Corporate Governance

Norway Post’s markets are changing dramatically. To ensure continued profitability and protect our market position we must take an active role in this extensive and rapid transformation process. The most important features in this market development are:

Delayed liberalisation
The postal markets in Europe are still led by national postal companies, which are moving into new business areas and new markets, including those beyond their own borders. Competition is becoming fiercer. Certain countries have already removed existing monopolies, while the EU has set 2011 as the date for the liberalisation of postal markets.

Large, global enterprises and heightened competition
The liberalization of the postal markets, together with increased internationalisation and privatisation is leading to a Europe-wide restructuring and consolidation of the post and logistics sectors. State-owned postal services are being privatised. Large global enterprises are actively positioning themselves through expansion and the purchase of operators. Most recently, we have the news that Swedish Post and Danish Post are merging.

The Nordic region as one market
The Nordic region is increasingly perceived as one market. Large customers operate on a Nordic, European or global level, and seek communications and logistics solutions that cover the whole Nordic region. Large customers are getting larger and becoming increasingly Nordic or international. Competition for these large customers is getting fiercer.

Goods are produced in the cheapest location
The consequence of this increasing movement of goods is an increased import of goods, which in turn increases demands on transport and requires even more efficient logistics. International alliances are becoming increasingly important to cope with the volume of inward goods and their further distribution to end customers in the Nordic region and Norway.

Continued development of electronic alternatives
Simpler forms of communication by electronic means are increasing the total communication market dramatically. The customers’ needs with relation to postal services are changing. Reductions in the volume of addressed letters are still to be seen.

Business online
Online business has increased dramatically in recent years. More and more companies offer electronic methods in addition to traditional trade. Increasing efficiency and centralising of warehousing is leading to an expansion of the logistics market.

Climate
Throughout 2007, climate change and environmental issues about business practices have become key concerns, not least for letter customers. Customers want environmentally friendly alternatives and questions are being asked about whether the public’s need for frequency and speed is worth the environmental costs.

Growth, change and consolidation
Norway Post is engaged in three principle business areas - Post, Logistics and IT. A common feature for all three areas is that 2007 was marked by continued growth. Strong markets in Europe and the Nordic region, in combination with structural changes are driving market growth. Growth has been particularly strong within logistics, packages and IT.