Global Marketing Entry Of Dhl In India

9472 words - 38 pages

DHL Worldwide Express DivisionWhen DHL Worldwide Express was launched in 1979 as a division of Airfreight Ltd. (hereafter referred to as DHL India to distinguish it from its overseas ally which we refer to as DHL Worldwide), it ushered in the era of air express business in India. The DHL Division enjoyed considerable autonomy in its working right from the start.Mr. Cyrus Guzder joined the Airfreight Limited in 1968 and took over as its Managing Director in 1981 and as Chairman and Managing Director in 1984. He was instrumental in setting up the DHL operations in India in 1978 and thereafter in establishing the framework within which the industry operated later on.The association with DHL Worldwide started in 1978, when DHL Worldwide approached Air-freight with a proposal to commence express operations, with Airfreight Ltd. doing the pick-ups and deliveries on DHL's behalf. "Frankly, we did not see this as an interesting business", said Mr. Guzder in an interview with the case writers. But DHL persisted and together the executives of DHL and Airfreight went round meeting shipping companies and banks. They discovered that invariably there were consignments in the harbour held up for lack of documents to clear the cargo. Clearly, if these documents could be delivered before the arrival of the vessels, these ex-pensive delays could be avoided. DHL and Airfreight executives realised that there was a size-able market waiting to be tapped. Banks, especially foreign banks, were also keen to get their documents quickly, since even a day's saving in getting the document could save them millions of dollars. Thus, slowly and steadily, a business was built up that involved courier delivery of documents.Unlike most Indian joint ventures, it was DHL Worldwide which made the first approach to Airfreight Ltd., since DHL Worldwide sensed a large emerging market for international air express business in India and thought it was useful to have an Indian ally for its operations. DHL Worldwide was the market leader in the in-ternational segment of air express industry in the world, with a market share of about 40 percent . DHLWorldwide was also well regarded for its quick delivery and reliability. "Ontime, every-time" was its punchline.As on 1997, DHL India was the market leader in the international segment of documents and par-cels carried in and out of India (about 45 percent in terms of shipments and 50 percent in terms of revenue). It was claimed by DHL executives that over 95 percent of India's top companies were regular customers of DHL . It had a total customer base of 14,000 consisting of a variety of insti-tutions such as banks, export houses, corporate houses, MNCs small exporters and individual customers. Its network covered over 260 cities in India, with a total of 140 collection centres.Exhibit 7 gives the key statistics of DHL India from 1992-93 till 1995-96.DHL India's Relationship with DHL WorldwideThe relationship between DHL India (DHLI) and DHL...

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