Strategic management Egyptian National Railways

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Egyptian National Railways
نظرة لتطوير سكك حديد مصر

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Strategic management Egyptian National Railways

  1. 1. CONTENTS1- Company Profile.2- Mission, Vision, Objectives.3- Environmental scanning. * External Scanning ( Country & Industrial ) * Internal Scanning ( SWOT analysis ).4- Strategy Formulation (Hierarchy of Strategy) * Corporate Strategy. * Business Strategy. * Functional Strategy.5- Competitive Advantage.6- Product Life Cycle.7- BCG Matrix.8- Strategy Implementation ,Evaluation & Control9- Recommendations.
  2. 2. STRATEGIC MANAGEMENT MODEL
  3. 3. COMPANY PROFILE.Who we are?We are the first lines of railway created in Africa and theMiddle East , and the second in the world.Construction of the first line in Egypt on 12 July, 1851, andoperating in 1854.The total length of railways about 6,700 kilometers.the number of stations and attitudes and drops block on thenetwork more than 820 stations.The largest workshops of the railway workshop Faraz Cairoarea located Sharabiya bridge founded in the second half ofthe eighties last century.Working railroad iron Egypt 86,000 workers from alldisciplines are organized in several departments of artcentral, divided body administratively into seven region.The volume of passenger nearly 1.4 million passengers perday.
  4. 4. VISION:Being the largest railway network in middle east andAfrica.MISSION:• Our aim is to be the best passenger railway in Africa by 2050.• All day, every day, we aim to offer a reliable, welcoming and value for money service.• Our business will prosper because customers use us repeatedly and recommend the service to others.•Having a market share of 25% of travelers across Egypt.
  5. 5. OBJECTIVESCITIZEN LEVEL Encourage traveling economically , safely all over the country.TOURISTIC LEVEL Network between touristic cities Cairo, Alexandria , Matrouh, Hurghada, Sham El Sheikh , Arish, Seawa, Luxor and Aswan Future connection to Syria, Iraq , Jeddah, Khartoum and Libya ( Inter Arabian transport confederation )INDUSTRIAL LEVEL Refrigerated containers for transport of fish from Nasser lake to ports Containers for transport of raw materials (phosphate ,manganese, and cement ,etc…..)to industrial Zones Transporting Marble and Granite in & out of industrial zonesAGRICULTURAL LEVEL Connecting Toshkey to encourage youth to reclaim , Investors to invest and products to export
  6. 6. ENVIRONMENTAL SCANNINGExternal ScanningCOUNTRY ANALYSIS ( PEST ) Political-Legal Economic Socio-Cultural Technological Forces Forces Forces Forces Tax law Energy costs and Life Style changes Government availability Spending on R&D Stability of Money Supply Population growth Telecom government rate infrastructure Inflation rate Age distribution Internet availability GDP Availability of certain technology Price control
  7. 7. ENVIRONMENTAL SCANNINGExternal ScanningINDUSTRIAL ANALYSIS (Porter’s 5 forces analysis ) Entry Barriers Bargaining Power Rivalry among Bargaining Power Of Suppliers Competition Of Buyers Threat of Substitute
  8. 8. PORTER’S 5 FORCES ANALYSIS Industry Competitors We are MONOPOLY Rate of industry growth Low Service characteristics are variable Huge capacity Amount of fixed cost High Barriers to entry Huge economy of scale Product differentiation High Switching cost Medium Capital requirement High
