Application of SWOT analysis to develop business strategies for DHL company

Ứng dụng phân tích SWOT xây dựng chiến lược kinh doanh cho công ty DHL , từ mô hình swot tìm ra cá điểm mạnh , điểm yếu , cơ hôi , thách thức của công ty để từ đó xây dựng chiến lược kinh doanh hợp lí , bên cạnh đó còn phân tích môi trường bên vi mô và vĩ mô để từ đó đề xuất các biện pháp kinh doanh cho công ty DHL

Seminar I : Research Method & Design Application of SWOT analysis to develop business strategies of DHL company Application of SWOT analysis to develop business strategies for DHL company Thi Thanh Mai Nguyen ¹ , Thi Quynh Phuong Vu ² , Thanh Tung Pham ³ ¹ 86335 - IBL1102 - Email : mai86335@st.vimaru.edu.vn ² 86448 - IBL1102 - Email : phuong86448@st.vimaru.edu.vn ³ 88015 - IBL1102 - Email : tung88015@st.vimaru.edu.vn ARTICLE INFO Article history: Received 27 December 2022 Accepted 10 January 2023 Keywords : SWOT analysis Business strategies Dalsey Hillblom Lynn (DHL) ABSTRACT The demand for logistics services has been increasing sharply in recent years Global logistics service market revenue reached over one trillion USD in 2019 and is expected to grow at a rate of 6.9% per year during the forecast period 2019 - 2027 (Jordan, 2019) More and more logistics companies are being established to meet this huge demand all over the world One of the prominent companies among them is Dalsey Hillblom Lynn (DHL) However, DHL needs to research to expand its business strategy to compete with a series of other famous companies In this article, the micro and macro markets of the DHL corporation will be analyzed to assess the business strategies for the near future Moreover, the study will look at the SWOT analysis from many angles to identify the important factors in business strategic planning Finally, from our SWOT analysis and evaluations of the current situation of DHL Company, we have come up with the most suitable business strategy for the company Introduction In 1969, DHL was founded by Adrian Dalsey, Larry Hillblom, and Robert Lynn inventing a new business model dedicated to courier service between San Francisco and Honolulu, carrying documents of noncommercial value (Chung and Bowie, 2018) Over the years, DHL has multiplied its operations providing a logistic global business channel that currently presents over 220 countries (Cosimato and Troisi, 2015) The founders began to ship papers by airplane from San Francisco to Honolulu, beginning customs clearance of the ship's cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbor Erstwhile customers that were satisfied T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design with its service stood to save a fortune (DHL International, 2008) This initial freight concept gave birth to a new industry, the international air express That is the rapid delivery of documents and shipments by airplane.The DHL Network continued to grow incrementally The company expanded globally from Hawaii into the Far East and to the Pacific region, then the Middle East, Africa, and Europe By 1988, DHL was already present in 170 countries and had 16,000 employees (DHL International, 2008) Deutsche Post World Net and DHL consolidation began in 2002 when Deutsche Post World Net (DPWN) incorporated in Germany became the major shareholder in DHL By the end of 2002, DHL was 100% owned by Deutsche Post World Net, (DHL International, 2008) (1999), strategy represented a commitment of present resources to future expectations Various studies on strategic management practice have been conducted by various scholars such as (Rosa, 1992; Awino, 2001; Machuki, 2005; Koske, 2003; Bryson, 1989; Nutt, and Backoff, 1992) From their studies, they established that each organization that practiced strategic management business be it state corporations, large corporations,s or small and medium enterprises had a distinct and organizations' clear formulation of vision and mission statements, environmental scanning, and had independently formulated their strategic plans and implementation (even though they may have used the services of the same consultant) and formulated their annual business plans They observed that strategic management is a set of management decisions whose aim is to decide on organizational goals, the means of achieving those goals, and ensuring that the organization is positioned in a sustainable composition to pursue the set goals and plan of action(s) that determines the long term performance of an organization, but there still existed a knowledge gap Considering the above aspects, the following research objectives are set Firstly to identify factors influencing the development of DHL's business strategy and secondly is using the SWOT model to analyze and evaluate the development of DHL's business strategy Business strategy is the method and way of doing business of a company or corporation in the field of business, to achieve optimal business performance Business strategy is the overall content of an order, including a series of measures and major business methods over a long period (Nguyen , 2022) The ultimate goal is towards promoting the highest profit and the development of the business Business strategy includes analyzing both internal and external environments, building strong development strategies to establish long-term and short-term strategic plans, and implementing strategic assessment and control Therefore the study of business strategy development combined with strategic management combines the basic steps of environmental review, strategy formulation, monitoring, and evaluation of that strategy Developing business strategies places a great deal of emphasis on monitoring and assessing external opportunities and threats from the point of view of emphasizing the company's strengths and weaknesses Strategy for an organization is the roadmap, or plan for how the organization achieves its goals and objectives (David, 1989) According to Mintzberg et al Business strategy is one of the key factors in the growth and development of a company Johnson and Scholes (2010) reckon that strategic management provides central purpose and direction, enables management to adapt to the changing operating environment, enhances competitive edge, and allows allocation of responsibility to capable managers to enable strategy implementation All organizations globally interact with the external environment and internal or operating environment (Pearce and Robinson, 2010) These factors together T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design with the internationalization phenomenon posed great challenges to all organizations and business firms Due to this dynamism, organizations are therefore urged to adopt strategic business to ensure their continuation and development of a competitive edge over their competitors Strategic business differs from one organization to another depending on the present environment that the organization finds itself in because there is no universal approach to strategic business DHL faces challenges such as low services level satisfaction from customers mainly on ues such as delayed cargo collection to and from the ports of origin, entry of smaller in size but efficient freight forwarders, segmentation, and fragmentation of freight forwarding services where each product becomes a service on its own (specialization) and uncertainties about future business risks DHL has to be flexible enough to respond to these environmental challenges Its top management has the responsibility to provide vision and direction and plan and implement strategies that will guide the company and safeguard its future make all members of the enterprise unanimously agree and their best on the road to common success This first of all depends on the construction and implementation of their business strategy The right business strategy will guarantee the existence, sustainable and long-term development according to the longterm goals of the business Up to now, there is no unified definition of the business strategy of the enterprise Many scholars in different documents have introduced some concepts of business strategy such as “strategy is the determinant of long-term goals of the organization” (Alfred, & Candler, 1962) or “strategy is the red thread throughout the organization's activities” (Igor Ansoff, 1965) The business strategy of the enterprise is in the conditions of the market economy, based on the objective and subjective, on the resources that the enterprise may have, to determine the strategies, paths, and measures to ensure the survival of the enterprise stable, long-term development according to the development goals that the enterprise has set Business strategies are important for directing a company's goals to achieve virtuoso performance (Latifah et al., 2020) Business strategies focus on improving the competitive position of a company’s products and services in a particular industry or market segment served by the company (Marinescu et al., 2021) Business strategies differ from strategies at the corporate level At the business level, this strategy focuses more on improving the competitive position of the company’s products or services in certain market segments (Lamb et al., 2022) The structure of the paper is as follows: Section provides an introduction and explains the motivation for the work, highlighting the objectives and the expected outcome Section reviews the existing literature on the operational