DHL Electronic Commerce Website Analysis - Case Study Example

DHL Electronic Commerce Website Table of Contents Table of Contents INTRODUCTION 2 Purposes of dp-dhl.com website tothe company 2 Analysis of DHL website using webqual 4 Website usability 6 Information quality 9 Interaction quality 10 Accessibility of DHL company website 11 Value creation in e-commerce 11 Revenue and Development 15 Cost Efficiency and Elasticity 15 Simplification and control 16 DHL’s Innovation and Responsiveness 17 CONCLUSION 17 BIBLIOGRAPHY 19 INTRODUCTION E-commerce retailing continues to grow as technological advances emerge and business competition stiffens. Several businesses are now using web-based approaches to reach wider markets and boost their profitability (Barnes, & Vidgen, 2002). Additionally, trends into e-commerce has become possible due to less stringent entry barriers, small financial injection requirements and wide spread technological capabilities in target markets. Currently, most global businesses that exploit e-commerce use World Wide Web within transactions (Bailey, & Pearson, 1983). This project discusses and evaluate DHL website with an aim of analysis the website purposes. This is a corporate entity global logistics and communication services and capabilities to customers. It offers standard freight services and other solutions designed for the diverse customers. The paper will also perform the analysis of the website using webqual technique to determine its usability, information quality, interactive and design capabilities, empathy, and trustworthiness of the site and information accessibility. Further, this paper aims to carry out an analytical analysis of operations of e-commerce at DHL using value creation model. Purposes of dp-dhl.com website to the company There are varieties of reasons for developing a website. Purposes of establishing a website include desires to build revenues for a new or already existing business. Equally important is the need to share information about the organization functions, operations and events (Barnes, & Vidgen, 2002). Other reasons include sharing of opinions and personal interests of individuals. DHL company website majorly focus on sharing information therefore has limited features on marketing options. These features only show the core functions of the organizations, locations, press events, and trends in global logistics industry. This simplicity employed therefore affects the style used, technological levels exploited, hosting costs and budgets. Additionally, web-based operations allow collection, analysis and interpretation of vast data sources into a format that users get simply to access and apply. Web technologies come with arrays of benefits to a company. These positive consequences enable a company to be competitive, establish quick methods to reach clients, enable enrichment of experiences users get through the sites (Barnes, & Vidgen, 2002). Further, a web-based organization ensures accountability and openness in its dealings with other entities and betterment of communication among parties involved in an operation (Bailey, & Pearson, 1983). DHL website addresses its specific audience through provision of specific products and services on offer on its website. These include express services, freight transportation, supply chain solutions, global mails and warehousing and distribution services. Through these, the audience becomes aware of what are on offer fast. It further describes features of each of the products, their availability around the world and cost aspects of these services. The DHL Company website has an interface that provides icons that allows users to go to another page within the website. This new page accessed opens within the same window used for browsing. This makes it easier to access additional information quick without confusion of pages. It also allows a link to other websites or application that has related information. This ease of cross connection enables quick retrieval of data by users. A downwards arrow on the website enable one to navigate through a content to specific pages. This capability creates ease of access to varied information within DHL website. Finally, DHL website consists of download arrow that provides retrieval of PDF documents about operations or software used for shipping purposes. Website creation has a variety of benefits to DHL Company. It enables easy tracking of shipments without calling customer services. Through an open interface, items tracking become fast and real-time through online linkage. It provides in-depth information on the status of shipments across DHL global networks. The website enables connection to over 220 countries globally within which DHL operates. These customers are able to reach DHL to solicit solutions on order managements, express mail status, warehousing solutions, storages and transportation services. Through this website, DHL has been able to integrate affordable web solutions in areas of order management, warehousing, packaging and distribution, transport and returns managements. Through order payments, DHL is able to make quick processing of orders coming from customers, access important modes of payments and automatic checking of customers’ addresses for deliveries. Value addition through transportation includes customer tailored services, next day deliveries possibilities, multilevel transportation collaborations and returns options. Additional, DHL benefit from its website entails frequent reporting on logistics, automatic updates regarding stock levels and online tracking of stocks and storage of information regarding customers. These capabilities accruing to DHL promote efficiency and reliability in operations. Analysis of DHL website using webqual Webqual process analysis entails assessment of quality standards of a web site (Barnes, & Vidgen, 2001a). This approach provides its arguments based on quality function deployment. It argues that websites integrate information systems thus information system components of hardware and software apply. It also focuses on transfer of information to facilitate transaction between a customer and a business. In this project, I discuss the applicability of webqual to the website used by DHL Company. It addresses issues of usability, interactive and design qualities, information qualities, and accessibility of information. Reliability of information on the website provides a framework within which quality measurements happen and factors analysis generated. This tool enables assessing the suitability of the website used by DHL Company in carrying out e-commerce functions. Every organization face challenges in understanding complex needs of their customers. A low quality website in use portrays an organization negatively in the market and affects its performance in the current competitive business world. Through analysis of DHL Company website, we will understand the reasons for its widespread operations and extend of e-commerce solutions employed. Webqual tool continues to improve since the first introduction in 1998 through e-commerce and e-governance applications. This tool provides a framework of comparison among competing firms in an industry based on quality aspects of their websites (Barnes, & Vidgen, 2001a). This paper will analyze this website by looking at its usability, information and service interaction or design. Further analysis will base on empathy, trustworthiness of the web and finally ease of accessibility of information (Barnes, & Vidgen, 2001a: Vidgen, & Barnes, 2003). Quality Description Usability 1 The website easy to operate and learn by users 2 Clear and understandable website use 3 easy navigation achieved on the site 4 Ease of use attained on the website 5 The website attracts users 6 The website design conforms with its use 7 The website depicts competency on designers 8 positive influence on users Information Quality 9 Offers precise information 10 Provides information credibility 11 gives on-time information 12 Relevance of information attained 13 Information easy to understand and interpret 14 Necessary details in information 15 Appropriate formatting of information Interaction Quality 16 The website has admirable reputation 17 Safety of transaction ensured 18 Information confidentiality held and respected 19 A feeling of personal attachment developed 20 Communal touch to the website 21 Allow information feedback from organization 22 Confidence in service delivery Overall impression Web-based operations aims to enhance user interactions with the system, improve experiences by uses, establish user to users capabilities and ensure cross linkage applications. Webqual therefore strives to determine accuracy of achievement of these services. Website usability Website usability provides an interface through which system users and computers interact. It defines human views and perception towards a website. It addresses ease of use, appropriateness of the website, ease of navigation within the website among other parameters (Barnes, & Vidgen, 2001a). In a story run by B-to-B Magazine in 2006, DHL U.S website segment rated among top ten websites due to its ability to offer customer oriented services. This shows that a closer collaboration and inclusion of all clients in the process of website development and design contributes greatly to success of the website in the market. DHL Company adopted all inclusiveness in designing its website in U.S markets by putting into consideration customers requirements. This therefore resulted to ease of navigation and use thus the acceptability reported. In the magazine, marketing and usability experts chose the site due to ease of understanding navigational tools, incorporation of DHL Company corporate outlook and brands and ease of finishing business related operations tested the website. This contributed to significant growth on shipping transactions carried out online. DHL website compared to others provides high-level customer benefits because of its specific focusing on transaction requirements of customers and meeting expectations of users. To achieve this outstanding usability, DHL website goes through continuous redesigning to improve the types of frames and amount of white spaces visible in a website. This occurred through analysis of customers’ responses and feedbacks through customers comments interface offered. Some of the standard measures evaluated by customers entailed the following, Navigation- within DHL website, navigation of the link http://www.dhl-usa.com focuses on feedback from users enhancing friendliness. These generate from events from shipping process. Using this feedbacks, web designers created a path of tasks that addressed specific users’ needs that ensured images and texts within the website were user friendly. Additionally, the website design put into consideration various environments within which DHL Company operated. Through this, they then designed the website addressing personalities of users present in the markets segmented and how they would use the site to benefit their specific needs. This created a website that integrated all the operational solutions on offer and enable easy interaction and decision making process by users by shippers and managements of organizations. DHL Company website is transactional, based to address the transactional requirements of its users. Users can easily access any transaction process from their personal computers to get information relevant to them. These features address transportation services, direct mail deliveries, freight handling among other services provides. Customers can access information from any location they are in therefore