Strategic management Project
MASS TRANSIT
Table of Content
Overview
Pakistan
is a developing nation with much potential of growth for investors,
there are still huge untapped markets which can guarantee both
strategic competitiveness and above average return for an innovative
and cost effective firm
There
many big cities in the country such as Islamabad the state chair of
capital, Rawalpindi, Lahore, Peshawar, Quetta and Karachi
The
country’s financial hub and the largest city is Karachi which by
Wikipedia the 10th
largest urban agglomeration in the world with population of 25
million and spread over 3527km2
Karachi
offers immense opportunities for entrepreneurs and investors but city
lacks a mass transit system
MASS TRANSIT SYSTEM
A
shared passenger transportation service which is available for use by
the general public, as distinct from modes such as taxicab, car
pooling or hired buses which are not shared by strangers without
private arrangement
Public
transport modes include buses, trolleybuses, trams and trains, rapid
transit (metro/subways/undergrounds etc) and ferries. Public
transport between cities is dominated by airlines, coaches, and
intercity rail. High-speed rail networks are being developed in many
parts of the world
The External Environment
The General Environment
Demographic Segment
Population Size
Pakistan
is the 9th
most populace country in the world with a population of 168 million,
with 70/30 rural/urban divide biggest city is Karachi with a
population of 25 million and the country’s financial hub
Interpretation
This
means that there is a greater portion of population lives in rural
areas but in city like Karachi a major portion of that population
needs modes of mobility
Age Structure
Pakistan
is a country whose population consists of mostly young people, the
country’s literacy rate is increasing among its young generation
which is healthy sign for technology and transportation firms
|
Age Years
|
Percentage
|
Male
|
Female
|
|
0-14
|
35.4%
|
34093853
|
32278462
|
|
15-64
|
60.4%
|
58401016
|
54671873
|
|
65 and over
|
4.2%
|
3739647
|
4157870
|
Interpretation
Table
1 shows that a greater portion of people in Pakistan are between 15
– 64 years of age and are a big opportunity for any transit system
to cater there transportation need
Ethnic Mix
Pakistan
has natural ethnic diversity with Sindhi, Punjabi, Balochi and
Pashtun comprising from proviences and Urdu speaking plus afghan,
bangalis and others all live in the country but Karachi is the city
where this diversity is most prevalent and one can find complex
ethnic mix in the metropolis
|
Ethnicity
|
%
|
|
Punjabi
|
44.68%
|
|
Pashtun
|
15.42%
|
|
Sindhi
|
14.1%
|
|
Sariaki
|
8.38%
|
|
Muhajirs
|
7.57%
|
|
Balochi
|
3.57%
|
|
Others
|
6.28%
|
Interpretation
Pakistan
is divided into 4 provinces and a majority of people are Punjabi
44.68%, it shows a greater population as Punjabi but at initial stage
this factor is not so important
Geographic Distribution
The
majority of southern Pakistan's population lives along the Indus
River. Karachi is the most populous city in Pakistan. In the northern
half, most of the population lives about an arc formed by the cities
of Faisalabad, Lahore, Rawalpindi, Islamabad, Gujranwala, Sialkot,
Nowshera, Swabi, Mardan and Peshawar.
Interpretation
Although
a large portion of population lives in rural areas but there is a
trend of migration towards cities
Income Distribution
There
is income inequality in the country and in the metropolis huge
sections of society live under poverty line and the lower middle
class to middle class use public transportation for movement, there
is a great opportunity for any firm opt to provide cheap, medium
quality transportation service
63
per cent of poor in Pakistan fall in the category of 'transitory
poor'.
The
remaining 32 per cent and five per cent of the population that
subsist below the poverty line are 'chronic' and 'extremely poor',
respectively
Interpretation
Pakistan
is a poor nation and very few people can afford personal
transportation, this is very lucrative thing for a low cost, good
quality transport service provider
Economic Segment
Inflation Rate
Pakistan
is an under developed economy where there is rampant inflation and
prices are generally oil commodity driven , as oil prices increases
everythings price starts increasing with peoples income remain low.
The current inflation rate is 14.1%
Interpretation
Inflation
is rampant but when we fuel are system through renewal means this
will prove profitable for everyone, organization, peoples, and nation
as whole
National Saving Rate
In
Pakistan peoples emphasis is on consumption as more people are either
on or below poverty line and they strive to meet there days meals,
however, in urban centers like Karachi there is some healthy personal
savings in the upper middle class onwards, the national saving rate
currently is 13.8%
Interpretation
This
shows that people are more inclined towards consumption which is a
healthy sign and our system helps them save a more on their
transportation expense
Interest Rate
The
benchmark interest rate in Pakistan was last reported at 12 percent.
