A PRESENTATION ON A PRESENTATION ON COURIER SERVICESCOURIER SERVICESBYBYRONAK MUSRAF-M174RONAK MUSRAF-M174LAV POODDAR-P244LAV POODDAR-P244GAURAV RATHI-R062GAURAV RATHI-R062NIHIL SHAH-S225NIHIL SHAH-S225NADIM VIRANI-V051NADIM VIRANI-V051

COURIER SERVICESCOURIER SERVICES

HISTORY OF COURIER HISTORY OF COURIER INDUSTRYINDUSTRY

PRIOR USED SOURCES OF LOGISTICS PRIOR USED SOURCES OF LOGISTICS WEREWERE

• PIGEONSPIGEONS

• TELEGRAMSTELEGRAMS

• POSTAL SERVICESPOSTAL SERVICES

INDIAN COURIER INDUSTRYINDIAN COURIER INDUSTRY

• CAME INTO BEING 15-20 YEARS AGOCAME INTO BEING 15-20 YEARS AGO

• MARKET OF 4000 CRORESMARKET OF 4000 CRORES

• REGISTERED A GROWTH OF 25% PER REGISTERED A GROWTH OF 25% PER ANNUMANNUM

• PROMISING FUTUREPROMISING FUTURE

DISTRIBUTION OF REVENUEORGANISED SECTOR- 64%

SEMI-ORGANISED-26%UNORGANISED SECTOR-4%

4%

26%

64%

ORGANIZED SECTOR

SEMI-ORGANISED SECTOR

UNORGANISED SECTOR

MAJOR PLAYERSMAJOR PLAYERS

•DHLDHL• MARKET SHARE MARKET SHARE

OF 64%OF 64%• GIANT AMONGST GIANT AMONGST

ALL COURIER ALL COURIER SERVICESSERVICES

• WORLDWIDE WORLDWIDE EXPANSIONEXPANSION

• MARKET LEADERMARKET LEADER

•GATIGATI• WAS SETUP IN 1989WAS SETUP IN 1989

• 22NDND LARGEST LARGEST COURIER SERVICE COURIER SERVICE PROVIDER AFTER DHLPROVIDER AFTER DHL

• ENJOYS MARKET ENJOYS MARKET SHARE OF 20%SHARE OF 20%

• HAS A GOOD MARKET HAS A GOOD MARKET GROWTH POTENTIALGROWTH POTENTIAL

• FED EXFED EX• WORLDWIDE EXPANDEDWORLDWIDE EXPANDED• GOOD AMOUNT OF GOOD AMOUNT OF

MARKWT SHARE MARKWT SHARE GLOBALLYGLOBALLY

• ENHANCED TECHNOLOGYENHANCED TECHNOLOGY

•DTDCDTDC• DTDC Courier & Cargo DTDC Courier & Cargo

Ltd.Ltd. is one of the leading  is one of the leading Express distribution Express distribution company in India covering company in India covering both domestic and both domestic and international services. international services. Incorporated in the year Incorporated in the year 1990,1990,

• DTDC being India’s DTDC being India’s Largest Delivery Network Largest Delivery Network Company serves over Company serves over 10,000 pin codes in India 10,000 pin codes in India and operates through 240 and operates through 240 international offices international offices across the globe.across the globe.

SWOT ANALYSIS OF THE SWOT ANALYSIS OF THE COMPANYCOMPANY• STRENGTHSTRENGTH• Around 40% annual growth Around 40% annual growth • Increased multi-use Increased multi-use

apparitions. apparitions. • widely accepted by the people widely accepted by the people

• WEAKNESSWEAKNESS• inefficient and inappropriate inefficient and inappropriate

airline system airline system • High transportation rates High transportation rates

• OPPORTUNITIESOPPORTUNITIES• profit margin in courier service profit margin in courier service

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

improved improved

• THREATSTHREATS• competitors competitors • unorganized sector contributes unorganized sector contributes

only 4% only 4% • The clientele are very The clientele are very

demanding demanding • Increased rates of ATF Increased rates of ATF

MARKET OF MAJOR MARKET OF MAJOR COURIER COMPANIESCOURIER COMPANIES

TOP PLAYERS REVENUE(IN BILLIONS)

0

0.5

1

1.5

2

2.5

BLUE DART

GATI

ELBEE

DTDC

GROWTH TRENDS OF GROWTH TRENDS OF LOGISTICSLOGISTICS

00.51

1.52

2.5

GROWTH ANALYSIS

2005 0.8

2008 1.3

2010 2.3

GROWTHGROWTH

• Freight management, which is non asset Freight management, which is non asset based are rendered by 3PLs account for based are rendered by 3PLs account for about 15% growth. about 15% growth.