enhancing the usability of the DHL website. DHL Company website provides real-time commodity tracking during shipment. User can easily access database, monitor movement of their freight, and make necessary and early adjustment and decision on foreseen delays that may arise. Further, the website is simple in language and easy to associate with by customers. It avoids the use of technical and ambiguous terms and statements that may narrow down users’ understandings of operations and services on offer. This creates site friendliness and usability enhancement. Further promoting usability is the ability of the site to offer help directly without subjecting users to navigation through the whole system. It highlights specific ‘help’ concerns that may arise from customers and offer solutions immediately. Instead of giving a general link for help, the website offers specific solution on getting quotations, order returns, order tracking among others. DHL website continues to undergo improving and upgrading not only within U.S market but also around the world. It continues to make it easy and fast for customers to make orders, organize pickups of delivered goods, compare rates of shipments and durations of shipments and track the commodity through an integrated user’s friendly website. However, these usability capabilities of DHL Company website do not prevent cases of customers’ complaints across the various markets. From Canada across to Europe and Asia, shortfalls arise on specific customers requirements on the website capability especially in tracking of orders. Some customers initiate tracking only on locations of commodities and ways to receive them. Since this two direct answer approach is not available within the website, many would feel the system as being ineffective, inconsiderable and poor in design. Another shortfall within the system is the provision of Germany contacts and addresses to American clients. This begs the question why a primary contact of international delivery points should call Germany when it is clear the commodity is no longer in Germany. Subsequently, DHL Company website in some cases failed to integrate and streamline its international operations in the system. A case of waybill reference number in confusion and long process to sort it out in Canada shows that DHL Company website fails to meet usability criteria. It exposed the website to weaknesses to address simple matters and long procedure of contacting Germany offices. These failures lead to questioning of DHL visions and mission statements of providing seamless services worldwide and offering expertise around the globe within one worldwide, express logistics company. Information quality This measure of website suitability determines accuracy, believability and timeliness of information. It evaluates how relevant customers and site users feel the information presented is in addition to determining levels and formats of information presented. It assesses amounts of information availed within a website, language used and how customers perceive them, relevance of the site in providing required information and currency of information posted (Barnes, & Vidgen, 2001a). Based on information volume, DHL Company website provides loads of information about their operations, services, press events, contacts centers and information with leading links and navigations. This interface provides appropriate and exact information on tracking capability of DHL Company. The website provides up to date information of company’s press events and calendars. This makes it easy for site users to pick only the transaction they require out of the site. DHL website uses English in relaying information that it assumes reaches everybody. However, this restricts population that does not understand English language. The website should offer translation especially when inputting tracking information to be able to know status of goods. Relevance and accuracy of DHL website-this website contain contains accurate information as far as concerning their services and contacts. The site offers accuracy on solution tools provided and general information regarding the company. Additionally, the website provides a section that addresses logistics issues and emerging trends. However, this accuracy is questioned when inadvertent inaccuracies and errors arise. This lowers customers’ faith in the site given that the company corrects such errors at their discretion and not with concerns to customers’ complaints. Stating that inaccuracies and errors may remain if changes occur after updates, show that customers may lose or gain inappropriate information that may mislead decision-making. Additionally, exclusion of liability and responsibility upon consumption of information from their website weakens its preference especially given that such information may result to huge losses to companies using DHL freight services. Additionally, DHL website and other information sources lack detailed information on brokerage charges in Canada. This brought a lot of confusion and speculation which deeps a DHL company reputation internationally. Interaction quality This measure addresses issues surrounding reputation of the website, safety of transactions and personal information and personal feeling while using the website (Barnes, & Vidgen, 2001a). Further, this measure analyses ease to communicate to DHL, feeling of confidence of timely delivery of goods and communal connection to the website by customers. It integrates trust issues about the website and empathy around the website. In analyzing these capabilities concerning DHL Company website, it came out clear that reputation of the website is high as shown by second best ranking in Germany and twenty-fifth in Europe. This status improves customers’ perception to the website positively. This reputation builds from