performance of container ports Section presents the research methodology adopted for accomplishing the objectives Section and focus on the data analysis and outcome factors Section contains a discussion of the results Finally, Section concludes and summarizes the study The essence of business strategy is expressed in five aspects To begin with, the business strategy is the expression of the competitive position of the enterprise When building a business strategy, businesses need to analyze their objective circumstances The purpose of this analysis is to understand the opportunities Literature review Recently, as the era of business competition has become tougher, business people from the very beginning want to clearly define their development path, the way to sustainably exist, as well as the desire to the same How to T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design and challenges that objective circumstances present to the business At the same time, it is also necessary to study the subjective conditions of the business to know its strengths and weaknesses The business strategy of the enterprise must well combine the opportunities that objective circumstances bring with the strengths of the enterprise, and at the same time must have solutions to overcome the challenges and weaknesses of the enterprise Therefore, it is necessary to study the competitive position of the enterprise Only then can you come up with the right business strategy If the competitive position is not determined correctly, it is not possible to make the right business strategy Secondly, an enterprise's business strategy is a business model, an operating platform, a method of using resources, and a basis for handling all problems of the enterprise Thirdly, the business strategy is the expression of the value concept of the enterprise Business strategy is an expression of the value concept, progressive spirit, and tenacious will of the business leader, reflecting the leader's assessment of the objective and subjective conditions of the business Karma Only when the leader properly assesses the objective and subjective conditions of the business can the right business strategy be devised Otherwise, the business strategy will be wrong Then, business strategy is creativity in business management That means that enterprises based on certain goals, arrange and form a new effective and competitive management system At the same time, creativity in management must be closely combined with creativity in regimes, creativity in the organization, and creativity in techniques to bring into play the effects of business strategies To implement the strategy, all employees must master the strategy, turn it into an annual plan, a plan of each department, and into everyone's actions, and must be feasible Competitive advantage stems from a company’s strategic choices to seize market opportunities (Reinstaller et al., 2022) A business strategy, also called competitive strategy, is usually developed at the divisional level, and emphasizes improving the competitive position of a company’s products/services in the specific industry/market segment served by the division (Sanchez-Henriquez, & Pavez, 2021) The division’s business strategy may focus on increasing profits in the production and sale of products and services (Agustia et al., 2020) Business strategies should integrate various functional activities to achieve divisional goals (Abdelbadie et al., 2019) Choosing a business strategy is a very important step in the strategic management process The foundation for choosing a business strategy is customer needs, product differentiation; customer groups and market segments; and different capacities For a worldleading logistics company like DHL, there are simple, though never simple, strategies In April 2014, Deutsche Post DHL Group introduced its Strategy 2020, positioning itself as “The Postal Service for Germany and The Logistics Provider for the World” It is based on three pillars: Focus, Connect and Grow DHL Group has made significant progress with Strategy 2020 Due to its geographical spread and wide range of logistics offerings, the Group is now better positioned than ever before With “Strategy 2025 – Delivering Excellence in a Digital World” the company is laying the groundwork to continue its successful growth trajectory beyond 2020 The four most important trends that have been impacting logistics in recent years will also shape the industry going forward: Globalization, Digitalization,E-Commerce,and Sustainability Strategy 2025 is the Group’s response to these In the past, there have not been many clear research papers when applying SWOT analysis to building business strategies with DHL Therefore, it is possible to get an overview of T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design DHL's business strategy, research,h and explore the development activities of the business strategy at DHL SWOT Analysis of DHL focuses on strengths, limitations, opportunities, and threats DHL is one of the largest Logistics companies The strengths and weaknesses of DHL Swot are internal factors, while opportunities and risks are external factors SWOT Analysis is a validated management tool that enables a company like DHL to measure its business performance with competitors and the industry uncontrollable factors These form the external environment within which the organization operates and may include demographics, rates of interest, changes in legislation, etc (Hatton et al, 1992) It is the opinion of some that for a company that desires to grow, the objective appraisal of strengths and weaknesses should be high on the list of necessary activities (Ansoff, 1956; Cordiner, 1956; Leavitt, 1965, etc) A major objective for many managers is the identification of threats and opportunities through environmental scanning (Jackson and Dutton, 1998) The fundamental principles of SWOT analysis, therefore, seem to play an integral part in the organization’s domain Methodology SWOT analysis overview The word "analysis" originates from the Greek language, meaning to separate into parts, loosen and dissolve A SWOT analysis does this by 'peeling back layers of the company' (Williams, 1996) and is widely used in many organizations SWOT (strengths, weaknesses, opportunities, and threats) analysis is a method for identifying and analyzing internal strengths and weaknesses and external opportunities and threats that shape current and future operations and help develop strategic goals A SWOT analysis is designed to facilitate a realistic, factbased, data-driven look at the strengths and weaknesses of an organization, initiatives, or within its industry The organization needs to keep the analysis accurate by avoiding preconceived beliefs or gray areas and instead focusing on real-life contexts Companies should use it as a guide and not necessarily as a prescription (Will, 2022) The initials of the acronym and mnemonic 'SWOT' represent the four factors of Strengths, Weaknesses, Opportunities, and Threats In an organization, a SWOT analysis involves pinpointing these areas to assist managers in identifying the key facts, thereby giving them a focus on what needs to be tackled and an awareness of the relevant opportunities and possible threats Williams (1996) claims that effective business leaders are people who live 'in a world of SWOT', as they will be individuals who will have access to the right information so that they can act on maximizing opportunities and attempting to avoid threats As such, SWOT analysis is recommended by some as a prime tool of analysis (Hatton et al., 1992) This technique is designed for use in the preliminary stages of decision-making processes and can be used as a tool for evaluation of the strategic position of organizations of many kinds (for-profit enterprises, local and national governments, NGOs, etc.) (Silva, 2005) It is intended to identify the internal and external factors that are favorable and unfavorable to achieving the objectives of the venture or project Users of a SWOT analysis often ask and answer questions to generate meaningful information for each category to make the tool useful and identify their competitive advantage SWOT has been Within SWOT analysis, the Strengths and Weaknesses are seen as internal controllable factors and can be acted upon (e.g staff turnover, organization image) The Opportunities and Threats are external, T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design described as a tried-and-true tool of strategic analysis (Sevier, 2001), but has also been criticized for its limitations, and alternatives have been developed developments, it can find initiatives that match its strengths and that the company will successfully support The key is to find at least one opportunity for each strength that the company listed in their table Application of SWOT analysis A SWOT analysis, looking at the strengths and weaknesses of the company and the opportunities and threats in the marketplace, lets them develop a strategic approach to reach its goals In marketing, it can help the company identify ways in which it can improve its thitsompetitive position The application of a SWOT analysis improves the performance of the company and reduces business risks The company must address weaknesses identified in a SWOT analysis by fixing the problem or eliminating the weak activity To apply a SWOT analysis to a marketing challenge the company has to