October 01, 2010

Failure damages image of Japan Post! A chance for Yamato?

Writing about web page http://www.yomiuri.co.jp/dy/business/T100705003408.htm

The Japan Post experienced a dramatic set back regarding their operations of the YU-pack service earlier this summer. It involved around 260,000 parcels which could not be delivered properly and damaged the creditability of the company to a great extent.

Japan Post, in many regards, holds a monopoly position in the Japanese mail market, safeguarded by the government. However, the company was never really present the the door-to-door parcel delivery service until the acquisition of the Pelican parcel delivery service from Nippon Express.

The all so mighty Japan Post, was faced with problems regarding the effective integration of Pelican into its own business model that ultimately resulted in heavy delays. Now the general public, which long stood behind the Japan Post, are switching to rivals, such as Yamato Transport and Sagawa Express.

This event especially presents a big chance for Yamato, who where inequitably drawn out of many business opportunities in the past, due to the monopoly power of the Japan Post.

I think it's not too far fetched when I say "It's pay back time"!!!

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