Competition knows no limits
Factors with a major impact on Itella’s strategy and business include the progress of digitisation, changes in consumers’ media behaviour, global competition alongside ecological and other corporate social responsibility requirements.
Development of the Internet as a social medium
The development of the Internet is driven by its nature as a social medium. For Itella, this means that in order to reach our customers on the Internet, we must find new ways of linking with web communities.
Social media is a challenge to commercial mass communication. Reliable and professionally edited online journalism is gaining ground, creating adaptation pressures for Itella’s paper-based delivery services.
Consumers expect multi-channel services and interactivity
The challenge for us is to build an electronic interface through which we can reach consumers as reliably and in the same large numbers as through paper-based services. Our consumer services offer freedom of choice for customers through the development of the traditional service network, telephone services and electronic channels side by side.
Globalisation removes limits to competition
Globalisation is increasing goods flows and lengthening logistics chains. Value chains are also changing in operational terms as contract manufacturing and reverse logistics, which are related to recycling, become more common. This is boosting the demand for comprehensive logistics solutions provided by Itella. For Itella, globalisation means intensifying competition in all service areas and geographical markets.
European postal markets to open up to competition in 2011
Under the new Postal Directive, all EU countries must open up their postal services to competition by 2011, unless they have already done so in a similar manner to Finland. Opening up the markets fully will involve delivery services for addressed letters weighing less than 50 grammes. For other postal items, bars to competition have already been eliminated.
In compliance with the new directive, the five-day delivery obligation applies to Itella only in Finland. Other competitors can, if they wish, deliver mail less frequently and focus on providing services for companies sending large volumes of mail in densely populated areas. Correspondingly, the financial basis of nationwide standard postal services would become considerably narrower, and regional pricing would be necessary in order to compensate for this. This would mean that companies would have to pay more for mail sent to sparsely populated areas than to cities. In Finland, legislators have not been in favour of regional pricing principles.
Corporate social responsibility essential for companies
Ecological issues are emerging as more important competitive assets. When making purchasing decisions, customers assess services and partners based on various criteria, including how they support their environmental objectives.
To fulfil these needs, Itella offers advanced logistics solutions that are based on increasing the efficiency of processes, optimising operations, digitising communications and information flows, and utilising new technology.
