Strategic Alliances, Collaboration and Joint Ventures Case Study

DHL: Chalking Success by Partnering with its Rival UPS?

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Abstract:
DHL entered the US express delivery market in 2002, with the motive to outrun the giants in the industry, United Parcel Service (UPS) and FedEx. But due to insufficient density, DHL was unable to shake up the UPS - FedEx duopoly. The company was unable to fill its cargo planes to their full capacity, which led to increasing losses. With just 6% or 7% of the market share, the company found it difficult to match UPS and FedEx. Within a short span, from 2004 to 2008, it lost $3 billion. So, DHL decided in May 2008, to form an alliance with its rival firm UPS, only for the North American airlift operations. This case study discusses the DHL - UPS 'co-opetition' and the subsequent impact of the alliance on DHL and the industry.

Pedagogical Objectives:

This case study aims at achieving the following pedagogical objectives:
• To the global and US express delivery market.
• To DHL's performance in the US.
• To DHL's alliance with its rival, UPS and its strategic impact.

Keywords :  DHL, United Parcel Service, FedEx, Deutsche Post World Net, United States Parcel Service, Express delivery industry, Revenues, Market share, 'Co-opetition', Rival, Cut cost, Restructure, Job eliminations, Antitrust Law, Benefit

Contents : 
Express Delivery Market: Global and US
The Express Industry’s Main Client Sectors
Turnover of Global Express Industry Vs Global GDP
FedEx-US Postal Service Deal