This is my response to the New York Times article, "Online Booksellers Face Higher Costs for Shipping Abroad".
http://www.nytimes.com/2007/04/09/technology/09ecom.html?_r=2&adxnnl=1&oref=slogin&ref=technology&adxnnlx=1176411378-nWrBxxrAzIaU1Rvvp1xXaQ
This is a very interesting article. It seems the decision the US Postal Service made to not ship overseas for individuals is motivated by the need to reduce costs, and maybe make their operation more profitable. We hear a lot about how the world is getting smaller because of globalization. Technologies are getting better so communication and travel are faster, and people are more connected. But this decision from the USPS seems to be creating more distance.
The competitors of USPS are well-known, publicly traded companies, so maybe USPS is picking to stick with core competencies and drop aspects of the business that aren’t essential, or that are losing the organization money.
The Postal Reorganization Act of 1970 said that no post office will be closed for running a deficit. This was put in place to protect the postal workers, to ensure their jobs, but now causes major loses for the Postal Service. The postal service wasn’t created to make money, but to provide a service. But it wasn’t created to lose money either. Appropriate modifications must be made to achieve the organizational goals.
This definitely helps bigger companies, and creates major problems for smaller business. I wonder why the article focuses on bookstores because this will effect almost every type of business. I’m a believer of the free market, and that the invisible hand should rule. I feel bad for the families who own small businesses, but not bad enough to buy their more expensive books.
Thursday, April 12, 2007
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