Kuehne & Nagel In The Asia Pacific Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Kuehne & Nagel In The Asia Pacific Case Study Solution

Opportunities

In the Asia and Hong Kong, the industry was well developed.
In 1998, the Airfreight capacity of Hong Kong port was increased by 1.5 million tons, because of opening of a new port at Chek Lap Kok.
In 1990s, the Hong Kong port became the world’s busiest port.
Despite of the Asian crises, the Asian-pacific could be considered as the viable growth opportunity because of its larger population and geographic distance.
In Hong Kong, the transportation networks were well developed with the inclusion of a better telecommunication infrastructure, a better supporting service, an electronic commerce infrastructure, and an established financial and legal structure.
The SCM logistic service providers were representing a 10% or more margin with respect to profits.

Threats

The outside business of FF industry could enter into the FF industry, because of its viable growth opportunities and an increasing demand of SCM logistics.
It is difficult for the FF providers to develop an integrated global system in Asia because of different characteristics of countries.
The profits of the FB were representing a declining trend with a margin of 2% to -2%, which was primarily, 2% to 5% was seen. This would require to establish number of branches throughout the area.

Question: 3

Strategic Options

After analyzing all the prevailing internal and external situation with the help of tools and frameworks, the following attractive strategic options has been proposed for the company.

Expand in Asian Pacific Market

One of the most attractive option is to expand its customer base by approaching Asian Pacific markets. KN had already established its market in Asian-Pacific by acquiring companies in 17 countries. But, currently, the KN was only providing port to port services. Thus, it is recommended that company should establish strong IT and SCM door to door distribution channels across the Asia in order to boost its sales and avail this attractive opportunity. Moreover, the Hong Kong is one of the busiestplace in the world and became the hub of the business since last decade. Thus, doing business in Hong Kong would be a better option, which will enable the company to attract number of customers.

Expand in European Markets

Another option for the company could be to expand its business in the European states, where the company hadalreadyestablished a strong position by providing specialized services. The customers are loyal and require more advance SCM system, which could provide them a quick transmission and delivery at shelfs. Thus, it has been proposed that the company should develop more strong door to door channel and an advanced SCM channel.

Expand in Other Markets

Another option for the company could be to expand in other attractivemarkets such as America, Australia and Sweden. The potential market would generate ample profits because of its increasing demand of transportation and logistic sector. The company should enter in these markets by establishing an effective entry strategy, which could help the company to compete with in theses already established giants.

Recommendations

After evaluating all the suggested options with the help of its associated pros and cons, it isrecommended that the company should expand its consumer base by acquiring and expanding its business in Asian-Pacific regions because of its ample benefits. The Hong Kong is one of the busiest place in the world and became the hub of the business since last decade.Thus, it is recommended that company should establish strong IT and SCM door to door distribution channels across the Asia in order to boost its sales and avail this attractive opportunity.

Implementation Plan

The implantation of the recommended strategic options would require to follow the following strategic requirements. The implementation plan includes establishing strong market with the help of trained staff and advanced SCM techniques, because KN was currently providing the port to port services.The company should build strong long-term relationship with its customers by providing the advanced services.

Conclusion

It is concluded that the company had acquired an EDP (Electronic Data Processing) system and became the German’s first forwarder and the leading forwarder worldwide. The competition had increased in the Asian pacific region due to global changing trends. In Asia, the company had established its airfreight and sea distribution channels in 17 countries by employing 1767 employees in its 51 offices. It is recommended that the company should expand its consumer base by acquiring and expanding its business in Asian-Pacific regions because of its ample benefits.The implementation plan includes establishing strong market with the help of trained staff and advanced SCM techniques, because KN was currently providing the port to port services..................................

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