In Pakistan, interest rates decisions are taken by the State Bank of
Pakistan. The official interest rate is the discount rate.which is at
12%
Interpretation
The lowering
of interest rate by SBP means the cost of financing decreases and
this increases the sources of funds for a venture
Trade Deficit
Pakistan’s
trade deficit has surged to $3.328 billion during the first couple of
months (July-August) of the current fiscal year 2011-2012 against the
$ 2.784 billion of the same period last year
Interpretation
Pakistan’s
Trade deficit increases every year but this is due to huge import
bill paid by the country for petroleum cost, but as Mass Transit is a
system which reduces such cost of country considerably
Budget Deficit
Pakistan
is a semi industrialized nation with Services
sector of Pakistan's economy accounts for about 53 percent of the GDP
Its budget deficit
of 2011-2012: Budget deficit to cross Rs1 trillion
Interpretation
Pakistan
is an underdeveloped nation it has an immense service sector but its
revenue is less and expense is more resulting in budgetary deficit
because smaller tax net, our system will also benefit the national
exchequer in this regard, that is providing tax revenue
Gross Domestic Product
GDP
of Pakistan for the year 2010 – 2011 is $ 165 million
Interpretation
This
shows that there is low indigenous productive capacity and one has to
rely on imports of capital items.
Sociocultural Segment
The
social and cultural context of Pakistani society is predominantly
patriarchal. Men and women are conceptually divided into two separate
worlds. Home is defined as a woman’s legitimate ideological and
physical space, while a man dominates the world outside the home. The
false ideological demarcation between public and private, inside and
outside worlds is maintained through the notion of honor and
institution of purdah in
Pakistan. Since the notion of male honor and izzat
(honor) is linked with women's sexual
behavior, their sexuality is considered a potential threat to the
honor of the family.
Therefore,
women’s mobility is strictly restricted and controlled through the
system of purdah, sex
segregation, and violence against them.
Interpretation
That
one has to take social systems into account when providing
transportation service, there should be separate compartments for
ladies with entry and exit and also provision different service in
male and female compartments
Technological Segment
Pakistan
has seen rampant technological advancement in the previous decade
from 2000 to 2010 and there is still increased pace in it, the
telecommunication industry is at the height of this boom and there is
intense competition among providers of telecommunication service plus
newer technologies such as 3G has gain momentum and spreading across
the country. We also see that other areas such as power sector is
lacking behind and technology in this sector still lagging behind
Interpretation
More
people in the country are becoming Tech Savvy and also make use of
digital communications on the move trains must be equipped with all
sorts of tools of digital connectivity and moderation
Political/Legal Segment
Pakistan
is experiencing political unrest since 80s the present government is
first democratic government which is going to complete its term but
that is also full of failures and disgust
Legal
system of Pakistan is also a weak one, there are laws for every
sector but implementation on those laws is a matter of debacle
Pakistan
enacted CCP Competition Commission of Pakistan which formulated
antitrust bill 2010
The
act seeks to ensure free competition for commercial and economic
activities and aims at protecting consumers from monopolisation,
cartelisation and other harmful practices
Following
Taxation Laws govern a company and individuals life in Pakistan
economy
- Sales Tax Act 1990
- Income Tax Ordinance 2001
- Federal Excise Act 2005
- Custom Act 1969
- F.T.O. Ordinance 2000
- Wealth Tax Act 1963
- ITAT Rules
Interpretation
The
country’s political and legal system may hinder in smooth
functioning of an org but there should be care in taking decisions,
such as inclusion of Sales Tax price in tickets and clear indication
of such
Global Segment
Pakistan’s
economy is very much import based and also many global firms operate
in the country such as Coca Cola, Pepsi Cola, Toyota, Honda etc.