analyze its internal characteristics List as strengths what they well and where their performance is superior Identify recent failures and poor execution as weaknesses Look at the company's business environment to find where there are opportunities to grow and increase profitability Find threats that prevent the company from reaching its potential Process of SWOT analysis The company has to address threats from a SWOT analysis by strengthening the company to meet the threat, eliminating the threat by abandoning the threatened activity, or classifying the threat as unimportant and taking no action A SWOT analysis can be broken into several steps with actionable items before and after analyzing the four components In general, a SWOT analysis will involve the following steps The first thing you need to is define the company's objectives Although a SWOT analysis might be broad, it is likely to be more valuable if it is focused on a specific goal For instance, the goal of a SWOT analysis would be to determine whether or not to launch a new logistics service A corporation will have direction on what they intend to accomplish after the process if they have a target in mind The SWOT analysis in this case should assist in deciding whether or not the service should be presented To take advantage of developments in the marketplace, the company has to match its strengths to the opportunities If they have highquality products and a potential new customer close by, you have to assign resources to exploit this business Develop a strategy that informs the potential client of the reputation for quality and proximity Give the best sales representatives the responsibility to sign for this new business Make sure you know the prospective customer's preferences and business practices Second, we must collect data about that company Every SWOT analysis will be distinct, and a business may require various data sets to support creating several SWOT analysis tables To start, a business should be aware of the information it has access to, the data constraints it encounters, and the dependability of its external data sources After identifying the company's strengths, look at its market environment and check where its strengths match the actions it can take to reach your company's goals If the company examines the needs of its customers, the technology available, the economic trends, and the product T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design A business should be aware of the ideal people mix to include in the study in addition to the data Various employees inside the manufacturing or sales sectors may have a greater understanding of what is happening within while other employees may be more connected to external factors A varied range of viewpoints is also more likely to provide contributions that add value company as internal factors External influences, such as monetary policies, market changes, and access to suppliers, are categories to pull from to create a list of opportunities and weaknesses An indispensable step is to refine the results With the list of ideas within each category, it is now time to clean up the ideas A corporation can narrow its emphasis to only the finest concepts or the greatest business risks by refining the ideas that everyone had Significant discussion among participants in the analysis may be necessary at this level, and top management may need to be involved to assist rank priorities The next step is to compile ideas For each of the four components of the SWOT analysis, the group of people assigned to perform the analysis should begin listing ideas within each category First, we come to the internal factors What occurs within the company serves as a great source of information for the strengths and weaknesses categories of the SWOT analysis Examples of internal factors include financial and human resources, tangible and intangible (brand name) assets, and operational efficiencies Second, there are external factors What happens outside of the company is equally as important to the success of a Last but not least is the development strategy of the company Armed with the ranked list of strengths, weaknesses, opportunities, and threats, it is time to convert the SWOT analysis into a strategic plan Members of the analysis team compile a synthesized plan that offers direction on the original target using the bulleted list of things inside each category the UK For these reasons, DHL's global headquarters are located in London and Bonn, Germany (Exel PCL) The Asia-Pacific headquarters are in Singapore, while the Americas (including the US) headquarters is in Plantation, Florida European Air Transport is a freight carrier owned by DHL The airline's headquarters are now located at Brussels Airport in Belgium, but eventually, they will relocate to Leipzig, Germany Vietnam is one of the more recent and underdeveloped nations in the express delivery sector DHL wants to gain market share and expand its operations in Vietnam 300 people have worked here for DHL since 1998, one of the first express delivery organizations to build a solid reputation on a global scale DHL is one of the few trustworthy and high-quality courier services since it has effectively capitalized on the need to deliver documents and items courier service DHL currently operates two Analysis current situation of DHL Company Overview of DHL company A German business that specializes in international freight and logistics solutions, as well as contract fulfillment, is called DHL (short for Dalsey, Hillblom, and Lynn) Adrian Dalsey, Larry Hillblom, and Robert Lynn started the business in 1969; The business is called DHL Express International and is denoted by the initials D, H, and L of the founders Initially providing mail delivery between the continental United States and Hawaii, DHL has now expanded its service to many commercial areas Deutsche Post started buying DHL shares in 1998, eventually buying back a majority stake in the company in 2001, then complete the transaction in 2002 Deutsche Post also bought Securicor Omega in T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design operation centers in Hanoi and Ho Chi Minh City, three transaction centers, four transit stations, more than ten service points with more than 1000 employees, a 56,400 m2 warehouse, and 37 infrastructures It serves more than 7000 clients and processes more than 1.5 billion shipments annually DHL continually makes investments in the Vietnamese market to raise the quality of its services On average, it spends US$130 million to expand the region's capacity for air freight, which includes Vietnam To address the expanding import and export demand of the Western region, Long An Transshipment Station, with a capacity of 80,000 shipments/year, was built for $1 million USD Building a new operation center in Da Nang will cost 10 billion dong launching a weekly schedule of five direct flights using a B727F freight jet with a payload capacity of 22 tons from Ho Chi Minh City to Hong Kong At Tan Son Nhat Airport, spend money on other items Vietnam's service stations, truck fleets, and Ho Chi Minh City almost 215 million euros Due to a shortage of sea freight capacity, the gross margin for air and ocean freight is higher Other base expenses From €33,704 million to €43,897 million, material costs grew primarily as a result of higher transportation expenses in the Global Shipping and Shipping division and higher fuel expenses in the Courier division The main reason for the increase in staff costs—which rose from 23,879 million to 1.645 million euros—was an expansion in the workforce Depreciation, amortization, and loss accounts, on the other hand, decreased by 62 million euros to 3,768 million The Supply Chain division endured required value losses during the previous year as a result of lockdown measures, among other things Advertising expenses, such as those associated with DHL's global brand campaign, among other expenses, boosted other operating costs by 442 million euros to 4.896 million euros DHL's vision, mission, and awards are listed after that According to research, DHL has a written vision and purpose statement In order to "become a Logistics Company for the World, delivering freight forwarding services promptly, effectively, and always with the best interests of customers in mind," the company's vision is to German Post DHL is one of the first companies to take its responsibilities to society, the communities in which it operates, its employees, and the environment seriously Incorporating corporate responsibility (CR) into our corporate strategy In keeping with the problems facing our firm and our particular businesses, Deutsche Post DHL seeks to advance sustainability.To create a strong DHL company, it is important to pay attention to financial matters The DHL business sectors are the specialist Business Units within the DHL group that offer an exceptional range of logistics goods and solutions, from express delivery to domestic and international parcel delivery road, air, and expedited international transportation For the closed supply chain management, use rail and the sea When it comes to DHL's performance during the previous years, net profit: The fiscal year 2021's consolidated net profit increased significantly from 3,176 million euros to 5.423 million euros 370 million euros went to shareholders with non-controlling interests, while 5,503 million euros were allocated to