Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0050

Year : 2005

Industry : Transportation

Region : USA

Teaching Note:Available

Structured Assignment :Available

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Introduction:From early 2004, DHL Worldwide Network S.A./N.V. (DHL), the world's leading global express delivery and logistics company with 40% market share each in Europe and Asia, planned to expand its presence in the US, where it had only 7%5 of the air and ground parcel market. DHL had fallen behind in competition with the industry leaders in the US due to its inadequate ground connectivity and began to concentrate more on improving its market share in the country. DHL aimed to take on its rivals - Federal Express Corporation (FedEx) and United Parcel Service (UPS), which together held 78% of the US parcel market. The express delivery market in North America accounted for nearly half the worldwide market and DHL was trying to tap this huge potential by targeting mostly the small and medium-sized businesses in the US market.

Rich Corrado, Executive Vice President of Business Development for DHL Americas, added, "The new DHL has invested $1.2 billion in its US infrastructure to reach out to a broader consumer market and help all customers do business more quickly, efficiently and competitively". With such investments in infrastructure in the US, DHL planned to reaffirm its position in its country of origin.