DHL is a delivery, courier, and mail service provider for a German multinational company. Robert Lynn, Larry Hillblom, and Adrian Dalsey founded the courier and delivery service providing company in 1969. Today, we’ll discuss the PESTLE analysis of DHL; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting DHL
Some of the main political factors in the DHL PESTLE analysis are as follows;
I-Trade Policies
DHL operates its business and provides courier service in approximately 220 countries across the globe. The courier and delivery service company should keep in mind the trade and tariff policies of different countries. For instance, political conflicts cause countries to change their trade and tariff policies overnight, and they cancel and withhold all types of deliveries coming from a particular country.
II-Political Stability
The stable political environment plays a critical role in the growth of the courier and delivery service business of DHL. The political processions, roadblocks, strikes, and violent activities disrupt and cause delays in deliveries of packages. Ultimately, it negatively impacts the brand image and reputation of the company.
III-Government Infrastructure
The quality, extent, and scope of government infrastructure like roads, railways, airports, and the clearance of shipping docks play a key role in the deliveries of DHL’s packages. If everything is up to international standards, the company will deliver packages on time without any delays. However, the poor government infrastructure just in 3rd-world countries, then it increases the duration of delivery time.
Economical Factors Affecting DHL
Some of the main economic factors in the DHL PESTLE analysis are as follows;
I-Currency Exchange Rate
The euro is the official currency of Germany. A significant amount of revenue from DHL comes from the international market. The value of other currencies relevant to Euro is lower except the British Pounds and Kuwaiti Dinar. However, the currency exchange rate market keeps on fluctuating; and it decreases the company’s revenue to a great extent after the currency conversion.
II-Economic Recession
The global economy is going through the recession phase due to various international political issues, conflicts, and regional politics. Many people have lost their employment opportunities, and it has decreased their purchasing power to a great extent. When people have limited income, they won’t spend on luxury items like back-and-forth deliveries.
III-Taxation
The government taxes of different countries on trade and deliveries are different. Some countries impose heavy taxes on foreign and international deliveries to discourage the outflow of capital revenue. As a result, it decreases the sales, revenue, and profitability of the courier service brand DHL.
Social Factors Impacting DHL
Some of the main social factors in the DHL PESTEL analysis are as follows;
I-Delivery Service Trends
The trend of home delivery service has been increasing significantly for the past few years. People nowadays a leading a busy life and they don’t want to waste their valuable time by driving and picking up the package. However, they employ 3rd party logistics service-providing firm DHL to deliver packages to their home address.
II-Speedy Delivery
Speaking of consumer market trends, people prefer such delivery service brand that offers a quick and speedy delivery of packages safe and sound. DHL should keep in mind the needs, requirements, and demands of the end consumers while delivering packages. Timely, efficient, and speedy delivery service helps the company to increase its sales.
III-Changing Customer Preferences
DHL should keep in mind the changing customer market trends and preferences. For instance, customers nowadays want sustainable methods of transportation and sustainable logistics for delivery service providers. Taking similar steps would help the company to earn the trust and confidence of customers.
Technological Factors Affecting DHL
Some of the main technological factors in the DHL PESTEL analysis are as follows;
I-Drone Delivery
DHL should invest capital resources in the development of drone technology and provide delivery service via drone. The drone delivery of packages is not only safe and secure, but it also decreases the delivery time and helps the company gain a competitive edge in the courier service market.
II-Autonomous Vehicles
DHL should focus on employing autonomous vehicles for the delivery of packages. It allows the company to reduce the cost of drivers and amplifies the efficiency with limited human errors.
III-Data Security
DHL deals with a vast variety of private data and sensitive packages for a great number of people in various countries across the globe. The courier service providing firm should make its system firewall safe and secure to avoid any type of data breaches and protect the privacy of customers’ data.
Legal Factors Impacting DHL
Some of the main legal factors in the DHL PESTEL analysis are as follows;
I-Regulatory Compliance
DHL should comply with the government regulations of different countries. They are data privacy, safety of delivery packages, timely delivery, and others. The non-compliance with customer service laws would not only jeopardize the company’s reputation, but it also would lose the trust and confidence of the company’s valuable customers.
Environmental Factors Affecting DHL
Some of the main environmental factors in the DHL PESTEL analysis are as follows;
II-Sustainability Initiative
DHL has taken various environmentally sustainable steps to ensure the protection of nature and the environment. They comprise employing renewable sources of energy, electric vehicles, biodegradable packaging, and others. The eco-friendly steps would help the courier service company to decrease carbon emissions and achieve its target of net-zero carbon emissions.
Conclusion: DHL PESTLE Analysis |PESTEL Analysis of DHL |External Environmental Analysis of DHL | Strategic Analysis of DHL
After an in-depth study of the pestle analysis of DHL; we have realized that DHL is the world’s leading courier and delivery service providing firm. If you are learning about the DHL PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