Deutsche Post AG shareholders Both basic and diluted earnings per share rose from 2.41 to 4.10 euros and from 2.36 to 4.01 euros, respectively Net gain: Profit before taxes and interest during the first quarter of 2021 was T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design Table Net profit margin of DHL from 2012 to 2016 Table Asset turnover of DHL from 2012 to 2016 Year DHL FedEx UPS Year DHL FedEx UPS 2012 3.21% 4.76% 1.50% 2012 1.63 times 1.43 times 1.39 times 2013 4.01% 3.52% 7.90% 2013 1.55 times 1.32 times 1.53 times 2014 1.53 times 1.38 times 1.64 times 2015 1.56 times 1.28 times 1.52 times 2016 1.50 times 1.09 times 1.51 times 2014 3.84% 4.60% 5.21% 2015 2.90% 2.21% 8.30% 2016 4.85% 3.61% 5.63% Source: http://www.dhl.com From the calculation of the net profit margin, it comes to attention that the ratio was lower than 10%, for all three companies for five years DHL recorded the lowest net profit ratio in 2015, in this particular year although sales increased profit went down, this year the material expenses, staff cost, depreciation, and operating expenses increased In the same year, FedEx also had the lowest net profit compared to other years, but UPS recorded the highest level of net profit margin.DHL’s highest profit was in 2016, this year the company was able to control a few costs which led to more profit and a good ratio as well Source: http://www.dhl.com Higher asset turnover is better, all companies had more than 1-time asset turnover, which means all three companies are efficiently managing their business In DHL asset turnover ratios were more than 1.5, which indicated that the company utilized assets 1.5 times or more compared to the sales 2012 the turnover was 1.63, which highest for DHL for the period because the company sold more compared to the assets T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design Table Total Debt/Equity of DHL from 2012 to 2016 Year DHL FedEx UPS 2012 167.5% 130% 80% 2013 235% 93% 102% 2014 270% 116% 110% 2015 235% 88% 88% 2016 222% 158% 90% The return on equity of DHL is better In 2016 the return was higher than in other years, this year the profit raised compared to any other years and the equity was the same as last year The lowest ROE was in 2012 because that year DHL’s profit was not that much which led to a low ROE than in her years UPS’ ROE was excellent but FedEx’s was the worst in terms of ROE Finally, the ROE in DHL started to increase in 2013 may be due to good control of cost which led to a high level of profit The vision and mission statements were found to have been created after careful consideration and investigation The process starts with a strategic planning process when members at the corporate level, management, and local employees provide their opinions on where they envision the organization in the following five years Additionally, important logistics clients and service providers such as importers, exporters, airlines, ships, customs officials, and freight forwarders were interviewed The management team offered a vision, mission, and strategic goals that were in line with the vision of the entire organization after compiling the many viewpoints and presenting them to them The board of directors subsequently gave its approval to the vision, mission, and strategic goals Management is now responsible for creating strategies and action plans for achieving them In this sense, vision and mission statements were spread arranged as a free-flowing conversation with associated writing The co-manager had a meeting with the management team and made sure they understood how important it was for them to follow strategic management at the divisional level To engage and coordinate, managers are urged to meet with staff members and pay them a visit DHL Express Vietnam continuously invests to improve in all areas in order to offer better working conditions for employees and stand out in the job market This has aided DHL Express in earning a Source: http://www.dhl.com From the above calculation, it is clear that the gearing of DHL is very high compared to the competitors For all five years, the company’s gearing was more than 200%, which may be due to high level of debt than the equity the company holds on This gearing may make the future of the company very tough or getting loan capital will be difficult for DHL But the others two competitors are still in a good position means their gearing was lower than DHL’s Table ROE of DHL from 2012 to 2016 Year DHL FedEx UPS 2012 14.63% 13.80% 17% 2013 22.00% 67% 2014 22.72% 15.21% 14.0% 2015 15.22% 2016 24.50% 13.20% 80.0% 9.00% 7.00% 19.4% Source: http://www.dhl.com 10 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design number of business honors, including the Golden Dragon Award for Transportation Services four times, five Gold Stevie Awards for four straight years, and the title of No carrier in Vietnam from Anphabe VN Nam, chosen by Anphabe VN, was recognized by the Vietnam HR Awards 2018 and "The Employer" as the company with the "Best Working Environment." the Institute of Top Employers' "Top Employers 2019" In addition, the company has received recognition at the following events: CS tournament in Europe, CS tournaments in the Middle East and North Africa, and CS tournaments in Sub-Saharan Africa The first is the political environment revolves around the government of the country where the business is done business; the laws of the domestic as well as foreign markets This is a factor that affects all businesses in a territory Government, legal and political factors affect businesses in different ways They can create opportunities, obstacles, and even real risks for businesses FDI enterprises continue to consider Vietnam as an attractive investment destination with stable political advantages, the gradual opening of administrative procedures, reduced inspection, and unofficial costs Vietnam's political stability has always been attractive to foreign investors This factor of Vietnam is continuously appreciated by FDI enterprises, with a rate of over 90% Vietnam has a lower risk of business ground revocation and a lower risk of policy instability, after impressive progress in recent years Although Vietnam is a country with political stability, besides that, Vietnam is one of the countries with high tax rates in the import and export industry because Vietnam is a developing country The high tax will reduce the competitiveness of imports from Vietnam compared to goods imported from other nontaxable markets As a result, importers in the taxing country may divert imports from other non-tariff countries, leading to a decrease in Vietnam's export turnover, a narrower market share, and a shrinking export business Vietnam faces the risk of losing export markets Macro environment analysis The macro-environment includes factors, forces, institutions, etc., located outside the organization, which are difficult for managers to control, but they have an indirect influence on the organization's operations and results The macro-environmental analysis is the analysis of demographic, legal, socio-cultural, natural, technological, and economic factors that affect the operation of all enterprises in the industry The analysis of the macro environment in the analysis of the business environment aims to determine the influencing factors, the direction of impact, and the magnitude of the impact on the entire logistics industry in general and the express delivery segment in particular in the Vietnamese market Generally speaking, it is the review of all factors from the macro environment, thereby indicating the opportunities and threats that businesses need to face when planning and implementing strategies, so it is necessary to Combine business environment analysis information and analyzing the internal environment of the business, thereby determining the direction and strategic vision, helping the company determine the appropriate goals and business models and strategies suitable business The second is the economic environment The current state of the economy and future trends have an impact on the success and strategy of an industry, locality, or country The economic environment is a collection of many factors that have far-reaching effects in different directions on the activities of sectors, localities, and countries The main factors in the economic environment are Economic growth rate; Interest rate; Monetary policy exchange 11 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design rate; Inflation status; Import and export turnover; Traffic infrastructure Within the framework of the article, we consider the following factors: the second quarter of 2021 the third quarter of 2021 compared to the same period last year (2) Import and export turnover: According to the report of the General Statistics Office, the total import and export turnover of Vietnam's goods in 2021, the total export and import turnover of goods will reach 668.5 billion USD, an increase of 22 6% over the previous year, of which exports increased by 19%; imports increased by 26.5%, the highest in consecutive years of export surplus since 2017, higher than the surplus in 2019 ($ 10.87 billion) and nearly 11 times higher than the surplus in 2016 (1 78 billion USD) Vietnam's trade balance of goods has achieved a surplus in the entire 5-year period 2017 - 2021 Thus, the continuous trade surplus in recent years has created a good foundation for the logistics