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INTRODUCTION TO MONOPOLY

Monopoly: It means a market where there is one


seller of a particular good or service.

Characteristic: Only single seller in the market no


competition.

Advantages: can make huge investments and


restrict entry.

Disadvantages: level of service can be poor.

Indian Railways

ABOUT

INDIAN RAILWAYS IS MORE THAN 150 YRS OLD. ITS THE LARGEST RAILWAY SYSTEM IN WORLD UNDER ONE MANAGEMENT ITS EMPLOYE STRENGHT IS 14,06,430

PRICING
Standard Pricing. No Price Differentiation. Infrastructural Development leads to Price Rise

Net Miscellaneous Receipts 40 Net Revenues 127 Surplus/ Deficit -198

171
793 788 1055

1113
2337 3830 4478

175
1000 1115 1091

662

5273

2074

HOW DO THEY KEEP MONOPOLY ??

Worlds third largest railway network IR owns a fleet of 2,22,379 wagons 42,441 coaches 7,910 locomotives Operates 1,60,251 trains including 9,550 passenger trains, carrying about 1.6 million tonnes of freight and about 18 million passengers daily

SWOT
STRENGTH
Biggest company in terms of employees Luxurious and affordable Connectivity Technological advancement

WEAKNESS
Corruption Poor Infrastructure Unpunctual

OPPORTUNITIES
Infrastructural Advancement Development in small cities Privatization

THREATS
Low Cost Airlines Road Transport

CURRENT SCENARIO

ROUTE TOTAL: 64000 km (17000 km electrified; 12,617


km double track)

TRACK TOTAL: 1,07,000 Track Kilometers PASSENGERS TRAVEL PER DAY: 18million FLEET OF TRAINS: 7,000 for passengers and 4,000 for
goods

WAGONS: 207,176

Introduction
Incorporated in March 1988 under the Companies Act commenced operation from November 1989 having the largest network of 59 ICDs in India. Objective. Concor - Indias biggest carrier of cargo containers by rail.

Pricing
FEU/TEU
Differential

pricing

Price Maker

SWOT
Relatively undisputed position as a sole provider of rail hauls for containers Strong relationship with the Indian railways Significant presence at JNPT and other major Indian ports. Poor asset maintenance has led to lower efficiency and clogged capacities Large portion of capacity not being optimally utilized

STRENGTH

WEAKNESS

OPPORTUNITY Increase in the penetration of containerization Substantial growth expected in international trade Strong FDI inflows into various indust ries

THREAT
Entry of new players into the container train operations bus iness. High land acquisition costs for developing ICDs imply that the sector is capital-intensive

Current Scenario
The

present size of the wagon fleet 8374 To increase penetration in the hinterland Agreement with a consortium led by Dubai Ports

INTRODUCTION

Fourth-largest source of electricity in India.


Government Monopoly Tie-up with BARC.

How do they hold monopoly?

Government Restrictions.
Government/ Natural Monopoly Dependence on Natural and Foreign sources for uranium supply. Situated in a non earthquake prone area.

SWOT
Government inviting L&T, Steel authority of India, Sales India for Cartel Tie up with BARC

STRENGTH

High Initial Cost Unavailability of Resources. Lack of technical skills Delay in import of materials
WEAKNESS

OPPORTUNITY Nuclear can replace Hydroelectricity. Other Substitute thorium. U238 can be processed and converted into U235

THREATS
Environmental Hazards and Calamities Jatapur- Maharashtra Chernobyl- Russia Fukushima- Japan

CURRENT SCENARIO
As of 2010, India has,

Introduction

The water distribution system in Bombay is about 100 years old. Water is brought into the city from the lakes after treatment, and stored in 23 service reservoirs. two of the major sources, Tansa and Lower Vaitarna

Pricing

Water production costs Rs. 24 per 10,000 litres

The BMC charges Rs. 6 for 10,000 litres for domestic consumption BMC has a system of cross-subsidy by charging Rs. 150 for 10,000 litres for industrial and commercial users.

SWOT
Large area of pipelines coverage Pure water sources are government property Abrupt water supply specially at residential places. Technological problem in distribution system STRENGTHS WEAKNESS

OPPORTUNITY

THREATS

Supply to rural areas Technological and Infrastructural development

Private Suppliers Theft

Current Scenario

Currently the BMC earns about Rs. 4.5 billion (450 crores) a year through water charges and levies

Dabbawallas

Introduction

Started in 1890
In 1956 registered as a charitable trust NMTBST Employee strength 5000, all Dabbawallas are Shareholders of the company

Pricing

Private monopoly
Cost-Based Pricing Cost of service Rs 250/- to Rs 350/- per month and 10million transactions per month. Rs 380 million per annum

SWOT
STRENGTH
Wide Network On time delivery Cost effective Six Sigma

WEAKNESS
Lack of Education High dependability in local trains Lack of Funds.

SWOT
OPPURTUNITIES
Wide range publicity. Operational cost is low. Catering

THREATS
Indirect competition is being faces from caterers. Indirect threats from fast food and hotels. Change in timings Company transportation. Ticket restaurant

Current Scenario
According to a recent survey, dabbawallas make less than 1 mistake in every 6million deliveries. For the 1st time they broke their tradition and went on strike to support ANNA HAZARE 125 Year old industry growth continues to grow at 5-10% per year

Monopoly Can

enjoys benefit

charge desired price

Can
Can

do price differentiation prevent competitors to enter market

PRESENTED BY Nikhil Advani Priya Ahuja Binayak Bajaj Tripti Bajaj Rajiv Balani Rohit Bathija Geeta Bhatia Khushal Bothra Girish Chandwani Rohan Changlani 2 4 6 8 10 12 14 16 18 20

THANK YOU