USPS Blue Ocean Busniss Plan
USPS Blue Ocean Business Plan
The United States Postal Service has been around for decades, influencing the American people’s lives in many ways, most notably via the delivery of important parcels as well as mails. However, in the recent past, the USPS has faced significant challenges in the mail delivery services. The digital era emerged, making the writing and sending of mails obsolete. While some people still do write mails, the writing is so little that the United States Postal Corporation, or any other institution for that matter, cannot make significant income from the business. Before the 1970s, the United States Postal Corporation ruled the mail and parcel delivery services. However, in the 1970s, new entrants into the parcel and small package delivery that competed directly with the USPS in some of its services dealt a significant blow to the company. Within a few years, the competitors grew and overtook the United States Postal services in the delivery of packages and the company has never recovered since (Hill, 2012). However, the USPS has always remained competitive in the delivery of packages and mails. In the last ten years, however, the USPS has faced a significant drop in its profit margins due to the drop in demand of their most profitable venture, priority mails, and first class mails.
With the significant drop in the business unit that kept the business afloat, the USPS has been operating in losses for years.
Wait! USPS Blue Ocean Busniss Plan paper is just an example!
The efficiency of operations within the present business model is not in question. In fact, the USPS has been consistently been identified among the most efficiently run institutions in the United States. In spite of this fact, the institution has been running into debts in recent years. Clearly, the institution needs a major renovation and a long-term strategic plan that can pull it out of the quagmire it is currently embroiled in and push it forward (Crew & Kleindorfer, 2012a). This paper seeks to identify the long-term strategies that USPS should consider to revive its institutions and prevent the imminent danger of closure that it faces shortly. Congress has always come to the rescue of the institutions because of the major role it plays in a majority of American people’s lives. Furthermore, the institution offers the cheapest delivery services for the American population compared to the privately owned delivery companies operating in the United States.
It is often said that ‘if you cannot beat them, then join them.’ Looking at the situation in which the USPS finds itself in, the saying cannot make more sense. The internet, fundamentally, has thrown the USPS out of business. The Internet and its numerous capabilities and avenues rendered writing of letters obsolete. However, the internet may very well be the best way forward for the USPS moving forward. All businesses have joined the online buzz in order not to be left behind. Joining the internet is not an exercise in futility, however, as many businesses have been able to maximize their business potential with shrewd moves and taking advantage that the online platform has availed them. It is not just the mail delivery business that has been endangered by the Internet revolution, all businesses have, some more than others. E-commerce is the answer to push the USPS forward. With E-commerce controlling a vast majority of shopping globally, more people are turning to online businesses to make purchases. E-commerce has its advantages. Many businesses have already embraced E-commerce while some E-commerce ventures are slowly creating business empires from scratch (Colla & Lapoule, 2012). However, all these businesses are long-distance businesses and need to make delivery of the shopped items once the items have been bought. Specifically, this is where the USPS comes in.
While the businesses grow and their e-commerce presence grows and expands, the delivery of packages to global destinations greatly hampers the growth of some of these businesses. Some of the main online businesses include Amazon and Ebay. A majority of these businesses have subcontracted the USPS in their delivery of items to their customers. While some companies are trying to create their delivery and distribution channels, the process of distributing requires heavy investment and years to develop. However, companies such the USPS already has such distribution networks in place (Vidyarthi, Tyagi & Jayaswal, 2013). They already have the delivery vans, delivery staff, as well as the trust of most Americans, as far as the delivery of packages is concerned. Many companies, competitors to the USPS, already offer delivery services to the E-commerce sites. However, none of the competitors can claim superiority in the package delivery business. All of the competitors are chasing the opportunities that E-commerce offers. Its tremendous growth potential means that they promise the delivery firms with an area of growth as well. If the USPS takes advantage of the growth potential that E-commerce promises, then the opportunity to revive its business still exists.The E-commerce concept is quite similar to the service delivery system that the USPS has been offering to the American population for years. The E-commerce concept is different from the USPS due to its modern approach, but the basic modalities are very similar. After the initial business deal, the rest of the business transaction is a replica model of the USPS model of operations. The packages of sold items need to be delivered to different parts of the world or country, depending on the geographical location and abilities of the E-commerce business. The cataloging of the items, the need for either air transport, ground transport, is determined by the geographical location that the E-commerce company promises. Luckily, the USPS has specialized in the delivery of the items across the United States and beyond the United Stats borders. After all, most of the vans lie idle during evening hours, getting them to do overnight deliveries can help in boosting the profit margins. Most of USPS top competitors in the delivery business, for instance, FedEx is already on contract with some of the E-commerce businesses to provide the shipping services. The USPS’ excellent delivery network across the country and beyond the border puts the institution in a unique place, with an opportunity to take advantage of the huge growth potential that E-commerce business promises (Borsenberger, Cremer, De Donder & Joram, 2015).
