FedEx vs DHL

Presented by
Darshit Parikh
Dhrumil Patel
Henil Dudhia
Maulik Amin
Yasir Sheth
 Industry Postal services,courier
Founded 1995; 21years ago
Industry Courier
Headquarters Post
Founded 1971; 45years ago
Tower,Bonn,Germany
(as Federal Express
Corporation) Area served Worldwide
Little Rock, Arkansas Key people Wulf von
Founder Frederick W. Smith Schimmelmann(Chairm
anof thesupervisory
Headquarters Memphis, Tennessee,
board),Frank
U.S.
Appel(CEO), Lawrence
Area served Worldwide A. Rosen(CFO)
Key people Frederick Smith Services Letter post,parcel
(Chairman, President & service,
CEO) MS,delivery,freight
Products Postdelivery,express forwarding,third-party
mail, logistics
freightforwarding,third- Revenue 56.63 billion (2014)
party logistics
Operating income 2.965 billion (2014)
Revenue US$47.453 billion
Profit 2.016 billion (2014)
(2015)
Total assets 38.40 billion (2011)
Operating income US$4.26 billion (2015)
Total equity 11.19 billion (2011)
Net income US$2.57 billion (2015)
Owner Free Float (79%)
Total assets US$37.069 billion
kfwbank (21%)
Vision and Mission
Vision:

The world logistic company for the world.

Mission :

To simplify customers lives.

To make all the stakeholders successful.

To contribute globally.

Demonstrating respect on the desired achievements.

Vision and Mission
Vision:

To become leader in the international shipping industry. All operations and competencies of the company are

directed towards the attainment of this corporate vision.

Mission :
FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added
logistics, transportation and related business services through focused operating companies.
Customer requirements will be met in the highest quality manner appropriate to each market segment served.
FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers.
Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest
ethical and professional standards.
 Bureaucracy Inflation rate Various cultures
Political instability Unemployment levels Gender and other
Customs tariffs
Labour costs: connected issues, social
Trade control
Low levels of disposable income lifestyles, domestic
Serval different low
Interest rates structures, levels of
some of which are education.
anti-trust law Monetary and fiscal policies
Data protection law Foreign exchange rates The growing impact of
Competition social media
regulation law

Improved IT
Information intensive service greenhouse gases on
Improvement in aircrafts
capacity & efficiency.
highly regulated
environments
the impact of legal frameworks are
constantly changing and
the atmosphere, organisations that operate
geographical location, in multiple countries
climatic conditions taxation laws
waste disposal complying with aircraft
noise laws
energy consumption emissions control
peoples attitude standards
Porter 5 forces Risk
Risk of
Low
of New
Low to
New Entry
Entry
to Moderate
Moderate

Supplier Buyers
Buyers Power
Supplier Power
Power Existing
Existing Power
Competition
Competition High
Low
Low High
High
High

Substitute
Substitute Products
Products
Low
Low
Business level strategy (Who,
What & How)
Embassies and other Global, regional & local
governmental
institutions
Who customers who need
express logistics
.
Small business
owners and
professionals that are
in need of
professional
connections
From dock to atdoor,
far off Technology improved
shipments picked up
places.
and delivered with
What technical capabilities
Large public
precision. connection
Customer not home?
solutions for that.
Along with proof of
 Analysing customer
needs and
How
preferences and the
way in which FedEx
compete to serving
the customers.
The business-level
strategy the Federal
Express mail
delivery system is
based on hub and
spoke approach.
FedEx developed a
new routine
Effective
communication
mechanisms,
increased innovations
and new ways of
transacting business,
ability to transact
most of their
transactions online,
presence of a strong
management team,
and in-house
consultancy.
 Porters generic strategy

Broad
Cost
Cost
leadershi Differentiati
leadership on
p
Market

Narrow Cost Focus Differentiati

on focus
Cost
Focus
Low cost High cost
 Porters generic strategy
Cost
Cost
Broad
leadershi Differentiati
leadership on
p
Market

Narrow Cost Focus Differentiati

on focus
Cost
Focus
Low cost High cost
Value chain management


Excellent a brand name reputation.

People Value

Updated with technology
Strong worldwide network
Responsibility Door to door service
Loyalty Ideal for time critical delivery
safety

Rare
The top level of service and Nobody can beat their on-
quality time delivery and reliability
People first corporate in overseas market.
philosophy

Overnight delivery
the can-do spirit "of team Imitable
Overnight delivery Nonsubstitutable
 Ansoff
matrix

Market development Diversification

New

Market Product development

Existing penetration

Existing
Products and servicesNew
 Ansoff
matrix

New Market development Diversification

Market penetration

Market Product development

Existing penetration

Existing Products and services New

BCG Matrix
DHL CSR
Protecting the environment with GoGreen initiatives, delivering help with GoHelp
programmes and championing education through GoTeach. also support the volunteering
activities of our employees.

