Deutsche Bahn SWOT and PESTLE Analysis

Strength

1. Uninterrupted service during pandemic for essential workers: In 2020, the COVID-19 pandemic brought the whole world to a standstill. Governments banned non-essential travel to control the spread of the virus. DB Schenker proved itself to be a reliable supplier of essential goods and services during this time. Their uninterrupted services helped transport medical products like masks, protective gear, medicine, etc. to hospitals around Germany. DB Cargo helped transport food products to supermarkets who were facing supply crunches due to consumers panicking and hoarding. In April 2020, DB helped transport dry pasta to supermarkets who were running out of supply very quickly. In 2021, DB plans to join hands with the government and the health sector to help transport COVID-19 vaccines. Thus, Deutsche Bahn helped in ensuring the smooth movement of essential supply chains during the pandemic.

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Weakness

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Opportunity

1. Expansion of cargo services to ease cross-border transportation: During the COVID-19 pandemic, Deutsche Bahn’s Cargo and Freight services helped transport essential goods like protective gear and medicines across European borders. The main advantage of rail services is that they are reliable and not delayed by traffic. Moreover, large cargo trains can easily carry a lot of goods without using up fuel. Deutsche Bahn’s cargo service connects all the economic centers of Europe. During the pandemic crisis, their services became the backbone of the economy. Under the Strong Rails strategy, DB plans to increase3 their cargo services by adding more trains and building more tracks. New construction is expected to add around 180 million train-path km, which will help reduce traffic on existing routes and make way for more trains.

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Threat

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Political

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Economic

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Social

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Technological

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Legal

1. EU to restrict use of loud freight cars from 2024: EU has decided to restrict the use of loud freight cars across Europe from 2024 on heavily frequented lines throughout the EU. The European Union Agency for Railways (ERA) has created a task force that will look into the matter and ensure that all the work is carried out by the given deadline. New trains will be fitted with low-noise brake blocks and tested in Nordic winter conditions to ensure that the brakes are powerful enough. Tests will be performed in winter 2020/21 and only then will approval be granted for the new brake systems. DB cargo has been using low noise brakes since 2001 and existing cars have been fitted with LL low noise brakes since 2013. In 2020, DB cargo had over 60,000 freight cars fitted with whisper brakes. EU’s noise remediation strategy is set to benefit over 800,000 residents who live near rail lines and curb noise pollution.

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Environmental

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