As there are four big players so called integrators and many local small and medium sized companies in the German Courier, Express and Parcel (CEP) market, this thesis shall investigate if it is possible to create blue oceans within the defined market. Furthermore it is investigated what kind of strategies are needed to sell at increased pricing levels in a matured market environment like the German CEP industry.
It shall provide a summary of established corporate strategies in comparison to the new strategic management approach of blue ocean strategy. The main objective is to investigate current levels of competition within the German CEP market via the research of CEP market leaders in each segment to finally develop a blue ocean strategy concept.
Table of Contents
1 Introduction
1.1 Problem Statement
1.2 Objective
1.3 Research Method
1.4 Relevance of the Topic
1.5 Structure of the Work
2 Theories and Concepts of Strategy
2.1 Strategy
2.1.1 Definition of Term
2.1.2 Goals and Purpose
2.2 Market-Based View according to Porter
2.2.1 Poters Five Forces
2.2.2 Generic Competitive Strategies
2.3 Resource-Based View and Core Competence
2.3.1 Resource-Based Approach
2.3.2 Core Competence Approach according to Prahalad and Hamel
3 Fundamentals of Blue Ocean Strategy
3.1 Framework
3.2 Red Ocean vs. Blue Ocean
3.3 Value Innovation
3.4 Six Principles of Blue Ocean Strategy
4 Formulation and Execution of Blue Ocean Strategy
4.1 Analytical Tools and Frameworks for Formulation
4.1.1 Strategy Canvas
4.1.2 Four Actions Framework
4.1.3 ERRC Grid
4.1.4 Strategy Characteristics
4.2 Formulation Principles
4.2.1 Search Risk
4.2.2 Planning Risk
4.2.3 Scale Risk
4.2.4 Business Model Risk
4.3 Execution Principles
4.3.1 Organizational Risk
4.3.2 Management Risk
4.4 Successful Examples of Blue Oceans
4.4.1 Ford Model T
4.4.2 CJ-Global Logistics Service
5 General Information about the CEP Market
5.1 CEP Market in General
5.1.1 Courier
5.1.2 Express
5.1.3 Parcel
5.2 CEP Market in Germany
5.2.1 Market Leaders
5.2.2 Trends in B2B
5.2.3 Trends in B2C
6 Blue Ocean Strategy applied in German CEP Market
6.1 Status Quo Analysis of Industry Determinants
6.2 Status Quo Analysis of Competition
6.2.1 DHL
6.2.2 UPS
6.2.3 TNT
6.2.4 Determinants according to Helmke
6.3 Classification of Data
6.3.1 Price
6.3.2 Speed
6.3.3 E-solutions
6.3.4 Value Added Services
6.3.5 Level of Surcharges
6.3.6 Reaction Time
6.3.7 Professionalism
6.4 Strategy Canvas applied
6.5 Analysis to Formulate Blue Oceans in the German CEP Market
6.5.1 Application of Four Actions Framework
6.5.2 Application of ERRC Grid
6.6 Strategy Characteristics applied
7 Results, Critical Analysis and Recommendation
7.1 Summary of Findings
7.1.1 Opportunities
7.1.2 Threats
7.2 Recommendations
8 Conclusion and Outlook
Objective and Research Focus
The primary objective of this thesis is to investigate the potential for creating "Blue Oceans" within the German Courier, Express, and Parcel (CEP) market. Given the intense price competition and cost pressure facing industry participants, the thesis explores whether a transition from standard competitive strategies toward a Blue Ocean Strategy (BOS) can enable companies to differentiate themselves and capture new, uncontested market space, rather than competing solely on price and efficiency.
- Application of the Blue Ocean Strategy framework to the German CEP industry.
- Status quo analysis of market leaders (DHL, UPS, TNT) regarding competitive factors like price, speed, and professionalism.
- Development of a new strategy canvas and ERRC grid (Eliminate-Reduce-Raise-Create) to propose innovative value elements.
- Identification of potential new market spaces through the integration of services like online chat and "best offer" pricing.