CSR MISSION
A company already contains a strong social component to connect people and make their
lives easier with the help of our services. Social responsibility is a principle that guides and
permeates our action as a company, and it plays a significant role in our business success.

Living Responsibility
Under the motto Living Responsibility, focus on protecting the environment (GoGreen),
delivering help (GoHelp) and championing education (GoTeach) and support volunteering
activities of our employees (Global Volunteer Day).
FedEx CSR
CSR Mission
To actively support and provide a valuable benefit to the communities it serves, and to
strengthen its global reputation through strategic allocation of its people, resources and network.

Working with global and grassroots organisations across Europe, the Middle East, Indian
subcontinent and Africa, FedEx provides support under four specific areas that draw on the
strength of both the FedEx organisation, and its employees across the region.

Core Giving Areas

Emergency and Disaster Relief

Pedestrian and Child Safety
Education
Health and Human Services
 Strategic fit
FedEx already has a sizable air-
express delivery operation in Europe,
With growing changes in
but it lags behind in the ground-
delivery business. environmental sustainability and
increase in costs of fuel DHL is
looking at efficient usage of their
Acquiring TNT would give it an transport [example optimizing
established door-to-door road the aerodynamic drag of the
network in Europe that connects truck helps DHL save 10% - 20%
more than 40 countries, saving the
of fuel efficiency and 11.3% of
U.S.-based company the time and
CO2 efficiency] (Deutsche Post
money required to build one from
scratch. The FedEx network has AG, 2010).
always been weak in Europe.
 Resource based view
Employees are their main
assets
People-Service Profit (PSP)
Personnel Records Invests on educating and training of employees
Personal attributes of employees bring into the organization
Information System Sourcing and Talent management

(PRISM) Internet Recruiting

Survey Feedback Action

(SFA)
Michael Porters Diamond Model
In 2003, entered into us market
World wild express into US market
through acquisition of airborne Seattle
based air cargo firm
Objective: to take share from the
FedExs and UPSs small midsize
business unit.
In 2004, difficult to compete-in 2006
difficult to break even
Chief execute state that: Awareness lead
to consideration, lead to trial, which lead
to loyalty, thats what its all about.
In 2008,during global recession FedEx
remain stay but DHL loose.
 Diversification strategy
FedEx realizes significant economic
value for its diversification through its
economies of scope.
All the business FedEx operates in are
better because they work together. DHL integrated 100 company through merger and acquisition
Many shipments use each of the others Horizontal integration with airborn.
strategy and operations. Diversification strategy adopt in us market to moving toward
ground network to captured small business unit.
For example, an Express shipment may
use Ground as well. And if needed, due Good ground network needed to develop basic infrastructure
for the new market
to peak, instead of outsourcing, it
operating company relies on each
other.
The cost is reduced across all business
with FedEx Services, offering shared
activities.
 Fully benefit on the advantages
of technology. This can be seen
by the various eService
provided by DHL.
Established a long time ago Lack of liability insurance
and have strong brand name,. Inadequate of promotion
Innovative and provide smart and advertisement.
service problems
Large customer base.
Good public image.

Providing E-commerce service

Making Strategic Alliances with
other foreign local companies Strong competition
Developing the company Local Shipper
internet service and introducing
electronic communication Company.
devices.
 Large scale operations.
Made strategic acquisition and
enhanced services in the foreign
countries.
Strong brand name
Efficient transportation segment
-Strong revenue growth
Service expanding in high-growth
countries.
Concentrating on giving excellent
customer care.
Cost-cutting approaches
Aggressive growth
strategy
Alliancing with foreign
company.
Follow approach origin
to designation (direct
shipping)
Expensive cost in air freight
business
Weak forecasting, in 2012
High dependency on U.S, FedEx
depends on America market to gain
income
FedEx operating margin is only at
5.75%, this caused the cost
management of the company to be
very weak and having slow
company annual growth
New e-commerce
strategy
Strong competition
Local Shipper Company
Recommendations for DHL
Should incorporate a comprehensive strategic
management process in their whole corporation

DHL solution should translate their business strategy into

an operating plan in order to implement the selected
strategies and align measures to strategies

Should make use of the performance measure record

sheet for all their instituted measures in order to keep
track of the entity of measures
Recommendations for FedEx
should Increase the mix of part time to full time examiners to meet daily
demand peaks

Expand customer reach through self service channels, meeting customer

requirements while reducing station traffic

Educate the public about available services, requirements, and delivery

options Improve examiner efficiency by adding needed equipment (printers,
copiers, cash registers, etc.) and reconfiguring/improving service areas
where possible

Set meaningful performance goals and manage to those goals using a

continuous improvement process