Indian Postal Services

7/30/2019 Indian Postal Services

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Business Strategy Managing the change
http://en.wikipedia.org/wiki/File:India_Post_New_Logo.jpg


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INTRODUCTION Type : Agency of the Government of India Founded : 1764

Headquarters : New Delhi, India

Key people : Ms. Manjula Prasher ,Director General

Employees: 520,191 nos

Post offices : 155,669 (89 % in rural sector)

Mission: To provide high quality mail,parcel and related services inIndia and throughout the world ; to berecognized as an efficient and excellentorganisation exceeding the expectationsof the customers, employees and the

society 2

Launching the new logo for India Post on

23 Sept 2008, at New Delhi
http://en.wikipedia.org/wiki/File:Ministers_launching_the_new_India_Post_logo.jpg


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SERVICES

Postal Services: Speed Post, Business Post,e-Payment, e-Post, Media Post, LogisticsPost, Direct Post

Financial Services: Banking( 110 millionaccount investing INR 1,67,000 cr / year ),Postal Life Insurance, Money Order, InstantMoney Order, International Money Transfer,Mutual Funds

Other Services: Express Parcel, PublicProvident Fund, National Savings

Certificate, Kissan Vikas Patra, MonthlyIncome Scheme, Post Boxes for MailRecipients

New services : Mutual fund and bonds,Electronic fund transfer , Internationalmoney transfer , ECS

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KEY ISSUES Low Customer Satisfaction: Late

deliveries of mail, Quality ofService, Lack of facilities tocustomers

Competition: Private CourierServices, Banks, Private Mutual

Funds, LIC Management Structure:

Government Organisation Inefficient Employee Force Large Number of Services: Majority

Unproductive Vast reach in the interiors of the

country: Potential not realized Running in Losses: Huge Budgetary

deficit of 1209.9 cr. HeavyInvestment from the Government torevive the Postal service

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Competitors' Strategy To Increase The Market Share

1. At the entrance of the office, one security person wishes warmlyand pulls the door for you. (First impression is the last impression).

2. Gesture and posture of the employees and their appearancemakes the environment pleasant.

3. Time effectiveness. 4. Effective working culture that helps employees to be more

productive.

5. Interconnection among small companies

(for example a courier company with

limited network, makes a tie-up with

another company and drops the mails

to the desired destination.).

6. Provides higher rate of interest on

deposits. 5


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SWOT ANALYSIS STRENGTH : More products

Reach in rural and semi-urban areas

More branches, more facilities More employees

More services

Good facilities to customers

Strong Network

Cost Effective

Security /Safety with respect todeposits

Efficient Manpower

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SWOT ANALYSISWeakness :

No advertisements

Not provide loan toconsumer

Unchanged workingculture

Job stress amongemployees

Lower rate of interest ondeposits as competitors

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SWOT ANALYSISOpportunity :

In rural and urban areas

In developing Indian economy

In developing communicationto other countries

In developing good rapportwith people

Increasing number ofcustomer

Inflationary market

Technological advancement

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SWOT ANALYSISThreat :

Courier services ( collectively

growth 15-20 % ) Insurance companies

Banking sector

Customer dissatisfaction

Increasing market share ofcompetitors

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BUSINESS STRATEGY

FOR IMPROVEMENT AND FACE THE CHALLANGEPROFESSIONAL ATTITUDE

Highly professional and futuristicapproach

Modifying the age old work culture

and logistic Training of the workforce for facing

the new challenges

Technological Changes: Equippingthe Post Office with IT

infrastructure & providingcommunication services usingInternet

Building a database of addresses: Toimprove quality of service & offer

innovative products. 10


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INNOVATIVE IDEAS

Introducing a single kiosk in a small locality fortaking biometric data for identification

Imagine a postman coming to your home with a

hand hold device for your banking transaction Introducing Commercial website for Money

transfer , bill deposit , e-stamps , gift delivery

Creating awareness of new products by e-mail

Return back the old corporate customers

Generate revenue by creating Advertisementspace in post offices , uniform , vehicle ,envelope , parcels

Customized card delivery

Opening of Merchandise stores in post officeswith exclusive products.

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BUSINESS STRATEGY

FOR IMPROVEMENT AND FACE THE CHALLANGE


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EFFICIENT & EFFECTIVE Regular communication or advertisement

should be there. Time effectiveness

Provide higher rate of interest ondeposit Attractive infrastructure attracts the

customers. Outsourcing some activities to improve

efficiency.

P.O. Operational Timing : Residential areas : 8.00 a.m. to 8 p.m. Metropolitan centers : Sunday open Suitably altered delivery timings for speed

post

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BUSINESS STRATEGY



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Coping up with competitors

Tying up Private players to improveinefficient services ( Ex: Tie-Up withWestern Union to offer Money TransferServices )

PO strong network.

Reach in rural and semi-urban areas.

Dont have offices in rural areas.

To increase the distribution channel. Potential policy holder can fill form in

their local language.

Made possible for company to access theuntapped rural market

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BUSINESS STRATEGY



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Customer oriented & Cost effective Time is precious for every one. With

this motto, the customer servicedepartment should work so that thereshall not be a long queue in anycounter.

Customer-friendly environment shouldbe there in every counter.

Position itself as a provider of backboneinfrastructure for postal transmission .The Mail motor service , The Railwaymail service , The VSAT service etc.

Cost effective : Reduce down expensiveinfrastructure for vending stamp s anddo it by local service provider.

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BUSINESS STRATEGY



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MICRO FINANCE

World Bank study :Among rural house holds 59 % lack

access to deposit money 78 % lack access to credit 90 million farm holdings , 30 million

non agricultural enterprises , 50 millionlandless households collectively needapprox. US$ 30 billion credit annually (

5 % of Indias GDP ) Requirement of low cost service

provider in rural areas and with its reachto interior postal service has thepotential to tap this market.

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BUSINESS STRATEGY



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CONCLUSION

Indian Postal Service needs technological, social,cultural & economic change. With a little bit ofchange, it can create a new era in the market.

Thanks

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http://en.wikipedia.org/wiki/File:India_Post_New_Logo.jpg

Indian Postal Services

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