|
Eco indicator |
Amount
|
|
FDI |
112.4 m
|
|
Export |
5.012 B
|
|
Import |
7.879 B
|
Interpretation
There
are a number of TNC Transnational Companies working in the country
and its import is more than its export, a business has to rely
partially on local supply in such situation
The Industry Environment
Industry:
Transportation and logistics
Sector:
Mega Mass Transit encompassing all commercial transportation modes
Competitive
Forces
- Threat of new entrants
Natural
and legal monopoly exist, very difficult to enter rare threat
Interpretation
There
is little or no threat of potential new competitors as the task of
such an Endeavour is quite large
- Rivalry among Competing firms
Non
but fierce if competition exits with substitutes such as buses and
trucks transportation companies
Interpretation
Trucks
and buses are flexible modes of transport but if there is parallel
system that is also managed
- Bargaining Power of Suppliers
Suppliers
have great bargaining power but there is close relationship exist
between companies and suppliers such as Alstom which provide major
commercial rail transport equipment
Interpretation
There
are many suppliers in transportation industry but few big ones have
usually strong bonds with the firms
- Bargaining Power of Customers
Minimal
as fares are fixed by provincial or federal body formed on that
purpose
Interpretation
When
a service provider remits affordable, high quality service consumer
demands remains freeze
- Threat of Subsitute Products
Minimal
as there exist a less importance for a formidable substitutes to
arise
Interpretation
This
shows that people are more inclined towards consumption which is a
healthy sign and our system helps them save a more on their
transportation expense
The Competitor Analysis
No. of Competitors
In
mass Transit business there exit no direct competitor Pakistan
Railways KCR (Karachi Circular Railway) is not mass transit as it
runs occasionally or discontinued at times and only in morning and
afternoon one train with eight coaches
Interpretation
No
direct competitor means highly attractive industry
Substitute Modes
The
substitutes exist are mainly bus transport but the quality of
service, fare instability and customer dissatisfaction are great
whether with intra city link or inter city, only Green CNG bus run by
CDGK is a mild Substitute but its routes are only 2 in whole city
Interpretation
When
there is a parallel system of buses for substitute’s services,
their impact decreases on revenue of firm
Competitive Advantage
Their
exist no competitive advantage for competitor because intra city link
has no mass transit system and bus transporter are not so eager to
response to such high quality service plus inter city link buses and
Pakistan Railways are also providing poor quality service to their
customers
Interpretation
In
such a country where people are dying to see advancement in
transportation sector or industry any good quality provider of such
service is eagerly welcomed by them
Strength
Only
the Pakistan Railways has some strength but its advantage is
currently its disadvantage that is State Ownership
Interpretation
The
state owned Pakistan Railway(PR) is only one institution that is
capable of providing countrymen with good service but currently it is
in deep crisis as its system is near its end
RESOURCES.CAPABILITIES AND CORE COMPETENCIES
RESOURCES
A PHYSICAL
RESOURCES
- BUILDING: Head Quarter, Stations, and Terminals
- TRACK: Railway Passages
- Rolling Stock: EMU (Electrical Multiple Unit) 20 Sets 1 sets Consists of 3 EMU
- Buses: Road Transport Fleet 200
B HUMAN
RESOURCES
- MANAGERS: Those who run a geounit
- Non Managers:
- Drivers: For Rail and Buses
- Maintenance Teams: Work at Stations and Terminals
C ORGANIZATIONAL
RESOURCES
- Alliances: With other Modes of Transport Careers such as Air Blue and development agencies like USAID,ADB etc
- Trademark,Slogan,Mantra
- Borrowing Capacity: Lending from GOP, IFC,GO-Transit etc
- Structure of Organization: Flexible based on Geo units headed by a Manager and work Teams
- Information Systems: Customer Relationship Management(CRM)Travel Requisite System (TRS) and SAP Business objects
CAPABILITIES
- Drivers and Maintenance Teams, Run the Trains and Buses
- Managers and Work Teams Run the Geo units which include two Stations
- Top Management Run the Organization
- Alliances provide Commuters Seamless journey from one mode to another
CORE COMPETENCIES
Our
core competency is rail network both within the city and intercity,
plus as our business flourish and expand it can inculcates more
aspects/modes of transportation and provide better travelling
experiences to the customer, CRM and TRS are at the heart of
information systems
FUTURE DEVELOPMENT
We
need to expand our business to other cities
- More Trains Sets
- Expansion of System to other modes of Transport such as Ferry etc
SWOT ANALYSIS
STRENGTHS
|
2
|
What
|
Expertise and Alliances |
|
|
Why
|
We have
expertise of running similar systems in other cities and our
alliances with other modes of transportation and also with
suppliers
|
WEAKNESS
|
|
What
|
Time Factor |
|
|
Why
|
Our system
require minimum 5 months to operate partial that is bus transport
and 2 years for maximum operation
|
|
2
|
What
|
Rolling Stock Deficiency |
|
|
Why
|
We
initially start with few train sets which restrict our operation
because
limited coverage at start
|
|
3
|
What
|
Expansion of System to more modes like Ferry |
|
|
Why
|
We take this
as our deficiency that our network of mode of transport includes
Road , Rail and Air and exclude sea routes
|
OPPURTUNITY
|
2
|
What
|
Higher Profits Potential |
|
|
Why
|
If we can
develop a system that is advance and not heard of we can reap
immense profit for our shareholders
|
THREATS
|
|
What
|
Potential Government Regulations |
|
|
Why
|
As there exist
some mild political turmoil there can be a risk of some
regulations that hamper some business
|
|
2
|
What
|
Law and Order/Terrorism |
|
|
Why
|
This factor or
threat is present everywhere especially in Asia but there are
means to avert this also
|
|
3
|
What
|
Formation of Cartels |
|
|
Why
|
Our
competitors/Substitute service providers might form cartels by
collating with each other but our network and strategy will
mitigate this threat also
|
|
Name of
Business
|
Pak Transit
|
|
Partners
|
|
|
No.1
|
Muhammad
Waseem
|
|
No.2
|
Syed Mustafa
Ali Zaidi
|
Strategic Values
Vision Statement
A
low cost High Quality Transportation for all
Mission Statement
Our
mission is to serve the public by providing a transportation system
and services that emphasize quality, safety, cost effectiveness,
economic vitality and sensitivity to the environment.
