Beruflich Dokumente
Kultur Dokumente
Pioneers of Air Express Industry and worlds leading international express delivery network Presence in over 70,000 cities and towns Over 25,000 employees trained in over 100 languages Comprises of DHL Airways and DHL International Major Revenue from DHL International Offering two services: Worldwide Document Express and Worldwide Parcel Express Numerous VAS, computerized tracking LASERNET ,24 hr customer service every day of year and proof of delivery Market share of 44% in terms of revenue.
8 7.7
DHL
TNT
FedEx
UPS
1989 were $3.4 billion which increased to $4.3 billion in 1990 2 main products: document delivery and parcel delivery with a split of roughly 25:75 1989 parcel sector grew by 40% while document by 15%. Industry is expected to grow at 28% compound annual rate.
Strengths Strong Network Brand Image Capacity Utilization Experience Customization of rate
Opportunities Improvements in PRISM Increase contracts with MNCs Heavy freight corridor Domestic US market New markets
Threats FedEx undercutting DHL Internet boom Customers using multiple carriers
Pricing Strategy :
Price leader vs Market Response DHL charges average 10- 20% more fee than competitors Increased competition from FedEx, TNT, UPS
Pricing Structure: Current Structure Fixed Monthly Fee Volume based discounts Weighted half kilogram Complexity of pricing structure Different weight breaks across geographies for parcels Discount structures Local profit- cost analysis
Price Setting Responsibility: Centralized vs Decentralized vs Hybrid Regional manager responsible for regional profits Most of the price discount negotiations happen at local level Uniform structure across organization will improve information systems effectiveness
PRISM (Pricing Implementation Strategy Model): Software to analyze costs, determine prices Historical pricing data analysis for future profitability Not able to consolidate profits for customers spread across countries Managers perceive it as complex, avoid its use
Pricing strategy Continue to be Price Leader Charge premium prices & deliver a superior value. Communicating value proposition to customers Mixed pricing structure Merging the monthly handling fee with a discount structure. Discounts Based on volume Based on revenue contributed by the customer. The parcel delivery and document delivery should have different rates,
DHL could acquire local courier services in new markets. PRISM needs to be modified Use at all DHL offices. should be made simpler DHL should try to convert more handshake contracts to formal contracts Increase penetration in customer segment of monthly billing > $15000 [Exhibit 8]
Group 9