OPPRTUNITIES AND CHALLENGES OF SERVICE DIVERSIFICATION OF ETHIOPIAN POSTAL SERVICE ENTERPRISE

Abstract

This research was conducted to assess challenge and opportunities of service diversification of Ethiopian Postal Service Enterprise. The sample size of the study were 78 process owners, supervisors and experts selected out of the head office located in Adds Ababa: Ethiopia by using purposive sampling technique. Quantitative and qualitative research approach was adopted for the study and survey conducted with professionals using a self-administered questionnaire and in-depth interview. In addition, the study used structured review of documents and records of this Post Office. The findings of the study show that the motive for maximizing portfolio profit, reducing risks and first mover advantage against competitors are the motives for service diversification in EPSE. High intergovernmental cost and Over investment/diversification along with difficulty of portfolio management are discovered as a challenge in the study. In addition, the study outcome suggests unfair competition among the postal incumbents added to electronic substitution social mail as a threat. Finally, the study identifies areas of business lines (commission works) for further diversification. The study recommended that EPSE have to work with the government to put appropriate terms and restrictions for its monopoly right in some business areas and should in place a vibrant organization structure that would cover all business units to the effective management of the Enterprise.