Product Strategy of Usps

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Product Strategy of the U. S. Postal Service Dwaynell Lowe Strayer University Operations Management Dr. Phyllis Parise November 15, 2015 Product Life Cycle Product life cycle refers to the stages that a product. Changes in demand for the product is the factor that delineates the changes from one cycle to another (Daft & Sanders, 2012). The typical product life cycle has four identifiable stages; * Introductory Stage-characterized by the launching of a new product. * Growth Stage-highlighted by strong growth and profits. * Maturity Stage-the product is well established and the organization seeks to maintain market share. * Decline Stage-the market for the product shrinks. The United State Postal…show more content…
From 2007 to 2012 USPS posted net losses in excess of $41 billion with much of that driven by fuel costs. It currently spends $3.3 billion on highway contracts, while spending only $40 million on freight rail contracts. USPS should consider shifting part of its mail volume to rail. By making this change it has been estimated that USPS could save at least $100 million per year. Additionally, “because of its lesser sensitivity to fuel price increases and greater control of its own infrastructure, rail transportation has major, long-term strategic advantages over highway” (Berman, 2012). Total Quality Management Total Quality Management (TQM) is an organizational approach that seeks to identify and eliminate the root causes of issues that undermine quality whether in a manufacturing or service organization. As stated previously USPS as a product is in a state of decline and must find ways to eliminate barriers to attaining its service commitments. Package delivery is a sector of its market in which it has remained competitive with private carriers such as UPS and FedEX. To continue to compete and excel in the package delivery arena USPS must insure that it eliminates barriers to meeting and or exceeding on time delivery expectations. Therefore, I would suggest the use of control charts to determine the cause of packages being delivered outside the upper control limit. The upper control limit for
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