Postal Service Case Study

Mail had made its first official appearance in the early 1600s, where it was introduced within the American colonies. It began to revolutionize the way human beings would communicate the future, making it much more accessible to relay messages to their family and peers. The Mailing service expanded its power throughout the country, thus creating gateways for humans to connect and reach their peers. The largest mailing company, known as the United States Postal Service, took over the mailing industry and became the largest and most powerful mailing company in America. In recent years, however, the United States Postal Services began to fall economically due to the fact that it was a monopoly. Being a Monopoly meant they were untouchable; unable …show more content…
This would help the federal government avoid losing any more money. Many of its USPS-managed retail offices, career employees, non-career employees and vehicles would be axed after privatization (McIntyre para 3). Due to the amount of workers the USPS had, it became necessary to cut many off through attrition. 150,000 Postal Service workers were offered early retirement, desperately trying to reduce its workforce (Yang para 7). As USPS workers begin to approach their retirement ages, they were being presented with early retirement freedoms in order for the Postal Service to save money. This means the company would save more money because they would not have to pay as many employees and resources. Delivery days would be cut short to 5 days a week, withholding money, which would be spent on delivery trucks going out on Saturdays. If congress changes the law, private companies could compete with the postal office. Competition would bring down the prices of the mail services, forcing the postal service to become more responsive to customers, and their demands if the USPS wish to survive in the new world (Feulner para 6,7). If they do not adjust to customers desires and needs, the USPS will only continue to lose more money. The USPS would also have to stop wasting money. Labor agreements mandate that employees have a guaranteed amount of work hours, meaning that on periods of …show more content…
Many countries who struggled due to monopolization had postal reforms and became private companies. In an article written by Roger Yu, he states, “Currently, the Postal Service can't raises stamp prices of traditional mail and marketing mail -- packages don't apply here -- beyond the rate of inflation. The cap is "fundamentally unsuited" to the current business environment given competitive challenges”. If the company decided to privatize, they would be able to set their own prices on stamps, but the “cap” is denying them the ability to raise their prices above inflation. In 1994, the national postal company in the Netherlands partly privatized. After control transferred in 1995 to the private sector, the company soon merged into a worldwide delivery company known as TNT. Netherlands opened postal markets to competition in 2009 (Edwards para 12). Across the world, the costs at the New Zealand Post were cut in the 1980s, putting the company into corporate forn. The country repealed its postal monopoly in a series of laws during the 1980s and 1990s (Edwards para 13). Privatization has proven to be a very effective solution to many companies within other countries who were having a harsh time dealing with financial setbacks. Germany's Deutsche Post, who runs the a group known as DHL, is now the world's largest logistics group (Yang para 8). They had first privatized in 2000, and ever since then they have been