DB Schenker and SIS through Porter’s model
This first part is mean to analyse through Michael Porter’s model how DB Schenker managed to gain competitivity and reduce the 5 forces on its market. This part is divided in two parts: a brief introduction of DB Schenker and its IS strategy then the application of this IS strategy to reduce the 5 forces
A) Introduction 1) Overall Presentation of DB Schenker DB Schenker was born one century and a half ago in Austria. DB Schenker built at this time the first railway from Paris to Vienna. Since then, DB Schenker has grown up to be one of the leading logistics and transportation worldwide market. DB Schenker operates today in more than 120 countries all over the world (they celebrated the 13th of October 2010 their 4 decades of presence in Singapore for example). DB Schenker brings solutions in land, ocean and aerian freight. DB Schenker employs around 91.000 people for an annual turnover of 15 billions euros. 2) Overall presentation of DB Schenker market Although DB Schenker holds a strong position on the transportation market: DB is the leading company in aerian and ocean freight in Europe. Nevertheless, it still needs to face tough competition. Its 3 main rivals are DHL International GmbH, Kuehne + Nagel International AG, Panalpina Welttransport AG. 3) Importance of IT in DB Schenker strategy
To face this competition, DB Schenker decided that IT system was one of its best strategical tool. “In order to compete in the long run, companies need to constantly assess and adjust their IT strategy and thus ensure meaningful investments in technology, infrastructures and process improvements” declared DB Schenker CEO Peter Schumann. Each, year, DB Schenker invests millions of dollars in Information technology, especially in E-commerce applications.
4) An example of Strategic Information