Long Term goals
- Continuous profit for our Stakeholders in terms of money, pride and comfort
- A Sign of Quality
- Triple bottom line profit, people and planet
- Spreading of system to the whole country and leading the industry trends
- Experiential marketing through organizing trade shows , special events etc
Profile of Partners
Mr Muhammad Waseem
He
is currently employed in Habib Bank Limited (HBL) as Assistant
Manager and looks credit section, his qualification include MBA from
PAF – KIET (in progress), BCom from Karachi University, a man of
high intergrity and morals, have a passion for serving customers at
best
Mr Syed Mustafa Ali Zaidi
Employed
at KESC as AM in Meter database System, has qualified MCom from
Karachi University currently doing MBA from PAF-KIET, a commercial
person with ideas of engineering but inculcates marketing tactics in
them
Business Level Strategy
Product
Idea Generation
If
we scan the country of Pakistan, we find that the biggest sector
overlooked by any organized and branded firm is Transportation and
every mode contains poor performers and low quality service provider
We
opt to grasp this huge opportunity to provide the people of the
country with low cost quality transportation both intercity and
intracity
What is offered?
An
intangible Product of Mass Transit incorporating for the first time
different modes of transportation in the history of the country,
through product facilities of the supplier
Rivalry
KUTC’s KCR
No
direct rivalry KCR Karachi Circular Railway a project of Karachi
Urban Transport Corporation (KUTC) is delayed for some reason
CDGK’s CNG Green Bus
City
District Government of Karachi has taken a bold measure to run CNG
Green Bus Service for people it is a good project but routes are
limited
Public Transport
It
includes Buses like 2k, 4k, 4L etc Minibuses W11, W21, A3 etc and
Coaches like Khan Coach, Gulistan Coach
Which Business Level Strategy to Follow
Integrated
Cost and Differentiation Strategy
What is Integrated Cost and Differentiation Strategy
This
new, hybrid strategy may become even more important--and more
popular--as global competition increases. Compared to companies
relying on a single generic strategy, companies that integrate the
generic strategies may position themselves to improve their ability
to adapt quickly to environmental changes and learn new skills and
technologies. This would more effectively leverage core competencies
across business units and product lines and would also help produce
products with differentiated features or characteristics that
customer’s value and provide these differentiated products at a low
cost, compared to competitors' products
Why we use this Strategy
We
have found through Scanning of External Environment that the people
of the country are price conscious and majority of people who commute
using Railways, Buses are Lower middle to middle Class who want a low
cost service but eager to demand augmentation in it of a medium to
high quality level
How we Use this Strategy
We
promote our service in such ways that leads us to provide a low cost
and a differentiated service; we make three classes Leisure Class for
premium buyers, Commute Class for Medium buyers and Frequent Traveler
Class for Price Conscious buyers each class has got different
amenities to reflect the price difference
It
is very difficult to operate a venture on integrated cost and
differentiation strategy but we will engage ourselves with alliances
in such a way and with such organizations that leads us for the
accomplishment of this strategy
We
charge more than the cost leaders that is Rs30/per ticket for Adult
and Rs15/per ticket for Student and children but provide comfortable
ride, friendly customer services employees, and augments our service
with events, experiences and occasional and campaigned program
directed towards increasing human welfare
Brand Elements
Logo of the Company
Competition Phases
First Phases Company, Competitor and Substitutes
Second Phases Company, Competitor and Substitutes
First Phases Matrix Analysis
Karachi Circular Railway by KUTC (Karachi Urban Transport Corporation)
|
Feature
|
Detail
|
|
Introduction
|
KCR is a
joint project of Federal Government,CDGK and Provincial Government
|
|
Purpose
|
To provide
Cheap intra-city transport for general publics
|
|
Link
|
Main line
and loop
|
|
Level
|
Reasonable
and quite affordable
|
|
Competitive
Advantage
|
State
ownership, which provide travelers some relief of quality
|
|
Competitive
Disadvantage
|
Time
Scheduling, inadequacy of funds, malpractices and limited routes
|
|
Strategy
|
Low Cost
|
|
Price
|
Rs 10 per
ticket
|
CNG Green Bus Service by CDGK (City District Government of Karachi)
|
Feature
|
Detail
|
|
Introduction
|
Green bus
service is running under City District Government of Karachi
|
|
Purpose
|
To provide
Cheap and little differentiated service of intra-city transport
