This paper presents the liberalization process in the letter market by using the Porter’s\nfive forces analysis to analyze the competitive structure, which included the rival\ncompetition, the threat to new providers, the bargaining power of customers and the\nthreat to alternate.\nFrom 1998 to 2008, the postal market has step by step turning into a wide-open market.\nThe German Federal Post Office monopolized the postal market before the liberalization.\nAfter liberalization, Deutsche Post AG continues to occupy the dominant market position,\nwhich arrives fast 90% market shares so that no other companies in industry are\nat a comparable level.\nThe analysis shows that the postal market is a stagnant industry with low entry barriers.\nThrough the network access permission at Deutsche Post AG could the new\nproviders enter the letter market easily. In a word, a fierce competition doesn’t exist in\nthe postal market.\n