Kordian SITE Structured IT Analysis
May 25, 2015

The largest private postal distributor in [Country]

Postal-Market

Excerpts from report…

Introduction

[The Company] a.s. is an alternative postal operator, operating in […]. The Company‘s focuses on delivering unaddressed mail, where it holds the #1 position in the country, both in terms of revenue and the volume of distributed mail, covering over 98% of the territory.

This draft document provides a high level overview of the trends and success factors in the European and EEC / [Country’s] postal markets, an assessment of [The Compayny]’s strategy and delivery capability in light of the trends, as well as a summary of our on-site visit and management presentations.

European and […] postal markets: main trends and developments

The European postal market traditionally encompasses three segments:

  • Communications (Transport and delivery of letters, direct mail and print media),
  • Logistics (Parcel delivery, express mail and logistics/ freight services)
  • Retail (Branch network business with postal and banking services, retail product

Current trends – Challenges and opportunities

The business environment in the above described core markets, i.e. communications, logistics and retail, is subject to major changes.

The increasing digitalization of communications and business processes, the liberalization of the letter mail market, the global economic crisis as well as fundamental structural transformations pose new challenges to postal companies. They also represent an opportunity to successfully grow and further develop the business. Several trends stand out:

  • Substitution of letters by e-mail
  • Full liberalization of postal market
  • Ongoing boom in online shopping
  • Internationalization of trade flows
  • Customers demand enhanced convenience
  • Integrated value chain Postal and Logistic Business

Main current trends in the [Country] postal market

As partially indicated in prior sections of this report, the [Country] postal market is undergoing significant changes.  There are several other elements which have material impact on its development.

  • Growth in the letter post market is limited despite of strong economic growth, indicating possibly higher acceptance of electronic forms of communication.
  • Significant market segments are liberalized (direct mail and cross‐border outbound letters).
  • There is emerging competition in the direct mail segment.
  • Accessibility to postal services has not significantly changed over time; nearly all postal outlets are post offices.
  • Basic postal tariffs have been considerably increased by the [Country] Post.
  • Transit time performance has been fairly stable, however, in 2007 the quality has slightly declined.
  • Customers have benefited from improved services offered by the [Country] Post.
  • Business customers especially have benefited from competition in the direct mail business
  • [Country] Post focuses on the domestic postal business (parcels and letter post), thus potentially opening markets for operators with strong international presence.
  • [Country] Post provides reliable postal services and is fairly profitable (possibly supported by significant increases in postal tariffs, making it difficult to compete against.
  • [Country] Post has a very good reputation in the Czech Republic, somewhat increasing the barriers of entry for new players.
  • The market for parcel & express mail is growing strongly in the [Country].
  • [Country] Post still plays an important role for domestic parcel delivery.
Substitution of letters by e-mail
Erosion will be slowed down. Score 3 of 5
Full liberalization of postal market
The biggest opportunity for the [Company]. Score 4 of 5
Ongoing boom in online shopping
NO plans for parcel distribution.Score 4 of 5

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