DHL Porter’s 5 Five Forces: 2022 Detailed Overview

Porter’s Five Forces Analysis of DHL



Key Facts



Deutsche Post DHL Group

Industry Global Transportation Logistics
Founded  1969
Headquarters Bonn, Germany
CEOs Frank Appel
Revenues Euros 94.43billion Approx. US$ 101.92 Billion,FY 2022

Euros 81.74 billion, FY 2021

Profit Euros 5.71  billion, Approx. US$ 5.98 Billion FY 2022

Euros 5.42 billion, FY 2021

Competitors United Parcel Services (UPS),FedEx



Company Overview


Headquartered inBonn, GermanyDHL reached the 99th place in the Fortune 500 List as of January 2023 is world’s leading Logistics and postal service. The DHL Company was founded by Adrian Dalsey, Larry Hillblom and Robert Lynn in 1969.The DHL Company is operating globally in more than 220 countries and territories with 22 hubs, with an employee count of around 120,000 while 395000 people working at DHL.The Company also ranked 164th by Forbes Global 2000 Year 2022 List.

Today we are going over Porter’s Five Forces Analysis of DHL :


Porter’s Five Forces Analysis


Porter’s Five Forces Analysis is used to determine the competition and profit margin in the Industry and guide the company’s to keep strategizing its operations in a better competitive position. It is invented by Professor Micheal E. Porter in 1979,at Harvard Business School.


DHL Rivalry among Existing Competitors


  • DHL Business Operations and Global Presence: The Companyhas around 3 million customers, more than 500 Airports serviced, more than 300 dedicated Aircrafts with around 148,000 service points and 3,500 facilities.


  • DHL Business Segmentation and Revenue Analysis 2022-2021

The Company reported it’s revenues as following segment lines: Express with 28.6% revenue generation by generating a revenue of Euro 26.986 Billion, Global Forwarding and Freight with 30.5% by generating Euros 28.770 Billion,while Supply Chain with 17.3% generated Euros 16.33 Billionof total revenue,E-Commerce Solutions with 6.4%  by generating a value of Euros 6.0 Billion and Post & Parcel Germany 17.3% by generating Euros 16.3 billion in FY 2022.


Express generatedEuro 23.74 Billion, Global Forwarding and FreightEuros 21.55 Billion,while Supply Chain 13.76 Billionof total revenue, E-Commerce Solutions generated Euros 5.79 Billion and Post & Parcel Germany Euros 16.89 billion in FY 2021


  • United Parcel Service (UPS)The UPS Company is also one of the leading Corporate Logistics Services Providing Company which gave a record revenue of US$ 100.33 Billion with a Net Income of US$ 11.54 Billion as of FY 2022 with a record success of 6 figures in their history mentioned in the Annual Report.


  • FedExThe FedEx is also a giant USA based Logistic Company performing marvelously generated revenues of US$ 93.5 Billion with an Operating Income of US$ 6.25 Billion (As Reported GAAP) and Net Income of US$ 3.83 (As Reported GAAP) while US$ 5.50 (Adjusted Non GAAP) in FY 2022 mentioned by FedEx in Financial Results for FY 2022.


DHL Threat of New Entrants


  • Economies of Scale Due to Huge Operations and Large Capital Investment The DHL Company is operating through all possible routes including Air, Ocean and Overland Freight which widens it’s service portfolio and pricing-costing offerings through its’ Global Forwarding, Freight Division. The Company has around 200 freight terminals for more than 250,000 customers in more than 150 countries and territories with around 49000 employees dedicated to this division.


  • Strong and Extensive Service Portfolio In FY 2022 the DHL Group covered 24.3 m tonnes of Air Freight while 62.0 m TEUs through Ocean Freight. The Company transported 1.9 million tonnes of export air freight and 3.3 million 20-foot container units through ocean freight.


DHL Bargaining Power of Suppliers – Industry Leadership


  • Strong Global Supply Chain Operations – Supplier Industry Influencer: The DHL Supply Chain is one of the largest and strongest Supply Chain as it is supporting DHL Operations in more than 150 countries. The DHL Company designed It’s Supplier Code of Conduct (SCoC) with Interactive SCoC training for a better ethical and standard maintenance in more than 40 languages and General Terms and Conditions are available in more than 30 countries.


Also sourcing of supplier starts from a Digital Application on Supplier Portal to maintain better transparency in the process.


  • Certified Diverse Supplier and Benefits of Supplier Diversity Program US Focused:Specially for US Market DHL designed a special Certified Supplier Diversity Program in partnership with National Minority Supplier Development Council (NMSDC), Women’s Business Enterprise National Council (WBENC), U.S. Small Business Administration (SBA), National Veteran –Owned Business Association (NAVOBA) and National Veteran Business Development Council (NVBDC).


Once the Supplier is certified under any of the category they can have supplier diversity program benefits from DHL Group including the high return on investment for better and improved innovation products and services launch with the connectivity of other diverse corporate members.


DHL Bargaining Power of Buyers                                                                                   


  • Market Leadership Strong Global Presence: The Global Logistics market is standing at 10.41 trillion USD while only European Logistic Market size is 1.11 trillion Euros. The DHL Group is one of the leading companies and amongst top five in terms of revenue generation which provides a technical and financial leadership in the industry with the specialized position for all new creative and innovative measures for leading and operating business processes.


  • Customer Satisfaction Survey: In a survey conducted in 2020 amongst 40,000 customers in 30 countries ,the number of respondents were 5000 with a satisfaction rate was 77 out of 100 points.Even in response of the survey DHL developed “211 improvement measures” ,60% of those are being implemented.


DHL Threat of Substitute Products or Services


  • Email Service, Digital Documentation,and DocuSign: As with the growing trend of digitalization which further speed up by COVID-19 and the usage of DHL mediums for maximum and important conversion definitely adversely impact the courier business. As new mediums devised including Digital Signatures and DocuSign services and portals further helps the authenticity and speed up the official documentation without using the courier services.


  • Post COVID-19 Market – Ukraine Russia War and Geopolitical Crises – Global Energy Crises and Inflation: The Post COVID-19 Market is still in a recovery phase in FY 2021 operations which is suddenly affected by the Russia Ukraine invasion and global energy crises as Russia was the provider of Natural Gas to European countries affected the DHL operations in Russia. The DHL group also cease their operations which cause impairment losses.


The Global GDP has dropped from 6.0% in 2021 to 3.0% in 2022 and other indicators are also shown on average a drop by half which will eventually affect the business operations and demands.






  1. Forbes, DHL, Available at Forbes
  2. Fortune 500, DHL. Available at Fortune 500
  3. DHL Annual Report , FY 2022
  4. Statista (September,27 2022) – Deutsche Post DHL Group –  statistics and facts. Available at Statista
  5. DHL Supplier Portal. Available at DHL
  6. DHL Supplier Diversity. Available at DHL
  7. Statista (August 15,2022) Nike’s revenue worldwide from the fiscal years of 2005 to 2022 (in million U.S dollars).Available at Statista
  8. UPS Annual report 2021, UPS
  9. FedEx Corporation. FedEx Corp.Reports Fourth Quarter and Full-Year Results. Available at FedEx
  10. DHL (29th April 2021) DHL Freight Customer Satisfaction Survey. Available at DHL











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