Dhl First Mover Advantage

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DHL case 1. When looking at entering any industry the common notion is that being first is the best possible thing you can ask for. A first mover advantage isn’t the same for every company or industry. First mover advantage is important because it gives a company the head start, knowledge, and resources it needs to keep to date with innovation from new companies. Another advantage would be having the most knowledge about customer needs and wants. Be the first to recognize changes in customer taste and preferences. When considering if a service company or a manufacturing company has a better advantage by being a first mover, I believe we have to look at the differences in the two industries and how they do business. We have to look at things like inventory and if it is made to order or stock. Another is the amount of manpower needed to produce the good or service. How will they go about recruiting for these employees and training them? Another important factor might be location, Where and how many locations will the company need. The key difference between service companies and manufacturing companies is how much location space they need. A manufacturing plant might use up a lot of space in one place and can be very expensive but as a service organization you will need multiple locations, which can get more expensive. DHL for example will need a sorting plant where all of the packages come together to be sorted out according to where they are going. Then from there they will need to be sent to the airport, so delivery trucks and labor will be needed. After arriving at the destination country they can’t simply be sent to their final location. They have to go to a DHL warehouse and be sorted again for final delivery. This process requires multiple locations, which can get expensive to manage and operate. Manufacturing requires one single location, where the product
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