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KSRTC’s Blue Ocean Strategy

Conference Paper · May 2016

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Sreeramana Aithal
Srinivas University India
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 Managema 2016‐ National Conference  on Changing Perspectives  2016
 
PAPER 17

KSRTC’s Blue Ocean Strategy

P. S. Aithal

Srinivas Institute of Management Studies, Pandeshwar, Mangalore - 575 001, INDIA

* E-mail : psaithal@gmail.com

ABSTRACT

Karnataka State Road Transportation Corporation is a Karnataka State public

enterprise started in the year 1961. In spite of being a loss making organization
during its initial period, it is able to enjoy monopoly in its transportation
business due to the fact of nationalization of major part of bus roots in the State.
But even though, it had monopoly power provided by the act of State
government to run transportation business without competition, due to various
reasons, it could not run the business profitably. During the year 2001 – 2005,
then Transport minister of state, Mr. Ramanatha Rai took several competitive
and blue ocean strategic decisions in order to avoid the leakage of revenues and
improving the quality of public transportation service in towns and villages.
This turn-around strategy transformed KSRTC as profit making organization.
During the last ten years, KSRTC took several revolutionary decisions to
introduce high-tech bus services in major long trip routes and improved the
quality of service to its passengers in such a way that it was able to kill all its
private transport competitors to maintain monopoly successful business.
Presently, KSRTC has the largest fleet of Volvo buses among state owned
transport companies. In this paper, we have developed a teaching case for B-
Schools on blue ocean strategy of KSRTC to become successful and admirable
organization in the frame of reference of its passengers.

Keywords : Blue ocean strategy of Transport company, Turnaround strategy.

Srinivas Institute of Management Studies, Mangalore   Page 1 

 

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