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Our client is Deutsche Post AG (FWB: DPW), one of the world’s largest logistics groups headquartered in Bonn, Germany. Deutsche Post is the successor to the German mail authority Deutsche Bundespost, which was privatized in 1995. The Mail division of Deutsche Post inherits most of the traditional mail services formerly offered by the state-owned monopoly, for which it uses the Deutsche Post brand.
Historically, they have been the sole provider of mail delivery service in Germany. They have exclusive right to deliver letters under 50 grams in Germany. A few months ago, however, following the implementation of European legislation the German government passed a bill to deregulate the German mail delivery industry. The client is forecasting a 20% drop in revenue, and they would like to know how to proceed. What would you recommend Deutsche Post to do?
Our client Republic Intelligent Transportation Services, Inc. (Republic ITS) is a licensed electrical contracting and transportation engineering company headquartered in Novato, California, United States. Republic ITS specializes in traffic solutions and services which include the installation, maintenance, repair, and replacement of traffic signals, streetlights, digital cellular technology upgrades, call boxes, etc. It was acquired by Siemens (NYSE: SI) in September 2010.
The client is a small company operating mostly in California. Recently, however, they are considering expanding into the Tri-state market (New York, New Jersey, and Connecticut), especially Manhattan in New York City. They want our help to determine whether they should enter the Manhattan market or not. How would you go about it?
Additional Information: (to be provided to you upon request)
- What is client’s goal of market entry? — Increase revenues and profits (no specific ROI target)
- Is the scope of the case to determine only entry into the Manhattan market? — Yes
- Does the client manufacture signals? — No, client only installs and maintains them.