Forgoing Monopoly
The first phase of deregulation intended to open up 30 per cent of Royal Mail’s letter market to competition is under way. While it is far too early to say how much impact this has had, a question that does need addressing is how direct mailers are going to respond. Will they be looking to switch to other postal carriers? Will they be able to adopt a more flexible approach to their mailing schedules? And what will be the best way to buy in this new, competitive environment? A number of mailing houses remain wary of new postal carriers entering the market, and from what they have seen so far, cannot see them persuading mailers to switch from Royal Mail.
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