TCS Business ScopeBusiness Scope describes “The Business we are / want to be in” through the eyes of thecustomers. It defines the areas of operation for the organization. It encompasses the followingquestions: • Specific Region Regions = where?TCS network is spread over 350 cities in Pakistan, From Karachi to Khyber and up to northernareas of Pakistan, TCS is available to serve its customers .This vast network has been dividedinto three regions, South Region , North Region and Central Region .South Region . 1. Karcahi 2. Quetta 3. Sukkur 4. HyderabadCentral Region . 1. Lahore 2. Faisalabad 3. MultanNorth Region 1. Rawalpindi / Islamabad 2. Gujranwala
TCS 3. Peshawar . • Functions / applications Functions / applications = what needs?TCS is catering to the basic need of “delivery” of promises. A promise to deliver your timedefined and sensitive documents safely. • Customers Whose needs?“Businesses and individuals” – They are catering to the needs of other businesses in differentareas of Pakistan – B to B and B to C as well, as the main market for TCS happens to be thebusinesses. • Added valueTCS thrives to provide its customers with not just “superior quality services” but also with someadded value. Superior Quality of TCS business, its efficient services, allows the consumer toenjoy total promised quality based services. • Boundaries and future scope - Matching production with increasing demands in the future. - Bringing new services for new segments (domestic)
TCS - To maintain the leading position in the local market. Users / Application Domesticcourier International Overland shipping Gift delivery services courier service TCS door to door DHL TCS express vans & TCS sentiments through bikes bikes FedEx OCS gift items Leopard Leopard TCS on fleet of air OCS craft. OCS TNT UPSDistribution ChannelsDirect distributionPAST GROWTH (VOLUME IN MT) MARKET GROWTH 2006 2007 2008 2009 SEGMENT P.A Domestic International
TCS SentimentsPAST GROWTH (VALUE IN MLN) MARKET GROWTH 2006 2007 2008 2009 SEGMENT P.A Domestic International SentimentsFUTURE GROWTH (VOLUME IN MT)MARKET GROWTHSEGMENT 2010 2011 2012 2013 P.A Domestic International Sentiments
TCSFUTURE GROWTH BY REVENUE MLNMARKET GROWTHSEGMENT 2010 2011 2012 2013 P.A Domestic International SentimentsAssumptions for growth • The population of Pakistan is increasing at 2.5 which mean the market size is increasing and that would eventually increase the courier market. • New laws are being passed related to the documents/soft copies but even then the demand of courier services cannot be declined and there will always be the demand for logistics and courier. • Many countries using it’s services as an intermediary.
TCS PRODUCT LIFE CYCLE STAGESSEGMENTS INTRODUCTION GROWTH MATURITY DECLINEDomestic courier XInternational XcourierOverland XshippingGift delivery X Represents TCS Represents Courier industrySTRENGTHS • Highly experienced people in organization • Local trained • Global exposure • Tried and tested routes
TCSWEAKNESSES • Personnel expense • Being mega organization have their own expenseOPPORTUNITIES • Industrial growth • Institutional growth and only TCS is the one that can cope up with their requirementsTHREATS • Political instabilityINDUSTRY DRIVING FORCESBargaining Power of CustomersAs increase in the competition of courier industry directly leads to giving the consumers a greatamount of choice and making more difficult to persuade and put off the customers from brandswitching. A competitor providing services on reduced prices but the trust that the TCS hasdeveloped in their customer forces them to utilize TCS’ services. But somehow the lower pricesoffered by their competitors have declined their courier services.RecessionSince the TCS are not into the ordinary quality business but they emphasize on the provision ofpremium quality, though the market is going through recession period and that would resultcompanies to shrink.
