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DHL WORLD WIDE EXPRESS
CASE SUMMARY
The company was formed in San Francisco in September 1969 by Adrian Dalsey, Larry Hillblom and Robert Lynn. DHL legally comprised two companies : DHL Airways and DHL International was based in Brussels and managed all operations outside the united states. Revenues for 1990 were split : $ 600 Million for DHL Airways, and $ 1,400 Million for DHL International. One DHL executive commented, the main reason DHL is involved in domestic shipping within the United States is to lower the cost and increase the reliability of our International shipments. DHL was the world’s leading International express delivery network.
Sarrafzadeh, DHL’s Worldwide sales and marketing manager. Sarrafzedah wanted to make recommendations on pricing strategy, structure, and decision making. The former meant DHL would charge premium prices and aim to deliver superior value – added service in all markets. He considered his three options to be centralized, decentralized, or hybrid approach. A decentralized approach would continue the present policy in which country / region managers set all prices and headquarters offered counsel and support. Under centralized approach.
The growth of the air express industry was expected to continue, air express companies serviced a geographic region either by using their own personnel or by hiring agents. DHL’s principal competitors in door to door international air express delivery were Federal Express, TNT, and UPS. Founded in 1973, Fedex focused for many years on the U.S domestic market. During the late 1980s, the company began to expand internationally through acquisitions and competitive p ...