Delhi Metro Rail Corporation - Delhi Metro Rail Corporation - Analysis of Operating Environment Analysis of Operating Environment

& Competition& Competition

Presented By:Presented By:

Ankit |AnoopAnkit |Anoop

Ashok| VikramAshok| Vikram

AmitAmit

Overview• A brief Introduction

• Key Objectives

• Main features

• Effect of Macro Environment

• SWOT Analysis

• Porter’s Five Forces

• Strategies Used by DMRC

• Customer Oriented Approach

• Performance Analysis

• Threat Analysis

• Issues affecting mode shift

• Advantages

• Suggestions & future predictions

Need…• Delhi’s population(2005)-158 lakhs. • Length of Road- Increased from 652 km(1981) to

1122 km(2001).• No. of vehicles(2007) -51 lakhs & increasing @

6.21% p.a.• Results- Extreme congestion, slow speed, increase in

road accidents, pollution level scaling up• Solution: Alternative mode of Transport required.

“Thus Delhi Metro was not a luxury, it became a necessity to cater the need of transportation.”

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Delhi Metro Rail CorporationThe Delhi Metro project gave Delhi a world-class mass rapid transit system (MRTS). More importantly, it stood out from most other public sector projects in India as it was completed on schedule and within the budgeted cost.

DMRC was registered on 03/05/95 under the Companies Act, 1956 for implementation and subsequent operation of Delhi Metro.

A joint Venture between Government of India and the Government of National Capital Territory of Delhi, in equal partnership.

Key Objective

The main objective of DMRC is to improve Delhi's urban environment by reducing traffic congestion, exhaust emission and other types of urban pollution caused by motor vehicles, and to play a large role in improving Delhi's transit system.

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PHASE – I Under Implementation

At GradeElevatedUnderground

Three linesTotal length – 65.1 kmTotal No. of Stations – 59

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Main Features Of Delhi MetroAir conditioning

Trains and all underground stations are air conditioned.

Tunnels are only ventilated.

System capacity 60,000 passengers per hour.

SpeedOperating speed 50 km/h

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Main Features Of Delhi Metro

Ridership 8 lakh passengers per day

Train frequency 4 minutes

Fare collectionSmart cards & Tokens

Macro Environmental Factors affecting DMRC

DMRCDMRCDMRCDMRC

Socio-Cultural Environment

With ‘Commonwealth Games’ scheduled in 2010, the focus is on finishing the project by that time

Legal & Environmental

Focuses on continual improvement in our Environment, Health & Safety policies, processes and procedures complying with local and national Environment, Health & Safety Laws.

Political Environment

• Full political support from Govt

• Metro being honour for delhi so government promotes it resulting in automating publicity

Economic• With increase in purchasing power of middle income group, a

better mode of transport is required.

• Delhi & NCR being National Business HUB

Technological• Switching over to Standard gauge from Meter gauge, so that

transfer and upgradation of technology is easy as per global system

• Focus on Eco-friendly technology

SWOT Analysis Strengths:

• Reduced pollution / Eco friendly

• Solved the problem of congestion in the city

• Low cost • Mass transportation

Weaknesses:• Delay in some projects• Breaking of bridges • Facility not available during

night • Unavailability of toilets in

stations • Long queues in some stations

like Rajiv chowk

Opportunities :

• Expansion of network • Integration with other NCR

cities• Increased frequency • Better design of trains • Better security system• Increased revenue for govt. by

means of advertising • Public private partnership :

opening of retail outlets at metro stations

Threats :

• Buses, Autos • Personal vehicles

Applying Porter’s Five forces Model to DMRC

• Threat of Intense Segment Rivalry:

DTC’s High Capacity Low floor buses (AC & non AC).

• Threat of new entrants:

Not profound but monorails can pose a threat

• Threat of Substitute:

No perfect substitutes, but auto rickshaw, taxi’s can pose a threat

Porter’s Competitive Forces contd…

Bargaining Power of Consumer:

Moderate fare & implementation of many services like Smart Cards, Feeder Bus etc. to ease consumer need shows a greater bargaining power of consumer.

Bargaining Power of Supplier:

Availability of Large numbers of Contractors.

Suppliers have very low bargaining power, as stringent penalty clauses are in place for delay. Quality is uncompromised as the contractors needs to dismantle & rebuild in case of low quality.

