Case Study on DHL Pakistan
Population growth rate: 2. 17%. Life expectancy at birth: Total population: 61. 07 years. Male: 60. 27 years. Female: 61. 91 years. Literacy: Definition: age 15 and over can read and write. Total population: 37. 8%. Male: 50%. Female: 24. 4%. The evidence suggests that majority of population is exceedingly price sensitive and because of perfect competition in the courier industry, the profitability of DEL Pakistan has been suffering to a certain extent. Some people attitude toward foreign products, brands and services is still conservative and rigid.
Their buying decisions are often guided by various factors such as religion, cultural values etc. B. POLITICAL ENVIRONMENT: The political environment of Pakistan is very fragile and uncertain. The security situation has always been a key issue there and has a distinct influence on the sustainable growth of DEL Pakistan. For example, at the times of high security risk in Pakistan, most of the embassies, consulates and international organizations (e. G. No’s) cease their operations temporarily, thus crafting a direct impact on the business of DEL Pakistan.
The country’s import and export regulatory authority (Pakistan Customs) has a direct interaction with DEL Pakistan as all their inbound and outbound shipments must be cleared and approved by the custom authority. The Pakistan Customs has always been harshly criticized for its policies and sluggish procedures of operation. DEL Pakistan has contracted an independent broker to get all their inbound and outbound shipments cleared through Pakistan Customs but the delays are still occurring on standard basis.
It generates a detrimental pressure on the company’s repute and customer base. C. TECHNOLOGICAL ENVIRONMENT: Technology is imperative for competitive advantage, and is a major driver of globalization. Technology also offer companies a new way to communicate with consumers e. G. Banners, Customer Relationship Management (CRM), etc. In Pakistan, the technological environment is relatively outdated compared to developed nations cause of low literacy rate and income levels. The DEL Pakistanis procedural environment overshadows that of DEL International.
Its organizational structure, computers, and information/communication systems are sophisticated, efficient and observe global standards. The employees of the company are provided training on regular basis to help them understand and digest the new systems in place and how to use them effectively. Furthermore, DEL Pakistan also keeps its customers up-to-date of any new developments. An example of this is the launch of a new software by the company for TTS customers (“Fast Forward”) enabling them to track down their shipments in transit plus also be able to monitor the exact route of their shipment.
This software also permit clients to carry out a comparison between the Air Freight prices being charged by different Airlines and Dell’s prices for different weight slabs. In addition, a training session was also organized to educate the clients as how to use the software. Ill. MARKET ANALYSIS: A. MARKET SIZE: In Pakistan, DEL has a market share of about 53 per cent in the international air express market. B. CURRENT RATE OF GROWTH: The DEL Pakistanis current rate of growth is 16. 8%. C. GROWTH PROJECTIONS: The company’s growth projection for year 2004-5 is estimated at 20%.
Fed is represented in Pakistan by a nominated Service Contractor (Geyser’s International) and holds approximately 18. 3% of the international air express market share. 2) TNT: Established in 1946 TNT Express is now a global integrator and offers a range of unique international express delivery services between more than two hundred countries. TNT Pakistan has targeted the price sensitive segment of the courier market. 3) Soc: SOC is a world-wide network of some 250 offices and substations, specializing in the customized distribution and time-sensitive delivery of international business materials.
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