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Analysis of USPS Business Model - Essay Example

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United States Postal Services (USPS) is an independent company in the United States providing postal services to the country (Architect, 2012). It is a government agency which is directly authorized by the constitution (United States Constitution)…
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Analysis of USPS Business Model
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Analysis of USPS Business Model

It is currently employing more than 574,000 workers. It is legally permitted to render service to all the Americans without considering their geographical location. The company is well known for its quality services along with the uniform price. The agency has an access to the letterboxes which are marked as the ‘US Mail’ and also to the personal letterboxes in the country. Services Offered The United States Postal Services offer a wide range of services. It has bulk mail procedures available which provide discounts to the customers. It provides personal mails to the customers. The company also provides inter-departmental details regarding the UALR mails. It provides the services of campus delivery of the mails and state courier services. It provides media mail services to the customers as well. There are some other facilities provided to the customers like the business rely mails, postal money order services etc. Current Position of the Company United States Postal Services is responsible for providing employment to a large number of people in the United States. After the federal government and Walmart, United States Postal Services is the third largest company in respect of providing employment (Bovard, 1985). It operates the largest number of vehicles in the whole world and is known as the largest vehicle fleet. The Department of Defence jointly operates with the United States Postal Services to provide services to the Army and Air Forces (the Army Postal Services) and the Navy (the Fleet Post Services). The two big competitors of USPS are UPS and FedEx. They compete with the company in providing postage delivery services, making urgent deliveries in the domestic land. DHL express was the third largest competitor of USPS until it stopped its operations in the United States in the year 2009. The National Postal Forum held in 2007 revealed that the Postal Service has highlighted and undertaken a large number of initiatives to improve the services and gain a remarkable position in the United States parcel industry. The low price offerings made by USPS is making it easily affordable by the customers. The company generates annual revenue of $73 billion whereas UPS and FedEx have annual revenue of $48 billion and $32 billion. Thus it is in a leading position in the market. Domestic and International Services The United States Postal Services provide domestic as well as international services in the United States. Domestic Services- Domestic services include weekday’s delivery of postal services to any particular customer’s address or Post Office Box or any delivery in the Army and the Military in the United States. It provides express mails which guarantee overnight deliveries to most locations. It is one of the fastest postage services offered by the USPS. There are several other facilities provided to the customers like first class mails, bulk mails, media mails etc. International Services- The United States Postal Services provides various facilities to the customers in order to meet their international shipping needs. The Global Express Guaranteed Service (GEGS) guarantees delivery within three days in more than 190 countries all over the world by FedEx. The First Class Mail Service is the best suitable international service for most of the customers. However, the delivery time in this service depends upon the destination of the delivery. The Express Mail International provides a combination of quick services and affordable prices in almost 185 countries. The delivery time lies within three to five business days. Challenges faced by the Company The delay in the delivery of services was one of the problems faced by the customers. This problem was arising frequently. The company conducted an analysis in ... Read More
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