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7/24/2019 Monopoly of Indian Railways.pptx
1/19
MARKET AND INDIANRAILWAYS
Presented By:-
Nidhi Sood (!"#$
Preet%&hinder K&'r (!#$
P&r)een K&'r (!*$
S&+hin (!,$ Sh'.h&n/&0i(!1$
S'nny De) (!1$
Presented To:-
Miss Aditi K&0r&
7/24/2019 Monopoly of Indian Railways.pptx
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INTRODUCTION
M&r2etMe+h&nis%
Or Pro+ess
B'yers &ndse00ers
Dire+t3o%4etition
5M&r2et6 does not re7er to & 40&+e .'t it is &5%e+h&nis%6 .y 8hi+h .'yers &nd se00ers o7 &+o%%odity &re &.0e to +ont&+t e&+h other inDire+t +o%4etition 7or e+ono%i+ e9+h
M&r2et re7ers to & 40&+e or 0o+&0ity 8here+o%%odities +&n .e .o'ht or so0d;
Wh&t is & M&r2et
7/24/2019 Monopoly of Indian Railways.pptx
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TYPES OFMARKET
M&r2etPer7e+t
3o%4etitionI%4er7e+t
3o%4etition
Monopolistic Oligopoly Duopoly
Mono4o0y
7/24/2019 Monopoly of Indian Railways.pptx
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MONOPOLY Deri)ed 7ro% t8o =ree2 8ords:
5Monos6 5Sin0e6
%e&nin
5Po0es6 5Se00er6
Mono4o0y %e&ns e9isten+e o7 sin0e4rod'+er or se00er 8ho 4rod'+es or se00s& 4rod'+t 8hi+h h&s no +0oses'.stit'tes;
7/24/2019 Monopoly of Indian Railways.pptx
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MONOPOLY
Sin0e se00ers &nd %&ny B'yers- A %ono4o0y 7ir% %&y .e o8ned .y &
4erson> & 7e8 n'%.ers o7 4&rtners or & /oint sto+2 +o%4&ny;
No +0ose s'.stit'tes- Mono4o0y +&n not e9ist 8hen there is
+o%4etition;
30osed entry-In & %ono4o0y %&r2et there is stron .&rrier on the entry
o7 ne8 7ir%s;
Pri+e M&r2er- The se00er +ontro0s the 4ri+es o7 th&t 4&rti+'0&r 4rod'+t or
ser)i+e &nd is the 4ri+e %&2er;
Pri+e Dis+ri%in&tion- Pri+e dis+ri%in&tion re7ers to the 4r&+ti+e o7 &
se00er o7 se00in the s&%e ood &t di77erent 4ri+es to di77erent .'yers; Pri+edis+ri%in&tion is ossi.0e &nd ro7it&.0e on0 8hen %&r2ets &re i% er7e+t;
7/24/2019 Monopoly of Indian Railways.pptx
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MONOPOLY: E?@ILIBRI@M
P
MR DemandY
XMC
AC
e
E E'i0i.ri'% Point>8here> M3MR
Pm
P% Pri+eQm
?%: P%C A3> :; E9+ess4ro7its
Fir% M&r2etShort r'n 0osses &re &0so 4ossi.0e
?% sho8s &.nor%&0> s'4ernor%&0 4ro7its
Revenue/C
ost
7/24/2019 Monopoly of Indian Railways.pptx
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PROFIT MAIMIATION
@NDER MONOPOLYA 7ir% in the short r'n e&rns %&9i%'%
4ro7it 8hen it %eets the 7o00o8in+onditions:-
MR M3 &nd M3 +'r)e +'ts MR 7ro%
.e0o8;
A)er&e Re)en'e is re&ter th&nA)er&e Tot&0 3ost;
7/24/2019 Monopoly of Indian Railways.pptx
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PROFIT MAIMIATION
@NDER MONOPOLYMCATC
AVC
AR
MR
e
P
Revenue/C
ost
OOutput
Pro7it
7/24/2019 Monopoly of Indian Railways.pptx
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MONOPOLY- THEINDIAN RAILWAYS St&te o8ned r&i08&y +o%4&ny o7 Indi& &nd h&s %ono4o0yon +o'ntryGs r&i0 tr&ns4ort;
One o7 the 0&rest &nd .'siest r&i0 net8or2 in the 8or0d>tr&ns4ortin o)er * .i00ion 4&sseners &nd &0%ost #"! %i00iontones o7 7reiht &nn'&00y;
Wor0d6s 0&rest +o%%er+i&0 or 'ti0ity e%40oyer> 8ith %oreth&n H;* %i00ion e%40oyees;
R&i08&ys 8&s 7irst introd'+ed in H,"> the 7irst 4&ssenertr&in .et8een Bo%.&y Th&n&;
R&i08&ys ro8s in Indi& 8ith the en+o'r&e%ent o7 British
=o)ern%ent;
7/24/2019 Monopoly of Indian Railways.pptx
10/19
WJY IRIS
3ONSIDERED AS AMONOPOLY et+;
7/24/2019 Monopoly of Indian Railways.pptx
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IMPA3T OF =OT;
MONOPOLYON IRBene7its Jindr&n+es
St&.i0ity o7 4ri+es;
P'.0i+ .ene7ited;So'r+e o7 re)en'e 7oro)ern%ent;Pri+e dis+ri%in&tion
+&n .e &440ied to e&rn4ro7its or 4ro)ide
ser)i+es to 4eo40e;E+ono%i+ di77eren+es
+&n .e red'+ed;
Poor 0e)e0 o7
ser)i+es;No +ons'%erso)ereinty;L&+2 o7 +o%4etition
4ro4er +&re 0e&ds to0o8er '&0ity;No +ons'%er +hoi+e;Jinders the e+ono%i+
ro8th;
7/24/2019 Monopoly of Indian Railways.pptx
12/19
BA3K=RO@NDINFORMATION
P&sseners:
-Operatesover9000trains&over5billionannuallyacrossIndia.
