Placements

MBA Co'26

CAT Prep

RTI Response

Rankings

Score Vs. %ile

Salaries

Campus Tour

Upskill

Career Show

How US Postal Service is Fighting Back Competition - Strategy With RS

Sep 4, 2015 | 3 minutes |

Join InsideIIM GOLD

Webinars & Workshops

Compare B-Schools

Free CAT Course

Take Free Mock Tests

Upskill With AltUni

CAT Study Planner

CUET-PG Mini Mock 2 (By TISS Mumbai HRM&LR)

Participants: 441

CUET-PG Mini Mock 3 (By TISS Mumbai HRM&LR)

Participants: 180

CUET-PG Mini Mock 1 (By TISS Mumbai HRM&LR)

Participants: 774

MBA Admissions 2024 - WAT 1

Participants: 271

SNAP Quantitative Skills

Participants: 521

SNAP Quant - 1

Participants: 955

SNAP VARC Mini Mock - 1

Participants: 963

SNAP Quant Mini Mock - 2

Participants: 366

SNAP DILR Mini Mock - 4

Participants: 247

SNAP VARC Mini Mock - 2

Participants: 445

SNAP Quant Mini Mock - 4

Participants: 192

SNAP LR Mini Mock - 3

Participants: 254

SNAP Quant Mini Mock - 3

Participants: 211

SNAP VARC Mini Mock - 3

Participants: 302

SNAP - Quant Mini Mock 5

Participants: 55

XAT Decision Making 2020

Participants: 453

XAT Decision Making 2019

Participants: 351

XAT Decision Making 2018

Participants: 448

XAT Decision Making -10

Participants: 588

XAT Decision Making -11

Participants: 457

XAT Decision Making - 12

Participants: 417

XAT Decision Making - 13

Participants: 353

XAT Decision Making - 14

Participants: 355

XAT Decision Making - 15

Participants: 398

XAT Decision Making - 16

Participants: 469

XAT Decision Making - 17

Participants: 513

XAT Decision Making 2021

Participants: 522

LR Topic Test

Participants: 2782

DI Topic Test

Participants: 1252

ParaSummary Topic Test

Participants: 2144

Postal services all over the world were given a knock out blow by courier companies. And of course e-mail did the rest. Most people gave up Postal services as dead … with no future. US Postal Service (USPS) is proving these doomsayers wrong.

USPS has tied up with Amazon, in USA, to deliver packets to US households. To live up to Amazon’s expectation & delivery standard USPS has made the following transformational changes in its system:
1. It offers delivery on 7 days of the week.
2. Employees are delivering eggs / milk & other perishable products at the doorsteps even at 4 am – as per customer’s requirement
3. It is investing $ 200 million to buy 2,70,000 Internet connected hand held scanners, which will enable the team to track package in real time.
4. It has over 190,000 vehicles which it uses to delivers letters / parcels. Most of them are ‘old’ & not equipped to carry packets – they were originally designed to carry only letters. A ‘Cap Ex’ is being drawn up to phase them out.

No wonder USPS carried 40% of Amazon’s volume (150 million items) last year. What is the benefit to Amazon? Cost. USPS charges them $2 per packet. This is half of what regular courier companies charge. It would seem that this is a made in heaven marriage. Fact seems to indicate otherwise. Amazon is already competing with USPS with its Amazon Fresh, where it delivers grocery the next morning. Or, its ambition of testing Drone to deliver packets to its customer’s doorstep. Taking these realities on board, USPS is actively looking for signing up with more business associates.

Business lesson for us:
1. No matter how badly your business is hit, it can be revived – you have to search for solutions deep enough.
2. To revive business requires transformational changes to be brought about in the company – change in attitude of employees & a mindset to invest. Mere intention to transform will not bear fruits!
3. Never ever depend on 1 major client for business. This is risky. Have a portfolio of clients who contribute to your business.

  ———-   In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here