ease of navigation and precision of information highlighted. Through inputting of shipping details, transactions become traceable from the point of origin to destination. This makes transaction carried out through DHL Company website secure and validity authenticated. This builds customers sense of confidence and willing to make orders, arrange deliveries and track their goods through the system. Ease of communication within DHL Company website faces a couple of challenges from Canada, America to other parts of the world. Invalidity in input mechanisms and long channel of communication to get clarifications hamper proper communication that should exist between website users and DHL Company customer care. Clear information on brokerage charges, tracking of goods and complains becomes easy when a website is well integrated with all other functions and locations of a company. Accessibility of DHL company website This measure determines customers’ ability to acquire information from a web-based site (Barnes, & Vidgen, 2001a). DHL Company website design allows web usability to every client and promotes uniform access to information by every user. The website is build in line with web content accessibility requirement (WCAG) which provides guideline on compliance standards on website development. Value creation in e-commerce In this aspect, we examine the theoretical basis upon which the organization has lately created value. New values can thus be generated in the e-commerce by coming up with ways in whereby technology empowers transactions. Following numerous case study analyses and theoretical examination of entrepreneurship and management strategy, we cultivate a model of sources of value creation. This model proposes that the value creation ability of e-commerce is dependent on interrelated factors such as efficacy, complementary, lock-in and innovation (Amit & Zott, 2007). The finding elaborates further that not even one strategic management theory or the entrepreneurship can assess the potential of value creation in e-commerce. This therefore prompts the need to integrate the several emerging theories in e-commerce. The integration calls for the designing of a business construct model used as a system of evaluation for further research on creation of value in e-commerce. Such kind of a model adopts the nature of transaction content, framework and governance in order to create value by taking advantage on the prevailing business opportunities. Firms therefore ought to come with appropriate business models that act as the center of innovation and an essential provider of value creation for the organization, its suppliers, partners and clientele (Malone & Weill, 2006). In the modern world, many businesses often conducted through the internet saves organizations time, costs and improves operations in terms of reaching its customers. E-commerce transaction has been on the rise since its inception and this highlights the unique growth and change in the new international business settings. E-commerce has the capability of producing massive wealth particularly through commercial ventures. First, we thus focus on the value creation potential entrenched in virtual markets. Virtual markets are those surroundings where business operations take place through open networks. These markets defined by connectivity, focus on transactions, the necessity of information on goods and networks, ease of reach and the richness of information. Richness refers to depth and comprehensive information that can be gathered, provided and exchanged between market members. Due to this, virtual markets reach any target customer beyond the geographical limitations. DHL achieves its business objectives in value creation by divergent means, for instance, offering unique products or services, majoring its operations on small and big market niches depending on demand, offering services that are competitively priced than their competitors. The internet therefore nurtures the development of virtual groups and transactional arrangements that ignore conventional margins between organizations along the value chain. Several features of virtual markets which if considered together, produces a reflective impact on how to structure and conduct transactions in creation of value are: the strategy of incorporating a product mix method in production that comprises complementary products; enhanced accessibility of complementary assets such as technological resources; merging of affiliate programs among organizations; and tailor-making of products and services. Due to this, crossing of industrial boundaries is easy and this is because of redefinition of value chains. Consequently, this affects the scope of the organization as demands for outsourcing arises in an attempt to reduce costs and increase revenues (Anand & Khanna, 2000). Secondly, value chain analysis appraises value creation at the organization level. It points out the operations of the firm and analyses the economic effects of such operations. It consists of defining strategic business units, defining goods and value of an activity (Stern & Shiely, 2001). This analysis emphasizes on the type of activities that the firm should undertake and the economic factors that would empower it to add value to its products. The evaluation attempts to figure out the most important activities that directly affect value creation and support activities. Primary activities consist of production of physical products such as incoming and outbound logistics, marketing and sales, service and operations. Value refers to what the customers are willing to pay for the services and products that the firm provides. The extent to which value surpasses the cost incurred in production will determine the profitability of the firm. Product differentiation leads to creation of value if we choose the