• 3PLs dealing with cross dock assets which 3PLs dealing with cross dock assets which are low account is likely to register a growth are low account is likely to register a growth rate of 15%. rate of 15%.

• Growth rateGrowth rate for the freight forwarders, for the freight forwarders, which operate internationally, especially in which operate internationally, especially in the zone where logistics operations take the zone where logistics operations take place between Asia and the United States of place between Asia and the United States of America, account for a growth rate of 15% America, account for a growth rate of 15% to 20%. to 20%.

COMPANY PROFILE

INTRODUCTIONINTRODUCTION

• DTDC Courier & Cargo Ltd.DTDC Courier & Cargo Ltd. is one of the leading Express  is one of the leading Express distribution company in India covering both domestic and distribution company in India covering both domestic and international services. Incorporated in the year 1990, DTDC international services. Incorporated in the year 1990, DTDC is in its 20th year of operations in India. is in its 20th year of operations in India.

• It has a large delivery network covering close to 10,000 It has a large delivery network covering close to 10,000 Pincodes Pincodes

• . Its efficient international network spans over 240 global . Its efficient international network spans over 240 global destinations destinations

• Head quartered in Bangalore DTDC has its Zonal offices in Head quartered in Bangalore DTDC has its Zonal offices in Banglore, Mumbai, Delhi and Kolkata supported by 300 Banglore, Mumbai, Delhi and Kolkata supported by 300 plus own offices and over 4000 channel partner offices plus own offices and over 4000 channel partner offices spread across the country delivering over 100 million spread across the country delivering over 100 million shipments every year. shipments every year.

• DTDC has been innovating constantly to provide products DTDC has been innovating constantly to provide products and services that meet customers current and future needs and services that meet customers current and future needs

MISSIONMISSION

• To focus on Customer Loyalty and make To focus on Customer Loyalty and make it the goal of our Organization.it the goal of our Organization.

• To encourage our people for adoption of To encourage our people for adoption of new technologies, processes and systems new technologies, processes and systems for improved, reliable and speedy for improved, reliable and speedy service.service.

• To relentlessly monitor to reach a To relentlessly monitor to reach a minimum net service level of 98% minimum net service level of 98% delivery.delivery.

VISIONVISION

VisionVision

• To be the most Admired and To be the most Admired and Successful Express Distribution Successful Express Distribution Company in India by meeting and Company in India by meeting and exceeding our Customers' exceeding our Customers' expectation of services.expectation of services.

STRATEGIC INTENTSTRATEGIC INTENT

• To continuously improve our Line-To continuously improve our Line-haul connections to achieve shortest haul connections to achieve shortest possible transit times.possible transit times.

• To impartially select and develop To impartially select and develop employees & service partners employees & service partners (Franchisees) for meeting our quality (Franchisees) for meeting our quality service standard. service standard. 

GOALS AND OBJECTIVESGOALS AND OBJECTIVES

• WIN-WIN Relationship with everyone WIN-WIN Relationship with everyone involved in our Business.involved in our Business.

• Transparency in all our Transactions.Transparency in all our Transactions.• Understanding that our service Understanding that our service

efficiency is part of customer’s efficiency is part of customer’s balance sheet.balance sheet.

• Protect the Environment by Protect the Environment by minimizing Pollution and Reducing. minimizing Pollution and Reducing. National Wastage National Wastage

SWOT ANALYSISSWOT ANALYSIS

STRENGTHSTRENGTH• 1.Domestic tracking via internet, 1.Domestic tracking via internet,

SMSSMS• 2.DTDC’s E commerce solution 2.DTDC’s E commerce solution

that helps with system generated that helps with system generated bar-coded waybill at the bar-coded waybill at the customer’s destination facilitating customer’s destination facilitating an easy process.an easy process.3.Customers can schedule a 3.Customers can schedule a courier pick-upcourier pick-up4.Get customized rate quotes4.Get customized rate quotes

• 5.Customer can create customized 5.Customer can create customized shipment reportsshipment reports

WEAKNESSWEAKNESS• 1.Does not own freighter aircraft.1.Does not own freighter aircraft.• 2.Still developing its overseas 2.Still developing its overseas

expansion.expansion.• 3.Repeat deliveries leading to 3.Repeat deliveries leading to

higher costhigher cost

OPPORTUNITIESOPPORTUNITIES• 1.Growth potential is high1.Growth potential is high• 2.Profit margin is good2.Profit margin is good• 3.Demand of consumers is ever 3.Demand of consumers is ever

increasingincreasing

THREATSTHREATS• 1.Increased competitors1.Increased competitors• 2.More new entrants coming up2.More new entrants coming up• 3.Frieght rates getting higher3.Frieght rates getting higher

