Austrian Post as a Sustainable Investment

In order to ensure successful strategic corporate management, it is essential to always critically question one’s own business model and adapt it if necessary. Austrian Post is operating in a market environment that is subject to constant dynamic change.
Digitalisation is the driving force behind the transformation of the postal and logistics market, a trend that is both a challenge and a considerable opportunity. The challenge lies in the ongoing trend towards e-substitution and the associated drop in the letter mail business. At the same time, the dramatic increase in e-commerce in recent years has driven growth in the parcel sector and continues to offer huge potential going forward. As a result of the pandemic, new groups within the population have made online shopping part of their day-to-day lives. Other overall conditions that have a relevant impact on Austrian Post’s business model include macroeconomic volatility and uncertainty, changes on the labour market and the convenience demanded by private and business customers. Sustainability has been a fundamentally important aspect for Austrian Post for many years now. The trend towards responsible behaviour is currently a top priority for a large number of players, a trend that has picked up considerable speed in recent years. This makes it absolutely crucial for Austrian Post, as a state-of-the-art postal company, to act sustainably in order to meet the expectations of its employees, customers and stakeholders alike. 
In order to take account of these overall conditions and at the same time make greater use of the opportunities and challenges arising in our corporate environment, Austrian Post’s previously implemented strategy was updated in 2020.

The strategy rests on three cornerstones that share a common core, with sustainability, diversity and customer orientation as the overarching guidelines: 

1. Defending Market Leadership and Profitability in the Core Business
   Austrian Post is the market leader in the domestic letter mail, direct mail and parcel business. Its business strategy is designed to enable the company to maintain this strong position and expand its leadership, particularly with respect to parcel delivery. In addition to ensuring profitability, Austrian Post keeps its focus on high-quality and sustainable services.
   
   
2. Profitable Growth in Near Markets
   In addition to its core business, Austrian Post is pursuing a growth strategy that focuses on nearby markets. The term “nearby” is to be understood both regionally and in terms of the business model. Growth opportunities that are classed as being nearby in geographical terms include the Southeast and Eastern European region, with a particular emphasis on the parcel business.
   
   
3. Development of Retail and Digital Offerings for Private Customers and SMEs
   Austrian Post is striving to use its nationwide branch network, along with its strength among private customers and SMEs, to expand and develop new physical and digital business models. Within the branch network, physical services are increasingly being digitalised or supplemented – examples include the self-service options mentioned earlier (sending and receiving postal services) or the crypto stamp. In addition, bank99 and shöpping.at are two significant business opportunities that underscore the approach we are pursuing in this area.