g International Management Case t in Asia and the World y is the leading interna

Question

g International Management Case t in Asia and the World y is the leading international express carrier? If nswered Federal Express (www.fedex.com) or UPS com) guess again. Try DHL International (www.dhl. ewrw.ups company, founded in San Francisco by three entrepre col carved out the niche for combined land-sea in 1969 when it equsa basiness of international express delivery was born. began shipping bills of lading and other docu- ment deliver and pick up in Japan and other Asian countries fod fro San Francisco to Honolulu. Soon the express when it boc services Today, the company services 120,000 destinations in more than 0 countries and territories from its base in Leipzig. Germany 12 al net profit was recently an astounding $2.9 billion. DHIL mloys around 290,000 people worldwide, many of them based ia, the company's first and most important international mar DHL prides itself on its customer service and reliability. The company hires personnel in the countries where it operates and sees this practice as key to forging relationships with customers in its overseas markets. One DHL executive explained that unlike many of its competitors, DHL ensures that the company's own em- ployees, not outside agents, make deliveries and pick-ups and that these individuals often are local people who know local customs. Relationships are the name of the game in service businesses. DHL cultivates relationships with customs agents because the archaic clearance procedures in many countries are the biggest obstacle to speedy international deliveries. Express air delivery is now a huge business in Asia, and DHL has several formidable competitors snapping at its heels. These include Federal Express, which offers competitive rates, and lo- cal players like Hong Kong Delivery, whose small size makes it highly flexible. DHL cannot simply rest on its number-one posi tion or boast of its long years of experience to stay ahead. The dangers of complacency were brought home to the company when its DHL Japan office faced customer resistance to a price hike. Dhl. employees had simply assumed that the firm would always oe number one and had grown lax on service. In fact, an objec live "shipment test" revealed that DHL Japan provided the worst ervice at what were already the highest prices. Japanese custom- simply continued to use DHL because it was the first in price hss and because loyalty was important. Yet the proposed might have been the decisive factor in convincing for merl aant customers to defect. Fortunately, DHL Japan w o get back on track through aggressive initiatives. s in Asia and around the world. For example, a division DHL Logistics earned a second consecutive gold medal for y, DHL's customer service record is winning repeat called

Explanation / Answer

5-16) There are many advantages of a first mover: both in services and manufacturing industry. A manufacturing company like Boeing has many benefit from the first mover advantage by creating switching costs for consumers, recognition of a brand name and capturing significant share of the market even before other companies enter it. Generally the manufacturing industry usually have more benefit as first movers in comparison to service companies like DHL, but the risk of losses is also very high in case their product is not successful or not well accepted by the market . There are always chances of second and thirt to market companies  copying or improving upon the first movers' products. A rival airline company can thus capture the first movers' share of the market.

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