However, the USPS faces a stiff challenge of competing with its traditional enemies in the form of DHL, UPS, and the FedEx express companies. These companies have grown over the years and have built excellent networks across the world. DHL, for instance, is the largest global delivery company in terms of revenue. FedEx and UPS are second and third respectively. Both FedEx and UPS are the leaders in the US market, especially in the delivery of small packages (Crew & Kleindorfer, 2012b). Their lead in the delivery business naturally gives them an edge when getting contracts for delivery of goods for the E-commerce sites. However, the delivery business for E-commerce business is yet to be monopolized by any of these firms and is pretty much up for grabs, and the USPS can gain much ground with respect to these deliveries. The USPS only needs to establish a niche within the E-commerce business and specialize in it. After finding a foothold on the E-commerce business via the niche, then the company can grow to include other deliveries as well. The USPS also faces another major challenge in the form of overnight deliveries. Traditionally, the competition in the form of UPS, the FedEx Express gained much traction in the delivery business due to guarantees of next day deliveries. The firms were able to convince the public of their reliability and ability to deliver packages within short periods of time. The notion still exists that USPS’s competitors are better in respect to overnight deliveries.
New Vision and Mission statements for the United States Postal Corporation (USPS)
“The postal service shall have its basic function the obligation to provide postal and commercial package delivery services to bind the Nation through personal, commercial, literary, educational, and enable faster business correspondence. It shall provide reliable services that are prompt and efficient to patrons in all areas and shall render postal and commercial package delivery services to all communities within the United States and beyond.”
The new space USPS will be competing in and what USPS needs to be aware of
The USPS, in its quest to join the delivery of small packages on behalf of E-commerce sites, it needs to be aware of the massive challenges that it will face in the business. The ability to grow and to gain wide customer bases will be determined by competitive pricing, as well as the efficiency of operations (Crew & Kleindorfer, 2013). To prevent the company from being left behind by the large private corporations such as UPS and FedEx, it will need to compete at par from the very beginning. Massive challenges await the institution.
First, the E-commerce business not only wants flexible schedules, but it also demands faster deliveries for some goods. The United States Postal Corporation has not traditionally been known for overnight or next-day deliveries. These two niches were largely monopolized by its competitors. However, next-day deliveries were possible with first-class mails. Mails, as opposed to small packages need less space and are, therefore, easier to transport. Finding cargo space for such goods never presented USPS with real problems in their deliveries. However, small packages take quite an amount of space, especially when the number of packages is high. Additionally, the deliveries belong to a company whose reputation is at stake in case of any mishaps in the delivery process or unnecessary delays. The USPS needs to ensure that its distribution network works efficiently to attract more companies contracting its services.
Secondly, the E-commerce businesses are a modern business system that relies on technology and will probably have the latest technology in their systems. The latest technology will include the ability to track order progress, including where the package is while in transit. Therefore, the United States Postal Services delivery trucks will have to be installed wit GPS trackers to inform the business of the whereabouts of the package while still in transit. The tracking system will have to relay the information back to the E-commerce business undertaking the business transactions. Having such a complex system will demand a few changes within the USPS’ current system. The IT department will have to invest in the latest gadgets to enable such a system to run. The USPS will also have to hire technology experts who will continually evaluate the system for any errors or inconsistencies. The company will invest in the latest software systems that can ensure that the package information, as well as the transit process information, are relayed back to the companies securely. The safe transit of the data will enhance the company’s reliability.
Hacking of computer systems and network penetration, which includes eavesdropping, is the order of the 21st century. Having a computer system in place introduces new challenges to the organization. These challenges are not traditionally associated with the delivery process and, therefore, will prove to be a determining factor in the evaluation of the USPS’ ability to offer delivery services in the 21st century. Hacking may be used by competitors to destroy the company’s reputation. Therefore, the USPS needs to be aware of these challenges. To avoid the hacking and obtaining of confidential personal information such as personal home addresses of clients, the USPS can device system that will see the transportation process being carried out without much information on the delivery trucks. The coded information can then be securely sent to the delivery destinations where the vans will report to before they can make the delivery to the home address. The USPS will also have to invest in modern gadgets that will include bar code readers to ease the package identification process. Easing the package identification process has the added advantage of ensuring that the delivery process is faster and the delivery period is significantly reduced, especially for large orders.
