Kuehne & Nagel Case Study: Market Strategy and Analysis

This case study analyzes Kuehne & Nagel (KN), a leading transport and logistics company, focusing on its operations in the Asia Pacific region. The analysis begins with a PEST (Political, Economic, Social, and Technical) analysis of the changing business environment in the freight forwarding industry. It then examines KN's strategies for serving its markets and generating revenue, highlighting the company's use of trade lanes and added services like ocean-freight, project forwarding, and air freight. The case study explores potential opportunities for KN, such as expanding its customer base and utilizing IT solutions. Finally, it discusses strategic options available to KN, emphasizing the importance of improving service quality, leveraging IT, and collaborating with local businesses to enhance revenue and market presence in the Asia Pacific region. References include the University of Hong Kong's case study and KN's investor relations documents.

RUNNING HEAD: CASE STUDY ANALYSIS OF KUEHNE & NAGEL
CASE STUDY ANALYSIS OF KUEHNE & NAGEL
Name of the Student:
Name of the University:
Author’s Note:

1CASE STUDY ANALYSIS OF KUEHNE & NAGEL
1. Analyze the changing business environment in the industry that Kuehne &
Nagel (KN) operate.
Kuehne & Nagel, one of the leading transport and logistics business organization, formed
in 1889 as forwarding and commissioning business organization in Germany (Kn-
portal.com). In this part, the changing business environment in the freight forwarding
industry of Asia Pacific region will be discussed through PEST analysis.
Political factor  Geopolitical risks in Asia Pacific regions.
 Political stability and government support.
 Presence in several markets of this reason is an important
factor.
 Taxation and policymaking must be done appropriately.
Economic factor  In this region, inflation, interest rate, GDP, and unemployment
rate are different.
Social Factor  Social pattern, culture, consumer behaviour, social trends of
this region are different.
Technical factor  Innovation, use of the internet and online retailing, use of social
media, value chain network must be prioritized by this
company.
For the competitive environment of this region, it can be said that this company has to
manage intense competition in this region. There are various local and global business
organization provide same services like Kuehne & Nagel. Local FF providers, integrators,

2CASE STUDY ANALYSIS OF KUEHNE & NAGEL
third-party out-sourcing agents, IT service providers, consultants, and various other FF
competitors are present in this region (Kn-portal.com).
The customer environment of this region will be analyzed in this part. Not only the high
end but also the low-end market segment of this region are targeted by this company. The
frequency of buying and quantity of buying of the customers of this region are high.
2. What had been KN’s strategy for serving its markets and generating
revenue? Going forward, based on the case information, what kind of
opportunities are possible for KN to pursue?
The management team of Kuehne & Nagel was successful to serve its market and generate
revenue by utilizing the trade lanes from and to Asia. Besides maintaining its core business, this
organization offered specific services to the specific industries. By providing extra services like
ocean-freight, project forwarding, air freight, export, and import, this company generated its
revenue (Clark). So it can be said that by providing added service to the pharmaceuticals,
technical industries, this company was successful to serve its markets and generate revenue.
The management team of this organization can utilize various opportunities which are
enhancing customer base in the low-end market, new entrants have to manage strict regulations
for entering in this industry, collaboration with the local business organization (Kn-portal.com).
The management team of this company has started providing IT solutions to its customers. It
can be a great opportunity for this company to generate its revenue.

3CASE STUDY ANALYSIS OF KUEHNE & NAGEL
3. What strategic options KN has now, and which one should it do
implement?
It can be said that this company has various strategic options which are improving its
departments for better service, appropriate utilization of IT, and collaborating with the local
business organization. Kuehne & Nagel has to implement a strategic option which will improve
the quality of service of this company. With the help of IT, this organization can improve its
service. To create the next new logistics service, the management team of this company can
utilize the IT and include extra services for its potential customers. To do that the management
team of this company has to invest in the improvement of sea freight, air freight, contract
logistics, road, and rail logistics (Kn-portal.com). It can be said that by improving these areas
and utilizing Information Technology, the management team of Kuehne & Nagel can provide the
best quality service in the Asia Pacific region and generate its revenue.

4CASE STUDY ANALYSIS OF KUEHNE & NAGEL
References:
Clark, Vanessa N. Kuehne & Nagel in the Asia-Pacific. Centre for Asian Business Cases, School
of Business, University of Hong Kong, 1999.
Kn-portal.com. "Kuehne + Nagel: Effective Strategy: New Record Levels Achieved". Kn-
Portal.Com, 2015,
https://www.kn-portal.com/about_us/investor_relations/archives/financial_news_archive/show/?
tx_knnews_pi1%5Buid%5D=1082&cHash=545a96ee9ab0af69827f94481a0e567d.