tcs- strategic management
TRANSCRIPT
STRATEGIC MANAGEMENTTARANZUM COMPANIES SERVICES
PRESENTED BY:
• Maria iqbal 8394
• Syeda wajeeha Zaidi 8424
• Sehrish khan 7054
• Hassan khan 7035
• Murtaza mehmood 7742
• Shamsa allauddin 7461
WE MOVE YOU
TCS:
Started its operation in 1983 as a domestic courier and logistic service company
With 7000professional they started operation Initially started with 25 shipments. Becomes number 1 courier service company They have a 24/7 call center services Serves in B2B, B2C, C2C Head office in Karachi, airport Jinnah terminal.
BUSINESS SCOPE
BUSINESS SCOPE:
REGIONS WHERE:
Internationally they are available in U.K, USA, UAEDomestically they are present in South, North, West and Central part of Pakistan.
FUNCTIONS/APPLICATIONS NEEDED: Urgent Shipments - Overnight Delivery Not Urgent Shipments - Deliver in 24 hours Overland express - Hub to Hub, Loose and full Containers Home movers - Packing, transportation, Storage
PRODUCTS/SERVICES: ADDED VALUE:
Sentimental Gifts Delivery Overland Shipments Home Movers TCS Hazir MMS Flyer Express Same Day Express Overnight Express Red Box Supplementary Express
Present plus intended future:the plan for future is to work on pricing strategies.
Business we are not in:
TCS are not giving services through a railway system.
Competitors scope:
Almost all the competitors are working like TCS but OCS and TNT have the better delivery services. OCS & TNT are working hard to increase the market share by entering into the segments same as TCS so in future they will give hard time to TCS.
CHANGES
EFFECTSDue to Technological changes and growing trend of E-Business the people want convenience and updates about their time to time shipments online.
Due to growing trend of online system TCS are focusing on to provide convenience to their customers by providing the di-versification services to E-business customers and also improv-ing their online products.
CHANGES
EFFECTS
Outsourcing the logistics are very common mode but now the companies are using their own distribution channels to deliver the goods and services.
So that TCS have their own logistics services by opting the setup of 3PL which reduces their costs and make the in-house distribution channel effective. TCS logistic services are certified by the ISO.
Bikes and vans are more used for the delivery within city
More hubs can be produced to reduce the costs of the travelling and delivers to the branch office. The areas which are not catered up till now can used the mode railway where competitors are already in the market.
PAST GROWTH OF FOUR YEARS:VOLUME: MT
MARKET SEGMENT 2011 2012 2013 2014
DOMESTIC
Express 29 31 34 38
Sentiments 4 4.1 4.2 4.4
Bulk Shipment 82 90 99 100
Million (rupees)
MARKET SEGMENT 2011
2012 2013 2014
DOMESTIC
Express 14,989 15,946 17,333 19,047
Sentiments 7,242 7,390 7,619 7,936
Bulk Shipment 205,996 226,369 248,757 25,062,656,64
CHANGES
EFFECTS
Packaging and technology become
important for customers they are more
concern about safety and updates of
their products.
TCS invest more on packaging and
technology in past four years which
increases the growth in these segments.
Assumptions:
• Banking industry
• Special occasions
• Technology
• Price consciousness
• Training programs
FUTURE GROWTH OF 4 YEARSVolume MT
MARKET SEGMENT 2015 2016 2017 2018
DOMESTIC
Express 43 50.3 57.3 66.6
Sentiments 5 5.50 6.7 7.7
Bulk Shipment 102 105 109 116
Million (rupees)MARKET SEGMENT
2015
2016 2017 2018
DOMESTIC
Express 21,904 25,190 28,969 33,314
Sentiments 7,936 9,126 10,496 12,070
Bulk Shipment 25,062 28,822 33,145 38,117
PRODUCT LIFE CYCLY STAGE:Product Segmentation Introduction Growth Maturity Decline
Same day express
Sentiments express
Overnight express
Flyer express
Supplementary services
TCS hazir
MMS
Home Movers
W & D
Overland express
Change Effects
• People today are more towards convenience and this become the need of the customer to get everything at their door step.
• Due to change in lifestyles people are more concern about to greet their love ones so this change causes growth in gift delivery segment and other courier services also invest in this segment.
