DHL Research Paper Example | Topics and Well Written Essays - 1500 words

DHL - Research Paper Example All the operation of the firm is based on this segmentation strategy of the company. The company believes to segment and operate their business based on buyer behavior which gives a more accurate approach for DHL to satisfy their customers. The first segment is dominated by the price and the supply chain capacity of the customers which aligns with the administrator producer coding metric. The second segment is driven by performance reliability. This integrates with integrator administrator coding metric and the third segmentation of DHL is based on highest value based attributes like customers interaction, innovators of supply chain. Then each segment is further controlled by collaborator, perfectionist and price zealots approach (Coltman, Gattorna and Whiting, 2010, p. 16-18). Focus Strategy Focusing a particular market is done by any company with mainly three techniques. Porter’s Generic Strategy acts as a very important tool for the company to identify the focus strategy to follow for the business. The below figure shows a Porter’s Generic model- Figure 1: Porter's Generic Model (Source: Botten, 2007, p. 264) The focus strategy adopted by DHL is differentiation strategy. It differentiates its services from the competitors with their focused approach towards the specific customers with their uniqueness in service for them. By the improvement of the infrastructural development the company is providing remote location services which many of the competitors are not able to offer to the customers. Selected market segment gets benefits from the company with their focused differentiation strategy. The company mainly focuses on the mid level and the smaller business units for their businesses and offers service benefits to the niche segment of the market with their customized approach. This customer centric approach of the company gives greater flexibility for the customers to adopt their service and at the same rate provided by other companies in the market. Key success metrics The key success factor of any company depends on its adaptive capability with the changing environment. The change in the trend of consumer behaviors and the market trend are needed to be analyzed by the company to maintain a sustainable position in the market. DHL main success factors can be referred as the changes in the company’s strategy due to changes in the market trend with its market fragmentation due to competition and saturation at particular market. The changing taste of the customer also forced the company to implement customer centric strategies which matched with the customer preferences from time to time (DHL-a, 2011). The sector approach of DHL is the main reason for the success of the company. The growth in each sector of Retail, Consumer, Technology, Automotive, Health care and others have constantly influenced the company to implement strategies to suit the need of the market. The sector oriented logistic system is another reason for success of DHL. The business of the company sector wise in the year 2011 is shown in the figure below. Figure 2: Sector wise business of DHL in Q1 2011 (Source: DHL-b, 2011, p. 33) SWOT analysis In order to understand the position of the company it is very essential for the firm to understand its strength, weakness, opportunity and threats in the market. Strength The strong brand name is one of the major reasons for the success of DHL in the long run of their business process. The quality standard