industry which includes transportation, warehousing, customs, development activities, contributing to increasing the added value of products of enterprises Along with that, the joining of organizations and trade agreements made investors put high expectations on logistics stocks Despite the difficulties caused by the Covid-19 pandemic, at the beginning of 2020, stocks in this field such as VSC, GMD, DVP, DXP, SFI, and HAH, had a growth rate of tens of percent, even many stocks have surpassed historical peaks However, according to the World Bank's assessment, the link between importexport enterprises and logistics service enterprises is still limited, not tight, and trusting, making Vietnam's logistics services less developed than requirements, this is also the weakness that logistics enterprises need to overcome Figure GDP growth rate for the period 2011-2021 Source: m.cafef.vn (1) Economic growth rate (GDP): Figure shows that the Vietnamese economy is having impressive growth figures, the growth rate of the economy in the 2011-2019 period is quite high and stable , in 2018, GDP reached 7.08% per year, the highest increase since 2010 until now GDP per capita in 2018 was estimated at 58.5 million VND, equivalent to 2,587 USD, an increase of 198 USD compared to 2017 By 2020-2021, due to the impact of the Covid-19 pandemic, the growth rate of Vietnam to 2.91%, especially a record low in 2022 of 2.58%, although it is the lowest level in a decade, statistical agencies consider this a great success because of our economy We are among the fastest-growing economies in the world Economic growth makes people's economic life increase, leading to increased consumption and shopping demand According to data from two recent reports of Lazada Vietnam, the number of sellers in the second quarter of 2021 has doubled compared to the same period last year and this number continues to increase by more than 1.5 times in (3) Infrastructure and transport infrastructure: In our country, the infrastructure of road, sea, railway, and the airway is quite developed, thanks in part to its favorable geographical position such as: bordering the East Sea, road borders with countries such as China, Laos, 12 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design Cambodia, leading to synchronous, modern and highly connected transport infrastructures will create favorable conditions and promote efficiency operations, improve the quality of transportation services, freight forwarding provided by logistics enterprises to customers In particular, our country also spends about 10% of its GDP on infrastructure This is a very high level for Vietnam Therefore, the infrastructure is gradually improved Especially for the expanded road transport base, many highways connecting the provinces have also been extended to communes, villages, and hamlets even in mountainous provinces Airport clusters have also been expanded in many provinces and cities across the country However, compared to other countries in the region and neighboring countries, Vietnam's infrastructure also needs to be improved In summary: Vietnam's economy is trending well The logistics industry has many advantages such as the increasing import and export turnover, which is an opportunity for the logistics industry to thrive, and the infrastructure to develop favorably for various forms of transportation and delivery diligence, always seeking to learn new things, are interested in businesses But besides, this is a new industry in Vietnam, so Human resource requirements for logistics companies in Vietnam are both lacking and weak This is probably a challenge for Logistics businesses in Vietnam Experts expect 87.1% of marketers in the US to use Facebook by 2020 More than 44% of users admit their shopping behavior is influenced by Facebook There are over 80 million business pages on Facebook Not only buying through Facebook, Youtube, and tik but now with the strong development of ecommerce platforms such as Tiki, Shopee, and Lazada This shows that the demand for using the internet is increasing E-commerce opportunities Not only they stop at familiar items such as fashion, cosmetics, and household electronics, but Vietnamese consumers gradually form the habit of shopping for essential items such as vegetables, fruits, and fresh food living People are familiar with and familiar with online shopping more and more The brand has links with courier, shipping, and forwarding units and this is a great opportunity to make the shipping industry grow rapidly The third is the cultural and social environment, the socio-cultural environment represents social attitudes and cultural values It includes demographic factors, population growth rate, population structure, viewpoints on life, views on moral standards, etc When there is a change in these factors, it will create a huge change in consumer demand Capturing these factors will help businesses adapt to customer requirements for appropriate operations Our country Vietnam is in a period of golden population when the population of working age has increased sharply, accounting for 68% This is a good bait for businesses when the price is to pay for Vietnamese workers are relatively low and Vietnamese people with inherent industriousness and Figure The number of users shopping online in 2020 Source: ictnews.vietnamnet.vn The Technological environment comes next Today, no manufacturing enterprise wants to survive and develop without relying on the application of achievements of science – engineering, and technology The more sophisticated science and technology, the more 13 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design it allows businesses to produce a wider range of goods for human needs Technology is constantly changing, advanced technology is constantly being born, and it creates great opportunities as well as threats for businesses Technologies applied in the logistics industry such as:Automation technology: the application of computer software or automatic machines and equipment to improve the efficiency of logistics activities Taking place inside factories or distribution centers, the big jobs are managed by supply chain engineering Augmented reality (AR): Technology that provides logistics service providers with quick access to predictive information anytime, anywhere Enables suppliers to precisely plan and operate tasks such as deliveries and load optimization IoT Ecosystem: This connected ecosystem was developed due to the need to track delivery vehicles (especially trucks) on their freight journey and ensure timely delivery to the required destination This system helps suppliers to manage the journey and location of vehicles, ships, by GPS positioning, preventing incidents Cloud-based supply chain application: Allows business owners to better manage the entire operation from receiving inventory from suppliers, warehouse storage, shipping, and logistic processing In short: The application of technologies in Logistics also supports businesses to plan appropriately, make the most of available resources and avoid redundancy Warehousing, shipping, and order tracking costs also work well Companies in the industry must regularly update and modify technologies to compete with the market as well as avoid being out of date with competitors In the age of technology, if you not grasp technology, you will only be eliminated from the market businesses The factors of natural conditions affecting the results and business performance of logistics enterprises can be followed such as geographical location, weather, climate, and resources, Vietnam is a The country has a hot and warm climate, and high humidity, so it causes many difficulties for the storage and preservation of goods, especially food items This is a rather thorny problem for logistics providers in shipping services Vietnam has a favorable natural terrain for the development of logistics services because of its long coastline, bordering many countries, passing through the Trans-Asia Highway This preference, not only creates favorable conditions for Vietnam to develop trade with other countries and regions in the world but also makes Vietnam a place of transshipment and exchange of goods in the region Micro environment analysis Micro factors not affect all firms in the industry in the same way Because in each business, there will be differences in size, capacity, financial resources, human resources, and overall strategy The microenvironment will be affected by many different factors Below, we'll explore some of the key elements of DHL's microenvironment Firstly, the Customer factor as a supplier of choice, the company's business is based on the needs of its customers The company's clients are also exposed to macroeconomic trends that impact growth in their respective sectors The Company monitors market developments on an ongoing basis and reviews the potential financial impacts of relationships with business partners and suppliers periodically so that any risks can be hedged which may arise from insolvency, such as at an early stage The Client Innovation & Solution Unit uses the risk panel for this purpose The company expects positive business development to last until 2022 Growth opportunities will appear in all business areas as the world economy gradually Lastly, there is the natural environment Natural conditions are a factor that should be paid special attention to by logistics service 14 