Thirdly, the USPS is entering into a business space with new challenges that it has not traditionally been facing. These challenges will include delivery of items of sizes that the company has not been delivering in the past. Since its inception, the main business operations have depended on mails, and parcels, as well as small packages. Rarely has the USPS been used in the transit of bulky items. In the E-commerce business deal, bulky items, which will include electronic items and other sensitive items such as chemicals will need transportation. The change in the delivery items will need a corresponding change within the USPS’ internal operations. The delivery vans will need to be redesigned to enable the delivery of different kinds of items. It will require the company to invest in the refrigeration equipment to enable transportation and delivery of some packages. The company may also have to invest in new delivery vans and aircrafts that have the capacity to hold such packages without introducing risks of destruction of packages while still in transit.
Consumer research is also necessary before the USPS can claim to have the necessary know-how and the wherewithal to handle the new challenges that it will face with diversification into the new territory. Consumer research can yield information regarding consumer preferences regarding the items they purchase online, the way they like the items delivered and the kind of goods that the company can specialize in delivering. Recently, the USPS conducted an experiment in which it conducted a product survey exercise into a possible delivery niche, the transportation and delivery of groceries for customers. The experiment was carried out in San Fransisco with contract services for Amazon deliveries. The new delivery niche by the largest and most widely recognized delivery organization in the United States caused a buzz within the general public in America. Others criticized the operation while others welcomed the idea of groceries being delivered to one’s doorstep. The company did not reveal the profitability of the experiment at the end of the exercise, but the niche is certainly worth exploring. Presently, the USPS does not have competitors in the new niche, but will expect to have some in case the business venture turns profitable. Therefore, the USPS has a unique opportunity to invest in the possible new niche, develop reliable systems that will ensure deliveries with minimal problems. By the time the competitors realize the profitability of the new venture, the USPS will have already established a rapport with the customers. Pioneering into a possible new venture will allow the organization to dictate the terms of engagement and shape the delivery of groceries.
External environment factors
Unlike the internal business environment that a firm has complete control over, the external environment presents challenges to organizations that may destabilize its functions and operations. A firm cannot afford to ignore the external environment. Ignoring the external environment can very well spell the end of the business. In this case, the USPS’s external business environment factors will include the delivery service industry, its competitors, the legal and ethical challenges, the political environment, the economic environment, as well as technology advancements.
The delivery industry is fast changing with the introduction of new methods to enhance the delivery process. Bigger planes have been introduced into the air travel business, and it is now possible to carry bigger sizes of cargo. Essentially, it means that it is now possible for new entrants to join the delivery business without having much capital to invest in private planes. Airline companies are always introducing new routes to new destinations all the time. It is becoming possible to connect to many areas. The expansion of the airline industry and manufacture of bigger airlines introduces new possibilities for the USPS to expand its global network and take advantage of new locations. However, the new opportunities are not without their challenges. The new entrants will pose a challenge to the expansion possibilities by the USPS. Constant air travel and routes mean that the global delivery opportunities are open to possible entrants into the lucrative industry. The manufacture of larger planes with more cargo space means that the booking and purchase of cargo space are likely to be cheaper. For an organization with the magnitude of USPS, the new possibilities should excite the management and urgent steps taken to take advantage of the scenario.
Stakeholders, their primary concerns and how the company should work towards managing them
The USPS has some stakeholders with vested interests on how the organization is being run. That is probably the reason the news of a possible insolvency caused such a huge uproar within the United States. The stakeholders range from the government, the American population, private companies, government entities, as well as company employees. All of these parties have a vested interest in the company, and all decisions regarding the future of the company have to be made with these parties in mind.
The government is among the main players around which the perpetuity of the organization lies. The government, through Congress, has protected the USPS for years. Otherwise, the USPS would have been closed a long time ago. Through legislative action, the government gave exclusive rights to the USPS to deliver mails to residential homes and through the ‘US MAIL.’ This piece of legislation had a huge effect in enabling the USPS to survive in a market in which stiff competition would have thrown it out of business. Since the 1970s, when the USPS’s top competitors joined the market, price cuts and other forms of competition had characterized the market with some smaller players being thrown out of business. The USPS was not significantly affected because it concentrated on a niche that competitors were restricted from joining, the delivery of mail. However, competitors specialized in small packages, an industry that had vast potential, and that has seen the firms grow into global brands with billions in annual revenues (United States Postal Service, 2013).