appropriate business activities and the methodology employed in performing, linking with the supply chain, integration of activities among transactional units, and timing of such activities. Value chain appraisal aids in assessing creation of value in the virtual markets. For instance, DHL opted to set up warehouses regionally to increase the speed and reliability in timely delivery of products requested online. By doing this it added value to product sales and met service level objectives. Value creation prospects in the global markets accrue from new combinations of information, physical products and services, inventive structures of transaction and the redefinition and amalgamation of resources, capacities, roles and relationships among suppliers and customers. Thirdly, Schumpeterian innovation pioneered by Schumpeter in 1934, brought forward the theory of development in economics and value creation through technological change and innovation. He perceived technological improvement as irregular change and uncertainty ensuing from novelty. Schumpeter thought of some sources of innovation that helped in value creation such as introduction of new goods and manufacturing methods, identification of new markets and the restructuring of industries. In his theory, invention forms the basis of value creation. He reiterates the importance of technological innovation and believed innovative combination of resources and the output they provide as the foundation of new products and the manufacturing methods. This thus led to adjustment of markets and industries, and ultimately to economic development. Lastly, Resource-based view of the firm views organizations as a group of resources and competences. It states that rationalizing and strategically combining a set of corresponding and specific resources and the diverse capabilities may result to value creation. The idea is that even when firms are in equilibrium, they may disagree about resources and capabilities they regulate, and these firms do not operate collaboratively therefore just coexist until some changes emerge. The theory hence hypothesizes that services offered by the organizations’ resources and capabilities could lead to value creation. These resources and capabilities are only economically viable if they decrease a firm’s incurred costs in manufacturing or increase the revenue compared to a situation where the organization lacked those resources. Technology touches several industries and is itself an industry that moves with some speed. Because products age as fast as consumer taste and preference, technology firms redefine their main activities, identifying new target markets, acquisitions, and mergers with the aim of remaining competitive in the global market. As competitive pressure increases and with the aim of having the competitive advantage over their rivals, technology organizations are continuously redefining their supply chains and this demands an individual who easily understands and can assess the technology industry. DHL continuously innovates, adopts more proactive measures and strives to be leading in customer-focus when it comes to supply chain. Technology is itself diverse and has various supply chain needs as evidently reflected in the DHL industry. DHL has a strong impression in technology and emphasizes on long-standing customer relationships, international presence in established and upcoming markets and diverse solutions offered by commercial units in Deutsche Post DHL group. Due to the broad and diverse nature of technology, DHL is aware that each of its differentiated segments needs a bespoke approach to address its specific supply chain requirements. This therefore prompts DHL to categorize the industry further into sub segments with targeted proposal for each. The cross-divisional industry teams monitor the trends in their respective sub segment closely and hold discussions with their clients to decide on their particular need and ultimately create customized solutions that keep the customers on top of their game. In attempt to obtain the most in its quest for value creation in the technology industry, DHL is mobilizing three main valuable proposal for the sector, that is , revenue and development, cost efficiency and elasticity, simplification and control. Revenue and Development Success of any industry lies in its ability to design and produce products in time in accordance with the ever-changing aspects of customer requirements and expectations. The speed in innovative technologies, limited life cycle of products and erosion of price necessitates the need to maximize the value of the new launched products early enough. Speed, reliability and ease of reach to customers are the most vital determinants in the technology supply chain in search of tapping revenue opportunities and possible growth. DHL commands a global presence in more than 220 nations with an approved consistent service. The logistics firm invests heavily in consummate network of regional platforms, which ease their access to emerging markets. For example, many technology consumers use DHL’s Dubai Center of Excellence as an entry point for Middle East and Africa delivery (Christensen & Methile, 2003). Cost Efficiency and Elasticity DHL provides a variety of transport and logistics services coupled with an expertise in the supply chain to help organization attain their maximum potential. Some of the major improvements in the technology sector realized lie in the following segments, direct distribution and integrated repair and return. Under direct distribution, the concept was that traditional supply chains from production to the final customer market included regional and local warehousing in the target markets. However, the direct distribution concept disputes this traditional approach to minimize inventory costs and creates time for