A PRESENTATION ON COURIER SERVICES BY RONAK MUSRAF-M174 LAV POODDAR-P244 GAURAV RATHI-R062 NIHIL SHAH-S225
HISTORY OF COURIER INDUSTRY
PRIOR USED SOURCES OF LOGISTICS
WERE • PIGEONS • TELEGRAMS • POSTAL SERVICES
INDIAN COURIER INDUSTRY
• CAME INTO BEING 15-20 YEARS AGO • MARKET OF 4000 CRORES • REGISTERED A GROWTH OF 25% PER
ANNUM • PROMISING FUTURE
DISTRIBUTION OF REVENUE ORGANISED SECTOR.64% SEMI-ORGANISED-26% UNORGANISED SECTOR-4%
ORGANIZED SECTOR SEMI-ORGANISED SECTOR UNORGANISED SECTOR
• MARKET SHARE OF
64% • GIANT AMONGST ALL COURIER SERVICES • WORLDWIDE EXPANSION • MARKET LEADER
• WAS SETUP IN 1989 • 2ND LARGEST COURIER
SERVICE PROVIDER AFTER DHL • ENJOYS MARKET SHARE OF 20% • HAS A GOOD MARKET GROWTH POTENTIAL
.000 pin codes in India and operates through 240 international offices across the globe.• DTDC
• FED EX
• DTDC Courier & Cargo
• WORLDWIDE EXPANDED • GOOD AMOUNT OF MARKWT
SHARE GLOBALLY • ENHANCED TECHNOLOGY
Ltd. Incorporated in the year 1990. is one of the leading Express distribution company in India covering both domestic and international services. DTDC being India’s Largest Delivery Network Company serves over 10.
SWOT ANALYSIS OF THE COMPANY
• Around 40% annual growth • Increased multi-use apparitions. • widely accepted by the people
• • •
• profit margin in courier service
industry is about 10% huge growth potential The tarrifs have been reduced infrastructure have greatly improved
• inefficient and inappropriate
airline system High transportation rates
• competitors • unorganized sector contributes
only 4% The clientele are very demanding Increased rates of ATF
BLUE DART GATI ELBEE DTDC
0.MARKET OF MAJOR COURIER COMPANIES
TOP PLAYERS REVENUE(IN BILLIONS)
GROWTH TRENDS OF LOGISTICS
2.5 2 1.8 1.3 2.3
.5 0 2005 2008 2010 0.5 1 0.
especially in the zone where logistics operations take place between Asia and the United States of America. which is non asset based
are rendered by 3PLs account for about 15% growth.
. which operate internationally. 3PLs dealing with cross dock assets which are low account is likely to register a growth rate of 15%. Growth rate for the freight forwarders.GROWTH
• Freight management. account for a growth rate of 15% to 20%.
Mumbai. DTDC has been innovating constantly to provide products and services that meet customers current and future needs
. It has a large delivery network covering close to 10. Incorporated in the year 1990.000 Pincodes . DTDC is in its 20th year of operations in India.INTRODUCTION
• DTDC Courier & Cargo Ltd. Delhi and Kolkata supported by 300 plus own offices and over 4000 channel partner offices spread across the country delivering over 100 million shipments every year. Its efficient international network spans over 240 global destinations Head quartered in Bangalore DTDC has its Zonal offices in Banglore. is one of the leading Express
• • •
distribution company in India covering both domestic and international services.
• To focus on Customer Loyalty and make it
the goal of our Organization. reliable and speedy service. processes and systems for improved. • To encourage our people for adoption of new technologies. • To relentlessly monitor to reach a minimum net service level of 98% delivery.
Vision • To be the most Admired and Successful Express Distribution Company in India by meeting and exceeding our Customers' expectation of services.
• To impartially select and develop employees & service partners (Franchisees) for meeting our quality service standard.
• To continuously improve our Line-haul
connections to achieve shortest possible transit times.
. • Transparency in all our Transactions.GOALS AND OBJECTIVES
• WIN-WIN Relationship with everyone
involved in our Business. • Understanding that our service efficiency is part of customer’s balance sheet. • Protect the Environment by minimizing Pollution and Reducing.
STRENGTH • 1.Profit margin is good • 3. SMS • 2.Repeat deliveries leading to higher cost OPPORTUNITIES • 1.Does not own freighter aircraft.Still developing its overseas expansion.More new entrants coming up • 3.Customers can schedule a courier pick-up 4.DTDC’s E commerce solution that helps with system generated barcoded waybill at the customer’s destination facilitating an easy process. • 3. 3. • 2.Increased competitors • 2.Domestic tracking via internet.Get customized rate quotes • 5.Growth potential is high • 2.Frieght rates getting higher
.Customer can create customized shipment reports WEAKNESS • 1.Demand of consumers is ever increasing
THREATS • 1.
