Dhl Worldwide Express
The case in DHL gives the situation faced by DHL Worldwide Express (India), a division of Airfreight Ltd, which is a company engaged in different activities connected with transportation of cargo (both domestic and international), domestic surface transport, logistics and express operations. It also has two subsidiaries, one a travel agency and another engaged in money transfer operations. Shipping is also under a subsidiary. The DHL division has an alliance with DHL Worldwide Express, the worldwide leader in air express industry. The case presents a situation where the company faces competition from its domestic rivals M/s Blue Dart Ltd, M/s Elbee Express Ltd and many others, as well as express companies such as Federal Express and TNT which have just started their operations in India. The strategic choices faced by the DHL Division of the company concern; i) its relative concentration on its international express business as compared to its domestic business; ii) how to handle its domestic operations; iii) relative emphasis on documents vs. non-document segments and iv) how to leverage the strengths of the operations of the other divisions of Airfreight Ltd. How to ensure that DHL Worldwide Express does not feel the need to enter India on its own (like Federal Express did) is also a critical issue that comes out of the case. DHL Worldwide Express How do customers purchase air express service? Are there differences between documents and parcels? Customers purchase air express service based on the carriers standing in the market place, specifically that are well-received and well-respected by their own customers, both external and internal. Many of them are price sensitive as well as very service sensitive. Customers split their air express service requirements among several firms – usually between 2 or 3 three preferred providers. Parcel services are scrutinized for best cost options and often discounts and annual contract are negotiated on