marketing. In the integrated repair and return, DHL invested in new capabilities and services to provide an integrated repair and return service to its consumers. Through this, there is an achievement in the transport costs reduction and faster cycle times. With the imminent incorporation of the new DHL end-of- runway facility at its center in Leipzig, this will combine the outstanding connectivity to the Express network with combined warehouse and repair services thus offering a unique value proposal in the post market business. DHL service provision in the aftermarket is about service parts logistics and recall resolutions. Financial way outs such as VAT adjournment, are also fundamental for importing high value goods. Simplification and control Elaborates on the best management approaches of the supply chain because of the high value goods associated with the technology products. This calls for adoption of appropriate security measures of the supply chains to mitigate security breaches. Due to this advances in technology, most organizations do not literally see or feel their products before reaching their targeted customers, so ascertaining to them that their product is in safe custody provides them a sigh of relief. Moreover, various parts of the supply chain depend on specific logistics providers; a more determined all round management and visibility function in a pursuit to maximizing efficiency. Supply chains are getting even more complicated, with many specific providers, there is an urge to outsource supply chain management and lead logistics provider (LLP). Customers therefore anticipate strict security measures through the supply chain. DHL provides management of global supply chain, LLP and control center solutions, producing improved all round visibility tools. These comprise DHL’s Supply Chain Integrator (SCI), upgraded real-time tracking devices and its high value freight and ocean safe services plus safe warehouse services. For instance, DHL has specialized premises for particular needs such as tracking of supply chain-driven carbon emissions. DHL’s Innovation and Responsiveness DHL’s technology management approach indicates how it can make quick responses to the changing customer preferences and initiate innovative supply chain solutions. Its Dubai center of excellence, for instance, makes it simpler for organizations to conduct business in the Middle East, and in addition providing effective solutions for distribution in Africa. Take an example of Lenovo, DHL improvised a customized solution whereby it transports through air all the PC and laptop makers shipment for the countries in the region to DHL’s dock facility in Dubai for duties clearance and continuous transportation preparation to the corresponding markets. The documentation procedures takes place in Dubai and at the same time the shipment is in transit to Dubai. This sort of flow of goods saves Lenovo valuable time, costs, and thus increases its competitiveness in the region. DHL is always in search for continuous innovation to enhance the technology sector, producing the DHL solutions and innovations to this end. Radio Frequency Identification is an example of technology used in the industry to curb theft, activate track, and trace devices often important in stock management. Another area of focus on DHL innovations is on condition tracking, shock and light effects on the products and the current introduction of DHL Smart Sensor. The firm is also aiming to achieve an integrated contribution that brings together management capability, security and monitoring into a less complex solution for technology customers. CONCLUSION Finally, DHL technology segment integrates the various capabilities of DHL to provide easy access to customers’ global markets with costs efficient and flexible logistics solutions, and aim to make the customers have absolute control along their supply chains. The rapid change in technological developments combined with the growing e-commerce creates a number of opportunities for creation of new wealth. DHL thus quickly adapted to the market demands and a developed a website through which they can liaise with their global customers. The appropriate design of the website in terms of usability, information quality, empathy and trust provides a forum for easy interaction. The website has several segments upon which customers can make inquiries or just visit depending on the precise need of the customer. This website is easily accessible and used in simple language in its design for easy comprehension by the targeted consumers. It has relevant information categorized into sub-sections due to the diverse needs of the various customers. Since technology sector is a broad and diverse sector, DHL acknowledges that each of its diverse sections needs a particular sub-sector methodology to address its specific supply chain requirements. Through this approach, expert teams of devoted professionals from across the organization work with technology customers to enhance the value proposals for differentiated requirements. BIBLIOGRAPHY Amit, R., & Zott, Ch. (2007) Model of Business Designs and Performance of Entrepreneurial Entities, Science of Organization Anand, BN., & Khanna, T. (2000) How Firms Learn To Create Value. Case of Alliances Strategic Management Journal Bailey, J.E., (1983),” analyzing and measure of satisfactory usage of computer’’, Management of Sciences”, vol. 29 (5), pp530 to544 Barnes, S.J. & Vidgen, R.T. (2001a), `` cyber-bookshops evaluation: the WebQual methods’’, International E-Commerce journal, Vol. 6 (1), pp. 11 to30. Barnes, S.J. & Vidgen, R.T. (2001b), ``Assessment of auction Websites quality’ Proceedings from Hawaii International Conference based on Systems Sciences, Hawaii, January 4-6 Barnes, S.J. & Vidgen, R.T. 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