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design recovers and structural growth accelerates continue in the field of e-commerce Customers are the object that the company serves and is the decisive factor for the success or failure of the company For that reason, DHL Express has targeted domestic and foreign businesses as the company's target customers DHL is an international delivery service provider In Vietnam, it is currently quite difficult to buy or sell products to foreign countries and there are not many shipping companies with international express delivery services like DHL So customer pressure for DHL is not great Thirdly, Alternative products are also a factor affecting DHL Substitute products are products that differ in name and composition but provide consumers with the same features and benefits as the enterprise's product Substitutes serve the same function as industrial products However, for delivery and delivery services, at present, there are no products and services that can be replaced Finally, Each company faces different competitors, these are the forces, companies, and organizations that are or are likely to enter the market affecting the market and the company's customers Therefore, identifying the right competitors is very important for DHL in particular and Vietnamese businesses in general In the context that Vietnam officially approved the policy of fully opening this service, DHL was not very interested in implementing its determination to transform into a 100% foreign-owned enterprise while remaining loyal to its strategy its development through increasing capital investment to exploit the potential in the market Meanwhile, competitors from the US, most notably UPS and FedEx Express, are racing UPS is a pioneer in this strategy by acquiring a 49% stake in the joint venture between UPS and Postal Express Joint Stock Company (VNPost Express) to establish UPS Vietnam in early 2013 And through this, UPS officially became the first global express delivery company with 100% foreign capital investment in Vietnam Along with that, UPS also promotes investment in new equipment and technology in key commercial and industrial centers across the country to better serve customers In addition, the company also invests in the application of advanced technologies in logistics, contributing to creating conditions for Vietnam's logistics industry to develop stronger in the future Meanwhile, with nearly 20 years of operation, FedEx Express also did not hesitate to implement its plan by submitting Secondly, infrastructure is also a factor affecting DHL A logistics provider (3PL) is an outsourced company that can help your business with its logistics By taking on this responsibility, they can free you to focus on other aspects of your operations Many companies choose to partner with 3PLs to help them as they scale - 47% in our survey From assisting with strategy development and problem-solving to ensuring the supply chain is equipped to meet demand, the 3PL is your partner for success and your support when things don't go as planned As well as their expertise in the field of the supply chain, 3PL offers more flexibility in the distribution network and fulfillment services that can meet different service requirements of customers as well as customers latest technology and innovation If you are serious about shipping, you should seriously consider choosing a logistics partner that matches your ambitions DHL is a global company in shipping services Logistics and transportation networks across each region are important Therefore, cooperation by the logistics provider (3PL) is very important for DHL 3PL is DHL's partner for success and DHL's help when things don't go as planned Therefore, the fact that the suppliers are 3PLs will have great bargaining power for DHL 15 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design a dossier to the Department of Planning and Investment of Ho Chi Minh City to apply for the establishment of a 100-business enterprise % foreign capital in Vietnam Thus, it can be seen that with a country with a large population (more than 90 million people), fast economic growth,th and increasing import and export demand, Vietnam is an ideal land for services Express delivery has strong growth opportunities More specifically, the ASEAN Economic Community (AEC) to be established by the end of 2015 will be a solid basis for express delivery companies around the world to believe in the efficiencofom the implementation of scale-up strategies operating in Vietnam On the other hand, while foreign enterprises are actively implementing their development strategies, a somewhat harsh reality is that Vietnamese enterprises still seem to be out of the game And before this reality, more than ever, from now on, domestic enterprises need to put competitive pressure on themselves by constantly improving their capacity, improving service quality, and optimizing costs … to get ready to jump into the game DHL's competitive advantage is that with its seniority in the express delivery industry and reputable experts, DHL can provide customers with a wide variety of shipping formats according to customer needs Therefore, DHL is a reputable form of shipping that ensures prestige and high quality for customers The advantage of DHL service is that the delivery time is accurate and the shipping speed is fast and fast, sending standard goods according to international regulations with certificates Help customers save a lot of time and cost if they have to send many times, carefully pack and protect their items safely and carefully if they follow reputable DHL-affiliated shipping service companies then there will be a compensation regime for customers if the goods are damaged or broken, or lost… together with a professional team of many years of experience, and passion in the industry is always ready to serve customers thoughtfully and enthusiastically Best SWOT analysis of DHL After nearly 26 years of operation in the Vietnamese market, DHL has been affirming its position in becoming a prestigious international brand, closely associated with the Vietnamese market A large number of customers Up to now, the world's largest courier company has invested about 37 million USD in Vietnam Especially recently in September 2014, DHL opened a new office and operation center with an investment of up to 10 million USD in Ho Chi Minh City The completion of this project opens up a new development opportunity for DHL Vietnam, facilitating the receipt and delivery of goods, and connecting DHL Vietnam with DHL's global network of more than 220 countries and territories earth Further, this investment decision of DHL is aimed at ensuring doubledigit growth over the next few years for DHL in Vietnam This has made DHL stronger and stronger with reasonable and strong business policies to create a brand for the company as well as DHL's profits in the future because the delivery service market Faster and tougher competition requires the company to constantly innovate to improve DHL's competitiveness against other competitors Especially intending to affirm its unique position, DHL has implemented large-scale cooperation strategies to bring more practical benefits to residential customers, especially small and medium enterprises in remote areas To build a successful DHL business, first become familiar with the DHL brand's advantages DHL has built a strong brand image for its company In 1997, DHL became an ISO 9001-certified global express shipping company with international quality standards throughout the system Since then, DHL has always developed its quality system to match 16 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design the standards of its customers DHL owns several intellectual rights including trademarks and patents, which give it a monopoly over its products and that competitors cannot copy or reverse engineer them What's more, DHL operates on a global scale They operate in more than 220 countries, providing services that appeal to most of the world They have a big market to business in and therefore get huge revenues DHL has acquired a large-scale global business scope In addition, DHL launched a new brand campaign with the tagline “The Power of Global Trade.” Global trade gives people access to ideas, technologies, and opportunities to expand their businesses around the world gender DHL has eServices and high technology, DHL is always using and constantly looking for new technologies They spend nearly 10% of their total revenue on information technology DHL also has excellent eServices, which give customers access to systems to ensure customers have control and track of their supply chain at all times These products can be tracked, queried, and ordered online Joint venture DHL has developed its organizational structure to serve the global market, which it has called a “JV” This approach includes empowering DHL employees locally while recognizing the interdependence of the parts of DHL as a company In addition, DHL implements the Smart-Truck project, which is a program that allows DHL to provide information faster The data will be transmitted directly to a dynamic system, in which routes will be calculated depending on the order situation and current traffic volume In addition, DHL has always been proactive and highly appreciated by environmental organizations in terms of environmental protection in transportation and warehousing, which has