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United States Postal Service SWOT & PESTLE Analysis

ID : 521095453| Apr 2022| 19 pages

COMPANY PROFILE -United States Postal Service (USPS)

Business Sector :Postal and Shipping services

Operating Geography :United States, North America

About United States Postal Service (USPS) :

The United States Postal Service (USPS) headquartered in Washington D. C. is an independent agency of the United States federal government that is responsible for providing postal service throughout the country, including its insular areas and associated states. It is one of the few federal agencies that the US Constitution explicitly authorises. The company was formed on July 1, 1971. The company specialises in domestic, official, business, election, and political mail delivery, as well as passport services. It delivers around 470 million pieces of mail per day, including cards, letters, marketing materials, and deliveries. Postage, products, and services are used to pay the autonomous government agency's activities, and no taxpayer dollars are used to cover running costs. The company has the most extensive physical and logistical infrastructure of any non-military government agency, serving as an essential foundation for an ever-changing and evolving countrywide communication network. USPS also plays an important role in promoting digital commerce by leveraging its skills in scheduling and high-volume sorting. On July 1, 2021, the United States Postal Service marks its 50 years as an independent agency.
The United States Postal Services' Unique Selling Point or USP is that it is home to North America's largest retail network, and operates one of the world's largest computer networks. The mission statement of USPS reads, "to bind the Nation together through the personal, educational, literary, and business correspondence of the people".

United States Postal Service (USPS) Revenue :


$ 73.13 billion - FY ending 30th September 2020 (y-o-y growth 2.8%)
$ 71.15 billion - FY ending 30th September 2019

Competitive Analysis of United States Postal Service (USPS)

SWOT
PESTLE
The SWOT analysis for United States Postal Service (USPS) is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. High growth in Shipping and Packages category
2. Wide range of services offered at low prices
3. Good work-place diversity
4. Packaging meets Sustainable Forestry Initiative standards
1. Over $87 billion in losses over the last 14 years
2. Major customers expanding private delivery capabilities
3. High level of debt and unpaid retirement obligations
4. Complaints of poor and delayed services
OpportunitiesThreats
1. Expanding operations in the e-commerce packaging sector
2. Complete shift to electric-fleet delivery by 2035
3. Improving service reliability by increasing delivery time
1. High competition from private delivery companies
2. Loss of large-scale customers due to business closures
3. Increase in air transportation expenses due to pandemic
4. Market-Dominant mail volumes continue to decline
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of United States Postal Service (USPS)

Strength

1. High growth in Shipping and Packages category: The business went through major changes due to the COVID-19 pandemic but the Shipping and Packages category saw historical growth in revenue and volume of sales due to rise of e-commerce. Government orders forced most stores to shut down and they were forced to transition to e-commerce to sustain their business. Consumers also started ordering everything online. The sudden growth in e-commerce services led to growth in the packaging and shipping sector as well. USPS saw a massive increase in shipping volumes and partnerships with several large businesses helped them capitalize on this change. in 2020, Shipping and Packages generated 39% of the total revenue compared to 32% in 2019. Shipping and Packages revenue grew by 25.3% on volume growth for FY20 compared to a growth rate of 18.8% in FY19.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

1. Over $87 billion in losses over the last 14 years: The United States Postal Service has been an integral part of the nation’s history. For more than 240 they have delivered almost half the global volume of mail and packages to more than 160 million locations across the country. However, for the last fourteen years, USPS has been suffering from losses in its business and the total loss has amounted to $87 billion. This poor financial performance reflects on the unsustainability of the business model. One of the cardinal reasons for this failure is the tectonic market shift away from mails and post office services and USPS’ failure to capitalize on that shift. Other companies like FedEx and UPS shifted along with the market and expanded their range of services to meet emerging needs and they are performing better with justifiable higher prices and higher profits. USPS on the other hand decided not to shift its focus on to other areas and it focused on cost-efficiency while neglecting external factors. The COVID-19 pandemic once again proved that the shift to e-commerce is inevitable and whichever company does it quicker and more efficiently will emerge victorious.

The remaining section under "Weakness" is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • FedEx
  • UPS
  • DHL
  • Amazon
  • Purolater International
  • Versacold Logistics Services
  • Posti

Major Brands :

  • USPS Postal Inspection Service
  • USPS Office of Inspector General
  • USPS BlueEarth Carbon Accounting
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Check Out Analysis of Other Relevant Companies

References used in United States Postal Service (USPS) SWOT & PESTLE Analysis Report

1. Sustainability- Delivering a positive impact. Leading by example. - https://about.usps.com/what/corporate-social-responsibility/sustainability/greening-business/
2. Green products -Order eco-friendly packaging - https://about.usps.com/what/corporate-social-responsibility/sustainability/what-you-can-do/#recycle
3. OUR VISION AND TEN-YEAR PLAN TO ACHIEVE FINANCIAL SUSTAINABILITY AND SERVICE EXCELLENCE - about.usps.com/newsroom/national-releases/2021/usps-delivering-for-america-plan-at-a-glance.pdf
4. Why the Postal Service Is Going Out of Business - https://www.forbes.com/sites/adamhartung/2011/12/06/why-the-postal-service-is-going-out-of-business/?sh=6cc011274317
5. Postal Service turns to computer vision AI, edge computing to improve delivery - https://gcn.com/articles/2021/06/12/usps-ai-edge-computing.aspx
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2022). United States Postal Service SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/united-states-postal-service/ [Accessed 18 May, 2022].

In-text: (SWOT & PESTLE.com, 2022)

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United States Postal Service (USPS) SWOT and PESTLE analysis has been conducted by Anangsha Saha and reviewed by senior analysts from Barakaat Consulting.

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