TCSTrend Potential Impact TCS LEOPARD OCS TNTglobalization Scarce resources Due to scarce resources they are not able to exist in the international market.Economic recession Emphasis on small They are businesses very much diversified .Growing preferences for opportunities They availthe differentiated theservices opportunity and give the differentiate d services.Price consciousness Little affect but no Provide compromise on quality different discounts to different types of customer.Customer’s needs and Customer might switch They fullywants are changing to other services satisfied their customers according to their needs and wants.Less profit margins Creating entry barrier Capturing more and more market shareTechnological Trends Increase in costFocousing the rural areas Increase the sale and They are not reveneue focusing
TCSFocusing in new Increase thesegments competation and revenue Market Share(Revenue)(2007-2008) Domestic Courier (Express)TCS 60%Leopard 16%OCS 14%TNT 6%OTHERS 4% Domestic Overland Business Segment (2007-2008)TCS 51%Cargo Line 22%PTN 11%OCS 9%Others 7% International Courier (Express) Segment (2007-2008)DHL 65%FedEx 18%TCS 7%UPS 5%
TCSTNT 3%Others 2% Market Segment 1. Domestic Courier(Express & Logistics) • Motor Bikes • Trucks • Air crafts TCS is an Express & Logistics company, recognized for its Quality service and unique multi-product offering. TCS Provides express & logistics services to C2C, B2B, & B2C, delivering over 4 million parcels and documents a month to over 3,500 destinations worldwide, using its own & third party partner depots, hubs and consolidating centers. TCS operates with strength of more than 7,500 Professional people, 280 plus state of the art express centers, 6 dedicated chartered aircrafts, 180 fully equipped modern ground vehicles, and 3500 couriers. TCS services available through its major hub offices in Dubai/UAE, UK, Canada and Pakistan for deliveries Worldwide.
TCS 2. Domestic Overland • Trucking ServiceTCS Road Transport (Pvt.) Ltd. is the logistics service provider, offering Total LogisticsSolutions in Warehousing & Distribution, door to door Trucking Services (TCS OverlandExpress) & Fleet Management Services to an extensive customer base in Pakistan. Roadtransportservices are available in Pakistan. 3. International Courier 4. Sentiments:Sentiments Express, is the market leader in the gifts delivery business, since 1989. SentimentsExpress has developed its worldwide network, introducing a wide range of gift items in UAE,UK & Canada. Over & Above Sentiments Express has developed a brand image based on highlevels of service and reliability. Individuals to leading National and Multinational companies, allsubscribe to Sentiments Express. It offers personalized, high valued gift delivery servicecomprising of a wide array of gifts ranging from gourmet cakes, floral bouquets, local mithai(sweetmeats), to various corporate gifts & giveaways delivered with a personalized greetingcard. Sentiments Express services are available for delivery in Dubai/UAE, Canada, UK andPakistan Customers wants time delivery,spped,assurance,reliaTHE CUSTOMER: BASIS OF OUR BUSINESS bility,strong image,trust,satisfaction,premi um price,fair delling Deling with the coustomer,flexible payment . Brand image,on time delivery,security of the documents,branches of tcs exist on different Yes places,
TCS They have a specialized team which conduct market servey for the further improvement How do we Our Score competitors Score Action Plan• Innovation and quality is our major strength• Weak distribution network
How Who When TCS WhatCapture market • Increase • With the help of • By March 2011.share in lower areas distribution marketingof the country. network in lower Department and areas. top level • By doing Management promotional Collaboration activities and for improving door to door distribution information. system. • Alliance with local people in local areas. • Regional marketing manager . Customers wants time delivery,spped, reliability,strong image,assurance(trust) ,minimum price,fair delling Deling with the coustomer,flexible payment .
TCS They have a specializedBrand image,on team which conduct time market servey for the yesdelivery,securit further improvement y of thedocuments,bra nches of tcs exist on How do How do we score we score Vast infrastructure and own air fleet is the key strength. and ?????weakness
TCS Relative Importance of Factors Absolutely Very Quite Nice to Not Don’t Critical Important Important Have significant Want it Factors 5 4 3 2 1 0Time delivery Speed Fair dealing with the coustomer reliablity Strong imageAssurance(trust) minimmum price Flexible Payment