Strategies used by DMRC

• Financing Strategy: DMRC went overseas, tapping the Japan Bank of International Cooperation for loans to cover 60% of the cost.

• Partnership Strategy: Went for extensive experience. Consulted with Pacific Consultants International from Japan for engineering matters, Korea's Rotem and Japan's Mitsubishi supplied the initial shipment of coaches, France's Alstom designed of the automatic train control system.

Strategies Contd…

• Pricing Strategy: DMRC has kept its fare reasonable with a minimum of Rs 6 and a maximum of Rs 24. and has compensated by increasing the revenue from other sources like advertisements, commercial exploitation of available space and consultancy services.

• Relationship Strategy: Assembled the metro carriages in Bangalore and rolled them on Indian Railway’s track straight to the New Delhi metro to avoid the conflict with Indian Railways about the kind of track to be used.

Strategies Contd…

• Advertising Strategy:Use of Lenticular vision technology - the picture and the projections are modified to suit the audience speed helping them to view the advertisements clearly

Customer Oriented Approach

• Implementation of Smart cards

• Feeder Bus Service

• Rent a cycle service in the University campus

• Ductile pathways and ramps to guide visually challenged people

• Pre Station alert

• Emergency Services

Performance Analysis

Key Features

Weightag

e(Consumer’s perspective)

Average Points

Technology 1 4.32

Service 3 4.12

Travelling Time 3 4.29

Safety/Security 3 3.88

Status 2 4.53

Price 3 4.59

Satisfying customers need 3 4.29

Environmental Advantage 2 4.44

Online information 1 3.17

Frequency of service 3 4.09

Service during night 2 3.00

Geographic spread 3 2.97

Analysis

Performance of Metro: ∑ (Weightage X Points Earned)

∑ ( Max.Weightage X Max. Points)

= 116/180 = 0.6452

= 64.52 %

Threat Analysis

Route : Delhi University - Rajiv Chowk.

Mode Of Transport Fare Time Taken

Bus Rs. 7 35 minutes

Auto Rickshaw Rs. 60 25 minutes

Metro train Rs. 11 12 minutes

Threat Analysis

Price (in Rs.)

Tra

vel T

ime

(in

min

s.)

Bus

Auto Rikshaw

Metro Train

Issues affecting “two wheeler” users for mode shifting

Issue Bus

Metro Remarks

Door to doorservice

One has to walk up to bus stop (maximum 500m)

One can reach to the metro station by walk or by cycle rickshaw, auto

rickshaw or byfeeder bus.

Probability of shifting the mode is

very low.

Transferinconvenience

If destination does not lie in any bus route one has

to shift in-between

If direct route is not available one has to get transferred in between

Transfer type can be different for

metro and bus.

No need to followtimings

One has to follow theschedule of buses

One has to follow the metro schedules

If more frequencies are provided then it can help to shift the two wheeler

users to bus or metro

Work/shoppingplace is very near

In any case one will usetwo wheeler only

In any case one will use two

wheeler only

As distance is short probability of

shifting from two wheeler to bus or metro is

negligible.

Issues affecting “two wheeler” contd...

Issue Bus

Metro Remarks

Travel timingsIf only in-vehicle time isconsidered it takes more

time than metro

If only in-vehicle time iscompared, Metro takes

lesstime.

As metro has less stoppage in comparison to bus and it has separate track and doesn’t mix with other

traffic, its speed is more than bus system.

Health conscious More exposed to pollution No exposure to pollution

as such

For health conscious people the probability of

shifting is more.

Public Image

Young students and working professionals

would not like to project themselves as someone

using a bus.

Relatively higher image. The probability for

shifting mode to metro is more than shifting to bus.

Advantages of Metro

• Savings in Foreign Exchange due to reduced Fuel Consumption• Savings in time for the passengers• Reduction in Pollution• Reduction in road accidents• Reduction in capital and operating costs of vehicles• Lower maintenance costs for infrastructure• Improvement in road traffic conditions

Suggestions & Future Predictions

• Should start service during night also

• Similar projects discussed throughout the country

• Focus on penetrating other Metro cities

• Provide a link to other nearby cities

Suggestions Contd.

• Integrated Smart Cards

• Introduce Luggage Cabin

• Help for Old age people

• Focus on reducing time and energy to reach the

platform from road

Thank YouThank You