MICHAEL PORTERS FIVE MICHAEL PORTERS FIVE FORCE MODELFORCE MODEL

MICHAEL PORTERS FIVE FORCE MICHAEL PORTERS FIVE FORCE MODELMODEL

The threat of substitute products or servicesThe threat of substitute products or services• Following are the present substitutes of couriers and Following are the present substitutes of couriers and

because of which courier services if facing severe because of which courier services if facing severe threat :threat :

• TelephoneTelephone• E-mailsE-mails• TelegraphsTelegraphs• Fax Fax

The bargaining power of customers (buyers)The bargaining power of customers (buyers)• DTDC is not pressurized by customers as DTDC has DTDC is not pressurized by customers as DTDC has

got innovations in itself as a result of which it need got innovations in itself as a result of which it need not worry about the prevailing competitors. Some of not worry about the prevailing competitors. Some of the exclusive services provided by DTDC includes :the exclusive services provided by DTDC includes :

• Fast deliveryFast delivery• Tracking of the sent couriers through netTracking of the sent couriers through net• Brand nameBrand name

INTENSITY OF COMPETITONINTENSITY OF COMPETITONCOMPETITORS OF DTDC ARE:COMPETITORS OF DTDC ARE:

• DHLDHL

• ELBEEELBEE

• GATIGATI

• FED EXFED EX

DIFFERENTIATION STRATEGYDIFFERENTIATION STRATEGY

Differentiation is aimed at the broad market that involves the Differentiation is aimed at the broad market that involves the creation of a product or services that is perceived throughout its creation of a product or services that is perceived throughout its industry as unique. The company or business unit may then industry as unique. The company or business unit may then charge a premium for its product. DTDC does believe in charge a premium for its product. DTDC does believe in differentiating its services from the other courier services so that it differentiating its services from the other courier services so that it falls out from the rest.falls out from the rest.

Some of the exclusive services provided by DTDC includes :Some of the exclusive services provided by DTDC includes :• Fast deliveryFast delivery• Tracking of the sent couriers through netTracking of the sent couriers through net• Brand nameBrand name• Complete E commerce solutions from DTDCComplete E commerce solutions from DTDC• DTDCDTDC offers end to end solutions for the E commerce business.  offers end to end solutions for the E commerce business.

Expert team within the company develops customised solutions Expert team within the company develops customised solutions and offers seamless integration with the customer applications so and offers seamless integration with the customer applications so that customer can integrate shipping solutions to their E that customer can integrate shipping solutions to their E commerce business.commerce business.

SERVICES PROVIDED BY SERVICES PROVIDED BY DTDCDTDCServices provided:Services provided:• 1.Domestic tracking via internet, SMS1.Domestic tracking via internet, SMS• 2.DTDC’s E commerce solution that helps with 2.DTDC’s E commerce solution that helps with

system generated bar-coded waybill at the system generated bar-coded waybill at the customer’s destination facilitating an easy process.customer’s destination facilitating an easy process.3.Customers can schedule a courier pick-up3.Customers can schedule a courier pick-up4.Get customized rate quotes4.Get customized rate quotes

• 5.Customer can create customized shipment reports5.Customer can create customized shipment reports• 6.DTDC Indian Address Validation Tool- ensures that 6.DTDC Indian Address Validation Tool- ensures that

customer-entered shipping addressescustomer-entered shipping addresses• for the de1stinations are correct at the time of for the de1stinations are correct at the time of

order.order.

CHALLENGES TO DTDCCHALLENGES TO DTDC

• 1.Does not own freighter aircraft.1.Does not own freighter aircraft.

• 2.Still developing its overseas 2.Still developing its overseas expansion.expansion.

• 3.Repeat deliveries leading to higher 3.Repeat deliveries leading to higher costcost

BCG MATRIX

STARS

CASH COWS DOG

QUESTION MARK

DTDC

HIGH LOW

MARKET GROWTH

• QUESTION MARK:-QUESTION MARK:- DTDC cannot be placed in the question DTDC cannot be placed in the question mark position of the BCG matrix. It doesnot consume much mark position of the BCG matrix. It doesnot consume much cash and its market position is also satisfactory. This is the cash and its market position is also satisfactory. This is the reason why we cannot place DTDC in the question mark reason why we cannot place DTDC in the question mark position.position.

• STARS :- STARS :- DTDC can be placed in the star position of the DTDC can be placed in the star position of the BCG matrix the reason for it is that to be a STAR it is 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 mandatory for DTDC to have a high market share as well as high growth potential in the market and the company in high growth potential in the market and the company in stars position generates huge amount of cash but also stars position generates huge amount of cash but also invests huge amount of cash. Therefore I feel that DTDC is invests huge amount of cash. Therefore I feel that DTDC is best suited to this place.best suited to this place.