brought about a good brand image in the hearts of the public First mover advantage because of technology – Of course, there were many logistics companies which were existing before DHL However, It was DHL that started a system two decades back where you could track your package and where it was right now In the multi-billion dollar transport industry, this was very important to many corporations and this helped a lot because DHL acquired many clients who tied up with DHL because of their tracking system Today, all companies use these tracking systems Time commitments– One of the major advantages of DHL is its time commitment It has delivered on this aspect again and again over the years In DHL, if you an overnight delivery, then the package will be delivered to the other day on your doorstep That is for sure DHL operations are managed so well that timely delivery becomes the essence of the brand Based on the swot analysis method at DHL, there are weaknesses that the company itself needs to overcome in order to grow stronger in the future The first is shipping damage – One of the major problems faced by any shipping industry, especially in developing countries, is the damage caused during shipping, and DHL also had this problem when shipping This directly affects the company's bottom line as the company must honor the customer's claims for the cost of lost goods The second is claims policy – While shipping damages are real, DHL's policies regarding claims are known to be lax and claims are hardly respected which can lead to customer trust being diminished as goods are not adequately compensated for damage especially as we are transitioning to an e-commerce economy, this is becoming more and more important as there are many Many competitors have better customer service than DHL which may cause loss of customers one day Third, DHL's prices are relatively high compared to their competitors This can be a major weakness if their customers are not aware of the difference between DHL's services and its competitors Besides, DHL 17 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design also makes mistakes in estimating market share, which is DHL's biggest weakness because it is difficult to estimate even when the market is stagnant and there are some competitors, and all Estimates should always be viewed with caution Besides DHL's visibility being weak, DHL's vision is seen as weak in the community compared to its potential Not as famous in the US as UPS and FedEx, but in Japan like Nippon, and Yuan, so it is easy to make mistakes when investing or developing important shipping service strategies in the future Finally, it is the attitude of DHL, the bad attitude of employees can greatly affect the image and sustainable development of the DHL company's brand, which can have serious consequences, such as losing a lot of money and important customers Especially with the development of today's online business world, most of the customers will read the reviews on the company's web which leads the customer to decide to choose DHL's service even losing the customer if service quality is not good for Economic Cooperation and Development (OECD) An important driver has been the tremendous advances in information and communication technology since the 1990s This development is the result of the www (world wide web), Windows computer systems, the EDIFACT EDIFACT, EAN EAN coding, and English - the business language of the world An E-commerce boom – One of the big advantages DHL has, especially in developing economies, is that the e-commerce boom is catching up and the demand for shipping is huge Therefore, there are a lot of packages that are delivered daily, so capacity has been used up DHL already has the assets to meet this boom in E-Commerce and it rates well and competes to be the market leader Besides, the online retail boom also presents opportunities for DHL while e-commerce means e-commerce portals like Amazon, Flipkart, and others, many small retailers are starting with their eCommerce websites This means that even small businesses are involved in point-to-point deliveries, thus increasing the total market potential, especially in developing economies Promote strategic linkages – DHL already has strategic links with all e-commerce companies However, exposure is less in developing countries due to regional competition As a result, the more strategic relationships there are with more companies, the higher the market share So promoting the business and pushing to attract more customers is important for the company right now Standards make it possible for business partners to place orders faster and more costeffectively, and make everyday business processes more efficient than decades ago Advances have been complemented by progressive standards in packaging and containers set forth by the International Organization for Standardization (ISO) For industrial and commercial companies, the possibility of expanding their networks of suppliers and customers is further and more Besides, there are many great opportunities for DHL.The world is developing strongly, leading to the widespread and rapid development of electronic information As a result of dynamic development, the demand for logistics services has increased dramatically so Logistics has become an important factor in the success of modern companies because customers and supply networks can be extended worldwide Over the past 20 years, the conditions for global trade and business have improved greatly, and many political, ideological, and customs borders between countries and regions of the world have been broken down In addition, worldwide efforts to remove barriers to trade are progressing slowly but surely, for example, the Global Agreements on Tariffs and Trade (GATT) and the Organization for Economic Cooperation and Development Development Organization 18 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design global They can search for the materials, staff, know-how, and conditions for their operations in the country and region that provide them with the highest cost-effectiveness ratio Customs regulations and data handling have been simplified Communication has become faster, more efficient, and more reliable Lower transportation costs thanks to these changes are the reason logistics companies are increasingly trusted and expanding their value-added innovative processes worldwide research and development strategy: In today's fiercely competitive environment and with the approach of suppliers Constant research is a matter of concern, to make a difference In addition to conducting research and development, it also aims to affirm its position as a top-quality supplier and reduce competitive pressure on price The lack of price competition is a weakness that DHL needs to overcome (because DHL's service costs are quite high compared to competitors in the industry and it is difficult to develop strong competition in Vietnam) especially In the current situation of logistics development and fierce competition, cutting operating costs is the most important method to compete with other competitors Classify customer details; then develop services and service packages suitable for different customers to ensure the best service for customers, creating competitive advantages for the company Making good use of Vietnam's natural environment, research offers transportation options on all terrains to avoid additional costs Focusing on research on politics, culture, people, population structure, life views, and ethical standards in Vietnam Capturing customer psychology to make policies more suitable to the market Additionally, DHL must make the most of all the benefits that come with constantly applying science and technology, as well as the added benefits and politics of opening up markets in new nations acquiring modest market shares to lessen rivalry with your business Increased investment in human resources is essential for business success, particularly in management, management, and the application of science and technology maintaining the business's green initiatives to preserve the environment, enhance its reputation, and demonstrate a strong commitment to the long term In addition, through SWOT analysis to find out the challenges that DHL companies face In most areas, global trade competition arises Even at home, companies face new competitors from around the world, and competitors often enjoy a cost advantage due to lower production costs Therefore, the demand for transportation, storage, conveyance, planning, communication, and control services is continuously growing stronger and becoming more and more perfect At the same time, the pressure on service quality and cost optimization is growing on the company Logistics has become one of the most important levers a company can use to survive and succeed in global competition Discussion Research development strategy Although DHL is already a large global delivery company, in the Vietnamese market, the company still needs to develop a pricing mechanism and sales policy by business conditions and competition in the market school Researching value-added products and services to enhance competitiveness with companies in the same industry For the business to operate more effectively, it is necessary to focus on the following issues: Promote communication activities, and build a brand image so that when it comes to domestic or foreign delivery