Master's Culminating Experience
This project suggests that the United States Postal Service (USPS) business model that utilizes very large mail volume revenues to cross-subsidize last-mile delivery is broken by the continuing trend of paper documents converted to electronic documents. As the paper to electronic conversion trend continues, the USPS will need to develop additional revenue sources and/or cut costs to survive without government funding. In response to the shift from paper mail to electronic mail, other countries have liberalized postal services to make competitive postal mail systems with the goals of achieving postal service innovation, better service, and reduced prices. Postal liberalization is not a desired result for the U.S. due to the large geographic size of the U.S., and new-entrant mail businesses will advantageously only provide postal service to more populated and profitable service areas, which is known as cream skimming. The USPS should reinvent the organization by adding certified email as a service that will compliment the growing use of e-mail and Internet services. Certified email stands to be an additional revenue source that allows the USPS to maintain universal delivery service for the U.S.
Martin, P. J.
(2009). Is the United States Postal Service's Business Model Broken? Fixing the Model through Innovation not Competitive Postal Services. .