Excerpt from the Book
4.1.1 Strategy Canvas
To formulate a strategy, managers can use a broad variety of modern tools such as Boston Consulting Group’s business portfolio Matrix or the analysis of a company’s strengths, weaknesses, opportunities and threats, the so called SWOT analysis. But Koontz and Weihreich argue that these tools are not effective when formulating alternative strategies. That further proves the demand and need of new concepts. Within development of a BOS concept, the formulation process can be supported by the help of their set of analytical tools. Nevertheless Kim and Mauborgne underline their tools not to be appropriate to completely replace analytics. Instead it shall help managers to analyse the competitive status quo in an industry and reveal yet untouched market areas with potential for innovation and differentiation. Even BOS cannot fully substitute risk minimisation but at least it can support it. Strategy canvas is a tool to visualise at what parameters market participants compete in an industry. The idea is to specify all factors in products, service and delivery but the bases differ on the industry a company acts in. There is no overall solution or guidance on which factors to choose but ideally it consists of the main features and aspects an industry relies on. As soon as factors are pointed out they are listed on the horizontal axis of strategy canvas. On the vertical axes it can be seen at which extent the current players in the market invest into the mentioned factors. To make it less abstract there is a strategy canvas designed by Kim and Mauborgne from the U.S. Wine Industry in the late 1990s. The result of the derived graphic is a so called “value curve” which determines “[…] a company’s relative performance across its industry’s factors of competition”. Strategy canvas is not a new strategic invention to visualise data, but it can be seen as an extension of known existing tools like perceptual maps which will not be reviewed in more detail.
Summary of Chapters
1 Introduction: Introduces the German CEP market's competitive landscape and sets the research objective of applying Blue Ocean Strategy to the industry.
2 Theories and Concepts of Strategy: Provides a theoretical overview of established strategy paradigms, including Porter's Market-Based View and the Resource-Based View.
3 Fundamentals of Blue Ocean Strategy: Defines the core concepts of Blue Ocean Strategy, distinguishing between "Red Oceans" of competition and "Blue Oceans" of innovation.
4 Formulation and Execution of Blue Ocean Strategy: Details the analytical frameworks (Strategy Canvas, Four Actions Framework, ERRC Grid) and execution principles required to successfully implement a Blue Ocean Strategy.
5 General Information about the CEP Market: Explains the structure and dynamics of the Courier, Express, and Parcel market in general and within Germany specifically.
6 Blue Ocean Strategy applied in German CEP Market: Executes a status quo analysis of industry leaders and applies the BOS tools to derive a hypothetical new strategic profile.
7 Results, Critical Analysis and Recommendation: Synthesizes the findings, discusses strategic opportunities and threats, and provides recommendations for further research.
8 Conclusion and Outlook: Summarizes the thesis, emphasizing the potential for innovation to shift the focus from cost pressure to value creation.
Keywords
Blue Ocean Strategy, German CEP Market, Logistics, Strategy Canvas, Value Innovation, Competitive Advantage, Market Segmentation, Four Actions Framework, ERRC Grid, Last Mile, E-solutions, Value Added Services, Market Leaders, Business Model, Customer Satisfaction
Frequently Asked Questions
What is the core focus of this thesis?
The work investigates whether established CEP companies in Germany can escape destructive competition and price spirals by applying Blue Ocean Strategy to create new market demand.
What are the central thematic areas covered?
It covers classical strategic theories (Porter, Prahalad/Hamel), the specific mechanics of Blue Ocean Strategy, the current competitive status of the German CEP sector, and the application of diagnostic tools like the Strategy Canvas.
What is the primary research goal?
The objective is to analyze the current competitiveness of German CEP market leaders and to develop a conceptual Blue Ocean Strategy that introduces new value elements to differentiate services from industry standards.
Which scientific methods were employed?
The research is non-experimental and quantitative, utilizing existing literature and data derived from the official public homepages of market-leading CEP providers to conduct a status quo analysis.
What is covered in the main section of the work?
The main part analyzes the fundamental tools of Blue Ocean Strategy, applies them to the current German CEP market, conducts a comparative ranking of market leaders, and proposes an adjusted competitive profile.
What are the primary keywords that characterize the work?
Key terms include Blue Ocean Strategy, German CEP Market, Value Innovation, Strategy Canvas, ERRC Grid, and Competitive Advantage.
Why are surcharges a key topic in the market analysis?
Surcharges significantly impact price transparency and the final invoice value; the thesis identifies them as an area where companies can differentiate themselves through improved transparency and reduced complexity.
How could the introduction of an online chat function change the CEP experience?
By adding an emotional and personalized interaction component to the otherwise purely functional and impersonal enquiry process, companies can differentiate themselves from the standard, rigid service offerings.
- Citar trabajo
- Christopher Engel (Autor), 2013, Development of a Blue Ocean Strategy Concept. Perspective from German Courier, Express and Parcel (CEP) Market, Múnich, GRIN Verlag, https://www.grin.com/document/468317
