The arrival of the world wide web as well as the entry of private players in India's post-liberalization era resulted in India Post losing a substantial quantity of its business to e-mails, faxes, short-message services and private-courier-service suppliers. Additionally, government policies regarding India Post had long remained unchanged. As a result, India Post was caught up in poor financial performance, low rates of technology investment, a vicious cycle of falling mail traffic and lousy customer service. Critics also raised questions regarding the lack of market orientation of India Post. However, India Post reacted by modernizing its facilities, pursuing related diversification and taking advantage of its enormous distribution network.
Although the attempts led to earnings surge despite these efforts, undertaken between 2005 and 2012, India Post was unable to report any profits. Among all the services which the postal section supplied, significant gains were produced by only postal insurance. It was from this standpoint that India Post management wondered whether it should follow the example of nations like Germany and also the Netherlands, where the postal services had been privatized, or whether it should wait for the 2005-2012 initiatives to generate profits for India Post in the coming years.
PUBLICATION DATE: January 22, 2014 PRODUCT #: W13585-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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