The case basically discusses about the entry of DHL in USA and the perspectives that would be important from a competitor’s viewpoint (dhl.co.in, 2019).

From the Federal Government or local government’s perspective, they would definitely support the idea of DHL entering into the USA’s courier, postal and parcel services. DHL entering the market would mean creation of more jobs for the US people. Moreover, creation of more jobs and entry of a huge company like DHL would mean more professional and corporate taxes for the federal and local governments. Also, having more players in the market would avoid the creation of monopoly market and more competition would also help to enhance the services for the customers. The pricing would also be competitive and low for the end consumers. A fair competition in the market will improve quality of delivery of couriers and also facilitate better use of technology (economicsonline.co.uk, 2019). 

However, from FedEx and UPS management’s perspective, they would choose to oppose the entry of DHL. DHL, being a huge foreign company may try to manipulate prices and keep them as low as possible initially. This can move the customers of FedEx and UPS towards DHL, causing huge financial losses for FedEx and UPS and effectively job losses in the country. DHL may also bring high tech equipments and technology for courier and parcel delivery such as robotic warehouses, augmented reality, drone based parcel delivery, etc. Hence, FedEx and UPS may have to make urgent costly investments to sustain in market.

References

dhl.co.in. (2019). DHL express. Retrieved April 15, 2019, from www.dhl.co.in: https://www.dhl.co.in/en/express/shipping.html

economicsonline.co.uk. (2019). Oligopoly. Retrieved April 15, 2019, from www.economicsonline.co.uk: https://www.economicsonline.co.uk/Business_economics/Oligopoly.html