for general publics
|
|
Routes
|
3
|
|
Level
|
Reasonable
and quite affordable
|
|
Competitive
Advantage
|
CDGK
management of Green bus affairs, Quality smooth service
|
|
Competitive
Disadvantage
|
Time
Scheduling, inadequacy of funds, limited routes, maintenance and
repair problem,CNG supply, its Rising Cost and its Explosiveness
|
|
Strategy
|
Low Cost
|
|
Price
|
Rs 10 –
Rs 20 per ticket depending on distance
|
Buses,
Mini Buses and Coaches by (Karachi Transport Unity)
|
Feature
|
Detail
|
|
Introduction
|
The biggest
network is of transport in the city of Karachi run by private
investors
|
|
Purpose
|
To provide
Cheap intra-city transport for general publics
|
|
Routes
|
All over
City Central Point Saddar Karachi
|
|
Level
|
Reasonable
and quite affordable
|
|
Competitive
Advantage
|
Mafia and
some malpractices
|
|
Competitive
Disadvantage
|
Bad
service, no care for passengers , non A/C,Travelers nightmare
|
|
Strategy
|
Low to
medium Cost
|
|
Price
|
Rs 10 –
Rs 25 Approx
|
Pak Transit by MTC (Mass Transit Company)
|
Feature
|
Detail
|
|
Introduction
|
Mass
Transit Company will run Pak Transit a unique network of different
modes of Transportation mainly of Metro and buses and also some
others
|
|
Purpose
|
To provide
Cheap. Comfortable and differentiated intra-city transport for
general publics in first phase
|
|
Link
|
Main line
and connecting loops, with Geounit
|
|
Level
|
Reasonable
quite affordable and Seamless Commute
|
|
Competitive
Advantage
|
High end
Service with low cost and Experiential Marketing
|
|
Competitive
Disadvantage
|
Time Factor
for Development phase such as laying of tracks, documentation of
routes, test run
|
|
Strategy
|
Integrated
Cost and Differentiated
|
|
Price
|
Rs 10 for
half miles – Rs 15 full miles per ticket, ticket valid for two
days
|
Second Phases Matrix Analysis
Pakistan Railway run by Railway Ministry
|
Feature
|
Detail
|
|
Introduction
|
Pakistan
Railway is a old and biggest Railway carrier of goods and
passenger in the country
|
|
Purpose
|
To provide
citizens of the country a link between them and act as national
link between cities and the center
|
|
Link
|
Main line
and loops, with four regions
|
|
Level
|
Reasonable
and also Premium
|
|
Competitive
Advantage
|
State
ownership, which provide travelers some relief of quality
|
|
Competitive
Disadvantage
|
Time
Scheduling, inadequacy of funds, malpractices and discontinued
Trains, huge turmoil nearing collapse
|
|
Strategy
|
Low cost
and Differentiated depending upon services
|
|
Price
|
From Rs
1200 to Rs 4000 approx
|
Intercity Bus Service
|
Feature
|
Detail
|
|
Introduction
|
When
railway start falling it’s the low quality buses that provide
modes of transport to masses
|
|
Purpose
|
To provide
Cheap and little differentiated service of inter-city transport
for general publics
|
|
Routes
|
All over
the Country from Kunjarb to Kashmir
|
|
Level
|
Reasonable
and quite affordable
|
|
Competitive
Advantage
|
Cartel,
only mass transport for low income travelers
|
|
Competitive
Disadvantage
|
Time
Scheduling, fuel cost , Rising Accident Ratio , no insurance of
travelers, customer dissatisfaction
|
|
Strategy
|
Low Cost
and little differentiated
|
|
Price
|
Rs 500 –
Rs 2500 for non A/C and Rs 1900 to 6000 for A/C
|
Inland Air Carriers PIA , AIR BLUE AND SHAHEEN AIRLINES
|
Feature
|
Detail
|
|
Introduction
|
The three
Airlines of the Country Catering the needs of inland flyers
|
|
Purpose
|
Speedy
Travel to various destinations of the country
|
|
Routes
|
To all
major cities
|
|
Level
|
Expensive
and Standard
|
|
Competitive
Advantage
|
Little
rivalry from other modes of Transport, Preferable by middle upper
to upper class travelers
|
|
Competitive
Disadvantage
|
Fragility,
poor maintenance and repair of aircrafts , high fares, low quality
services, no experiential marketing
|
|
Strategy
|
Differentiated
pricing
|
|
Price
|
Rs 8500 to
12500
|
Pak Transit by MTC (Mass Transit Company)
|
Feature
|
Detail
|
|
Introduction
|
Mass
Transit Company will run Pak Transit a unique network of different
modes of Transportation mainly of Trains and buses and also some
others
|
|
Purpose
|
To provide
Cheap. Comfortable and differentiated inter-city transport to
intercity travelers with considerable quality
|
|
Link
|
Main line
and connecting loops, with Geounit
|
|
Level
|
Reasonable
quite affordable and Seamless Travel
|
|
Competitive
Advantage
|
High end
Service with low cost and Experiential Marketing
|
|
Competitive
Disadvantage
|
Time Factor
for Development phase such as laying of tracks, documentation of
routes, test run
|
|
Strategy
|
Integrated
Cost and Differentiated
|
|
Price
|
Rs 2000 –
Rs 4000 as per Region
|
Corporate Level Strategy
Our
future goal of diversification is to engage in transportation of
following which function as separate SBU
Related Linked Diversification
|
S.No.
