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Explain What Impact Did Competitive Pressures Have On The Usps

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United States Postal Service (USPS) is the world's largest postal service and its dominance in the industry has been attributed to the increased need for communication between individuals and organizations. Productivity over the years increased as a result of the mechanization and rapid processing. To improve on productivity, the organization had to ensure that fast delivery of mails was attained in order to maintain the low rates that they charged their customers. In any industry, productivity is key to ensuring that the cost of doing business is kept fairly low and this was not exceptional for USPS. A population increase translates to increased need for communication among individuals and organizations and to protect this market from moving to alternative mail delivery services as result of convenience and cost, USPS adopted automation services that contributed to rapid processing and hence increased productivity.

What impact did competitive pressures have on the USPS? …show more content…

Electronic mail (e-mail) and automation begun taking a significant chunk of the USPS market and this had a significant effect on the organization's balance sheet. However, the bigger impact of competition came as a result of economic slowdown and increased competition from companies such as USPS and FedEx. The profitability of the mail delivery service brought in these and other companies and USPS experienced a slump in revenue generation. Due to a free market, competition was inevitable as a result of the large volumes that USPS was handling without a rival company. But once these companies joined the market, USPS experienced a slowdown in its volumes and this called for new strategies to counter its market takeover by UPS and

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