MICHAEL PORTERS FIVE FORCE MODEL
MICHAEL PORTERS FIVE FORCE MODEL
The threat of substitute products or services • Following are the present substitutes of couriers and because of which courier services if facing severe threat : • Telephone • E-mails • Telegraphs • Fax
The bargaining power of customers (buyers) • DTDC is not pressurized by customers as DTDC has got innovations in itself as a result of which it need not worry about the prevailing competitors. Some of the exclusive services provided by DTDC includes : • Fast delivery • Tracking of the sent couriers through net • Brand name
INTENSITY OF COMPETITON COMPETITORS OF DTDC ARE: • DHL • ELBEE • GATI • FED EX
Expert team within the company develops customised solutions and offers seamless integration with the customer applications so that customer can integrate shipping solutions to their E commerce business. The company or business unit may then charge a premium for its product.DIFFERENTIATION STRATEGY
Differentiation is aimed at the broad market that involves the creation of a product or services that is perceived throughout its industry as unique. DTDC does believe in differentiating its services from the other courier services so that it falls out from the rest. Some of the exclusive services provided by DTDC includes : • Fast delivery • Tracking of the sent couriers through net • Brand name • Complete E commerce solutions from DTDC • DTDC offers end to end solutions for the E commerce business.
SERVICES PROVIDED BY DTDC
Services provided: • 1.
.Customers can schedule a courier pick-up 4.DTDC Indian Address Validation Tool.Get customized rate quotes • 5.ensures that customer-entered shipping addresses • for the de1stinations are correct at the time of order.Customer can create customized shipment reports • 6.Domestic tracking via internet. SMS • 2.DTDC’s E commerce solution that helps with system generated bar-coded waybill at the customer’s destination facilitating an easy process. 3.
Repeat deliveries leading to higher cost
.Does not own freighter aircraft.Still developing its overseas expansion. • 3.CHALLENGES TO DTDC
• 1. • 2.
MARKET GROWTH HIGH LOW
This cannot be the place for DTDC as here the firm tries to divest from the market.DTDC can be placed in the star position of the BCG matrix the reason for it is that to be a STAR it is mandatory for DTDC to have a high market share as well as high growth potential in the market and the company in stars position generates huge amount of cash but also invests huge amount of cash. STARS :.• QUESTION MARK:.
. This is the reason why we cannot place DTDC in the question mark position.. Therefore I feel that DTDC is best suited to this place.DTDC cannot be placed in the question
mark position of the BCG matrix. It doesnot consume much cash and its market position is also satisfactory. DOGS:.DTDC cannot be placed here because in this place the firm invests less or negligible amount of capital and generates huge returns which is not the case for DTDC. CASH COWS:.
GE / McKinsey Matrix
• In consulting engagements with General
Electric in the 1970's. McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU). This business screen became known as the GE/McKinsey Matrix
CAP/SAP OF DTDC
TYPE OF STRATEGIC ADVANTAGE
DEGREE OF ADVANTAGE 0 1 2 3 4 5
SUSTAINABILITY OF ADVANTAGE -1 0 1
QUALITY OF PRODUCT
TASTE AND PREFERENCES
VARIETY OF PRODUCTS
provide basic direction for strategic actions Indicate the time period over which long-range objectives are to be achieved Firms involved with multiple industries. often called master or business strategies. or customer groups usually combine several grand strategies Achieving the major long-term objectives of a single firm
. product lines.What is Grand Strategy ?
• Grand strategy is a general term for a broad statement of • • •
strategic action. businesses. Grand strategies . A grand strategy states the means that will be used to achieve long-term objectives.
Concentration Strategies Diversification Strategies Horizontal Integration
Vertical Integration Joint Venture
Retrenchment Strategies Combination Strategies
Divestiture Strategies Liquidation Strategies
• From the above study on DTDC it can be concluded
that DTDC has got a very opportunistic future if it keeps in mind the external and internal factors and formulate strategies accordingly it can provide a tough competition to te present market leaders of courier services i. DHL etc. DTDC has got online tracking services and e-commerce services which are impeccable in itself.
.e BLUE DART. • DTDC has also got some of the exclusive services which are not provided by any other firms in the industry.
OUR SUGGESTIONS FOR DTDC
• EXPAND GLOBALLY • OWN A PRIVATE AIRCRAFT • LOWER THE COSTING OF REPEAT
MEHUL KAPADIA (MANAGER OF DTDC AT SARGAM SHOPPING CENTER) SOURCES FROM : PRINCIPLES OF MANAGEMENT WEBSITE OF DTDC WIKIPEDIA AT LAST TO MUKHERJEE SIR FOR PROVIDING OPPORTUNITY TO WORK
.• THANK YOU :