Khurarrianwala (Faisalabad) is well known as an Industrial Hub in Pakistan. Many Textile firms are manufacturing different products and mostly export these products to foreign customers. Merchandisers of each industry send their product’s samples to foreign customers for approval of product design, shape, and quality etc. Till 2004, most of the industries had to go to FedEx office Faisalabad to handover their parcels to be delivered to the foreign customers. By analyzing the growing demand in this area, DHL opened its office in Khurarrianwala in 2004. DHL offered the logistic services to all firms for sending their product samples to foreign customers. Textile firms in that area used to hand over their parcels to DHL at their Khurrarianwala office and the daily closing time of sample collection was 05:00 PM. Some of the students of a University located in Faisalabad conducted a research and found that 70% market share in that area was captured by DHL till end of 2005. At the end of 2006, all firms switched over from FedEx to DHL. The major reason of switch over was the distant location of FedEx as it was 40 KM away from the area. Afteranalyzing this situation; FedEx started to collect samples (parcels) from each and every firm in that area and created the competition for DHL. FedEx got the 90% market share in that area at the end of 2009 but DHL had only 10% market share at that time. Customers are more satisfied with FedEx as many merchandisers said that FedEx delivery system is bit fast.
Answer the following questions:
1. How could DHL have got the lost customers back?
2. If DHL had also started collection of samples from every firm then how would FedEx have retained its competitive edge?
Answer the following questions:
1. How could DHL have got the lost customers back?
2. If DHL had also started collection of samples from every firm then how would FedEx have retained its competitive edge?