The American citizenry is huge stakeholders in the USPS operations and perpetuity. The USPS offers the cheapest mail and package delivery services in the United States. The Postal Corporation has mail offices in all the towns and sub-towns in the United States. It has efficient distribution channels throughout the United States to enable it delivers mails daily to the American citizens wherever they are. A huge number of American citizens have come to depend on the organization’s services in the delivery of their mails as well as important parcels within the country and abroad. The institution plays a huge role in the American people’s way of life, its cost effectiveness means that it is affordable and the best option for the lower income earning populations (United States Postal Service, 2013).
The government entities depend on the USPS to deliver important government documents to the American population. The USPS has exclusive access to the ‘US mail’ boxes in all the American homes and are, therefore, best placed to offer delivery of such documents as electricity, and water bills. Even though most corporations are going online, it is still legally required for the entities to send a copy to the physical addresses. Losing the USPS would mean that the delivery of mail would have to be done via the private companies at higher costs. Additionally, the private firms do not have an established system that can rival the USPS in terms of accessibility to all regions within the United States, including remote areas (United States Postal Service, 2013).
The company employees have a huge stake in the company’s operations and perpetuity. Dissolving the entity would mean that over 600, 000 employees would lose their jobs. Therefore, the government, as well as the USPS’ top management has an obligation of ensuring that the company remains afloat and that it is not dissolved in order to save the many lives who would have to go hungry in case the Corporation was closed.
Lastly, but not least, the United States Corporation has the responsibility of helping the needy in the society. The handicapped members of the Society receive mails and other government aid through their postal addresses, and the USPS plays a significant role in all of this. To this end, the USPS receives funding from the government to facilitate the free services that it offers to overseas voters and the disabled people.
The grand strategy forward
The best way forward for the organization is to grow and expand into new territories to take advantage of the new opportunities the changing economic and technology landscape offers. In the paper, it has already been identified that the best way forward is the USPS finding its footing in the E-commerce business to help push forward and to turn around its fortunes. The only way to achieve this is by growth and by evolving. The present distribution network will come in handy in the new venture. However, the organization will have to seek funding from either the government or from private sources to fund the renovations hat ill be necessary for the new venture. The funding will primarily address the renovation of the delivery vans and vehicles to enable them deliver other packages that may include bigger and sensitive goods. The delivery vans will also have to be kept in the best condition to allow for long distance travels without delays.
An IT solution that involves the development of an information system is necessary to enable tracking of the orders while in transit, as well as in maintaining digital standards in delivery dispatch management. The IT solution will have to be secure to ensure that sensitive customer and deliver information has no chance of being intercepted by hackers or people with malicious intent.
The USPS should also organize a media campaign to inform the public of its new changes and possible ventures. The publicity will help the USPS in gaining new customers for its E-commerce venture. Since the USPS is already synonymous with quality yet at an affordable price, it is crucial that whatever IT solution it finds, will have to be cost effective yet secure. The USPS should be ready for the new challenges with the new operations, the added pressure of overnight deliveries and a variety of customers they have to deal with. Needless to say, the USPS is considered a government entity, especially when making mail deliveries. However, when conducting the new business operations, they would have to conduct themselves as a private entity would. The change in character would be welcome in conducting private business and will probably help the organization in earning more customers in the process.
The Appropriate organizational structure for executing the strategy
The most appropriate organizational structure to achieve the mentioned goals is the divisional structure. The divisional structure entails breaking down the organization’s structure into groups for easier management. The divisional structure will also enable the firm in measuring the specific outcome for each group. A divisional structure has proven to be effective in many aspects of its execution. First, its flexibility and dynamism that can allow an organization to respond quickly to changing market conditions makes the organization ideal for the USPS new challenges. The E-commerce market is dynamic and is shaped by rapidly changing technology (Morganti, Dablanc & Fortin, 2014). If the USPS intends to join the E-commerce market as a major player, and install IT infrastructure to enable it to compete in the market, then the issue of changing markets will have to be top of the agenda. An appropriate organizational structure that can allow the organization’s management to respond quickly to the changing market conditions needs to be in place. The divisional structure offers this dynamism.
Additionally, the divisional structure utilizes delegated authority. Each division can make decisions regarding their department, but also requires some level of coordination to ensure that the decisions made are consistent throughout the organization. Delegated responsibilities usually encourage and motivate managers. The divisional structure will be ideal in the new strategy as it will allow managers to participate in the decision-making process. The level of commitment is likely to be higher in this form of organizational structure.
