Magazine article Marketing

Why Post Office Reforms Fail to Deliver the Goods

Magazine article Marketing

Why Post Office Reforms Fail to Deliver the Goods

Article excerpt

After seven years of pass the parcel over the future of the Post Office, the Labour government this week gave us its vision of where it wants the 300-year-old service to go. Unfortunately that vision is somewhat short-sighted.

The government knows that like all of the public service structures, from the BBC to the NHS, reform and modernisation are needed to ensure a place in the next millennium. The difficulty for Peter Mandelson, trade and industry secretary, is reconciling this crucial need for change with political opposition to the idea of privatisation.

The proposals put forward have all the signs of a fudge which ultimately postpones the decision-making process about the future of the UK's postal service.

There are certainly some positive measures in the review. The Post Office will be given greater commercial freedom in its business dealings, including allowing joint ventures of more than [pounds]20m. It will be encouraged to look on itself as a media owner, with use of its distribution network and brand to raise revenue. It may also be able to compete in other international markets, although this has yet to be confirmed.

The marketing power of the Post Office is already well established, and some of the proposed changes could be good news for marketers. …

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