services, customers must think immediately about DHL Implement 19 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design DHL strengthens "green" investment in Vietnam techniques The program aims to teach drivers how to drive optimally, which not only helps reduce fuel consumption and CO emissions but also reduces accidents On April 21, DHL-VNPT Express Company Limited announced the investment and put into operation 43 Mercedes Vito cars The advantage of the fleet of vehicles meeting Euro emission standards and being more environmentally friendly, when reducing emissions by more than 20% compared to before… The vehicle upgrade is part of DHL Express's global commitment to reducing carbon emissions and improving service quality This new investment in the fleet has a total value of about million USD DHL's fleet moves an average of 10,000 km per day, throughout Vietnam's roads Thus, through this new investment, reducing emissions by about a quarter will contribute to a cleaner, greener Vietnam In addition, the new fleet of vehicles consumes 20% less fuel, both helping to protect the environment and saving costs for businesses Meanwhile, traffic congestion is still being assessed as an urgent problem in urban areas of Vietnam, leading to cities becoming more polluted and more dangerous to drive Road transport currently accounts for 61 percent of DHL-VNPT's total CO2 emissions from ground operations To reduce carbon emissions better, DHL has organized an eco-driving training program for delivery staff to train and improve their driving DHL is the first global logistics supplier to set a measurable CO2 reduction target through the GoGreen program Started in 2007, the program aims to achieve a 30% reduction in carbon emissions from the company's transportation by 2020 And to achieve this, DHL has established a clear roadmap to manage carbon emissions from energy consumption in offices, mining centers, and road transport, while measuring efficiency of the emission reduction programs.“Protecting the environment is part of a long-term global strategy and we recognize the importance of doing business responsibly, efficiently, and sustainably DHL has applied for the GoGreen program since 2007 and its efforts to ensure sustainability have been recognized by the community This encourages us to continue to raise the bar for Green Logistics,” said Ms Yasmin Aladad Khan, Vice President of DHL Express Southeast Asia The carbon footprint assessment was first introduced by DHL Express Asia Pacific in 2008 And since then, it has evolved into a specific emission measurement process at more than 1,000 facilities in 27 locations market in the Asia Pacific region The research focuses on the application of SWOT analysis for the business strategy development of DHL - the world's leading logistics company The study explores the workings of DHL, which entails vision and mission, practices of organizational planning, proper human resource allocation, IT support, culture, and segment management in the company Understand the strengths, weaknesses, opportunities, and threats of DHL DHL might have a weakness of being expensive but its focus on serving as a premium customer and creating a niche helps them Conclusions Business strategy is the method and way of doing business of a company or corporation in the field of business, to achieve optimal business performance Business strategy is the overall content of a business plan in order, including a series of measures and major business methods over a long period (Nguyen¹, 2022) The ultimate goal is towards promoting the highest profit and the development of the business system (Nguyen², 2002) 20 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design differentiate in an industry where there is a thin line to differentiate yourself as an organization Further, as already discussed, DHL will have to keep innovating to counter the future threats of new disruptive industries, environmental impact, and cost of transportation to be socially and operationally effective and profitable DHL has always developed its quality system to match the standards of its customers DHL owns several intellectual property rights including trademarks and patents, giving DHL a monopoly on its products and making it impossible for competitors to copy or reverse engineer them Furthermore, DHL operates globally Besides that advantage, DHL needs to overcome the error in estimating market share, which is DHL's biggest weakness because it is difficult to estimate even when the market is stagnant and there are several competitors, and any estimate should always be viewed with caution In the future, DHL also seizes the opportunities in the rapidly developing world that entail the widespread and rapid development of electronic information, fostering strategic linkages with all ecommerce companies Setting up a business strategy always requires a project to prevent lurking risks at any time, the company has to face all competitors from all over the world and competitors have a cost advantage due to lower production costs Acknowledgement This study shows that business strategy has a positive influence on the business performance, innovation, and competitive advantage of DHL Besides, the study established that were was ample focus directed to the process of strategy formulation Strategy formulation and strategy implementation is viewed to serve the facilitation of strategic management practices in the organization Strategy implementation is vital for an organization’s success and poor implementation has been blamed on several strategic failures Bryson, J.M (1989) Strategic Planning for Public and NonProfit Organizations, Jossey-Bass Publishers We have gotten a lot of assistance and support while creating this research paper We acknowledge the excellent assistance of our lecturer, Nguyen Minh Duc, in developing the study topics and methodologies His enlightening criticism inspired me to refine my ideas and elevate my work We are grateful for his insightful advice throughout our investigation, which gave us the skills we needed to make the best decision and finish our research paper Last but not least, we would like to express our gratitude to all of our friends and family for their constant encouragement and support References Abdelbadie, R.A., & Salama, A (2019) Agustia, D., Muhammad, N.P.A., & Permatasari, Y (2020) Permatasari Earnings management, business strategy, and bankruptcy risk: Evidence from Indonesia Heliyon, 6, p e03317 Awino, Z B (2001): “Effectiveness and problems of Strategy Implementation of Financing Higher Education in Kenya by the Higher Education Loans Board', Unpublished MBA Research Project of the University of Nairobi, Nairobi, Kenya Can J Adm Sci (2022), J Small Bus Enter Dev., 28 (2020), pp.1-21 Corporate governance and financial stability in US banks: Do indirect interlocks matter? J Bus Res., 104, pp 85 David, F (1989) Strategic Management, Columbus: Merrill Publishing CompanyDHL International, 2008 21 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design Limited”, Unpublished MBA Research Project of the University of Nairobi, Nairobi, Kenya Do firms facing competitors from emerging markets behave differently? Evidence from Austrian manufacturing firms Eur Bus Rev., 34, pp 153-170 Mintzberg, H., Quinn, J.B., & Ghosal, S (1999) The Strategy Process, Pearson Education Ltd: Essex Friesenbichler, K , Reinstaller, A (2022) Koske, F K (2003): Strategy Implementation and its Challenges in Public Corporations: The Case of Telkom Kenya Limited” Unpublished MBA Research Project of the University of Nairobi, Nairobi, Kenya Nutt, P C & Backoff, R.W (1992) Strategic Management of Public and Third Sector Organizations, Jossey-Bass Publishers, San Francisco Nguyen Huu Long (December 23, 2013) “Plan 2014:Change strategy or change tactics”.Saigon businessman Accessed July 30, 2022 Lamb, P., Darouichi, O., & Sédès, C.J (2022) The performance of international small and medium-sized enterprises: Overview and future research directions Skye Schooley: SWOT Analysis: What It Is and When to Use It Business News Daily Staff Rosa, E., (1992) “An Empirical Investigation of Aspects of Strategy Formulation and Implementation within Large Private Manufacturing Companies in Kenya” Unpublished Ph.D Dissertation, University of Strathclyde Latifah, L., Setiawan, D., Aryani, Y.A., & Rahmawati, R (2020) Business strategy–MSMEs’ performance relationship: Innovation and accounting information system as mediators J Small Bus Enterp Dev., 28, pp 1-21 Sanchez-Henriquez, F., & Pavez, I (2021) The effect of open innovation on ecoinnovation performance: The role of market knowledge sources Sustainability, 13 Machuki, V (2005): “Challenges to Strategy Implementation at CMC Motors Group Türkeș, M.C., Stăncioiu, A.F., Băltescu, C.A., Marinescu, & R.C (2021) Resilience innovations and the use of food order & delivery platforms by the Romanian restaurants during the covid-19 pandemic J Theor Appl Electron Commer Res., 16 22 T.T.M.Nguyen,T.Q.P.Vu,T.T.Pham Seminar 1:Research method and design Authors No Full name Contribution Nguyen Thi Thanh Mai Introduction, Analysis, SWOT analysis, Design and decorate articles, Discussion Vu Thi Quynh Phuong Keywords, Literature review, Conclusions, References, edit the format of the whole article Pham Thanh Tung Abstract, Methodology, References Evaluation Authors Ranking Nguyen Thi Thanh Mai Vu Thi Quynh Phuong Pham Thanh Tung 23