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Deutsche Post SWOT and PESTLE Analysis

ID : 52509053| Feb 2023| 15 pages

COMPANY PROFILE -Deutsche Post

Business Sector :Mail and Logistics

Operating Geography :Germany, Europe, Global

About Deutsche Post :

Deutsche Post, operating as the Deutsche Post DHL Group, is a German postal service and international courier service company. It is the world's largest mail and Logistics Company. It functions under 2 brands: Deutsche Post as Europe’s leading postal service provider and DHL is uniquely positioned in the world’s growth markets, with a comprehensive range of international express, freight transportation, e-commerce and supply chain management services. Deutsche post employs approximately 520,000 employees, as of 2018 in over 220 countries and territories worldwide. Their products and services are targeted towards both private and business customers and range from physical, hybrid and electronic letters to merchandise delivery and include additional services such as cash on delivery, registered mail and insured items.
Deutsche Post’s mission statement reads “Excellence. Simply Delivered. – is our guiding light.” Their vision is to be The Logistics Company for the World. Deutsche Post DHL Group’s USP or unique selling proposition lies in being the world’s leading mail and logistics Group. With over 5 centuries of postal history, Deutsche Post is credited with founding of the modern postal system to the establishment of the world's leading logistics group.

Deutsche Post Revenue :


€ 60,444 million – FY 31st Dec 2017 (y-o-y growth +5.4%)
€ 57,334 million– FY 31st Dec 2016

Competitive Analysis of Deutsche Post

SWOT
PESTLE
The SWOT analysis for Deutsche Post is presented below:
Strengths
Weaknesses
1. Robust presence in Germany
2. Market leader in key business sectors
3. High Quality Customer Support
4. Focusing on future building
5. Diversification in business model
6. Excellent brand visibility and quality service

1. No investment in R&D
2. Decline in profitability in PeP division
3. KFC unsatisfied with DHL services
Opportunities
Threats
1. Revolution in e-commerce industry
2. Restructuring and cost reduction to increase profitability
3. Rising demand for Express services
4. High growth trajectory in emerging markets through partnerships and acquisitions
1. Increasing material expenditure
2. Amazon’s entry into Logistics and stiff competition from other international players
3. Trade disputes among nations
4. Rising fuel prices and fluctuating economies
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Detailed SWOT Analysis of Deutsche Post

 

Strength

1. Robust presence in Germany: Deutsche post is “The postal service for Germany”. Delivering 59 million letters every single day it is clearly the undisputed and largest postal service in Europe. Deutsche Post hauled 61.7% share of Germany’s €4.5 billion market for business communication. With around 11000 paketshops, 3200 Packstations, 13000 retail outlets, over 1.1lac post boxes, 2800 sale points, Deutsche Post executes over 1.08 lac letter and parcel deliveries. DHL also boasted of a 45.4% grip of the German parcel market which had a volume of €10.8 billion in fiscal 2017, as they maintain a thick network of parcel pick-up and delivery points in the nation.

2. Market leader in key business sectors: DHL remains the undisputed market leader in majority of its business sectors. The global market volume for outbound international mail summed to € 5.9 billion in 2017 and DHL alone accounted for 16.4% of market share. The international portfolio of e-commerce services was expanded to include 26 countries in Europe with over 60,000 drop and pick up point available to customers in Europe. Outside Europe, the Company started operating national parcel networks in Chile, Malaysia and Vietnam. The global express network which deals with transporting urgent documents and merchandise in time from door to door is spread across 220 countries and territories, servicing 2.7 million customers. The global network also includes several airlines, some of which they own 100%. DHL owns five airline subsidiaries, with a fleet strength of 96 aircrafts and another 21 aircraft on orders. DHL leads the international express market in Europe with a significant 44% market share much ahead of competitors like FedEx (10%), TNT (11%) and UPS (24%). For Asia Pacific region too DHL holds a remarkable dominance of 49% market share. DHL continued to consolidate their market leadership in 2017 as the air, ocean and overland freight forwarder. Their networks global presence gave them a competitive advantage to offer efficient routing and multimodal transport. The worldwide freight tons kilometers in 2017 grew by 9.0% with approximately 2.1 million transported express freight tons. DHL also remained the world leader in contract logistics which come under the umbrella of customized supply chain solutions, leading a fragmented market contributing 6.2% with market volumes around € 2.2 billion.

3. High Quality Customer Support: Deutsche Post is shifting towards more value added services, such as digitization in customer service to enhance customer experience. DHL is also working towards bringing people from different disciplines which helps strengthen the way everyone works as a team which ensures high quality service. Deutsche Post Group DHL is launching DHL Global Forwarding, a bi-weekly transpacific flight to meet demand and to secure capacity for US customers. Deutsche Post’s unparalleled ability to offer a spectrum of logistics solutions – from mission-critical express deliveries to economical freight transportation, from taking the complexity out of customs to managing the complexity of global supply chains reflects their customer centric approach which keeps customer convenience and needs a the heart of every operation. They also have time-definite international shipments that come with complimentary industry specific needs as their core business to tailor to specific customer needs, like thermal/ temperature-controlled packaging, collect and return services etc. Their global network is spread across more than 220 counties and territories servicing 2.7 million customers.

The remaining section of Strength is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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References used in Deutsche Post SWOT & PESTLE Analysis Report

1. Annual Report 2017- https://www.dpdhl.com/content/dam/dpdhl/en/investors/agm/2018/DPDHL_2017_Annual_Report.pdf

2. 2018 Interim Report-file:///C:/Users/user/Documents/Swot&Pestle_Project/DPDHL_Interim_Report_Q1_2018.pdf

3. Brand partnerships-https://www.dpdhl.com/en/about-us/brand-partnerships.html

4. High Quality customer support-https://www.businesswire.com/news/home/20180724006009/en/DHL-Opens-Expanded-Customer-Support-Facility-Costa

5. KFC issues with DHL-https://business.financialpost.com/news/retail-marketing/kfc-switches-back-to-old-supplier-for-some-deliveries-after-running-out-of-chicken-in-the-u-k

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SWOT & PESTLE.com (2024). Deutsche Post SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/deutsche-post/ [Accessed 05 Dec, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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Deutsche Post SWOT and PESTLE analysis has been conducted by Priyahansha and reviewed by senior analysts from Barakaat Consulting.

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