronger focus on the ever-changing needs of the customer. The objective of this book is to offer cost reduction solutions and give suggestions on how quality can be improved, which will distinguish DHL from its competitors while fulfilling the needs of the customer, i.e. become the logistics company for the world. This book is divided into four sections. First, there is a synopsis of the history of DHL, as well as a description of its organizational and corporate structure and concludes with a comparison of the business segments of DHL with its main competitors. After that, the corporate strategy is analyzed: (1) its core competencies, (2) its mergers and acquisitions, (3) Ansoff, and (4) BCG/BCG II. The section concludes by examining which strategy could be appropriate for a successful future for DHL. The third section deals with the competitive strategy of DHL. Porter’s Five Forces are utilized to analyze the attractiveness of the industry, as well as its competitors, suppliers and customers. This is followed by an analysis of the appropriate strategy for DHL Logistics by means of the Generic Strategies according to Porter, the Hybrid Strategies, the TOWS and an evaluation of the strategic options. The next step will explain the appropriate processes for the strategy of the value chain. A Scenario 2020, which draws a picture of what the industry might look like in ten years, concludes this section. The final section will highlight the factors that can give DHL sustainable competitive advantages. The functional strategies are presented, the global key markets are analyzed and appropriate strategic alliances are examined. The author sets great value upon clear and interesting statements that ensure an easy understanding of the subject matter but at the same time facilitate a fast transfer into practice.

Textprobe: Chapter 3.1.2, Buyer Power: The aim of the customers is to receive the product for a very low price with very high quality and functionality. Different types of constraints, along with customer satisfaction, determine the customer’s choice of a particular supplier. Based on the switching barriers for customers there are several points of differentiation. Switching barriers describe any impediment to a customer's changing of suppliers. Low switching barriers Low switching barriers put he customer in a strong negotiating position. Since switching to another competitor is not attended with major difficulties customers can always threaten to take this very step. High switching barriers If a customer is forced to incur high costs or efforts when switching from one supplier to another, he can hardly threaten to make this move. Only if other suppliers lower these costs for the purpose of acquiring customers or enticing them away, the assuagement would be compensated. But such support will be hardly granted, if it would serve only as argumentation basis for the improvement of an existing relation. Even if there are only few customers in a market DHL can face difficulties. Such situations can also be cost by legal regulations. It is particularly clever to channel the costumer’s power for the own company business interest. The transportation companies are in a hard competition to provide delivery services for large firms and enterprises. They’re in a race to reach every ware- and storehouse. Today, with the booming of e-commerce costumer could order a product online and allow delivering in every part of the world. Most of these companies do not provide their costumers the flexibility to choose their transport provider independently. Instead they have a contract with a diversified Transport firm, which provide the dispatch. Moreover, the change to another transport provider is not expensive, so and this puts these provider in a very strong bargaining position. The costumers are likely to choose the company with the most favorable price or least price. However by advertising and brand-name-image many people will choose certain companies and many people are attached to certain companies. Moreover, companies have adopted the programmed open an account” to lock their costumers. Such accounts will give more advantages and profits to their loyal costumers. And because most distribution centre’s and warehouses cooperate with a certain transportation companies, the individual costumer has little bargaining power. 3.1.3 Supplier Power: The suppliers are in a bipartite position. On one side, the suppliers can influence by their pricing the business of the looked companies. Even in case of a fix price, there is always a leeway in the creation of the product quality. The fluctuating prices of the fuel influence strongly the profitability of the transportation business and these prices are determined by the economic and political problems which put the oil suppliers in a strong bargaining position. But the transportation companies combat this problem by requiring fuel surcharges from costumers in case of high fuel prices. However, that could result in straining the relationship with the costumer. Suppliers of packaging material, such as boxes, are not in position to have high bargaining power. Because of the rivalry of the vehicle manufacture industry, a truck supplier will not be in a strong bargaining position. However, operators of transport vehicles with limited capacity, like trains, have some bargaining power. Service suppliers, particularly truck and aircraft maintenance and airport services, have a strong bargaining position and this is involved partly because of the high switching costs. Moreover, the transportation companies are committed to deliver in time. Some companies offer a full restitution of the shipping costs if the delivery is not in time. The transportation companies can invest in developing technology, which automates the package sorting process, to reduce the bargaining power of service providers. These systems are price and time efficient and it is a big advantage that they are run by the company itself. With the entry of these companies into the e-business industry, other suppliers appear in the sector namely the providers of information technology services. These suppliers have no considerable bargaining position because of relatively easy switching costs and because the companies are in the direction to have their own IT department and software.

• DHL

• Cost reduction solutions

• Porter’s Five Forces

• Ansoff and BCG/BCG II

• Scenario 2020

• Strategy 2015

Thomas H. Musiolik was born in Strzelce Opolskie/ Poland in 1980. After completing two majors, a great number of personal accomplishments and always keeping in mind the goal of lifelong learning”, Musiolik enrolled in a Bachelor of Business Administration. In the course of his studies he was confronted with a great range of new subjects. Examining the German DHL and its Strategy 2015”, he found a special interest in business strategies. Having completed his survey, Musiolik decided to publish his critical analysis in order to reveal the logistic giant’s strategy to become a global player. It will not surprise you to read that after successfully mastering his bachelor degree Thomas H. Musiolik, driven by the strong will to drill down on new subjects, is currently enrolled in a Master of Marketing and Communication.