Level of decentralization/ centralization required to support the strategy, the departmentalization required and the resource allocation priorities
The divisional structure requires divisions to enable full implementation of the concept. In the USPS case, the agency can have the following departments; the commercial department, the international division, order tracking department, as well as a delivery department. The International division is meant to ensure that the USPS grows its global influence as far as E-commerce delivery services are concerned. The USPS brand is widely recognized within the United States. However, globally, its competitors have an edge over the USPS. An international division will handle international business and deliveries in conjunction with the other departments. The international department will also handle obtaining new international business and expanding the global network through making deals with airlines and freight forwarders to obtain cargo space to enable smooth deliveries as and when needed. The international department will also help in doing new market surveys to pave the way for future market expansion to the new areas.
A tracking department will mostly consist of Gadgets such computers and support staff who will receive calls from customers asking about their deliveries and informing the customers as to the status of their deliveries. The IT solution will be key to the performance of this department to offer real-time information as to the status of the deliveries.
The order processing department will be accountable for picking the deliveries from the clients and cataloging the packages ready for dispatch to their destinations. The department will work in close harmony with the delivery department to ensure that their functions complement each other.
How Top Management should lead and guide the team under the new structure in pushing forward the strategy
In the Divisional structure, there are several divisions and some level of autonomy within the department. However, it is important to allow the departments to be autonomous after the project is up and running. Before the E-commerce strategy is fully implemented, the top management should take the full responsibility of organizing the activities and overseeing the implementation of the project. However, the top management will need to have several members in a committee set-up that will ensure careful planning and meticulous preparations are done to ensure that the project is successful. Among the most important top managers whose participation is crucial is the IT manager.The IT manager will handle determining the best IT solution that the USPS will need to develop to implement its plans. The IT manager will also handle recruiting the right staff that will ensure that the system will be used optimally and that it is maintained well to facilitate transactions without causing unnecessary delays.
Top Three Areas of focus with respect to leadership that should take precedence and why
There are several areas within the proposed venture that the USPS’ management will need to look into:
Delegation of responsibility. As earlier mentioned within this document, the divisional structure will be used in the implementation phase in the new strategic plan to push the USPS forward. It is also important to note that the divisional structure demands some level of autonomy of departments as well as a delegation of duties. The delegation of duties will need to be discussed and ironed to before the strategic plan can be implemented upon. The top management will always retain a supervisory role and also have the final say, but the departments will be tasked with having own goals and their performance will be measured using the goals and their contributions towards meeting the organization’s overall goals.
Secondly, the top leadership will have to recognize that they are venturing into a new business opportunity that their employees, especially the ones that have stayed with the USPS for long may not be excited about. The contribution of the staff members is crucial towards the implementation phase of the strategic plan. It is, therefore, important to ensure that all the stakeholders are on board with the project. The top management will need to organize staff meetings with all its staff across the country and beyond to explain the new changes that should be expected. Organizing the staff meetings will also help in creating a feeling of goodwill from the staff. Any worries such as retrenchment will have to be addressed at this point, and their roles in the implementation exercise will have to be explained.
Thirdly, management will have to develop clear goals that the agency will meet both in the long term he short run. Additionally, management will have to make a decision on whether to drop some services that have proven to be loss-makers in the recent past. Management can also come up with new products in the mailing and delivery business to help in the publicity process and to convince the public that the agency is not deviating from its core objectives and that it is merely evolving and adapting to keep the institution afloat.
Identify and briefly explain the likely response from competitors when the plan is enacted
The venture is a huge business undertaking that will take the industry by storm. The competitors will react to the USPS proposed strategy to establish itself as a significant player in the facilitating of E-commerce. In the United States, the United Parcels Services (UPS) and the FedEx express companies are the chief competitors for delivery of priority mails as well as small packages. In the past decades, there has been stiff competition in the delivery business regarding establishing the companies’ brands as the main brands in the delivery service business. Presently, the UPS is the leading delivery firm in the US in terms of revenue. FedEx comes a close second. UPS and the FedEx Express firms were able to obtain these positions by driving out competition and major aggressive strategies than included global expansion. Major price cuts and small profit margins were used to drive effectively off the competition. The smaller firms could not afford such pricing and left the industry. The UPS and FedEx have since established themselves as the main package delivery firms in the United States. In the 1980s and the 1990s, Airborne Express was also a significant player in the delivery business. In 2003, it was acquired by the DHL company. DHL, the world’s leading delivery company in terms of revenue needed a foothold in the United States. In a takeover bid, DHL acquired the Airborne Express firm and all of its operations. However, DHL was unable to run effectively the brand. It’s ambitious growth strategy and deviations from the niche markets that Airborne Express had built for itself led to delays and a mass exodus of corporate clients (Bentley, 2011).
