go-Digital Blog on Digital Marketing

Please Euthanize This Big Boy Already – How Lack of Innovation Killed Another Giant

Not only did the shift towards digital communication cause a continuing decline in revenues, the lack of innovation caused the U.S. Postal Service to fall far behind able competitors like FedEx, UPS, etc. (lowering prices is not innovation; and delivering 3 days a week is not innovation either.) We are at a point now where if the USPS disappeared, consumers will shift their remaining habits towards digital and existing delivery competitors will (gladly) absorb the incremental business (because they already work the routes anyway, and can even lower prices due to extra volume).

Source: http://bit.ly/9RHDtQ (BusinessWeek)

March 4 (Bloomberg) — The U.S. Postal Service, facing a $238 billion budget deficit by 2020, should consider cutting delivery to as few as three days a week as the agency attempts to pare costs, a consulting firm said.

Those cuts are among changes McKinsey & Co. presented in a report this week at a postal conference in Washington. Options also included expanding business lines and restructuring retiree health benefits.

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