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