abhishreshthaa
Abhijeet S
COMPETITION FOR DHL
KEY COMPETITORS
1) GATI LOGISTICS AND COURIER
2) ELBEE EXPRESS
3) DOMESTIC COURIER SERVICES (PROFESSIONAL COURIERS)
4) LOCAL COURIER SERVICES (INTRA CITY-VICHARE,DOT COURIER)
DHL does not face any threat from the unorganized sector. This is because organized players like dhl are predominantly in the Package and Premium document segment of the business while the low yield document business and providing intracity solutions is the domain of the unorganized players.
Shipping documents is a high volume low margin business. Just to give you some numbers, the market share of organized sector in terms of value is 64% while that of the un-organized/semi-organized sector is roughly 30% despite the fact that the latter handle a larger volume of business. DHL also services the corporate sector while the smaller players cater to other commercial establishments.
DHL believe that the strong brand franchise, excellent distribution network and huge investments in infrastructure and technology with trained manpower and an International tie-up with the ability to provide global reach a entry barrier. DHL therefore does not see new players eating into their market share
Currently foreign players operate the International side of the courier business. If they are to operate the domestic side of the business, they would need to match the distribution network and infrastructure covering the length and breadth of the country. For example DHL covers more than 1250 towns and cities with the capability of delivering to every address across the country through their 124 branch locations.
Developing such network is not only capital and manpower intensive but is a time consuming affair. Going by the current scenario, DHL witnesses foreign players prefer to service the international markets and strengthen their relationship with domestic players for better reach.
KEY COMPETITORS
1) GATI LOGISTICS AND COURIER
2) ELBEE EXPRESS
3) DOMESTIC COURIER SERVICES (PROFESSIONAL COURIERS)
4) LOCAL COURIER SERVICES (INTRA CITY-VICHARE,DOT COURIER)
DHL does not face any threat from the unorganized sector. This is because organized players like dhl are predominantly in the Package and Premium document segment of the business while the low yield document business and providing intracity solutions is the domain of the unorganized players.
Shipping documents is a high volume low margin business. Just to give you some numbers, the market share of organized sector in terms of value is 64% while that of the un-organized/semi-organized sector is roughly 30% despite the fact that the latter handle a larger volume of business. DHL also services the corporate sector while the smaller players cater to other commercial establishments.
DHL believe that the strong brand franchise, excellent distribution network and huge investments in infrastructure and technology with trained manpower and an International tie-up with the ability to provide global reach a entry barrier. DHL therefore does not see new players eating into their market share
Currently foreign players operate the International side of the courier business. If they are to operate the domestic side of the business, they would need to match the distribution network and infrastructure covering the length and breadth of the country. For example DHL covers more than 1250 towns and cities with the capability of delivering to every address across the country through their 124 branch locations.
Developing such network is not only capital and manpower intensive but is a time consuming affair. Going by the current scenario, DHL witnesses foreign players prefer to service the international markets and strengthen their relationship with domestic players for better reach.