• After the TCS hazir, Home movers service introduces the growth of this product have tremendously increase which increases their revenue very quickly
• TCS identify this need of customers and invest in this segment which is now at growth stage.
CompetitionCategories/Segments
Express Sentiments Bulk shipment
TCS 42% 50% 12% 38%
100%
OCS 27% 50% 8% 42%
100%
Leopard 18% 58% 11% 31%
100%
TNT 13% 74% 0% 26%
100%
Historical Growth 46% 18% 36% 100%
Projected Growth 40% 20% 40% 100%
Company Profitability 45% 27% 28% 100%
DISTRIBUTION STRUCTURE SHIFT FROM 2015 TO 2019:
TCS Express2015 2019
Sentiments 2015 2019
Bulk Shipments2015 2019
Distributor Contractors Project
53% 70% 5% 10% 42% 20% 100% 100%
62% 75% 20% 13% 18% 12% 100% 100%
37% 40% 40% 46% 23% 14% 100% 100%
DISTRIBUTION STRUCTURE AND COMPANYS POSITION (2015) All Pakistan
DistributionCompany’s
Turn-Over share Competitor Turn-
over share
Distributor
Contractor
Project
58%
27%
15%
61%
21%
18%
54%
17% 29%
External trends:Trend Potential Impact We C1 C2 C3
Company Focus on the growth of rural market
Increase in growth of rural market will increase the competition and also give opportunities to capture large market
share
8 8 7 5
Price Due to Price Competition it put pressure on sales
8 7 7 9
Customization Convenience and satisfaction with the service will attract more customers
9 8 8 7
E-connect logistics Offering of Premium product give opportunities to the company for the
high growth.
8 7 8 7
3PL communications 3rd party logistics system build worldwide strong relationship
9 8 8 9
Capture untapped market Introduce insurance services give opportunity to cater more customers
and build strong presence in the market
9 7 7 6
WScarce resources to manageNot good at cost efficiency,
international operations are less
TFuel prices rises
Political conditionsNatural disaster
competition
Shighly experienced people
Ownership of aircraftTechnology
Training programsStrong distribution network
Strong brand image
OGlobalized more and work more efficiently
To cover rural areasOnline booking
Introduce money exchange
Factor
number
Absolutely
critical
5
Very
important
4
Quite
important
3
Nice to
have
2
Not
significant
1
Don’t want
it
0
Price
Quality
Time Management
Mobile Banking
Packaging
Packaging Color
Technology used
Brand Name
Complementary Service
RELATIVE IMPORTANCE OF FACTORS
RATINGS AGAINST CUSTOMERS BUYING CRITERIA
QUALITY & PRICE
TCS
OCS
Leopard
TNT
Non Price Attributes affecting Cus-tomer Choice
WEIGHTAGE%
Product-Related %
1. Quality 20 9 6 8 4
2. Packaging 15 10 9 7 8
3. Technology 15 9 8 7 9
4. Mobile service 12 10 10 5 9
5. Brand Name 8 6 7 6 8
6. Packaging Color 2 8 7 8 7
Service- Related %
1. Time Management 20 7 9 8 9
2. Complimentary ser-vices
8 5 7 7 6
CUSTOMERS BUYING CRITERIA: PRICE %, QUALITY ATTRIBUTES%
VISION:
“TCS will be recognized and respected as a professional, innovative, profitable and knowledge based logistics/services enterprise.
MISSION:
“The TCS People will however be encouraged to be open to unconventional ideas and services and recognize new trends at very early stages”.
STRATEGY ACTION PLAN
RESULT
Integrated DistributionChannel
Product Diversification
Advertisement publicity
Security Charges
Training programs
More hubs can be produced and the areaswhich are not catered up till now. We must use the mode railway where competitors are already in the market To capture more customer segments theyshould expand their product line and differentiate in packaging TV advertisements and working more on brand building and informing customers of packages TCS offer Offering Insurance in money and gold transfer Training employees on Customer service and Communication and Marketing skills
reduce the costs and time of the travelling and delivery to the branch office To differentiate themselvesTCS needs to bring newproducts of sentiments like, they go in event organizing and providing packaging and colors according to what customer say and want etc
More customers targeted, informed and increase in sales
Customers have confidence on TCS and prefer transferring valuable items through them
Customer satisfaction and delight and retention achieved
ACTION PLAN