|
Strategic Business Units
|
|
1
|
Mass
Transit Karachi
|
|
2
|
Intercity
Transit
|
|
3
|
Agriculture
Goods Transport
|
|
4
|
Industrial
goods Carrier
|
|
5
|
Big
Machinery Transporter
|
|
6
|
Travel
Guide Pakistan
|
|
7
|
City Tours
Pakistan
|
|
8
|
International
Courier Service
|
These
SBUs are designed on the basis of related constraint diversification
because our main business or area is transport for all
Questionnaire
(See
annexure for Sample Questionnaire)
We
have develop a questionnaire with closed end questions in order to
ascertain the needs and want of the target commuters
Questionnaire response & Analysis
(See
annexure for Questionnaire Analysis)
The
response by the sample is healthy and they are very excited about the
topic and one can observe that they are finding such forums to speak
of their desires
Strategies
After
analyzing the questionnaire we have develop following Strategies
Marketing Strategy
What: Geographic
Segmentation bases meeting the needs of Karachi first
Why: Pakistan 36th
largest country area wise and 6th largest country in
population mass most of the people resides in rural areas but there
need of transportation are limited and occasional whereas there are
growing trend of urbanization and migration towards urban centers
that demands more transportation facilities for masses
How: We have selected the
biggest city and Financial hub of the nation to launch our Endeavour
and this program lead us to cater other areas of the nations cities,
towns and cultural centers with Trains, buses,vans,cars and inland
water transport
Targeting:
Mass Market on the basis frequent
travelers and Selective Segments on the basis of psychographic that
is life style or occassions
What:
Mass
Marketing
Why:
The Mass market contain approx 6 to 8 million of commuters and they
are frequent or daily traveler from one point to another
How:
We achieve this milestone of serving this mass market of commuters
gradually as our project or venture flourish we add up new lines and
increases the frequency of vehicle run, mainly or Mass Transit trains
and linking bus network
What:
Selective
Segment Targeting
Why:
There some needs of transportation which arrive on occasions,
ceremonies, weekdays and weekends and also official transportation,
these segments also have great potential of profitability
How:
we devise a fleet of specialty vehicles depending upon the customer
above mentioned needs which delight them through buses, vans and cars
Positioning Strategy
What: As
Comfortable. Swift and safe transportation
Why: in the current transportation mix
no mode provide customer these kinds of services effectiveness at one
place some are swift but unsafe, safe but not swift and no service
provider gives them comfortable and seamless ride
How: we make use of
trains sets for this which run on prefabricated sets of rails, that
gives adhesion on iron rails, each emu (electrical multiple unit)
consists of three cars with capacity of 50 seating passengers and 100
standing passengers each, the trains are fast run at 90miles an hour
due to urban limits and stops at predetermined or established
stations, strict time schedule is followed
Positioning Strategy Elements
- Target Market : General Public who needs transportation facilities or service
- Competition : Any form of transport that is currently in business
- Point of Difference: Low cost , medium to High quality service with emphasis on neglected travelers group such as females,disables,elderly, kids etc
- Point of Parity: Transportation for all, timely and instant travel
Positioning Map
Promotion Strategy
We
use following Medias for our promotion
- What: Our own Trains and Buses
Why:
The moving exteriors of trains and buses can be used as tool to
spread awareness to increases recognition and recall of the service
How:
The are self promoting tools Sticker Cost Rs 150,000 and on 10
trains sets 60 buses, plus we make or use our rolling stock to become
a source of additional income for advertising for different firms,
charities and Ngo
- What: Television
Why:
Television is still the mass viewed electronic medium in the country
and its reach is massive compared to any other advertising mode or
medium
How:
Firms advertise each 80 sec advertise cost more than 0.7million but
we develop such programs that schematize the audience through
selecting social awareness program, which we sell to media
3 What: Events
and Experiences
Why: Sponsorship
of key events in the nation and social contribution as WWF
advertising through train sets brings enormous prestige to the brands
and their parent companies this century competition’s success
depends upon how companies achieve in making the lives of their
customers experiential
How:
by sponsoring sporting events, social gatherings, occasional
celebrations like eid festivals and organizing firm’s own
