Our client is Deutsche Post AG (FWB: DPW), one of the world’s largest logistics groups headquartered in Bonn, Germany. Deutsche Post is the successor to the German mail authority Deutsche Bundespost, which was privatized in 1995. The Mail division of Deutsche Post inherits most of the traditional mail services formerly offered by the state-owned monopoly, for which it uses the Deutsche Post brand.
Historically, they have been the sole provider of mail delivery service in Germany. They have exclusive right to deliver letters under 50 grams in Germany. A few months ago, however, following the implementation of European legislation the German government passed a bill to deregulate the German mail delivery industry. The client is forecasting a 20% drop in revenue, and they would like to know how to proceed. What would you recommend Deutsche Post to do?