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Monopoly In Indian 
Railways 
Ajay Parab
• Only one Producer/Seller 
• Restrictions on entry and exit out of the industry 
• Unique Product 
• Specialized information about production techniques 
unavailable to other potential producers 
Monopoly
• Defense 
• Hindustan Aeronautics 
• Indian Railways 
• State Electricity Board 
• Nuclear Power 
• Few Pharmaceutical Companies 
Examples of monopoly
• First Railway from Bombay to Thane (1853) 
• Distance covered by the 14,300 trains on the Indian 
Railways everyday, equals three & half times the distance 
to moon 
• IR employs Approx. 1.55 million people 
• The longest platform in the world is at Kharagpur and is 
2,733 ft. in length 
• More than 7000 Railway Stations in India! 
Indian Railways
Porter’s 5 Forces Model 
THREAT OF NEW 
ENTRANT 
• High Capital Investment 
discouraging new entry 
• Prohibition of entry for 
private sector 
• Access to distribution 
SUPPLIER POWER 
• Self Sustained 
• Public Private ownership 
• Tenders issued 
• Labor Union 
BUYER POWER 
• Low power for bargaining 
• Very Large Buyer Volume 
• Highly informed buyer 
• Very strong Brand Identity 
THREAT OF 
SUBSTITUTES 
• Low Cost Airlines 
• Deluxe Buses 
• Personal Transport 
Rivalry
STRENGTHS 
• Economical 
• Mass Transportation 
• Tatkal Booking 
• Choice of Class as per convenience 
• Concessions for Senior Citizens, Students, 
Raliway Employees and Award winners 
• World’s 4th largest workforce under single 
ownership 
WEAKNESSES 
• Hygiene Issues 
• Poor Connectivity 
• Advance Booking 
• Tasteless Food 
• Lack of Security 
• Reservations 
• Unavailability of basic utilities 
SWOT ANALYSIS 
OPPORTUNITIES 
• Metro Trains in Metros and Tier 1 cities 
• Rail Tourism 
• Advertising 
• Expanding Networks 
• Public Private Ownership (Retailing etc.) 
• Sports 
THREATS 
• Cheaper Airfare 
• Better Connectivity of Roads 
• Political Unrest 
• Social Unrest 
• Terrorist Attacks 
• Technical Malfunction
• Rail Tourism 
• Tie up with Hotels 
• Venture into in house Taxi 
• Chauffer service for 1st Class Travellers 
• Trolleys in Railway Station 
• Aero-dynamic shape for Engine Coach run by Renewable 
Source of Energy 
• Escalators in changing platforms 
• Shuffle Berth 
Recommendations
• Though Critics argue Perfect Competition and Monopoly 
does not exist in absolute form, we tend to assert above 
evidences to prove Indian Railways is categorical 
monopoly for the segment of customers to which it 
caters. 
Conclusion
• Wikipedia 
• Google 
• www.investopedia.com 
Bibliography

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Indian railways - Monopoly

  • 1. Monopoly In Indian Railways Ajay Parab
  • 2. • Only one Producer/Seller • Restrictions on entry and exit out of the industry • Unique Product • Specialized information about production techniques unavailable to other potential producers Monopoly
  • 3. • Defense • Hindustan Aeronautics • Indian Railways • State Electricity Board • Nuclear Power • Few Pharmaceutical Companies Examples of monopoly
  • 4. • First Railway from Bombay to Thane (1853) • Distance covered by the 14,300 trains on the Indian Railways everyday, equals three & half times the distance to moon • IR employs Approx. 1.55 million people • The longest platform in the world is at Kharagpur and is 2,733 ft. in length • More than 7000 Railway Stations in India! Indian Railways
  • 5. Porter’s 5 Forces Model THREAT OF NEW ENTRANT • High Capital Investment discouraging new entry • Prohibition of entry for private sector • Access to distribution SUPPLIER POWER • Self Sustained • Public Private ownership • Tenders issued • Labor Union BUYER POWER • Low power for bargaining • Very Large Buyer Volume • Highly informed buyer • Very strong Brand Identity THREAT OF SUBSTITUTES • Low Cost Airlines • Deluxe Buses • Personal Transport Rivalry
  • 6. STRENGTHS • Economical • Mass Transportation • Tatkal Booking • Choice of Class as per convenience • Concessions for Senior Citizens, Students, Raliway Employees and Award winners • World’s 4th largest workforce under single ownership WEAKNESSES • Hygiene Issues • Poor Connectivity • Advance Booking • Tasteless Food • Lack of Security • Reservations • Unavailability of basic utilities SWOT ANALYSIS OPPORTUNITIES • Metro Trains in Metros and Tier 1 cities • Rail Tourism • Advertising • Expanding Networks • Public Private Ownership (Retailing etc.) • Sports THREATS • Cheaper Airfare • Better Connectivity of Roads • Political Unrest • Social Unrest • Terrorist Attacks • Technical Malfunction
  • 7.
  • 8. • Rail Tourism • Tie up with Hotels • Venture into in house Taxi • Chauffer service for 1st Class Travellers • Trolleys in Railway Station • Aero-dynamic shape for Engine Coach run by Renewable Source of Energy • Escalators in changing platforms • Shuffle Berth Recommendations
  • 9. • Though Critics argue Perfect Competition and Monopoly does not exist in absolute form, we tend to assert above evidences to prove Indian Railways is categorical monopoly for the segment of customers to which it caters. Conclusion
  • 10. • Wikipedia • Google • www.investopedia.com Bibliography