Marta Bizan-Skinder

Bartosz Czajka
Martyna Gagat
Paweł Hałas
Magdalena Skiba
Mateusz Wiśniewski
BA3

BS Assignment

Poczta Polska(PP) - the enterprise with 450-years of tradition is one of the oldest institutions
in Poland. PP has more than 8400 postal outlets. At the end of 2009 , the company had almost
99.000 employees. It is the biggest postal operator on the market, not only in Poland but in
the whole Central Europe. The postal network is consisted of postal outlets, branches and
agencies. As National Operator, PP is the provider of the universal postal services in the
whole country. The main goal of the company is to satisfy the needs of citizens, local
government, authorities and all polish economic sector. PP offers the wide range of the
services, among them – direct marketing, courier activities, banking and insurance services,
retail’s sale, financial and logistic services and security and protection services.1
Business Strategy for years 2006-2009 in PP was set up on 31 of September 2005, cost
of analyses were 2.623.000 PLN.2 The main character of strategy was to protect incomes and
nothing was written about optimization and cost reduction. There wasn’t any long term
courses of actions set which describes company position on the market after postal market
liberalization. Also international co-operation wasn’t described, strategy didn’t include target
of organization structure, employment policy, services. Basically strategy had 33 initiatives
which were cut to 21 in November 2006. Almost 3 months after documents was set up new
general director assigned issues to managers by making them responsible for actions. In a
result after almost ¾ of period(2006-2009), which strategy was built nearly 50% of initiatives
didn’t reach the level of implementation. For 5 initiatives realization of schedule was done in
0-25% , for 5 in range 26%50%, for 4 – in range 51-75%, for 3 in range 76%-99%. The most
important initiative which was connected with optimization and managing effectiveness of
processes wasn’t started because of funds deficit. Realization of this strategy wasn’t possible
in the period 2006-2009, this lesson gives some clues to new strategy for years 2009 – 2015.
Strategy for IT management. There were many reports about functionality of Poczta
Polska, most of them were made by Supreme Chamber Of Control in Poland (NIK). One of
them present’s and reveals the level of IT technological progress. System infrastructure are
very old and implementation of new systems is very irregular. There were many reservations
for agreement even NIK reveals corruption mechanism in these areas.2
There isn’t any perspective in growth of selling, bad management from last years left
PP in very bad condition. There is still very high demand for postal services but PP is verry
low active in entering new products ( only prioritized mail and economic mail) . Postal market
is very stable in Poland so PP had to find some others categories, which can replace old
products. Going this way PP started to provide bank and insurance services via postal
branches. This way of expansion didn’t meet the expectation of incomes, bank generates
losses, insurance business has very low level of clients.3
PP adopt a strategy of new product development, and because of bad implementation
(described above) and no technological progress, problems with management at the highest
level these strategy put PP into troubles. During strategy implementation there wasn’t any
strong priorities which we can point without very deep analysis.
 During the period of 2006-2009 in Poland it has been very high development of
private postal services independent from PP. It is highly seen that they increase markets share
rapidly by lowering PP in these area. Competitors are faster, provide services with more
innovative way ex. “Paczkomaty” as well as “paczka aglomeracyjna”

Nonetheless, company’s recent market situation is relatively stable. Mostly, not

because of its activities, but due to privileged position it had been given as a national postal
services provider.
Polish legislation contains an act called Postal Law (Prawo Pocztowe), that gives PP
monopoly for over 75% of market share. That includes even a packages’ weight limits
reserved for PP services (ex. 47th article of Postal Law giving PP the monopoly for less-than-
50grams weight packages sending). Well known is the case regarding steel elements attached
to PP competitors’ shipped letters. Their services were much cheaper comparing to PP, in
spite of the fact that:
- postman could handle less letters once
- production of steel plates generates additional costs
- private postal services provider has to employ more people to attache those plates to
envelopes
- private services provider has to provide steel elements collection centers, to act eco-
friendly.
The law makes it hard for PP competitors to offer alternative services, and thus, to
oblige PP to start actual fight for its market position. That would cause prices decrease and
services quality increase straight away. However, due to EU legislation, Polish Postal Law
will be valid until 2013 only. This should change the situation instantly, causing not only
price war but service quality competition on new-found market.

PP declares that is prepared for open market competition and from 2001 on, has been
providing several restructure programs aimed mainly to reduce costs, lower the amount of
employees and number of its offices. 4 The problem is, that for PP cost reduction, amount of
employees and offices reduction is an actual aim, not the way to achieve the real one –
customer expectations’ awareness, best quality services providing and market competitiveness
achieving.
The approach is clearly noticeable when it comes to analyze PPs decision-making
policy. Now, according to company’s CEO, lots of not-profitable offices will have to be
closed. Instead, postal agencies will arise, with which PP will be invoiced on a commission
basis. Worldwide spread and positively tested franchising postal model was initially taken
under consideration, yet for now PP will use the model it already knows. Actually, he admits
to provide the restructure basing on already existing procedures. 5 No innovative solutions
implemented simply cannot result in an innovative approach.

In my opinion PP should invest more money in technological progress, faster client

consumer service and try to increase the potential of branches they have. Moreover marketing
strategy doesn’t meet the market strategy. Is there a difference in those two strategy? We can
see that market point at directions (ex. Insurance) , Marketing point at product which should
meet the customer expectations. Maybe PP should invest to build new image which is very
disadvantageous.

Obviously, PP has prepared the basis for open market entrance. It has transformed into
commercial company (joint-stock) and diversified its services. But without customer-oriented
mindset and market competitiveness its future is uncertain.
1
http://www.poczta-polska.pl/O_Firmie/AboutUs/ [2010.10.22]
2
http://snycerz.blox.pl/html [2010.10.22]
3
http://www.wnp.pl/artykuly/co-dalej-z-poczta-polska,5696.html [2010.10.22]
4
http://www.poczta-polska.pl/media_o_nas/pocztowcy_pojda_na_ostra_dietezielone_swiatlo_dla_rewolucji_14264.html
5
http://www.poczta-polska.pl/media_o_nas/pocztowcy_pojda_na_ostra_dietezielone_swiatlo_dla_rewolucji_14264.html

Other articles:

http://www.adamduda.pl/2009/12/09/absurdy-donosze-czyli-rzecz-o-poczcie-polskiej/
http://www.firma.egospodarka.pl/31525,Restrukturyzacja-Poczty-Polskiej-wg-KPP,1,11,1.html
http://www.firma.egospodarka.pl/34316,Poczta-Polska-15-tys-zwolnien-w-2009,1,11,1.html
http://gospodarka.dziennik.pl/news/artykuly/115309,poczta-zwolni-tysiace-pracownikow.html
http://wyborcza.pl/1,76842,386249.html
http://www.poczta-polska.pl/media_o_nas/poczta_polska_odzyskuje_klientow_14273.html