Exit of DHL from the US Small Package Market
The exit of Deutsche Post’s DHL from the US small package market in 2009 is expected to benefit UPS in the long-run.According to in-house research, DHL had a market share of 8% in the domestic air parcel market and 3% market share in the US ground express market, which translates into a market value of about USD 3.4 billion. UPS could be in a position to handle DHL’s business without major capacity additions. In order to capture the market share, UPS took necessary initiatives for erstwhile DHL shippers who were looking at UPS as an alternative. The company has also used direct mail and advertisements to win the contracts previously held by DHL