experiential galas at Expo center which cost 15million each
- What: Information Portals
Why:
This is information age a firm that is not doing business
electronically losing its very attractive opportunity to gain above
average return or competitive advantage
How:
by developing websites, Social Networking communities, online
discussion forums, companies Intranet, Extranet, Information systems
and business to employees portals costing less than million to
develop each
Marketing Mix
Product:
The intangible service of Transportation
satisfying the basic need of mobility of human beings living, earning
and enjoying their livelihood in Pakistan and especially or initially
in Karachi
Service Providing Tools
- Trains or LRVs (Light Rail Vehicles)
- Buses
- Vans
- Cars
Adults: above 16 years of age Rs
30/Ticket
Students: Below 30 Years of age Rs
15/Ticket
Children: under 16 years of age Rs
15/Ticket
Each Ticket is Valid for Two trips
means of up and down
Promotion
We develop programs that provide our
customers engaging experiences with many prize winning or lucky draw
oppurtunities
Place
We initially provide service in four
corridors
- From North Karachi to Wharf
- From Baldia to North East City
- From Malir Cantonment to Old City
- From Defence to North Karachi
Environmental Strategy
What:
Preservation
of environment
Why:
This is a liability upon modern human beings whose has used the
mother nature in such manner that results in its catmination,
depletion and total erosion
How:
By using electricity as main driving force for propulsion of vehicles
both trains and buses plus the generation of electricity is also
renewable
Alliance Strategy
What:
Cooperation
at different level
Why:
Because it is very difficult to undertake such a project on our own
which huge capital investment, knowledge, expertise etc
How:
We
make alliance with such players such as USAID, ADB for financing of
our strategic move that is a low cost differentiated strategy because
it is vey difficult in this country to provide low cost
differentiated services.
What:
Outsourcing
Why:
Our organization will engage in only core activities other than those
activities it’s needless to spend more time and money on them such
as stationary, purchasing, janitorial work etc
How:
We made tender in daily newspaper and pick the one that provides best
service with slight pay premium is allowed
Safety Strategy
What: Safer first
Why: Previously firms gives this less
value and their ethical performance falls short and face many
lawsuits additionally human welfare is the motive behind this
How: We install fail safe
system in our train capable of running on Auto pilot, plus station
automatic braking system to avoid any fatality. Operational safety
gears are mandatory for officials and staff to wear at instances of
safety precaution
Organizational Structure
Chairman:
Adnan Anwar
CEO:
Muhammad Waseem
GM1:Farrukh.GM2:MallasGM2:AssmaGM4:
Asif
Cost Analysis
|
Mass
Transit System
|
|
|
Cost
Sheet Expectation |
|
|
Incomes |
|
|
Sales |
|
|
Adult
Tickets 0.6million x Rs 30
|
18,000,000.00
|
|
Student
Tickets 0.1millionxRs 15
|
1,500,000.00
|
|
Child
ticket 0.3millionxRs15
|
4,500,000.00
|
|
Total
Sales per Day
|
24,000,000.00
|
|
Income
per Month
|
720,000,000.00
|
|
Income
per Year
|
8,640,000,000.00
|
|
Costs
|
|
|
Fixed
Cost
|
|
|
Trains
(300 million per emu*30)
|
900,000,000.00
|
|
Tracks
and Systems
|
1,500,000,000.00
|
|
Information
Systems
|
2,000,000,000.00
|
|
Licensing
|
3,500,000,000.00
|
|
Total
Fixed Cost
|
7,900,000,000.00
|
|
Variable
Cost
|
|
|
Events
and Experiences
|
22,500,000.00
|
|
Information
portals
|
300,000,000.00
|
|
Electricity
|
180,000,000.00
|
|
others
|
5,000,000.00
|
|
Total
Variable Cost
|
507,500,000.00
|
|
Total
Cost
|
8,407,500,000.00
|
|
Profit
Expectation |
2.3250000000E+08
|
Conclusion
We conclude the by
analyzing above study or project that there exist a huge prospect for
any firm aiming towards the introduction of mass transit system in
Karachi as well throughout Pakistan because as Pakistan is a
developing country certain key services sectors are either overlooked
or inadequately provide both through public and private sector
Annexure
History of Mass Transit
The history of mass
transportation is intimately connected to industrialization,
urbanization, and the separation of residence from workplace. By the
beginning of the 20th cent., London, New York, Boston, Paris,
Budapest, and other major cities had fixed-rail subway systems
(sometimes elevated); by the 1920s buses were common. In the United
States, patronage of mass transit grew steadily from 1900 (six
billion passengers per year) to 1927 (over 17 billion), but plummeted
during the Great Depression. Patronage grew again during War II,
peaking in 1946 at 23 billion riders, but then dropped steadily every
year until the mild renaissance of public transit in the early 1970s.