• CASH COWSCASH COWS:- :- DTDC cannot be placed here because in this DTDC cannot be placed here because in this place the firm invests less or negligible amount of capital place the firm invests less or negligible amount of capital and generates huge returns which is not the case for and generates huge returns which is not the case for DTDC.. DTDC..

• DOGS:-DOGS:- This cannot be the place for DTDC as here the firm This cannot be the place for DTDC as here the firm tries to divest from the market.tries to divest from the market.

GE / McKinsey Matrix

DTDC

• In consulting engagements with In consulting engagements with General Electric in the 1970's, General Electric in the 1970's, McKinsey & Company developed a McKinsey & Company developed a nine-cell portfolio matrix as a tool for nine-cell portfolio matrix as a tool for screening GE's large portfolio of screening GE's large portfolio of strategic business units (SBU). This strategic business units (SBU). This business screen became known as business screen became known as the GE/McKinsey Matrix the GE/McKinsey Matrix

CAP/SAP OF DTDCCAP/SAP OF DTDC

TYPE OF STRATEGIC ADVANTAGE

DEGREE OF ADVANTAGE SUSTAINABILITY OF ADVANTAGE

0 1 2 3 4 5 -1 0 1

SCHEME

SERVICE

QUALITY OF PRODUCT

TECHNOLOGY

TASTE AND PREFERENCES

VARIETY OF PRODUCTS

PACKAGING

PRICE

MARKETING SHARE

IMAGE

SHARE(MONEY)

GRAND STRATEGIESGRAND STRATEGIES

What is Grand Strategy ?What is Grand Strategy ?• Grand strategy is a general term for a broad Grand strategy is a general term for a broad

statement of strategic action. A grand strategy states statement of strategic action. A grand strategy states the means that will be used to achieve long-term the means that will be used to achieve long-term objectives.objectives.

• Grand strategies , often called master or business Grand strategies , often called master or business strategies, provide basic direction for strategic actions strategies, provide basic direction for strategic actions

• Indicate the time period over which long-range Indicate the time period over which long-range objectives are to be achieved objectives are to be achieved

• Firms involved with multiple industries, businesses, Firms involved with multiple industries, businesses, product lines, or customer groups usually combine product lines, or customer groups usually combine several grand strategies several grand strategies

• Achieving the major long-term objectives of a single Achieving the major long-term objectives of a single firm firm

Grand Strategies

Growth Strategies

Stability Strategies

Retrenchment Strategies

Combination Strategies

Concentration Strategies

Diversification Strategies

Horizontal Integration

Vertical Integration

Joint Venture

Liquidation Strategies

Divestiture Strategies

Turnaround Strategies

Harvesting Strategies

CONCLUSIONCONCLUSION

• From the above study on DTDC it can be From the above study on DTDC it can be concluded that DTDC has got a very concluded that DTDC has got a very opportunistic future if it keeps in mind the opportunistic future if it keeps in mind the external and internal factors and formulate external and internal factors and formulate strategies accordingly it can provide a tough strategies accordingly it can provide a tough competition to te present market leaders of competition to te present market leaders of courier services i.e BLUE DART, DHL etc.courier services i.e BLUE DART, DHL etc.

• DTDC has also got some of the exclusive DTDC has also got some of the exclusive services which are not provided by any other services which are not provided by any other firms in the industry. DTDC has got online firms in the industry. DTDC has got online tracking services and e-commerce services tracking services and e-commerce services which are impeccable in itself.which are impeccable in itself.

OUR SUGGESTIONS FOR OUR SUGGESTIONS FOR DTDCDTDC

• EXPAND GLOBALLYEXPAND GLOBALLY

• OWN A PRIVATE AIRCRAFTOWN A PRIVATE AIRCRAFT

• LOWER THE COSTING OF REPEAT LOWER THE COSTING OF REPEAT DELIVERIESDELIVERIES

• THANK YOU :THANK YOU :

MR. MEHUL KAPADIAMR. MEHUL KAPADIA(MANAGER OF DTDC AT SARGAM SHOPPING (MANAGER OF DTDC AT SARGAM SHOPPING CENTER)CENTER)

SOURCES FROM :SOURCES FROM :PRINCIPLES OF MANAGEMENTPRINCIPLES OF MANAGEMENTWEBSITE OF DTDCWEBSITE OF DTDCWIKIPEDIAWIKIPEDIA

AT LAST TO MUKHERJEE SIR FOR PROVIDING AT LAST TO MUKHERJEE SIR FOR PROVIDING OPPORTUNITY TO WORK ON THE TOPICOPPORTUNITY TO WORK ON THE TOPIC