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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 Service (USPS) is service organization as opposed to being a manufacturing entity. As such it does not produce a tangible product. While it uses products such as postage stamps, boxes, and envelopes in the course of providing the service, postal delivery is its product. Therefore, to consider its product life cycle one must consider the life cycle of the organization itself. The organization current finds itself in a state of decline. One factor that contributes to a product going into decline is shrinkage due to market saturation or “because the consumers are switching to a different type of product” (http://productlifecyclestages.com/). Both factors have had a marked impact on the decline. The rise of the internet and its ability instantly deliver correspondence that at one time would have been delivered by USPS. In 2004 the total mail volume handled was 201.6 billion pieces. By 2013 the volume had fallen to 158.4 billion pieces of mail. If the focus is narrowed to first class delivery, and retail customer visits, the same trend is evident (https://about.usps.com/who-we-are/postal-facts/postalfacts2014.pdf).

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