The total number of
riders in 1970 was less than that of 1910. The reasons for these
declines are complex and often political. Los Angeles, for example,
had over 1,000 miles of trolley and interurban lines before 1930;
this system was taken over by a private company, dismantled, and
replaced with noisy, polluting, and comparatively slow buses. Since
few people chose to ride them, costs rose, thereby cutting the number
of passengers further. To reduce costs, private companies eliminated
outlying branches and smaller stations. These trends, along with
inexpensive gasoline, suburban and highway development, the
deterioration of older subway lines, and the greater freedom cars
offered, helped turn the United States into a car culture.
However, as the public
has grown increasingly concerned over the impact of cars on the
environment and the quality of life in urban areas, there is growing
support for the development of more efficient and comfortable mass
transit systems. Models for such systems were developed in Europe and
Japan. Trains in the Paris Metro, for example, operate on rubber
tires and can reach speeds of 48 mph (77 km). Smaller cities are
watching developments in Edmonton, Canada, which built a 4.5-mi
(7.2-km) rapid transit system of lightweight trains at a cost of $65
million instead of adding five new freeways at ten times the cost.
In the United States,
efforts to upgrade mass transit systems have experienced mixed
results. The trend has been away from private ownership; by 1990 over
90% of North American mass transit was publicly owned and managed.
The BART (Bay Area Rapid Transit) system serving San Francisco and
neighboring cities maintained service during the 1989 earthquake, but
it has never attracted the number of riders originally anticipated.
Washington, D.C.'s Metro system (144 million riders in 1988) included
a wider area of service and more efficient schedules. Currently buses
account for 60% of mass transit rides in the United States;
innovations such as articulated buses and reserved lanes on highways
are balanced by the problems of noise, air pollution, and traffic.
The issue of mass transit has come full circle; it is once again a
central social and political issue.
Types and Advantages
Mass transit refers to
municipal or regional public shared transportation, such as buses,
streetcars, and ferries, open to all on a nonreserved basis. An
important form of mass transit is rapid transit, such as subways and
surface light rail systems, designed for commuting between urban and
suburban (or exurban) centers. Mass transit can be divided into fixed
route systems (often involving rails), such as streetcars and subway
trains, and nonfixed route transit (along surface streets or water),
such as buses and ferries, but does not usually include airplanes,
taxis, or long-distance rail with more formal ticketing procedures.
Mass transit systems offer considerable savings in labor, materials,
and energy over private transit systems. Since far fewer operators
are required per passenger transported, they can be better trained
and more strictly licensed and supervised.
When utilized to any
reasonable fraction of their capacity, mass transit vehicles carry a
far higher passenger load per unit of weight and volume than do
private vehicles. They also offer fuel savings, not only because of
the relative reduction in weight transported, but also because they
are large enough to carry more efficient engines. Further, if
emphasis is given to mass transit in the planning of future ground
transportation systems, smaller rights of way will be possible,
lessening the amount of landscape that must be paved over for
highways and roads. Although mass transit offers many savings, it
does require some sacrifices in personal convenience. These are the
necessity to travel on a fixed rather than an individually selected
schedule and to enter and disembark from the system only at certain
designated locations. The obvious goal for a mass transit system is
to have as few unused passenger accommodations as possible.
Mass Transit Questionnaire
Please help us to find out what you
think about public transport in
|
Name |
|
|
Contact No. |
|
|
Profession |
|
1. What town/village do you live in?
- Karachi
- Interior Sindh
- Other ______________
2. What gender are you?
- Female
- Male
3. How old are you?
- Between 20 – 29
- Between 30 – 39
4. What is your income?
- Between Rs 10,000 – Rs 30,000
- Above Rs 30,000
5. What school/college/Institution do
you go to?
______________________
6. If so, do you use public transport
to get to school?
- Yes
- No
7. Do you have a physical disability?
- Yes
- No
8. Do you use public transport?
- Yes
- No
9. Is public transport easily
accessible for you?
- Yes
- No
10. Is public Transport quality is
good?
- Yes
- No
11. How often do the service buses in
your area run? (Pick one)
- Every 10 minutes
- Every 20 minutes
- Every half an hour
- Every 45 minutes
- Every hour
- Less than every hour
12. How many times do you use public
transport? (Pick one)
- Every day
- More than once a week
- Once a week
- More than once a month
- Once a month
- Hardly ever
13. What types of public transport do
you use?
- Bus
- Train
- Taxi / Rickshaw
14. How would you rate the following?
(Please circle your
choice, 1 is the lowest and 10 is the highest)
|
Cleanliness |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Reliability |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Safety
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Frequency |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Cost
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
15. Do you prefer a Low Cost, Quality
Service of Mass Transit?
- Yes
- No
16. Do you have any other suggestions
regarding public transport?
________________________________________________________________
________________________________________________________________
_______________________________________________________________
Questionnaire Analysis
References
Book: Strategic Management:
Competitiveness and Globalization, Third Edition
Images: Google Images
Mass Transit Information:
www.infoplease.com
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