DHL 2008 Annual Report Download - page 36

Deutsche Post World Net Annual Report 2008
Economic developments and the shi in customers’ behaviour have prompted us
to re-examine the most important factors determining our business. Four trends that
have proven to be stable and irreversible in a range of scenarios are making a strong
impact on our business:
1
Globalisation  e elimination of trade and customs barriers is enabling com panies
to develop new markets and move activities to locations that o er competitive
advantages. As a result, trade is growing more quickly in the international than
the national arena, fuelling demand for transport and logistics. It is, however, to be
expected that low-value, labour-intensive products will increasingly be produced
in countries that are geographically close and have a low wage level. Also, for less
time-critical shipments, demand is expected to rise for more fuel- e cient transport.
Since we are well positioned in the typical low-wage countries of Eastern Europe
and Latin America and our range of services covers all means of transport, we will
also bene t from this trend.
2
Outsourcing In times of economic stagnation, pressure on companies to reduce costs
and streamline business processes increases. For this reason, there is a growing
trend towards outsourcing. Also, supply chains are becoming more complex and
are being placed increasingly on an international footing. Accordingly, an increas-
ing number of customers are demanding integrated solutions that provide them
with a broad range of services worldwide. As a global, integrated logistics service
provider, we bene t from this trend.
3
Digitalisation  e internet has changed the way in which information is exchanged.
Written communication is being replaced increasingly by electronic data trans-
mission. Quantities and revenues are declining, especially in the traditional mail
business. On the other hand, the internet brings dealers and customers closer
together and creates new demand for transport of goods, advertising materials and
contract documentation.
4
Climate change  ere is a growing awareness for the environment and climate.
Although it is not yet possible to completely assess what the e ects of the move
towards a more eco-friendly industry will be, we see great opportunities for our-
selves. Demand is now emerging for climate-neutral products, which we have already
begun to develop. Furthermore, legislation is being passed that forces companies
to reduce their  emissions. We help companies to comply with requirements by
providing energy-e cient transport.
Legal environment
In view of our leading market position, a large number of our services are subject
to sector-speci c regulation under the German postal act. Further information on this
issue and legal risk is contained in the Notes to the consolidated  nancial statements. Note 54
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