Published by MBA Skool Team, Last Updated: April 04, 2020
PESTLE Analysis of DHL analyses the brand on its business tactics. DHL PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as DHL, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the DHL PESTLE Analysis can be explained as follows:
DHL is a world leader courier service having its business spread across almost all countries in the world. The intellectual properties of the company should be protected by the political laws of the country, otherwise the entrepreneurs would not feel safe in investing in the company. Taxation on imports and exports would affect company's interest in doing business in the concerned nation. DHL has to comply to import export restrictions, tariffs and trade policies of a country. Countries with lower levels of minimum wages would be a high profit ground and thus increase the chances of survival of company in them.
Below are the economic factors in the PESTLE Analysis of DHL:
The GDP growth rate of the country will directly affect the immediate growth of the company.
A country going through inflation, the buying power if the costumers will be less and thus the business of DHL will also decrease. Country's interest rates would have an impact on the number of entrepreneurs willing to invest in the company. Higher the rates, more will be entrepreneurs willing to invest, more with be the growth of the company. If DHL engages in international trade with a country, the exchange rate will have an impact on its profits. Thus an unstable currency would be a negative factor for growth of DHL. If there is high unemployment in the country, that means more people will be willing to work with minimal wages, which in turn would increase the profits of DHL.
Following are the social factors impacting DHL PESTLE Analysis:
DHL is a high-end brand, so it may not be successful in developing countries or countries where majority of the population belongs to social class, and thus cannot afford the services of DHL. If the population of a country believes more in using the local products of products of its own country only, DHL may be unsuccessful due decreased international shipping. Also, DHL needs to understand the online shopping behaviour of the concerned country's population. Younger population will be more inclined to online shopping which will increase the business of a logistics company like DHL. On the contrary, elder population are not much used to it. Thus a demographic analysis is also necessary.
The technological factors in the PESTLE Analysis of DHL are mentioned below:
The brand image of DHL is based on reliability and speed. So it has to attend to the betterment of the technology used according to the trend to maintain the brand name and also to increase the profits. It may result in higher costs but it also will give a competitive edge to DHL. Also in today's era, social media marketing has become very easy and DHL should take advantage of that to improve business performance. Providing a facility of tracking the shipped product to the customers will increase their trust and so the company's reliability.
This will in turn increase the business of the company.
Following are the legal factors in the DHL PESTLE Analysis:
Consumer protection laws are to be kept in account. DHL must study the data protection regulations as it has become an important issue due to privacy and security concerns of consumers. Also there are laws to ensure certain quality standards and protect consumers from fraudulent marketing claims. DHL must comply to these laws. Employee protection laws for health and safety of employees and those against discrimination of employees should be taken into account. DHL must provide safe work environment to the employees and also give equal unbiased opportunities to its employees.
In the DHL PESTLE Analysis, the environmental elements affecting its business are as below:
The condition of weather is a very important factor for efficiency of a transportation company like DHL. Bad weather would lead to a delay in transportation, especially overseas, and push back the expected delivery dates.
If not taken care, the bad weather may also damage the items being shipped. The logistics market increases the use of vehicles and thus increases pollution. DHL must pay attention to the vehicles used and other such issues in their entire supply chain to minimize any damage to the environment or else people and governments might lose interest in DHL.
To conclude, the above DHL PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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