Is a good example of competition through establishing

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is a good example of competition through establishing interregional networks, but also the other mentioned companies cooperate with local partners and have outsourced part of their activities. Although these models do not target the entire market for addressed mail, they pose a competitive threat to the national postal operator and are in principle able to capture a substantial share of the market. The same applies for models focusing on last mile delivery by entrants that already have developed a delivery network through their activities in un-addressed mail or in magazines and periodicals (publishers). Mail consolidation and a focus on upstream activities in general are also business models that can be observed in practice and are likely to be employed. Examples are Dimar in the Czech Republic, a wide variety of mail consolidators in France (including subsidiaries of La Poste and DPWN that recently took over KOBA), and Mailland and Euromail in the Netherlands. The nature and magnitude of these models depend on the access conditions for the final delivery of mail and, for mail consolidation, on the level of price discrimination between small and large senders of mail. Favourable access conditions will in general delay the development of low cost delivery models, in particular if such access is possible at the time that no parallel delivery networks for addressed mail delivery have (yet) been developed. Although some value added will be lost for in potential substantial mail volumes, these models may be less threatening to the national postal operator (as final delivery is more likely retained) then the low cost models, depending on the anticipated impact of these low cost models on the market share of the national postal operator and revenues. The new entrants employing these business models will be both national and international companies that, in particular for the low cost models, have some sort of delivery network already and can establish such a network by involving a variety of existing companies. The likely national new entrants into addressed mail at the national level are publishers, un-addressed mailers and new postal operators targeting specific mail flows requiring limited investments and a small network. Express companies are not expected to enter into the addressed mail market with the possible exception of outbound cross border mail. The likely international new entrants are mainly the national postal operators that have adopted a pan-European or global strategy and operators that are pursuing a regional strategy. The former group of companies, most of all DPWN and TNT, will target countries with high mail volumes and countries and market segments with substantial unfulfilled demand. The strategy for the other smaller countries will be to engage in high end value added services. The latter group of companies will focus their attention on their neighbouring countries. It is further expected that these entrants are not interested into developing niche markets or local markets.

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