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The USPS has the legal right and responsibility to deliver all non-urgent mail to every registered address in the U.S. Therefore because competitors are not legally allowed in this segment of the industry there are no threats of entry into the market. Finally, due to the lack of competition, customers have no other alternatives but to pay the rising price of a stamp for mailing a non-urgent letter.
However, non-urgent mail delivery has been faced with substitutes. In general, the Internet has played a major role by enabling additional alternatives. E-mail has replaced the old-fashioned letter as the main way to stay in touch with people aside from using a telephone...
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