Introduction
DP World is a container and marine terminal operator with a span across six continents and seventy terminals with the head office in Dubai (DP World 1). The primary strengths of the company include its handling capacity of fifty-five million of twenty-foot equivalent units, employment of up to thirty-six thousand workers, and being the first port operator to cooperate with the U.S. Customs-Trade Partnership against Terrorism Initiative (“DP World SWOT Analysis, USP & Competitors” par. 3).
Strategy Map
Financial Perspective
Improve productivity
The productivity of an asset can be increased by either increase in efficiency operation or by means of utilization increase. To increase productivity in its ports, DP World should look into operating more lifting cranes daily at the same time with achieving more lifts an hour (The Tioga Group 1).
Increase revenue in the existing segment
In order to increase revenue in the existing port segment, DP World should take care of the existing customers and make offers so that customers pay for more services. Tha way of increasing prices for margin increase will not be profitable in this case.
Revenue in new markets and services
To achieve success in the sector of a new market, DP World should expand its presence on a territorial level, building new ports in new locations. Furthermore, a company can create alliances in the form of joint ventures with similar companies that possess complementary skills (PhilipLewis par. 14).
Customer perspective
Price
DP World should adjust the prices in accordance with the amount customers are willing to pay for the services. In order to keep customers satisfied, the value should to the price for the port services DP World offers.
Quality
The quality of the services offered by ports is characterized by the availability of technical factors, adequate management, and organization, as well as acceptance of the requirements posed by clients.
Reliability
When it comes to the services offered in ports, reliability is characterized by the company’s ability to consistently fulfill the needs of the customer with accuracy ad precision (Kolanovic, Dundovic, and Jugovic 497).
Safety
Port safety is connected with the prevention of potentially risky situations as well as service guarantees and financial safety for customers.
Minimal time
Port transportation services are time-consuming, especially when there are large volumes of cargo involved. In order to reduce the time of services to a minimum, DP World is advised to develop a queuing pattern that guarantees less confusion and consequent performance of required services (Kolanovic, Dundovic and Jugovic 497).
Service
The services offered by DP World are linked to all of the above-mentioned factors and can be measured when all components of the business related to the customer perspective are combined together.
Internal perspective
Workforce management
Since poor workforce management can cause the business underperformance, and because DP World employs 36,000 workers, this component is crucial. The main steps towards efficient workforce management include maximum automation of the load process in ports, proper scheduling, utilization increase, as well as a proper balance between demand for services and the supply of these services (PortStrategy par. 2).
Customer/Project Management
Efficient customer/project management is directly linked to customer satisfaction. DP World should employ staff that will engage customers to cooperate for better project negotiation and risk management.
Service Delivery Management
This aspect comprises of four components: delivery, escalation, communication, and KPI’s. Service delivery can be improved by means of the resource investment and employee actions that will lead to meeting customer expectations in a way that generates profit.
Cost Management
In order to increase the efficiency of cost management in port, DP World should develop a specialized cost management system for analysis and control. Cost control can also be outsourced to specialized companies that provide services for corporations worldwide.
Learning and Growth Perspective
- Human Capital: skills, training, knowledge. In order to unlock new business opportunities for the company, DP World can combine human resources with the administration. Tight cooperation will result in acquiring new skills and knowledge that can be enhanced by further training of the personnel.
- Information Capital: systems, databases, networks. In a technology-oriented market, ports require large volumes of Information Technologies that will sustain as well as increase the value of DP World.
- Organization Capital: structure, leadership, management, teamwork. This aspect of the learning and growth perspective requires tight cooperation across all levels of the company.
DP World is a value chain business because its strategy is focused on the expansion of the infrastructural assets and strengthening the worldwide supply chains. Thus, the DP world produces a highly-integrated proposition that delivers the demand of a customer for transportation services. It is a leader in the industry of marine terminals, offering a large amount of cargo handling services that are targeted at improving the efficiencies in the sphere of the supply chain.
According to the DP World Senior Vice President and Managing Director, “Efficiency and sustainability will remain the guiding principles for our industry over the coming decades, and while we continue to innovate to speed up handling and movement of containers to an extraordinary degree, we always have our gaze fixed firmly on our customers’ needs and those of the global communities surrounding our various locations” (qtd. in IndustryMe par. 5).
The most suitable perspective for the value chain business and DP World itself is the financial perspective as it offers three crucial steps of how to improve the strategy of the company, increase the revenue on the already existing market as well as offer value by expanding the company’s services into territorial new market segments.
Because the twenty-first century has become the time when Information Technologies has become one of the most sought after components of the business, DP World should not underestimate it. In terms of IT funding, DP World should target its spending on computer equipment upgrades, hiring new and knowledgeable personnel, and expanding the company’s presence in the Web sphere to attract new customers and partners.
Works Cited
DP World SWOT Analysis, USP & Competitors. n.d. Web.
DP World. Performance and Opportunity 2014 Annual Report. 2014. Web.
IndustryMe. DP World: Enhancing Commerce Through The Supply Chain. n.d. Web.
Kolanovic, Ines, Cedomir Dundovic, and Alen Jugovic. “Customer-Based” Port Service Quality Model.” Distribution Logistics Review 23.6 (2011): 495-502. Print.
PhilipLewis. Strategies for Increasing Revenue. n.d. Web.
PortStrategy. Optimising the Team. 2013. Web.
The Tioga Group. Improving Marine Container Terminal Productivity. 2010. Web.