-Preferredmodeoftransportationinmostofthecountries.-Overcrowding.
-ic!et-lesspassengers. Prod'+tion:
-"anufactures most of its #olling$toc! and heavy engineeringcomponents.
-Production units are manageddirectly by ministers.
-%ach unit was headed by ".
S'.'r.&n R&i0s:
-"any cities have dedicatedsuburban networ!s li!e "umbai'
(hennai')elhi'*yderabad'Pune'etc.
-Only "umbai'Pune & *yderabadshares trac! with long distancetrains.
-rains were mostly electric multipleunits.
Freiht:
-(arriesvarietyofgoods.
-(ontributesto+0,ofrevenues.
-"aorityofearningscomesfrom carryingbul!goodsli!ecoal.
Ser)i+es
7/24/2019 Monopoly of Indian Railways.pptx
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IR AT PRESENTWor0d6s rd0&rest r&i08&y net8or2;3ontri.'te '4 to to the ross
do%esti+ 4rod'+t (=DP$;
A44ro9i%&te0y *">!!! 2% o7 r&i0 tr&+2s&nd o)er #>H"H r&i08&y st&tions;
O4er&tes H>*!>"H tr&ins in+0'din 1>""!4&sseners tr&ins> +&rryin &.o't H;*
%i00ion tones o7 7reiht &nd &.o't H,%i00ion 4&sseners d&i0y;
Wor0ds 0&rest +o%%er+i&0 or 'ti0itye%40oyer> 8ith %ore th&n H;" %i00ion
e%40oyees on its 4&yro00s;
7/24/2019 Monopoly of Indian Railways.pptx
14/19
PROBLEMS FA3ED BYIR
Some regions are beon! "#e rea$# o%rai&'as !(e "o (n%a)o(rab&e geogra*#i$a&$on!i"ions+
Rai&'as are %a$ing s"i $om*e"i"ion %romroa! "rans*or" an! "#(s i"s s#are in*assenger an! goo!s "ra.$ is !e$&ining+
Rai&'as #a)e #(ge o("s"an!ing *amen"s
"o !iese& an! e&e$"ri$ *o'er s(**&$om*anies+
T#e rai&'as #a)e "o !e)e&o* (ne$onomi$*ro/e$"s !(e "o *o&i"i$a& *ress(res an!in"er%eren$es+
7/24/2019 Monopoly of Indian Railways.pptx
15/19
3ORRE3TIE MEAS@RES
Moderni&tion;
S&7ety &nd se+'rity o7 4&sseners;
Re40&+e%ent &nd rene8&0 o7 &ssets;
3o%4'teri&tion o7 r&i08&y syste%s;
Introd'+tion o7 ne8 te+hno0oies 7orsin&0in &nd te0e+o%;
Pre)ention o7 0e&2&es o7 Re)en'e;In+re&se in 4rod'+ti)ity &nd red'+tion
in O4er&tin r&tio;
7/24/2019 Monopoly of Indian Railways.pptx
16/19
NET " YEARS
=OALS OF IRH; To de0i)er & s'st&ined &nd %e&s'r&.0e
i%4ro)e%ent in +'sto%er e94erien+e;
; To %&2e R&i0 & s&7er %e&ns o7 tr&)e0;; To e94&nd Bh&rtiy& R&i06s +&4&+ity
s'.st&nti&00y &nd %odernie in7r&str'+t'rei.e. to increase daily passengers carrying capacity,
increase track length and to grow the annualfreight carrying capacity.
; To %&2e Bh&rtiy& R&i0 7in&n+i&00y se07-s'st&in&.0e.
7/24/2019 Monopoly of Indian Railways.pptx
17/19
STRATE=IES TO
A3JIEE =OALS ?'&0ity o7 0i7e in /o'rneys- 30e&n0iness> 9#he040ine> +&terin> e-ti+2etin> %ore +o&+hes>et+;
St&tion Rede)e0o4%ent; I%4ro)in tr&in s4eed &nd introd'+in B'00et
tr&ins;
S&7ety- Tr&in Prote+tion W&rnin Syste% et+;
Tr&ns4&ren+y &nd =o)ern&n+e initi&ti)es;
So+i&0 initi&ti)es 0i2e 4ro%otion o7 4rod'+ts%&de .y Se07 Je04 =ro'4s;
To'ris%-In+redi.0e R&i0 7or In+redi.0e Indi& to.e 0&'n+hed;
7/24/2019 Monopoly of Indian Railways.pptx
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3ON3L@SION
A %ono4o0y is &7ir% th&t is theso0e se00er in its
%&r2et;
It 7&+es & do8n8&rds0o4in de%&nd +'r)e
7or its 4rod'+t;
Mono4o0ists +&n r&isetheir 4ro7its .y
+h&rin di77erent4ri+es to di77erent.'yers .&sed on
8i00inness to 4&y;
R&i08&ys 8&s 7irstintrod'+ed in H," &ndro8s in Indi& 8ith the
en+o'r&e%ent o7 British
=o)ern%ent;
Indi&n R&i08&ys h&s0&'n+hed & %o.i0e
&440i+&tion 7or.oo2in 'nreser)ed
ti+2ets;
&rio's s+he%es0i2e PPP 7or
&ttr&+tin %ore
in)est%ent.
Better> +he&4er&nd 7&ster th¬her %e&ns o7
tr&ns4orts;
7/24/2019 Monopoly of Indian Railways.pptx
19/19
TJANK
YO@