The bachelor thesis at hand deals with the performance analysis of a globally operating service provider after a completed market expansion in an international context. This subject is elucidated by reference to the example of DB Schenker Rail’s entry into the Polish rail freight market through the acquisition of PCC Rail. First, the Polish rail freight market is analyzed from an industry perspective based on Michael Porter’s Five Forces model to identify the forces acting upon a company and the estimated profitability of the respective industry. Subsequently, a statement on whether the results of the overall industry are in alignment with the example DB Schenker Rail is made. The term profitability is operationalized through the introduction of the profit margin and the respective profit margins are checked against each other. By means of this result, and the inclusion of other quantitative and qualitative performance measures, a conclusive statement is made on whether DB Schenker Rail’s market entry in Poland can be considered a success.
Table of Contents
I Introduction
1.1 Presentation of the Problem
1.2 Structure of the Thesis
II Market Specifications and Developments in the Rail Logistics Sector using the Example of DB Schenker Rail
2.1 Introduction to Logistics and Freight Traffic in Europe
2.2 Railway Logistics as a Sub-Industry of the Logistics Sector
2.2.1 Deep Dive – the Polish Railway History and Market at a Glance
2.2.2 Introduction of the Acquisition Parties – DB Schenker Rail and PCC Rail
2.2.3 Positioning of DB Schenker Rail on the Polish Market
III Theoretical Foundation
3.1 Michael Porter’s Five Forces Model
3.2 Determining the Success of a Company within the Industry
IV Analysis of the Success of DB Schenker Rail’s Market Expansion in Poland
4.1 Assessment of Poland’s Rail Freight Industry Structure using the Five Forces Model
4.1.1 Threat of New Entrants
4.1.2 Threat of Substitute Products or Services
4.1.3 Bargaining Power of Buyers
4.1.4 Bargaining Power of Suppliers
4.1.5 Rivalry Among Existing Competitors
4.1.6 Implications on the Intensity of the Five Forces in regard to DB Schenker Rail Polska
4.2 Analysis of the Success of DB Schenker Rail’s Market Entry in Poland
V Conclusion
Objectives & Research Topics
The primary objective of this thesis is to perform a comprehensive performance analysis of DB Schenker Rail's strategic market expansion into the Polish rail freight industry. By applying Porter’s Five Forces model to assess industry-wide dynamics and complementing this with company-specific financial and strategic metrics, the work investigates whether the acquisition of PCC Rail can be considered a success.
- Industry structural analysis using Porter’s Five Forces model.
- Evaluation of profitability, sales growth, and market share development.
- Comparative performance analysis of major market participants in the Polish rail sector.
- Assessment of the impact of the 2009 economic crisis on market performance.
- Qualitative appraisal of corporate strategy, long-term goals, and restructuring effects.
Excerpt from the Book
1.1 Presentation of the Problem
Liberalization of international trade and privatization of entire industry sectors within the past decades have shaped the international business environment enormously. Such trends fostered rapid escalations in cross-border merger and acquisition (M&A) activities, foreign direct investment (FDI) in infrastructure projects, and the international movement of resources. (cf. Ramcharran 1998, p. 38) The logistics sector, with its numerous consolidations, appears to be particularly affected from this cross-industry progression (cf. Böhmer 2003, p. 96). One can primarily observe larger logistics service providers which increasingly target international markets.
This trend towards internationalization results from the aspiration for enhanced service offers, such as one-stop-shopping and integrated logistics solutions, as well as the combining of transport flows and a concurrent exploitation of economies of scale, economies of density, and economies of scope. (cf. Phohl 2003, pp. 22f; cf. Henning et al. 2003, pp. 399 et seqq.) In regard to rail freight transport, Poland turns out to be of special interest because the country hosts the second largest railway logistics market in Europe (cf. EC 2012, p. 41). Starting from 2002 the number of privately operating railway undertakings (RUs) steadily increased and unrestricted access, also for foreign RUs, was eventually accomplished in 2006 (cf. Król 2010, pp. 166 et seqq.; cf. IBM 2011, pp. 177 et seqq.).
