And more money was invested in Internet companies by venture capitalists in the first quarter of 1995 than in all of 1994. The swift will eat the slow. Speed is everything. At the Post Office, it takes 10 months or more for a simple price change. The second area in which the Post Office is affected is terms of the development of institutional knowledge.
All organizations learn.
The Learning Curve is a universal phenomenon that has been demonstrated in businesses as varied as chicken eggs and life insurance policies. As experience accumulates, inflation-adjusted unit costs fall. Early on, the Post Office learned as well. In recent decades, the inflation adjusted price of a first class stamp has remained relatively flat, not declined like virtually every other thing else. And service quality has deteriorated.