Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : New India -- Ignore unavailable to you. Want to Upgrade?

To: kumar who wrote (218)	10/4/2006 12:41:13 PM
From: Sam Citron	Respond to of 608

The article pointed out how India Post was losing market share and is hamstrung by inefficient practices and regulations, but it did not really discuss price, delivery time, and reliability issues. It seems that the private carriers have been able to cherrypick the most profitable segments of the market and left India Post with the remainder. The difficulty that countries like India and China have in reforming SOEs are a bit like the legacy difficulties that Detroit faces in competing with Japan. As in Detroit, certain promises have been made to workers that have limited the flexibility of management to adapt to changed circumstances. It's clear from the article that India Post is losing money and is being massively subsidized. What is less clear is how well or how poorly it is serving its customers. It would be interesting to see some international benchmark comparisons. Also unclear is whether the administration considers India Post as vital infrastructure that should receive priority attention, or a service that may be expendable and eventually replaced by the private sector. Sam