This thesis is about Australia Post, a government business enterprise, entering a market traditionally operated by private enterprise. Basic questions are asked about what is the true role of governments and should any of their instrumentalities be behaving in this way.
The market the Post is targetting is the air courier segment of country Queensland which is currently operated in a pure monopoly situation by Security Express, a subsidiary of the Mayne Nickless group. Australia Post was invited to enter the market by some large captive customers with inelastic demands for the courier service to count~ areas who believe they are paying too high a price for the service.
Management strategies that may be pursued by both the incumbents and entrants are explored. Barriers to enter, contestability, market structures, corporate growth strategies, and regulated monopoly leading to more commercialism, corporatisation and privatisation are the main bodies of theory covered in this work.