Also, each carrier has integrated technological systems that improved operational efficiency.
In addition, intensive training programs of employees increase service and delivery efficiency. Fed Ex’s hub near Dallas cost $250 million); capital expenditures for air and ground fleets are large (e. New Boeing 767 cargo plane cost $90 million); large number of employees and high training costs.
Advantages created by government can be removed by government.
Only by doing so can we have real competition, effective competition, competition on the merits—competition whose purpose is to help the consumer, not entrench the incumbent. A disproportionate fraction of Canadian professional hockey players were born early in the year.
It is impossible to have markets in which no company has an unearned advantage.
But regulation can address the unearned advantages created by regulation. Competing with government-assisted advantage does not violate antitrust law.
The struggle persists, because no one loses his monopoly lightly: not only in the traditional sectors—telephone service; natural gas transportation; and electricity generation, transmission, and retail services;— but in new areas like internet content and delivery, distribution-level electricity resources, and electric vehicle charging stations.
We want competition to produce diversity, yet the major players remain the same.
Barriers to Entry—Medium to High for the following reasons: a) Economies of scale—the top three carriers (Federal Express, UPS, and Airborne Express) serve slightly more than 85% of the domestic express mail market.
All three carriers deliver a high volume of packages, and thus, are able to spread fixed costs over more units.