Research On Competitive Strategy For DHL-sinotrans’ Chinese International Express Service

With the process of China’s reform and opening up, the economy of China aredeveloping fast and the growth pattern of economic are changing. Meanwhile modernexpress delivery service has been an industry with great demand and enormousmarket potential, which attract capital domestic and abroad into this industry. DHLand other express company such as UPS, FedEx, and TNT have seen good prospectsof China and Asia express market, and thus make this market’s competition fiercer.As the first foreign-invested company entering the Chinese express industry,DHL-Sinotrans International Air Courier Ltd (named as DHL-Sinotrans) is in theleading position of the market and has reasonable layout of its customers. Butnowadays the DHL-Sinotrans are facing more and more challenges and threats whileboth foreign-invested enterprises and some state owned enterprise with policyadvantage are pouring into this market. Now DHL-Sinotrans have troubles such ascontinued declining of market share, complex organizational structure, high cost, andweakening product competitive advantage waiting to be solved at once.DHL-Sinotrans needs to develop competitive strategy to win back advantage in theinternational express business market at once.DHL-Sinotrans is the research object of this paper. Based on competitive strategytheory, by using analysis of the macro environment and micro environment, SWOTanalysis to analyze DHL-Sinotrans’ internal and external environments, its advantages,disadvantages, weaknesses and opportunities in the competition of Internationalexpress delivery business. On this basis, competitive strategy is formulated andguarantee measures are proposed accordingly, which has important guidingsignificance for the future market competition of DHL-Sinotrans’ internationalexpress delivery business.