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Monopoly In Indian

Railways

Ajay Parab
• Only one Producer/Seller
• Restrictions on entry and exit out of the industry
• Unique Product
• Specialized information about production techniques
unavailable to other potential producers

Monopoly
• Defense
• Hindustan Aeronautics
• Indian Railways
• State Electricity Board
• Nuclear Power
• Few Pharmaceutical Companies

Examples of monopoly
• First Railway from Bombay to Thane (1853)
• Distance covered by the 14,300 trains on the Indian
Railways everyday, equals three & half times the distance
to moon
• IR employs Approx. 1.55 million people
• The longest platform in the world is at Kharagpur and is
2,733 ft. in length
• More than 7000 Railway Stations in India!

Indian Railways
Porter’s 5 Forces Model
SUPPLIER POWER

• Self Sustained
• Public Private ownership
• Tenders issued
• Labor Union

THREAT OF NEW THREAT OF


ENTRANT SUBSTITUTES
• High Capital Investment
discouraging new entry
Rivalry •

Low Cost Airlines
Deluxe Buses
• Prohibition of entry for
private sector • Personal Transport
• Access to distribution

BUYER POWER
• Low power for bargaining
• Very Large Buyer Volume
• Highly informed buyer
• Very strong Brand Identity
STRENGTHS WEAKNESSES
• Economical • Hygiene Issues
• Mass Transportation • Poor Connectivity
• Tatkal Booking • Advance Booking
• Choice of Class as per convenience • Tasteless Food
• Concessions for Senior Citizens, Students, • Lack of Security
Raliway Employees and Award winners • Reservations
• World’s 4th largest workforce under single • Unavailability of basic utilities
ownership

SWOT ANALYSIS

OPPORTUNITIES THREATS
• Metro Trains in Metros and Tier 1 cities • Cheaper Airfare
• Rail Tourism • Better Connectivity of Roads
• Advertising • Political Unrest
• Expanding Networks • Social Unrest
• Public Private Ownership (Retailing etc.) • Terrorist Attacks
• Sports • Technical Malfunction
• Rail Tourism
• Tie up with Hotels
• Venture into in house Taxi
• Chauffer service for 1st Class Travellers
• Trolleys in Railway Station
• Aero-dynamic shape for Engine Coach run by Renewable
Source of Energy
• Escalators in changing platforms
• Shuffle Berth

Recommendations
• Though Critics argue Perfect Competition and Monopoly
does not exist in absolute form, we tend to assert above
evidences to prove Indian Railways is categorical
monopoly for the segment of customers to which it
caters.

Conclusion
• Wikipedia
• Google
• www.investopedia.com

Bibliography

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