DHL, FedEx Express, and UPS are likely to react to USPS strategic plan by developing similar strategies of their own and aggressively competing for the contracts with larger firms. A very likely scenario would include price competitions and discounts. A global network and establishing a global network is likely to play a significant role. The competitors are likely to promise faster deliveries such as same-day, or next-day deliveries. Such short-notice deliveries are expensive to maintain and will most likely determine which firm will be able to take a bigger portion of the lucrative and promising E-commerce business. Therefore, the USPS will have to plan for such reactions. Before implementing the strategy, it will have to identify the areas in which its competitors have no network or have a weak network and establish its brand more aggressively in those parts. A marketing campaign that will seek to remind the public of the agency’s efficiency in its operations to build a brand presence will be necessary for the implementation phase of the exercise.
Chances of the strategy success
Embarking on a new venture is always a risky idea for businesses. However, the level of risk increases with the level of information available and the nature of the business to be undertaken. However, the nature of the undertaking, in this case, is not as risky. USPS has been involved in the E-commerce already and has delivered items for some companies such as Ebay and Amazon. Most recently, in the experiment that involved delivery of groceries, the items delivered were being done on behalf of Amazon. Therefore, the agency has the necessary experience to make the planning process a possibility.
Additionally, the firm already has the infrastructure and other supporting factors such as an efficient delivery network that spans the United States and several other countries globally. Moreover, the USPS enjoys cordial relationships with postal corporations around the world. In turn, these corporations have their local networks. In essence, the USPS is more connected than its competitors will ever be. Using such opportunities will guarantee the expansion into new areas and Deliveries to most parts of the world. The growth of the airline industry and the acquiring of even bigger aircrafts with larger cargo spaces means that delivery of cargo via airlines is less difficult (Morrell, 2011). Essentially, it means that the chances of succeeding in the new venture are very high. The business model that E-commerce transactions use is just a modern version of the model that the USPS has used for years. Adopting the system and adapting to the new circumstances should not prove a hard nut to crack. The USPS has over 65% chance of succeeding in the new venture. A solid plan and a motivated workforce will ensure the project succeeds.
Possible Roadblocks and how to address them
The USPS, in executing the new strategic plan that is expected to take the company for the next ten years, will face a number of challenges. The three main roadblocks that the USPS will face include; One, Changing its rules. The post office has strict rules about people sending food and other perishables through the post office. In fact, it allows limited deliveries through the post office, but at the owners risk. Therefore, when it plans on launching a full-scale deliveries of groceries, then people would argue that the USPS is flouting its rules that would have a major negative impression on the agency’s brand and image. Therefore, for the company to avoid the tag of flouting the rules, it needs a thorough review of its rules that have guided its operations for decades. After a review of the rules, the Postal Office will communicate the change of rules to the general public, a majority of which might benefit from the change of the rules.
Secondly, the USPS needs to seek for licensing from the government for the new ventures, for instance, the deliveries of such products as the delivery of groceries. Recently, the postal services applied to the government for a license that allowed it to experiment on the delivery of groceries in various neighborhoods in San Fransisco. Obtaining a license for the delivery of groceries may have to involve health agencies that will review the company’s facilities and delivery vehicles to determine the hygienic conditions and the sanitary conditions that the company may have to address before a license can be approved. Additionally, the company may have to invest in new facilities such as refrigerators for the deliveries.
Thirdly, deliveries beyond the American borders will prove to be a challenge to the USPS. The USPS may enjoy cordial relationships with other postal offices throughout the world. However, it remains that they do no have control over their facilities. Therefore, their overseas deliveries face serious challenges. Creating an overseas distribution network similar to the ones the UPS, FedEx, and DHL have created is difficult to replicate. Therefore, the USPS has one option to take at this point to address this challenge. The USPS will have to concentrate on deliveries within the American market. While the company establishes itself within the American market, which in itself is a significant market, it can make inroads in the expansion of its overseas distribution network Some of the actions that the USPS can engage in developing its global network is purchasing cargo space from freight forwarders as well as making deals with airline companies for cargo space in airports.
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