DHL 2005 Annual Report Download - page 83

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Sharing in the growth of the express market
e international CEP market in Europe is expected to grow by an average of 4-6% per
year. Additional volumes are anticipated mainly in intercontinental business to and from
Asia and the emerging markets. We are well placed to exploit this growth and to continue
to achieve good prices. We will also improve our range of services, for example by ex-
tending delivery before 12 noon in Europe and introducing it for shipments to and from
Asia. In addition, we will continue to review and adjust the price-performance ratio of our
products in the future. Business in the domestic markets is expected to grow more slowly
than cross-border activities. In some countries, including Germany, new players are also
expected to enter the parcel market.
We are working to improve the coordination of our operating processes still further, with
the customer beneting from the advantages of an integrated service. By the end of 2007,
our customer network in Europe should reach around 20,000 contact points. A signicant
proportion will be the service points, which are located in supermarkets, train stations,
and retail chains. ese already allow shipments to be posted and collected in seven Eu-
ropean countries. In the coming year, we want to install Packstations in more than 30 ad-
ditional cities in Germany, thereby extending the network to over 120 cities in total.
In the United States, we aim to become more competitive and further improve our services.
We want our customers to perceive us as the friendliest, most accessible, and particularly
accommodating carrier on the market. To achieve this we will provide user-friendly tech-
nology. We want to increase earnings by placing greater emphasis on international and
ad hoc customers, while at the same time retaining our existing customers. We want to
expand our domestic product range.
We intend to develop additional express products in Asia and, as the rst international
express service provider on China’s and India’s domestic markets, we want to make fur-
ther investments and grow quickly. DHL aims to become the employer of choice in the
region.
In the emerging markets, we will gradually expand our product oering and further de-
velop our sales activities to reect the needs in the respective countries.
Assuming market lead in logistics
ere will be a shi in the competitive dynamics of the logistics market due to the merg-
ers that have already taken place. We expect that market consolidation will continue and
that ultimately only a handful of global providers will remain. e consolidation process
among freight carriers is expected to continue.
e acquisition of Exel has substantially broadened the scope of the LOGISTICS Corpo-
rate Division. We expect to have reached the most important integration stages by 2007.
In future, we can oer more products with a greater geographic range. We will merge the
two headquarters, institute joint procurement and consolidate the infrastructures of the
two companies. e resulting cost savings should amount to around €220 million before
taxes in 2008.
Deutsche Post World Net
79
Further Developments and Outlook
Group Management ReportConsolidated Financial StatementsAdditional Information