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Presently We are trying to see the condition of competition in these three lines of main business of Pos Indonesia namely : communication, logistic, and financial services. We will start from the first namely communication business, particularly postal mail. In communication business, which its comes at the pillar of business of Pos Indonesia in view of its dominant contributions, we see that the tight competition primarily emerging from the various alternative communication devices especially electronic communication devices. The emergence of various electronic devices have aroused what is called as substitution effect which is felt from time to time more and more threatening this main postal business. almost all of these electronic communication devices have superiority compared to letter mail. It is that makes this substitution effect progresses rapidly. If it can be said as superiority, practically the only one superiority of postal letter is the originality of the documents which cannot be owned by an
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