DHL is recognized as a leading logistics company with worldwide operations. The company is older than FedEx, and has had an international presence that was built on an expertise in moving goods through customs quickly. In 2002, the company became a wholly owned subsidiary of Germany's postal service, Deutsche Post AG. Today, DHL's yellow and red color scheme continues to be recognized worldwide on vans, trucks and airplanes. Because DHL caters largely to the business community, the issue of the business cycle and its effect on supply and demand is critical to the company's success. This research considers the business cycle and other economic factors that affect DHL's strategy.
DHL delivers goods and documents to more than 220 countries and territories around the world via road, rail, air and sea. It is a recognized leader in ocean freight and logistics, a hallmark that dates back to its original mission. Its emphasis on inter-modal capabilities and its continued expertise in customs expediting continue to make DHL one of the most successful logistics companies in the world ("2008 Deutsche Post Annual Report," 2009).
At the end of the company's 2007 fiscal year, DHL served 8.3 million customers in 220 countries and territories from 6 main hubs and 30,000 service points. The company owned and operated 72,000 vehicles and 350 aircraft in support of its express and logistics service. Air freight volume totaled more than 4.3 million tons, and more than 2.8 million TEUs (shipping containers) were moved by the company's ocean freight operations ("2008 Deutsche Post Annual Report," 2009).
Business cycles, according to analysts, affect all countries whose economies are based on free-market principles. Highly organized countries were likely to have highly organized business cycles, with cycles occurring at like times in Western Europe and the United States. Minor cycles did not share this comm...