BA401 Case 3-5 Pitney Bowes Inc


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  • The data above clearly shows PBI's dominance in the postage-meter market - its 2007 revenues were more than 4.5 times those of its nearest competitor.
  • The data shows that PBI is still a newcomer to the document services market, but it showed higher growth than most of its competitors in 2007
  • จะเห็นได้ว่าในปี xx ที่อเมริกาประสบภาวะวิกฤตทางการเงิน หุ้นของ PBI ได้ตกต่ำลงมามากกว่าหุ้นตัวอื่นๆที่เฉลี่ยในดัชนี S&P500
  • อีก 5 ปี คงล้มละลายแล้วน้อง
  • กะไว้ 4 ข้อคิดไม่ออก เดี๋ยวเพิ่มทีหลัง
  • BA401 Case 3-5 Pitney Bowes Inc

    1. 1. Pitney Bowes Inc. Case III-5
    2. 2. Company Background <ul><li>$4.1 billion global provider of integrated mail and document management solutions. </li></ul><ul><li>Founded on ,1920 By Arthur Pitney & Walter Bowes. </li></ul><ul><li>Headquarters at Stamford, Connecticut, U.S. </li></ul><ul><li>Global team of more than 35,000 employees </li></ul><ul><li>Presence in more than 130 countries worldwide </li></ul><ul><li>More than 2 million customers </li></ul>
    3. 3. Milestone Year Achievement 1902 Arthur Pitney patented his first &quot;double-locking&quot; hand-cranked postage-stamping machine, and, with patent attorney Eugene A. Rummler, founded the Pitney Postal Machine Company. 1917 Bowes moved his operations to Stamford. 1950 The company was listed on the New York Stock Exchange.
    4. 4. Milestone (2) Year Achievement 1957 Pitney Bowes was named to the S&P 500 1962 Pitney Bowes was joined the Fortune 500. 1976 The Pitney Bowes Credit Corporation was formed, providing customers with financing and payment solutions. 1980s The firm expanded, offering copy machines and facsimile machines, a suite of management services and entering new markets, such as Japan.
    5. 5. Year Achievement 1990s Pitney Bowes continued to innovate in the field of digital technologies and software, introducing the AddressRight address & barcode printer (1991), the first in-line weighing and metering system (1992), the first secure digital postage meter (1995), the first ink jet postage meter (1996) and the Digital Document Deliver (D3) platform (1998) which provides message management via hard copy, web, email and fax. 2000 -2007 Pitney Bowes invested $2.5 billion in 83 acquisitions, primarily in software and services businesses including MapInfo, Group 1 Software, PSI Group and Imagitas. The company is known as an industry advocate, and has focused in recent years on advancing postal reform, the USPS Intelligent Mail barcode, transpromo and environmental sustainability.
    6. 6. What They Do?
    7. 7. Revenue (USD in millions) 2007 2006 % change US Mailing 2346 2350 0 International Mailing 1070 1013 6 Production Mail 603 575 5 Software 346 203 71 Mailstream Solutions subtotal 4365 4141 5 Management Services 1135 1074 6 Mail Services 459 370 24 Marketing Services 171 145 18 Mailstream Services subtotal 1765 1589 11 Total 6130 5730 7
    8. 8. Case Study: Australian Defense Organization <ul><li>Defense Business Support was responsible for receiving and sorting all external-bound mail from around the ACT and Southern NSW, then dispatching this mail to an external supplier to be processed. This ‘double handling’ approach was inefficient, expensive, cumbersome and time-consuming, and offered little transparency when it came to costs. </li></ul><ul><li>Solution : Pitney Bowes solutions help Australian Defense Organization takes command of its mail by installing a DM1000, one of the DM Series Postage Meters, capable of processing up to 260 letters per minute. The DM1000 also comes with ‘Weigh-On-The-Way’ technology that automatically processes large letters without the need to weigh each one individually. </li></ul>
    9. 9. Case Study: Owlett-Jaton <ul><li>Owlett-Jaton is the UK’s largest stockist of fasteners, fixings, ironmongery and hardware supplying the distributor and merchant trade. </li></ul><ul><li>The weekly processing of over 4000 invoices is key to the efficient running of the business but with an out-dated printer and no inserting system, the task was putting unnecessary pressure on the post room team. </li></ul><ul><li>Solution : Pitney Bowes helps Owlett-Jaton implement end-to-end mailing solution by a FastPac DI500 inserting system cut the time spent sending out invoices from three hours a day down to two morning sessions a week, a time saving of nine hours. </li></ul>
