Project report on cycle courier service, 7th Semester project report
A PRESENTATION PRESENTATION ON COURIER SERVICES BY RONAK MUSRAF-M174 LAV POODDAR-P244 GAURAV RATHI-R062 NIHIL SHAH-S225 NADIM VIRANI-V051
COURIER SERVICES
COURIER SERVICES
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%
64%
ORGANIZED SECTOR 26%
SEMI-ORGANISED SECTOR UNORGANISED SECTOR
4%
MAJOR PLAYERS
• DHL • MARKET SHARE OF 64% • GIANT AMONGST ALL COURIER SERVICES • WORLDWIDE EXPANSION • MARKET LEADER
• GATI • WAS SETUP IN 1989 • 2ND LARGEST COURIER SERVICE PROVIDER AFTER DHL • ENJOYS MARKET SHARE OF 20% • HAS A GOOD MARKET GROWTH POTENTIAL
• DTDC
• DTDC Courier & Cargo
• FED EX
• WORLDWIDE EXPANDED • GOOD AMOUNT OF MARKWT •
SHARE GLOBALLY ENHANCED TECHNOLOGY
•
Ltd. is one of the leading Express distribution company in India covering both domestic and international services. Incorporated in the year 1990, DTDC being India’s Largest Delivery Network Company serves over 10,000 pin codes in India and operates through 240 international offices across the globe.
SWOT ANALYSIS OF THE COMPANY • STRENGTH
• Around 40% annual growth • Increased multi-use apparitions. • widely accepted by the people
• WEAKNESS
• inefficient and inappropriate •
airline system High transportation rates
• OPPORTUNITIES
• profit margin in courier service • • •
industry is about 10% huge growth potential The tarrifs have been reduced infrastructure have greatly improved
GROWTH • Freight management, which is non asset based
are rendered by 3PLs account for about 15% growth. • 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, which operate internationally, especially in the zone where logistics operations take place between Asia and the United States of America, account for a growth rate of 15% to 20%.
COMPANY PROFILE
INTRODUCTION • DTDC Courier & Cargo Ltd. is one of the leading Express • • •
•
distribution company in India covering both domestic and international services. Incorporated in the year 1990, DTDC is in its 20th year of operations in India. It has a large delivery network covering close to 10,000 Pincodes . Its efficient international network spans over 240 global destinations Head quartered in Bangalore DTDC has its Zonal offices in Banglore, Mumbai, 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. DTDC has been innovating constantly to provide products and services that meet customers current and future needs
MISSION • To focus on Customer Loyalty and make it • •
the goal of our Organization. To encourage our people for adoption of new technologies, processes and systems for improved, reliable and speedy service. To relentlessly monitor to reach a minimum net service level of 98% delivery.
VISION Vision • To be the most Admired and Successful Express Distribution Company in India by meeting and exceeding our Customers' expectation of services.
STRATEGIC INTENT • To continuously improve our Line-haul •
connections to achieve shortest possible transit times. To impartially select and develop employees & service partners (Franchisees) for meeting our quality service standard.
GOALS AND OBJECTIVES • WIN-WIN Relationship with everyone • • •
involved in our Business. Transparency in all our Transactions. Understanding that our service efficiency is part of customer’s balance sheet. Protect the Environment by minimizing Pollution and Reducing. National Wastage
SWOT ANALYSIS STRENGTH • 1.Domestic tracking via internet, SMS • 2.DTDC’s E commerce solution that helps with system generated barcoded waybill at the customer’s destination facilitating an easy process. 3.Customers can schedule a courier pick-up 4.Get customized rate quotes • 5.Customer can create customized shipment reports
OPPORTUNITIES • 1.Growth potential is high • 2.Profit margin is good • 3.Demand of consumers is ever increasing
WEAKNESS • 1.Does not own freighter aircraft. • 2.Still developing its overseas expansion. • 3.Repeat deliveries leading to higher cost
THREATS • 1.Increased competitors • 2.More new entrants coming up • 3.Frieght rates getting higher
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
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. The company or business unit may then charge a premium for its product. 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. 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.
SERVICES PROVIDED BY DTDC Services provided: • 1.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.Customers can schedule a courier pick-up 4.Get customized rate quotes • 5.Customer can create customized shipment reports • 6.DTDC Indian Address Validation Tool- ensures that customer-entered shipping addresses • for the de1stinations are correct at the time of order.
CHALLENGES TO DTDC • 1.Does not own freighter aircraft. • 2.Still developing its overseas expansion. • 3.Repeat deliveries leading to higher cost
BCG MATRIX
QUESTION
STARS
MARK
DTDC
CASH COWS
DOG
MARKET GROWTH HIGH
LOW
• QUESTION MARK:- 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. This is the reason why we cannot place DTDC in the question mark position. STARS :- 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. Therefore I feel that DTDC is best suited to this place. CASH COWS:- 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.. DOGS:- This cannot be the place for DTDC as here the firm tries to divest from the market.
DTD C
• 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
DEGREE OF ADVANTAGE
SUSTAINABILITY OF
ADVANTAGE
ADVANTAGE 0
SCHEME
SERVICE
QUALITY OF PRODUCT
TECHNOLOGY
TASTE AND PREFERENCES
VARIETY OF PRODUCTS
PACKAGING
PRICE
MARKETING SHARE
IMAGE
SHARE(MONEY)
1
2
3
4
5
-1
0
1
GRAND STRATEGIES
What is Grand Strategy ? • Grand strategy is a general term for a broad statement of strategic action. A grand strategy states the means that will be used to achieve long-term objectives. • Grand strategies , often called master or business strategies, provide basic direction for strategic actions • Indicate the time period over which long-range objectives are to be achieved • Firms involved with multiple industries, businesses, product lines, or customer groups usually combine several grand strategies • Achieving the major long-term objectives of a single firm
CONCLUSION • 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.e BLUE DART, DHL etc. • DTDC has also got some of the exclusive services which are not provided by any other firms in the industry. DTDC has got online tracking services and e-commerce services which are impeccable in itself.
OUR SUGGESTIONS FOR DTDC • EXPAND GLOBALLY • OWN A PRIVATE AIRCRAFT • LOWER THE COSTING OF REPEAT DELIVERIES