A company which acted in line with the overall market trend and carried out an international market expansion represents DB Schenker Rail and its expansion to Poland.
The thesis at hand is based on the abovementioned business example and focuses on the assessment of the Polish rail freight industry structure using Porter’s Five Forces model. With the application of this framework a statement on the industry’s overall profitability is made. However, direct inferences on a firm’s individual profitability cannot be drawn because performance of industry players can still diverge widely. Nevertheless, it can be shown what kind of competitive situation DB Schenker Rail faces after its market expansion.
Summary of Chapters
I Introduction: This chapter introduces the global trend toward liberalization and internationalization in the logistics sector, defining the research problem and the focus on DB Schenker Rail’s expansion into the Polish market.
II Market Specifications and Developments in the Rail Logistics Sector using the Example of DB Schenker Rail: This section provides a foundation in logistics and rail freight, covering market characteristics in Europe, Polish railway history, and the specific companies involved in the acquisition.
III Theoretical Foundation: This chapter details the academic frameworks used, specifically Porter’s Five Forces model and the operationalization of success through performance metrics like profitability and sales growth.
IV Analysis of the Success of DB Schenker Rail’s Market Expansion in Poland: This core chapter applies the Five Forces framework to the Polish industry and provides a quantitative and qualitative assessment of DB Schenker Rail’s performance post-acquisition.
V Conclusion: The final chapter summarizes the findings, reiterating that while the acquisition faced financial challenges in the short term, it served as a strategic alignment with long-term corporate goals.
Keywords
DB Schenker Rail, PCC Rail, Rail Freight, Logistics, Poland, Porter’s Five Forces, Market Expansion, M&A, Profitability, Performance Analysis, Interoperability, Rail Liberalization, Infrastructure, Competitive Strategy, 3PL.
Frequently Asked Questions
What is the core focus of this bachelor thesis?
The thesis analyzes the performance of a global service provider, specifically DB Schenker Rail, following its strategic market expansion into the Polish rail freight sector via the acquisition of PCC Rail.
What are the central thematic fields?
The work centers on industrial organization, international market entry strategies, logistics performance measurement, and the structural dynamics of the European and Polish rail freight industries.
What is the primary research goal?
The goal is to determine if DB Schenker Rail’s market entry in Poland was a success by using a combination of industry-wide structural analysis and company-specific performance metrics.
Which scientific method is applied?
The author primarily utilizes Michael Porter’s "Five Forces" model to assess industry structure, supplemented by financial performance analysis (Return on Sales, Profit Margin) and qualitative strategy assessment.
What topics are discussed in the main part?
The main part covers the logistics and rail environment in Europe, the historical and competitive state of the Polish rail market, an in-depth analysis of competitive forces (suppliers, buyers, entrants, substitutes, rivalry), and a detailed review of the firm’s financial and strategic development.
Which keywords characterize this work?
Key terms include DB Schenker Rail, market expansion, Poland, rail freight, Porter's Five Forces, M&A, profitability, and logistics strategy.
Why is the Polish railway market particularly relevant for this study?
Poland hosts the second-largest railway logistics market in Europe, making it a critical hub for international companies looking to integrate their services and expand their network toward Eastern Europe and Russia.
How does the author evaluate the "success" of the acquisition?
The author looks beyond simple financial loss (negative profit margins in 2010), considering external factors like the economic crisis and internal factors like the costs of restructuring and consolidating thirty independent units into one entity.
What is the role of PKP Cargo in this market?
PKP Cargo is the incumbent market leader in Poland. The thesis highlights its dominant position, the challenges it poses to newcomers, and the intense, often price-based competition between it and other players like DB Schenker Rail.
- Arbeit zitieren
- Hendrik Lemke (Autor:in), 2013, Analysis of a strategic market expansion of a globally operating service provider using the example of DB Schenker Rail’s acquisition of PCC Rail in Poland, München, GRIN Verlag, https://www.grin.com/document/269542
