Given the important of the U.S. market to the global express industry, what would you recommend to DHL for changing its position in the United States? According to the situation, U.S. Postal Service is a monopoly on delivery all non-urgent letters, is the largest provider. Also FedEx and UPS have 78% of the parcel market. To face the monopoly competition, we recommend DHL can change the position to services SME. Moreover DHL is the market leader of logistics in U.S. They can utilize their logistics power to promote their non-delivery services.
Do you feel that DHL’s current strategies will be successful? Yes. DHL have three current strategies. That is develops China and India market. In Asia Pacific, DHL have 35% market share of the international express segment. They heavily upgrade their capabilities in China. DHL are the market leader in Japan and China. Also DHL obtain 81% of the Indian express company ability. So that strategic will be successful.
Therefore, DHL developing U.S. market, North American express traffic accounts for nearly half the worldwide total with highly attractive margins. Base on the DHL in U.S. is a market leader of logistics. Also they have a good experience in express. So we think they have competitive advantage to obtain market share.
Moreover, they hardly to re-design their brand, such as change logo, purchasing new uniforms, replace drop boxes and create the packaging. Also, they promote the campaign intend to reintroduce the company to potential customers. After these change, they are increase 1% market share, about $600 million revenue. We can see that even the market share was increase a little bit, but it can bring large revenue. So these strategies will be successful.
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