DHL: Chalking Success by Partnering with Its Rival UPS?

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Case

Reference no. 308-341-1

Subject category: Strategy and General Management

Authors: Bharathi S Gopal (IBS Case Research Center (IBS CRC)); Srimathi Raghuraman (IBS Case Research Center (IBS CRC)); Chiradeep Chatterjee (IBS Case Development Center)

Published by: IBS Research Center

Published in: 2008

Length: 10 pages

Data source: Published sources

Topics: DHL; United Parcel Service; FedEx (Federal Express Corporation); 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

Share a link: https://casecent.re/p/85181

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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 USD3 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.

Location:

Industry:

Express delivery

Other setting(s):

2008