Privatisation of the Royal Mail

In fact the United States Postal Service (USPS) is a form of legalized monopoly, or natural monopoly (Ayers & Collinge, 1995). In order to make this point it is important to identify the definition of a natural monopoly, and that is when economies of scale are so large that one firm can supply the entire market at a lower average total cost (Hubbard & Obrien, 2017). While the surface of this definition may imply that the USPS is so big because they are exceptional at performing the task of delivering mail, the reality of the situation is derived from law, and 19th century law at that (Ayers & Collinge, 1995). The United States Government has made it illegal for any entity other than the USPS to be tasked with delivering the mail (Ayers & Collinge, 1995). Additionally, the USPS is becoming more and more outdated every passing minute with the advancements of technology (Gómez, 2018). This leads to a failing business model that is continually funded, all be it minimally, by the federal government (Gómez, 2018).

Q1. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors?

The Postal Service cannot continue to provide affordable, universal service to all areas of the country while maintaining mandated inflation-based prices without an increased ability to generate revenue and control costs. Therefore, bold changes to the business model are needed. All options – even those that have been dismissed in the past – need to be considered as part of the national discussion. In order to choose the best business model for the Postal Service, it is important first to establish the future role of the Postal Service and the mission the nation needs it to fill.

There are few remaining monopolies today. Apple and Wal-Mart are both world-renowned monopolies. Another monopoly is the United States Postal Service. The United States Postal Service is a natural monopoly in the delivery of first class mail, as 1970’s legislation prevents any other firms from delivering letter mail. The reason for this was to allow one firm to specialize in mail delivery; therefore being the most efficient way to ensure the rest of the country received their mail on time. After all, receiving mail in a timely manner is critical for society to function. Imagine if everyone received their bills and letters weeks late? However, the USPS has begun to face a dilemma in recent years, in that it is seeing a sharp decline in revenue. Critics have called for several methods to help the USPS cut its losses, one of which being privatization.

Most, if not all, Americans are familiar with the US Postal Service. After all, it is a service that has been around since the founding of the United States. It is widely agreed upon that the USPS has shaped the way that people have communicated over the years. Nevertheless, due to today’s ever-changing society, many Americans opt for online methods of communication rather than communicating via the postal service. This decline in the popularity of the USPS has led to a disagreement on what should be done, if anything, to counteract the decline in revenue.

Another growing idea is the privatization of USPS and the removal of its monopoly on mail delivery. It seems the ultimate goal of this would be alleviating the government’s hold on the Post Office altogether, therefore reduce any burden that it has. Perhaps it would also allow the Post Office to expand its services in order to meet the growing needs of consumers and adapt to the

Royal Mail is the major postal service provider in the UK and it is always a good idea to check price on their website first before going for others as their prices are usually more competitive.

Each year the tax paying Americans compensate for faulty government programs. Somewhat recently, free-market solutions revolutionized communications and delivery industries. With the rise of the internet and private transport companies, traditional mail became known as a slow and uncertain platform for delivering messages and packages. Because the Postal Service cannot become repealed, actions must take place to consolidate its profitability crisis.

Not only is the USPS delivering less and less mail each year thanks to the internet, the business is also spending too much on gas due to gas prices steadily going up. When each postal truck has to visit several neighborhoods, using about a tank of gas every other day, the cost of transportation starts to outweigh the actual profit being made. McDevitt supports such a statement by saying, “It’s [the USPS] being pummeled by the high fuel costs.” In a nation where people are becoming more and more concerned about the environment, such a high use of gas is even more of a problem. Also, the junk mail received is troublesome and often times annoying, which is incredibly frustrating since there is no way to stop it from getting into the mailbox. So much money is being spent on the transporting of useless mail to millions of people who would rather not be receiving it, and there is no way to profit from the. If it wasn’t already believable enough, numbers speak louder than words, and the numbers provided by the USPS exemplify just how real the loss of the company is (Source B). Since 2000, the number of pieces being transported to mailboxes around America has decreased by more than 40 billion pieces. With such a loss in business comes a decrease in the overall revenue for the company. So, it is surprising that there have been barely any changes to the way that the USPS is catering to the new society that it is supposed to be servicing. If the USPS would like to start making a profit yet again, the business needs to consider taking a step into the digital world along with reducing their

The United States Postal Service is one of the nations most thriving companies. It has over 600,000+ employees and is the second largest civilian employer in the United States. (DeHaven, 2010). While it is one of the countries most thriving businesses it is not void of faults. To prevent the employees from being mistreated, most post office branches create unions. The unions not only protect those who take advantage of the membership but the other employees of the United States Postal Service (USPS) as well. This paper maps out the many benefits to being in the American

Royal Mail currently employs 137,400 people, operating out of 50 mail sortation centres, 8 regional distribution centres and 1,356 delivery offices (Jones, 2013). The technological advances and increased competition makes it important

declining due to e-diversion  Advertising mail is subject to more substitution options  Mail volume highly sensitive to economic changes  Mail mix changes – lost profit contributions These trends will continue to put pressure on USPS’s ability to provide affordable universal service

The USPS is at a point where it does not have the financing available to maintain its operations. One reason for the annual net losses is due to the declining rate of first-class mail. The second reason has to do with the required prepayment of $5.5 billion per year toward retirees’ healthcare costs. In order for the USPS to overcome this deficit, they will need to consider their short time frame, government restrictions and labor union backfire in considering the best alternative. One alternative would be to privatize postal services operations which would allow the USPS to change its pricing structure, yet it would potentially significantly reduce market share. A second alternative would be to undergo a system-wide

The express mail industry can easily be considered an inherently tough industry to operate within given the myriad of factors that come into play, such as unions, government regulations, cost of technological advancement, and international borders to name a few. Despite this, the industry could be seen as offering opportunities, which could be seized by attracting customers based on the quality of the service being offered. Consequently, this also encouraged mimicking between

Team B has decided to do our paper on the United States Postal Service. The reason for this is that this service utilizes each of the functions such as globalization, the newest technology, the best innovations, and diversity and ethics combined all in one great service we each use on a daily basis in one way or another. During the reading of this paper, one will find that the following has been researched and discussed: the explanation of the four functions of management, also how the following factors affect the four functions of management: Globalization, Technology, Innovation, Diversity, and Ethics. As we look at these factors, we will learn how the Postal Service gets the mail from point