  9. 9. PORTER’S 5 FORCES ANALYSIS Threat of substituteAVAILABILITY OF SUBSTITUTE AT LONG DISTANCE LEVEL LOW AT SHORT DISTANCE LEVEL MEDIUMSWITCHING COST PASSENGER LEVEL AT LONG DISTANCE LEVEL HIGH AT SHORT DISTANCE LEVEL MEDIUM CARGO LEVEL AT HIGH AMOUNT HIGH AT LOW AMOUNT MEDIUM
  10. 10. PORTER’S 5 FORCES ANALYSIS Buyers Power Bargaining power Low Cost of buyers backward integration High switching cost High High differentiated products Suppliers Power Bargaining power High
  11. 11. ENVIRONMENTAL SCANNINGInternal Scanning ( SWOT ANALYSIS )COMPANY ANALYSIS StrengthsHistorical HeritageEconomic & safePowerful DistributionLow Energy costSkillful working handsHuge maintenances & workshopsNo traffic problems in rush hoursSmall land requirementLoyal passengerEnvironmental friendly
  12. 12. ENVIRONMENTAL SCANNINGInternal Scanning ( SWOT ANALYSIS )COMPANY ANALYSIS WeaknessesInstabilityof management.High initial investmentsUnavailability of R & DHigh cost and time consuming of lines dysfunctionHistory of timing issue either earlier or laterLimited in some areasLimitation of privacy
  13. 13. ENVIRONMENTAL SCANNINGInternal Scanning ( SWOT ANALYSIS )COMPANY ANALYSIS OpportunitiesHigh population growth rateNew places to invadeNew customers to takeNew categories of transportationHigh number of touristsSmart solution of Egypt’s transport problemExpand new market around new linesAds on the train make new revenue
  14. 14. ENVIRONMENTAL SCANNINGInternal Scanning ( SWOT ANALYSIS )COMPANY ANALYSIS ThreatsWorkers strikesTax lawEnergy costsInflation rate
  15. 15. Egyptian Population Growth 2050 Millions120,000100,000 80,000 60,000 Millions 40,000 20,000 0 1950 2000 2015 2025 2050
  16. 16. STRATEGY FORMULATION (HIERARCHY OF STRATEGY) • NATIONAL DEVELOPMENT PLAN COUNTRY • National development policies and indicative plans. • RAILWAY CORPORATE STRATEGY • Corporate Mission Statement- Broad Policy Guidelines- Socioeconomic Indicators- Corporate level SWOT Analysis- Corporate Objectives- BroadCORPORATE Strategies (incl. Pricing)- Manpower Plan- Finance Plan -Investment Plan • BUSINESS STRATEGY. BUSINESS • Competitive Advantage ( C.A ) • FUNCTIONAL STRATEGY. • MARKETING PLAN + OPERATIONS PLAN + MECH. ENG. PLAN +FUNCTIONAL CIVIL ENG. PLAN
  17. 17. RAILWAY CORPORATE STRATEGY Customer integration ForwardVertical Integration New Product New Region integration Backward Raw Material Horizontal Integration
  18. 18. BUSINESS STRATEGYCompetitiveWe compete every fuel burning vehicle on thegroundCooperativeInitiatenew companies transporting goods &passengers in & out train stations.Inter Arabian transport confederation railway.
  19. 19. COMPETITIVE ADVANTAGEDegree of Differentiation Maintain Outstanding High Specialty Success Hope for Maintain Cost Market Growth Advantage Low High Low Relative Cost
  20. 20. PRODUCT LIFE CYCLE
  21. 21. PRODUCT LIFE CYCLE
  22. 22. PRODUCT LIFE CYCLE
  23. 23. BCG MATRIX
  24. 24. IMPLEMENTATION STRATEGY ,EVALUATION & CONTROLCITIZEN LEVEL reaching 25 % of travelers across Egypt by 2020.TOURISTIC LEVEL Network between touristic cities establishment Achieving Inter Arabian transport confederationINDUSTRIAL LEVELReaching a valuable market share in industrial transportationNearly 50 %AGRICULTURAL LEVELBecome the favorable route of transporting agriculture productsIncreasing Passengers Train speed from 80-100KMPH to 130-150KMPHReaching 25000 KMS of Lines
  25. 25. RECOMMENDATIONSNeed to use our good experience in thisfieldIncreasing R & DUsing the working hands wiselyGovernmental support to achieve our plansDeveloping old stationEstablishing new products as GREEN TRAIN

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