Blue Dart Courier Service: Case Study

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|Anasua Mitra|Ayushee Das|Malavika Sahoo|Meenal Kukreja|Pragya Sarathi|Srilakhi Sah| Domestic express major Blue Dart had forged a five-year sales alliance with DHL Worldwide Express, after the company decided against renewing its existing contract with FedEx, the new alliance was effective from October 1, 2002. The key consideration for Blue Dart was the restrictive nature of contract as the contract forbade the domestic courier to carry any packages from TNT, UPS or DHL. Other issue was that Blue Dart wanted to strengthen regional presence by tapping Indian trade with SAARC nations while FedEx wanted to promote its own brand in India. According to DHL, its two tie ups with Blue Dart and AFL are non-competitive as both compete with each other in domestic market but both will source outbound deliveries through DHL. On November 2004 DHL announced investment of INR 730 crore for acquisition of majority stake in Blue Dart Express Ltd. This prompted restructuring in the equity holding of Blue Dart Aviation Ltd, subsidiary of Blue Dart Express Ltd. In March 2005, Blue Dart Express divested 60 % of its equity holding to original promoters of Blue Dart – Mr. Tushar  Jani and Mr. Khushroo Dubash. It is a bone of contention that whether Blue Dart did the right thing by bringing DHL as an equity partner. Blue Dart is the largest player in the domestic segment. Along with Real-Time tracking, the customer can also view, download and print copies of Proof of Deliveries. To serve low priority and bulky items, Blue Dart owns a fleet of 3400 vehicles and provides a complete solution through surface mode in the form of 'Blue Dart Surface Line'. This service named as 'Dart Apex' was started in 1994. In its various performance appraisals, employees, particularly those from operations and centre heads are appraised on the Net Service level they have achieved during last year. In order to ensure quality of its service, the company relies...
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