Subject area: Competitive Strategy, Corporate Level Strategy, International Business Strategy
Region: Ukraine
Industry: Courier, Postal
Company: Nova Poshta
Decision Maker: Oleksandr Bulba, CEO
Dilemma: Nova Poshta, a prominent Ukrainian postal and courier company offering “fast, easy, safe delivery services” to customers and businesses.
Nova Poshta was founded in 2001 by university friends Volodymyr Popereshnyuk and Vyacheslav Kimov. With just $7,000 in startup capital and a small team, they aimed to introduce convenient express delivery services to Ukrainians, overcoming initial public skepticism through persistence. A turning point occurred when the founders obtained Executive MBA degrees, which allowed them to take a more systematic approach to business management.
Faced with urgent strategic decisions, Nova Poshta’s leadership team, led by CEO Oleksandr Bulba, aimed to leverage the company’s delivery expertise to expand operations into European markets. After the crisis in 2022, many existing clients left Ukraine, and they were still longing for the exceptional service provided by Nova Poshta back then. It presented a great opportunity for Nova Poshta to reconnect with these previous clients abroad while building up its reputation in these new areas to expand the serviceable market size.
They needed to finalize an entry strategy that balanced serving displaced Ukrainians seeking continuity, with establishing sustainable foreign operations. Capitalizing on the 2022 refugee crisis sparked by conflict, an opportunity had opened for Nova Poshta to direct resources where customer demand and business potential converged.
Nova Poshta was evaluating multiple European nations as potential expansion targets, with Spain, France, Italy, Turkey, and the United Kingdom emerging as prime candidates. Spain offered a business-friendly climate aligned with Nova Poshta’s global vision, while France’s advanced infrastructure and position as a leading EU economy presented substantial opportunities. Italy’s well-developed logistics sector could provide a strategic foothold for regional operations.
Turkey’s geographical location as a bridge between Europe and Asia, combined with a dynamic economy, has made the country a preferred hub for logistics companies. The UK, though highly competitive, boasted a mature market ripe for Nova Poshta’s services. Prudently weighing factors such as operational sustainability, economic potential, and cultural affinity across these nations could strategically position Nova Poshta for its next chapter, securely serving Ukrainians abroad while evolving into a prominent regional provider.
Category: Competitive Strategy, Corporate Level Strategy, International Business Strategy