Strategy
TNT’s strategy is to focus on providing delivery solutions by expertly managing delivery networks. TNT calls its strategy ‘Focus on Networks’. This strategy was first presented in the fourth quarter of 2005, contains manageable execution risks, and is based on TNT’s core strengths, with the objective of achieving profitable growth.
Focus on Networks
In the first phase of its Focus on Networks strategy, TNT concentrated on transforming its foundations by exiting its logistics and freight management activities, concentrating on (express and mail) multi user networks and optimising its capital structure.
Since the start of the second phase (called ‘Grow and Build Value’) in December 2007, the emphasis is now on further strengthening and actively maintaining the core of the portfolio (European express and Dutch mail activities) and accelerating the build-up of the emerging platforms in European Mail and Parcels and emerging express businesses. In addition, other ‘delivery solution opportunities’ such as deferred services and niche solutions for specific client sectors are being actively developed.
TNT’s networks are in different development phases and offer a range of growth opportunities. TNT’s most mature business is its mail network in the Netherlands, where TNT actively seeks to maintain its market leadership in a declining market with increasing competition.
TNT’s express networks in Asia, in particular in India, China and South-east Asia, and in selected other emerging markets, such as Brazil, are at the other end of the spectrum and are among the least mature networks in its portfolio. In these geographies TNT can be leading in shaping the market by strongly growing its road networks and so attain market leadership.
In Europe, TNT continues to grow its express and mail networks by building on its existing strong position. TNT aims to accelerate growth in its networks organically, as well as through selected acquisitions.