Analysis of competitiveness of the postal services industry in Mongolia

Enebish Jambal, Oyuntungalag Yadamsuren, Oyuntungalag Buyantur, Sumjidmaa Tumurchudur and Tsolmon Jambal

Littera Scripta, 2024, vol. 17, issue 1, 5-19

Abstract: In Mongolia, the postal and telecommunications sector is transitioning from a state service monopoly to a market characterized by perfect competition. Following the Covid-19 pandemic, there has been a surge in demand for delivery and dispatch services. Specifically, revenue within the postal industry witnessed a notable upswing, with increases of 26 percent in 2020, 39 percent in 2021, and 37 percent in 2022, respectively. This surge underscores a sharp rise in demand for parcel, shipping, and delivery services within the postal sector. Hence, within the postal sector of Mongolia, there exists a challenge to the expansion of e-commerce delivery services, the integration of novel electronic technologies, the enhancement of logistical service standards, and the systematic elevation of sectoral competitiveness. The primary objective of this research is to examine the factors influencing the competitiveness of companies within the postal sector by employing M. Porter's Diamond model. Additionally, the study aims to identify the pivotal success factors crucial for enhancing the competitiveness of the postal sector in Mongolia. In assessing competitiveness, the study employs the comprehensive methodology of the Diamond model, which encompasses resource factors, demand factors, company strategy, structure, and organization, as well as related and supporting industry factors. Through this framework, the competitiveness of 1 Littera Scripta, 2024, Volume 17, Issue 1 Mongolia's postal industry is analyzed across seven dimensions, comprising a total of 119 indicators. These dimensions include government support, human resources, and opportunities, among others. Subsequently, the findings are disseminated to reveal the outcomes of the assessment. The results revealed that the opportunity factor is the major important factor, on the other hand, the government factor was the less important factor for boosting the competitiveness of the postal company.

Keywords: Mongolia's postal sector; M. Porter's Diamond model; human resources; demand factors; infrastructure investment (search for similar items in EconPapers)
Date: 2024
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