Porter’s five forces in the delivery industry
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- Opportunities - Fedex
- Threats – FedEx
- Strengthening dollar
Opportunities – DHLEmerging marketsDHL has used its position as the biggest air freight and second biggest water freight company to one of the biggest players in the industry. An opportunity they can harvest is their involvement in many markets to establish themselves in new emerging economies and gain a foothold before they become powerful enough to establish their own industries. E-commerce Opportunities - FedexThreats – DHLLocal playerGovernments around the world are realizing their interdependence with other countries and the risks this interconnectivity brings with it in the times of Covid-19 and to start investing and subsidizing local companies in every sector, DHL might face the issue of low cost competition. Threats – FedExDirect competitionThe strong competitive position of DHL in the rest of the world is a great threat for FedEx. On a global basis DHL has the competitive advantage and at this moment the only thing that holds them back from dominating the American market are due to regulatory issues, however if this regulation should be eased DHL has the capital to make an expansion in the American market and emerge as an enormous threat for FedEx’s market share. Strengthening dollarOver the past years the dollar has been gaining strength worldwide, hence reducing the income based on international sources and customers. In comparison to common thinking a weak dollar is not bad for American based companies, the opposite is the reality. All profits from any other country become bigger through this fact and as FedEx does still gain the main share of its profits from operations oversee, a strong dollar diminishes these returns. Download 313.91 Kb. Share with your friends:
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