P.U.P. “Poczta Polska” before 2009. The necessity for change – part 2

“Good fortune is not the ally of the idle”
Sophocles

The statistics presented in the previous part of the article are of little comfort, as it is not the Lithuanian or Latvian operator that one should fear, but some of the mentioned market leaders, especially since they are already present in this market through their subsidiaries. Thus, the German post operates through DHL, the French and Swedish post through DPD (until recently Masterlink), the British post through GLS (formerly Szybka Paczka), and the Dutch post through TNT. Additionally, there is a consolidation of companies (the merger of Servisco and DHL) and at the same time a consolidation of the market, as four companies (DHL, Stolica, GLS, and DPD) have already taken over more than 75% of the lucrative express delivery market, and according to estimates, Poczta Polska’s share in 2006 fell again and will amount to about 2%.

If this comparison were to take place right now, Poczta Polska would not have the slightest chance in a confrontation with foreign competitors. The possibility of making a so-called “leapfrog” in technology, that is, moving to the most technologically advanced solutions while bypassing transitional technologies, may slightly improve this competitive position. In other words, it consists of simply imitating the best solutions, which – as practice shows – is often the only reasonable course of action in the economy. In further considerations, a SWOT analysis, which was conducted for the purposes of this study, may prove helpful. The use of such a tool can be observed in some enterprises, but in most cases, it does not cover all factors. Factors are often confused, not to mention a full analysis containing the valuation of these factors. Of course, this is a strictly subjective analysis, performed by a person not working at Poczta Polska, and therefore it may provoke strong emotions (especially regarding weaknesses). Despite the drawbacks of the “SWOT” approach, such an external perspective is very useful, and therefore it seems reasonable to present its results in the article.

SWOT analysis of P.U.P. “Poczta Polska”
Strengths (internal)
• brand and tradition – long experience in the market (status of national operator)
• good knowledge of suppliers
• possibility of expanding the range of services (liquidity enabling the introduction of innovations)
• transitional monopoly in some market segments
• large, nationwide service distribution network
• dominant share in some markets
• strong negotiating position
• ease of access to legislative bodies
• very good knowledge of local and global markets
• good cooperation with national postal operators in Europe and the world.

Weaknesses (internal)
• weakening prospects for the company’s development in the future
• unfavorable image of the company in the environment caused by the monopolistic nature of operations
• accounting system preventing the separation of costs for individual types of services, processes, and customer service costs
• lack or incomplete implementation of comprehensive systems supporting the management and operation of the company’s technical resources
• unsatisfactory quality of services provided
• inappropriate division of competencies among individual management levels, which contributes to difficulties for the Board in simultaneously managing strategic and operational issues
• poorly developed research and development facilities supporting the adaptation and implementation of IT systems for customer service organizations and the provision of new postal services
• dualism of decision-making and information paths, lack of an information flow system
• lack of a developed marketing strategy in the company, and consequently – lack of advanced market segmentation resulting in a primitive service offer
• lack of an effective personnel policy capable of meeting new market requirements
• complex organization of PP, covering the entire territory of Poland, with a high degree of centralization causes paralysis of the entire structure and its sluggish reactions to the needs of a changing market
• strong position of trade unions.

Opportunities (external)
• emergence of new groups of recipients
• favorable legal regulations that allow for maintaining a monopolistic position in some universal services until 2009 or later
• easy access to new technologies
• possibility of developing services in the international market
• large market of well-qualified specialists available for employment in times of unemployment
• favorable trends in the state’s tax policy.

The article comes from the magazine “Logistyka” 4/2007.