7/30/2019 Competing in the shadow of a giant

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By 

Raghav 

 Srikar 

 Sweatcha

 Suman Sangeetha

 Shruthi

 Muttukumari

 Nagendra kishore 

7/30/2019 Competing in the shadow of a giant

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Michael Allocca the president of Ascom Hasler mailingsystems & corporation

It is positioned at no. 3 in the U.S market

Its competitors are Pitney Bowes, Neopost, Francotyp-Postalia

Struggling to improve its position in the wake of technological, market and regulatory changes

Core business of the company is telecommunications

Various other services are:

1. Carrier access2. PBX

3. Paging

4. Defense & security systems

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Arthur Pitney and Walter Bowes invented the postage meter in1920

It is a mechanical device which provides secure storing of fundinformation, dispensing of postage and printing of indicion

envelopes It’s a replacement for postage stamps in higher volume mail

applications

PB is a largest company with market share of 85%

Its 3000 patents are acting as entry barriers for othercompetitors

Each year USPS delivers over 100 billion pieces of mailthrough 38000 post offices to over 130 million delivery points

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 Pitney Bowes World Leader in Manufacture and sales of mailingequipment.

In 1998 had total revenue that exceeds $4.2 billion.

Revenue from sales and financing of mailing equipment.

Related supplies and services and postage meters exceeds $2.7billion

PB number one in office Equipment Industry Group for net operatingprofit

It offers the most compressive product Line including postage Meter

Machines, letter folder, inserters, openers, addressing machines andpc based mailing and shipping system

No 1 in office equipment

85 % US market share

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Ascom A.G (Ascom) . a $ 52 billion corporation

headquarted in Bern, Switzerland

IT Focuses two – third of its business in the

telecommunication in the areas of carrier access.PBX,paging,defences,securithy systeam and terminals.

The Remaining third of its business is in an area is cause

“Services Automation” Which includes .Cash handling

systems,Payphone system,Transport review system,andmailing System.

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Neopost based in Paris ,france

It is highly technological based company

It is the first company to launched electronic postage meter.

Products

Letter holders

Inserters

OEM ing PC-based mail/shipping mgt system

Internet Based postage

Neopost distribute it’s product through 22 direct fieldoffices in major markets

It has 150 independent dealers

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FRANCOTYP-POSTALIA (fp) . It entered the US Market in 1961

It markets its mailling products in 86 countries.

FP had taken initiative to built a new modem

manufacturing facilities in east Berlin. It launched an extensive new product effort.

FP was the first manufacturing to introduce postage meter

named “Conquest”

FP entered into strategic partnership with E-stamp.

It has two direct sales offices in the US.

It uses the third party to lease its product

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Postage meters were initially mechanical devices which used motorto drive a rotary drum

Electronics and availability of microprocessors in1970’s brought inkey advancements in usage of postage meters which included input,display, calculation and control

Mailing machines are used for feeding, ceiling and stacking of mailat various speeds

Other peripheral products included

1. Postal scales

2. Folders

3. Inserters4. Mail openers

5. PC based mail management systems

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Despite huge increase in mail volume there was no change from 100yrs.

In 1969 a self supporting postal corporation came into existence that

is USPS (United States Postal Services)

In 1993 Marvin Runyon brought in changes which had drasticimpact on the postage meter industry

Changes by USPS (Decertification Schedule)

1. Placement of new mechanical meters will no longer be allowed

2. Use of mechanical meters for processing mail would have to be

removed from service

3. Mechanical meters which can automatically feed, seel and stack 

mail would have to be removed from service

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USPS regulatory first was a barrier but now encouraged new

entrants and technology

2 new players providing alternatives to postage stamps

E- stamp received financing from Microsoft, AT & T and

Compaq

Stamps.com charge 10% for postage while traditional

companies charge 18-25%

There business partners include Intel and AOL

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Increase investment in new product development,

manufacturing, marketing and total restructuring of 

organizations worldwide

Partnership with competitors or USPS

Usage of funds from the postage business for a new venture

Ascom divest from mailing business and concentrate on

telecom business

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