S.W.O.T. ANALYSIS –

1. S.W.O.T. ANALYSIS – Briona Gilllard Prof. Cescolini Bus 10

2. What is Stamps.com Stamps.com is one of the top online-based postal companies in our country who serve over 500,000 small business, office buildings, individuals, and not to mention they partner with a lot of large successful companies that we know today (Microsoft, Office Depot, Amazon.com, USPS, HP Invent). Stamps.com is run by an executive team of 9 males and has less than 250 employees working under them. The corporation became the first company to even be approved by the U.S. Postal to be able to offer services in software-only postage amenities, the software allows customers to buy and print postage online. It took them over 2 years to complete the tedious 10-step approval process making sure they met all the security and financial requirements of the U.S. government.

3. Why choose Stamps.com? Stamps.com services/software takes away the hassle of having to go all the way down to the post office to handle all postal needs. In addition to that, using Stamps.com services brings the cost of postage expenditures down by at least 50%. Customers are able to control their operations more efficiently and track their postages much easier with everything they need right at their fingertips.

4. Strengths • Tax Free: Stamps.com PC postage services are not charged any of the tax or reset fees that are required at normal postage meters. Stamps.com ends up saving on taxes because they receive net operating losses based on federal and state reasons. This is why it is cheaper to do postal business through Stamps.com rather than the traditional way. • Customer Service: Stamps.com just won the award for having the best customer service in the postal industry. Their customer service department is split into small teams who work together to ensure efficiency. They have the least wait time for customers to speak to an actual human rather than a computer. They have a high volume shipping department. Their customers are sure to be left satisfied because the customer service department might be Stamps.com strongest attribute. • Low Employee Turnover Rate: Stamps.com is a corporation with facilities across the country and has less than 250 employees working for them. That isn’t a very high number for a corporation. They do this by being very selective in there hiring process. Stamps.com seeks for a very family like vibe at their offices. They hire people who work well together and teach each other things to ensure nothing but the best. Rather than having different employees going in and out of the office every week, they build teams and hire people who are there for the long run.

5. Weaknesses • Reliance on USPS: The relationship Stamps.com has with the USPS works both for them and against them. Yes, stamps.com partners with other corporations and has other sources of revenue but the USPS carries most of their weight and success. When it comes to stocks and investing, Stamps.com isn’t independent, therefore when the USPS falls or rises so do they. This can make investors think twice about buying stock in their company. • One main source of revenue: Stamps.com does offer multiple services but the only one that’s really pulling almost all of their revenue is their PC Postage service, their other postal services such as their Photo Stamps and E-commerce are not doing as well. So in reality they are relying on one thing which can easily fall just like the others with the way that technology and other advancements are going these days. • High risk of fraud: Like anything done through the web these days there’s a chance of fraud and invasion happening. Although Stamps.com does everything they can to ensure this doesn’t happen, there is no guarantee. That’s the advantage that traditional postal meters has over Stamps.com

6. Opportunities • Low Competition • Stamps.com has huge advantages over all its other competitors. For one, there aren’t even many competitors in this field to start with, which makes it easier to conquer. Secondly, Stamps.com was the first company to even be approved to provide these types of services so that draws customers and media to them over the others. Their name is catchy and to the point rather than their lesser known competitors Endicia.com and Pitney Bowes. Lastly, Stamps.com software is the most compatible with the majority of computer systems such as Microsoft. In addition they just purchased the number one shipping integrator within the industry, Ship Station. • Partnerships • The partnership that Stamps.com has with the USPS is a main source to build their clientele. It’s a win-win deal for both the USPS and Stamps.com. Customers who subscribe to Stamps.com through the USPS receive a discount which in return brings more and more customers to both corporations. The USPS also works with Paypal.com and Ebay.com which grants more exposure to Stamps.com. in addition to the USPS, Stamps.com works with Microsoft, HP Invent, and tons of other big companies. All in which bring them more and more exposure and subscribers.

7. Opportunities Continued … • Awards and Recognition • Stamps.com is recognized by the media quite frequently. They have won over 25 different awards in the past decade. They’ve won awards for thing like having the best customer service in their industry, to having the best software in online postal service. Through their recognition Stamps.com has even gotten started with endorsements with people like Ron Reagan, Mark Levin, Dr. Laura, and Colin Cowherd of ESPN radio broadcast show “The Herd.”

8. Threats • New competitors • Considering the fact that the online-postal service industry is fairly new, it is expected to grow as time goes by and technology continues to rise. The industry now only has 3 competitors in it but it won’t be long before more entrepreneurs get in on this market with possibly a better advancement. • Lack of substitution • The services that stamps.com provide are only online. Their competitors offer online postages as well as in store postages. Stamps.com subscribers don’t have many options within stamps.com and can easily just go down to the post office. The convenience is only beneficial when at home.

9. Overview • Overall, from a managerial standpoint I feel as though Stamps.com has a lot of room to grow but they aren’t doing badly as of now. I believe Stamps.com would highly benefit by expanding their products and services outside of just being available online. The company started an industry and if they want to stay on top like they have in the past 15 years they need to reevaluate and make change. I chose this company because my mom works for them and the company has a great foundation, they really care for and provide a lot of benefits/events for their employees.