    10. 10. Case Study: Birmingham University <ul><li>The University of Birmingham’s Post Room handles enough mail every day to fill two Royal Mail vans, which it then delivers to the University’s 27,000 students, 6,000 staff and 200 departments. With such large deliveries comes the added issue of around 100 high priority packages, which must be signed and accounted for every day. </li></ul><ul><li>Solution : Pitney Bowes integrated its automated inbound mail processing and tracking system - Arrival® Arrival’s ability to provide data logs and track individual items mean any queries can be quickly resolved and missing items found. Avoiding the need to search various delivery books and leaving staff free to complete daily or additional tasks. </li></ul>
    11. 11. Financial Services Challenge Solution PBBI Products Used Meet growing regulatory requirements while keeping costs down Implement solutions that meet multiple regulations while providing operational cost reduction benefiting a variety of departments. Mail360™ Determine the optimal branch distribution network; Establish achievable branch sales goals Utilize predictive analytics to optimize the branch network strategy and maximize performance goals WinSITE™ Perform™ Understand who your customers are and reduce excess costs Get a complete customer profile by analyzing and merging records to understand customer needs and reduce excess/duplication costs Data Flow™ Reduce operational costs of printing and mailing customer communications while improving the customer experience Aggregate several messages into a combined customer communication; deliver messages based on customers preference DOC1®
    12. 12. Competitors in Postage-meter Market Company 2007 Revenue (USD in millions) % Revenue Growth Since 2006 Pitney Bowes Inc. 6130 7.0% Neopost 1324 2.4% Francotyp Postalia 212 1.5% Data-Pac N/A N/A Hasler Inc. N/A N/A
    13. 13. Competitors in Document Services Market Company 2007 Revenues (USD in millions) % Revenue Growth Since 2006 Xerox (XRX) 17228 8.3% IKON Office Solutions (IKN) 4168 (1.4%) Iron Mountain (IRM) 2730 16.2% Pitney Bowes Inc. 2714 14.7% Bowne (BNE) 851 2.0%
    14. 14. Market Stock Price ราคาปัจจุบัน (16/11/09) $25.02 ต่อหุ้น จ่ายปันผลครั้งสุดท้ายเมื่อ 12/08/09 $0.36 ต่อหุ้น
    15. 15. Compare Market Price and S&P 500
    16. 16. Balance Sheet
    17. 18. Analyst from Balance Sheet <ul><li>Assets < Liabilities และ Equity มีค่าเป็นลบ </li></ul><ul><ul><li>การที่บริษัทมี Equity เป็นลบ หมายถึงบริษัทไม่มีมู , ค่าในส่วนของเจ้าของเลยแกยังมีค่าติดลบ ซึ่งสาเหตุน่าจะมาจากมีการซื้อหุ้นคืนกลับเข้าบริษัท (Treasury Stock) เพื่อพยุงราคาหุ้นที่ตกต่ำลงในปี 2008-2009 </li></ul></ul><ul><ul><li>Assets < Liabilities หมายถึง บริษัทนี้มีมูลค่าของสินทรัพย์น้อยกว่า มูลค่าหนี้สินทั้งหมดที่บริษัทมี </li></ul></ul>
    18. 19. Decision Making (1) <ul><li>Would it have made a difference if more of Jim people had moved with the product to the engineering team? </li></ul><ul><li>Did the compromises the company made in product features help or hurt the product’s potential? </li></ul><ul><li>What should AC&T have done to safeguard the most critical value propositions of the product? </li></ul>
    19. 20. Decision Making (2) <ul><li>What did Jim’s team need to understand better about the business in order to help made the right trade-offs? </li></ul><ul><li>Would the sales ramp of Stamp Expression TM s be affected by’s earlier entry with a customized stamp product? </li></ul><ul><li>What sort of governance process made sence for AC&T if the doctrine of innovating close to the core was true </li></ul>
    20. 21. Decision Making (3) <ul><li>Should it innovate very close to the existing businesses or explore ideas that would “push the envelope” at Piney Bowes? </li></ul>
    21. 22. Scenario in Short Term Scenario Impact Solution 1. การส่งข้อมูลเอกสารหรือเรียกเก็บค่าชำระส่วนใหญ่เป็นเป็นการส่งข้อมูลอิเล็กทรอนนิค การใช้บริการระบบ Mailing System ของบริษัทจะลดลง ทำให้บริษัทสูญเสียรายได้ที่เคยได้รับ บริษัทต้องทำการเปลี่ยนตัวให้เข้ากันเทคโนโลยีที่เปลี่ยนไปโดยเปลี่ยนจากการจัดการจดหมายและเอกสารเป็นระบบการจัดการข้อมูลอิเล็กทรอนนิคส์ (IS) หรือให้ความสำคัญกับการพัฒนา Software ให้มากกว่าเดิม
    22. 23. Scenario in Short Term Scenario Impact Solution 2. สภาพ Balance Sheet ของบริษัทยังมีสินทรัพย์น้อยกว่าหนี้สินอยู่ จะทำให้ผู้ลงทุนขาดความเชื่อมั่นที่จะลงทุนกับบริษัทและราคาหุ้นก็จะตกลงกว่าเดิม บริษัทต้องสร้างความมั่นคงให้บริษัทโดยเพิ่มสัดส่วนของสินทรัพย์ต่อหนี้สินขึ้น พยายามลดหนี้สินจำนวนมากของบริษัทลง และยกเลิกนโยบายการซื้อหุ้นคืน
    23. 24. Reference <ul><li>Robert A. Burgelman.“Strategic Management of Technology and Innovation”. 5/e P878-889. </li></ul><ul><li>กรณีศึกษา – Pitney Bowes Thailand 17/11/2009 </li></ul><ul><li>พิทนี่ย์ โบว ประเทศไทย – Pitney Bowes Thailand 17/11/2009 </li></ul><ul><li>Pitney Bowes - Wikipedia, the free encyclopedia </li></ul><ul><li>Yahoo! Finance </li></ul><ul><li> </li></ul><ul><li> </li></ul>
    24. 25. Q&A