A PRESENTATION ON COURIER SERVICES BY RONAK MUSRAF-M174 LAV POODDAR-P244 GAURAV RATHI-R062 NIHIL SHAH-S225 NADIM VIRANI-V051

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%

26%

ORGANIZED SECTOR 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
FED EX

DTDC Courier & Cargo

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 Indias 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

OPPORTUNITIES

profit margin in courier service

industry is about 10% huge growth potential The tarrifs have been reduced infrastructure have greatly improved

WEAKNESS

THREATS

inefficient and inappropriate

airline system High transportation rates

competitors unorganized sector contributes

only 4% The clientele are very demanding Increased rates of ATF

MARKET OF MAJOR COURIER COMPANIES

TOP PLAYERS REVENUE(IN BILLIONS)
2.5

1.5
BLUE DART GATI ELBEE DTDC

0.5

GROWTH TRENDS OF LOGISTICS

GROWTH ANALYSIS
2.5 2 1.5 1 0.5 0 2005 2008 2010 0.8 1.3 2.3

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 customers balance sheet. Protect the Environment by minimizing Pollution and Reducing. National Wastage

SWOT ANALYSIS
STRENGTH 1.Domestic tracking via internet, SMS 2.DTDCs E commerce solution that helps with system generated barcoded waybill at the customers 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 WEAKNESS 1.Does not own freighter aircraft. 2.Still developing its overseas expansion. 3.Repeat deliveries leading to higher cost OPPORTUNITIES 1.Growth potential is high 2.Profit margin is good 3.Demand of consumers is ever increasing

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.DTDCs E commerce solution that helps with system generated bar-coded waybill at the customers 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
STARS
DTDC

QUESTION MARK

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.

GE / McKinsey Matrix
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 ADVANTAGE

DEGREE OF ADVANTAGE 0 1 2 3 4 5

SUSTAINABILITY OF ADVANTAGE -1 0 1

SCHEME

SERVICE

QUALITY OF PRODUCT

TECHNOLOGY

TASTE AND PREFERENCES

VARIETY OF PRODUCTS

PACKAGING

PRICE

MARKETING SHARE

IMAGE

SHARE(MONEY)

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

Concentration Strategies Diversification Strategies Horizontal Integration

Growth Strategies

Vertical Integration Joint Venture

Grand Strategies

Stability Strategies

Retrenchment Strategies Combination Strategies

Harvesting Strategies

Turnaround Strategies
Divestiture Strategies Liquidation Strategies

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

 THANK YOU :
MR. 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