Industry Analysis Case Study

US Postal Service: Threats and Challenges

OR

Abstract:
By 2004, the United States Postal Service (USPS) had established a network of 37,000 post offices across the nation. Through various cost cutting initiatives and supply chain improvements, USPS reduced its debt from $11.3 billion (in 2001) to $1.8 billion in 2004. However, with increasing usage of the Internet for personal and business correspondences, the first class mail service, which represents more than half of the USPS revenues, has been declining. Besides, increasing competition from private courier companies accompanied by a potential workforce crisis and rise in expenses has forced USPS to reduce its costs even further by adopting the latest technologies to provide faster and more cost efficient services.

Pedagogical Objectives:

• To highlight the challenges faced by USPS to survive and retain its market share.

Keywords : Postal Service in US; Automation techniques in postal service; Customer Services at USPS (US Postal Service); On-line postal services; First class mail; Automated postal centres; Cost control measures at USPS; Federal Express; Workforce crisis at USPS; Managing in Troubled Times Case Study; Threats from the Internet; Bureaucracy in US government; US Postal Reorganisation Act of 1970