We had it made!

IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES

Deutsche Post in deep trouble

“Deutsche Post is a pioneer in Europe and now is being punished for it,” says CEO Dr. Klaus Zumwinkel, and betrays in these words a plea for mercy, as his company would find itself in murky waters, once the German postal market is opened up. Dr. Zumwinkel is lamenting unfair competitive conditions in the EU. The delay in opening up some key European markets has stalled the company’s expansion. And the new entrants – Luxembourg based Pin Group & UK based TNT Post would expectedly launch a brutal price war on the German turf. Pieter Schaffels, spokesperson, TNT Post, said, “We are looking for increase of 10- 15% in market share.”

In response, Deutsche Post is incessantly cutting costs & expanding in foreign markets where feasible. In 2006, the group improved its operating performance by increasing its revenue by 35.8% to $82.94 billion by consolidating all freight activities & focusing on the high growth Express division. Even their second quarter profits have risen by 13%, beating analyst expectations, primarily due to the DHL Express division that has had tremendous growth in Asia.

The clear stumbling block is its mail business, where revenues surged by a mere 13% since 2000. Express & logistics divisions have risen phenomenally; revenues stood at $17.2 billion (growth of 185% from 2000) & $22.7 billion (growth of 174% from 2000), but its cash cow remains the mail business, with 52% of total profits in 2006. The blow to this business will hit the company hardest. But with regulators refusing to show mercy, Deutsche Post has no choice but to engage itself in this long drawn bloodbath, hook line & sinker.

Edit bureau: Aditi Soni

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit Below....
IIPM International Student Exchange Programme
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review
IIPM :- Cicero's Challenge is going global
The Indian Institute of Planning and Management (I...
After CDMA, will nokia miss the 3G bus ?
Time for Awards at IIPM
STUDENTS AGAINST CORRUPTION & KICKBACKS : SACK
Heavy dut(t)y stress Sanjay Dutt Bollywood Actor
The Business of B-School Rankings & The Big Farce
36TH Full Time Programme In Planning & Entrepreneu...

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)