STRATEGY AND PLANNING OF DHL COMPANY
DHL's success is due to the fact that it handles project management in a very effective and efficient way. Here are the most important steps:
Project Management
DHL uses a six-step process to handle projects:
- Initiation: The official beginning of a project
- Design: The formal agreement on how to tackle the project and make sure it gets done.
- Planning: After an agreement is reached, a detailed plan is made.
- Planning: After an agreement is reached, a detailed plan is made.
- Handover: When the project officially ends
Corporate Strategy
In March 2009, CEO Frank Appel announced Strategy 2015, which was meant to make the company ready for the future. The management board knew that managers at the country level would have to make tough decisions about:
• "Who" should be the right customers in DHL's market?
• "Who" should be the right customers in DHL's market?
• "What" product bundles would be sold or promised to customers through the service concept?
• "How" would the service components be carried out throughout the service delivery system?
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Market Position:
DHL is the world's leading postal provider.At 20,000 retail shops and points of sale, 2,500 Packstations, and 1,000 Paketboxes across Germany, customers can mail and collect parcels and small shipments at any time. They transport 2.9 million products every day to Germany. Packstations are in 1,600 German cities. 90% of Germans live within 10 minutes of a Packstation. In 2011, the German parcel market reached €7.3 billion, up 7% from 2010. E-commerce has driven growth for years. In 2011, Germans bought unprecedented amounts online, resulting to double-digit e-commerce growth. This boosted mail-order and package growth. DHL grew its market by 40% last year.
Germany is not their only market. They handle foreign mail and give international dialogue marketing to various countries. Outbound international mail reached €6.7 billion globally. The market is rising as the economy recovers and more heavier things replace letters. Despite more competition, DHL maintained a 15.7% market share.
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Customer segments:
DHL used a three-step process to find the best solution for each segment: 1) Find the model that best fits the information criterion-based fit; 2) Look at the classification statistics for the preferred model to make sure it has a low enough ratio of classification errors; and 3) Plot the estimates for each segment in the preferred model against each other to make sure the segment solution is not an artefact of scale-factor differences that would cause people to respond to questionnaire items in a certain way.
The graph illustrates the relative importance of
attributes across segment
Positioning strategy
DHL Express’s “Focus” strategic programme extends to four areas:
Employee motivation: Employees are the company's major competitive edge in maintaining and acquiring new clients. Certified International Specialist (CIS) training guarantees employees have international express knowledge. The programme boosts teamwork and division loyalty. All international shipping employees, whether couriers or call centre staff, should consider themselves DHL ambassadors and put the customer first. DHL recognises exceptional International Specialists with awards. All DHL employees are CIS-certified since September 2011. They're learning function-specific modules.
Service quality : DHL focuses on client loyalty through great service quality to stand out from the competition. In order to do so, they monitor changing client needs and alter their offerings. They are enhancing their workflows to become the provider of choice for speed, dependability, and cost-efficiency. Their quality control centres track shipments globally and change operations constantly to ensure rapid delivery, even in unanticipated scenarios. Reliability and quickness are crucial for international shipping professionals.
Customer loyalty:100,000 employees focus on the consumer. DHL makes it easy for clients to provide feedback, from customer service to in-person surveys. In addition, they use their First Choice approach to monitor customer behaviour and response and derive the appropriate conclusions, from the customer's first encounter with the call centre, website, or sales professional until package fulfilment and invoicing
Profitability: For long-term growth and stable earnings, they analyse expenses and make sustainable investments. They're growing and overhauling its fleet of planes to offer more frequent flights. DHL has launched a global advertising campaign to boost brand recognition. They also pursue advantageous business prospects, such as opening a Shanghai hub to boost our Asia business. DHL identifies earnings opportunities through targeted portfolio monitoring. Each country and network location contributed.
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