Professional Documents
Culture Documents
Submitted by :
Sheikh Mustafa Ahmed
Mohammad Waqar Uddin
Saim Saleem
Ahmed Mujtaba
Salman Khan
Wahaj Athar Qadri
Ovais
Submitted to :
Sir Zain Ul Abideen
ECONOMIC TAKEOFF
China-Pakistan Economic Corridor’s paradigm changing impact on the
transportation & logistics sector
When Chinese premier Xi Jingping visited Kazakhstan in 2013 he made a speech envisioning a Silk Road
Economic Belt to bring new prosperity to Asia; a concept which has now become the centerpiece of
Chinese foreign and international economic policy known as “One Belt, One Road” it is claimed that this
project will bind together 65 countries and 4.4bn people from Xi’an in western China across Central Asia
and to the Middle East, Russia and Europe. The maritime part of this road is designed to link China to the
Indian Ocean, East Africa, the Red Sea and the Mediterranean. Pakistan is hence the first testing ground
for the “One Belt, One Road” strategy, which will promote regional stability, expand China’s economic
footprint and boost the country’s exports through lessening transit times to the Middle East, Africa and
EU.
Container costs are also $250 from UAE-Pakistan while they are $1500 from UAE-China. According to the
Express Tribune, the first ever consignment comprising fish exports departed Gwadar for Dubai in May
2015. Kashgar and Urumqi in western China are poised to be the two main urban centers to benefit from
this economic corridor as Xinjiang becomes a trading hub within China. Within the transportation and
logistics industry the rail and air links are scheduled to be developed in phases- firstly will come the
highways, followed by rail links and finally airports and data connectivity. Along with the physical
infrastructure it is anticipated that CPEC will impact corporate culture and lead to a transformation of
mindsets as business leaders from Pakistan interact with their counterparts abroad on a frequent basis.
Industrial zones along the Corridor will lift economic growth, and pioneers in the logistics industry will
become the prime beneficiaries. With Gwadar already operational, it is suggested that trucking companies
gain a foothold there as education and healthcare projects are stimulating the local economy. Pakistan
and China currently have a $16bn trading relationship, of which $4bn are made up of Pakistani exports
and $12bn of imports, the bulk of which passes through the Karakoram Highway. This long, meandering
highway carved high into the mountains is the route Pakistani truckers undertake in their journey to the
Khunjerab Pass, a border crossing located more than 15,000 feet above sea level.
Balance of Trade
Exports to our neighbor, currently consisting of textiles, leather, surgical instruments and minerals, are of
a semi-finished nature or raw materials, hence fetching lower prices. Having said that, the border city of
Kashgar in Xinjiang province has Pakistani goods present in its markets, with shops selling precious stones
from Balochistan, and cutlery, utensils and medical equipment from other parts of the country. The flow
of goods and commodities from China to Pakistan consist of electronic goods, machinery and other
industrial equipment. With this flow set to grow it is imperative that the Karakoram Highway go through
upgrades that strengthen its construction and make it an all-weather road. All of this has to happen whilst
protecting the local wildlife whose ecosystem includes endangered species such as the snow leopard.
Some damage has also been done to the route owing to the disruption caused by the creation of Attabad
Lake in Hunza. However economic planners estimate negative fallout on trade figures to have been
restricted to $250mn. Pakistani truckers currently transferring their merchandise over to Chinese vehicles
at Khunjerab will now proceed further into China itself, saving precious time and energy.
The formidable heights at which the Karakorum Highway presides means that an upgrade of this strategic
road will not be an easy task. Notwithstanding the enormity of the challenge, there can be no escaping
the building of capacity to handle increased traffic flows. Once prepared it is forecast that a sizeable
proportion of China’s trade with Europe, the Middle East and Africa will pass through these routes, with
the majority of goods being made up of sectors such as electronics, machinery, furniture, textiles,
garments,
medical/technical equipment, plastics, vehicles, gems, precious metals and iron/steel products. With road
and rail links being of prime importance in the China-Pakistan Economic Corridor, the importance of air
links cannot be underestimated. Pakistani commercial cargo has flown to Kashgar before, so it is
conceivable that air links between Islamabad, Gwadar, Urumqi and Kashgar will be promoted, depending
on demand and loads. Railways and highways, however, enjoy top priority in the medium term.
Tracking Technology
TCS provides an array of varied transportation services that are spread nationwide and ensure the
effective transport of shipments to a customer’s desired location. The company boasts 401 satellite
tracked vehicles that help move up to 129 million shipments every year. The company’s tracking
technology enables both TCS as well as its clients to keep track of the shipments’ movements at all times.
Introduction of Business
TRANZUM COMPANIES & SERVICES (TCS)
TCS (Tranzum Companies & Services) is a courier service started in 1983 and now serving five
continents and has over 2,000 locations in Pakistan. The company has an airline for cargo
purposes which it uses at many of the airports in Pakistan. Now in its 4th decade of successful
operations, the TCS brand has evolved into a symbol of trust and reliability.
TCS provides domestic and international express services to consumers, corporate, SMEs and
households alike with pickups and deliveries crossing over 125 million shipments annually. This
it does, through a nationwide network of 157 offices, making TCS the biggest such network in
Pakistan. TCS operates with around 8,000 professionals including self-employed Sales Solicitors,
24/7 state of the art call center, 722 plus conveniently located Express Centers, with a daily
walk-in of 35,000 customers, dedicated chartered Boeing 737 aircraft, 2000+ on-line and off-
line locations, 401 satellite tracked delivery vehicles and a proficient team of couriers dedicated
to providing you the best of service and reliability in the industry. With a view to enlarging its
presence in the global village, TCS operates in international territories through its business
partners in Dubai and London, providing access to its customers in over 220 plus countries and
territories, serving customers in 3,500+ destinations worldwide.
TCS Visatronix, a division of Intiana Private Limited, extends booking facilities for visa applicants
in the non-immigrant (work, visit, study) categories for applicants all over Pakistan for countries
such as India, Spain, Malaysia, Egypt, Tunisia, Italy, Malta, South Africa, and ;;Umrah visa for
Saudi Arabia. TCS has achieved many milestones by investing into its business model that
continues to grow stronger. Realizing that customer needs and expectations have always been
the driving principles in the milestones that TCS has achieved over the years, has resulted in TCS
setting new benchmarks to improve the overall quality and standards of the express courier
industry. TCS achievements have led to a case study, undertaken by Harvard Business School in
2003 for 'International Entrepreneurship' course of MBA. TCS has been mentioned in the
textbooks used by Harvard Business School as a model of highly effective company from the
developing world. A case study on TCS has also been included in Philip Kotler’s latest South
Asian edition of “Principles of Marketing” which is being taught at the best and the biggest
Business Schools across South Asia.
BUSINESS SCOPE
“We are catering to the need of “delivery” of promises. A promise to deliver your time define
and sensitive documents safely”.
"To direct all our organizational efforts at building upon the existing organizational strengths
and brand recognition to achieve enhanced levels of profitable growth in the core business, and
diversify into new areas that complement and supplement the core business, with the
diversification aimed at achieving excellence and industry leader status in the new areas. The
TCS People will however be encouraged to be open to unconventional ideas and services and
recognize new trends at very early stages".
VISION STATEMENT
CORE VALUES
Enable our people to align their personal goals with their career aspirations.
Do more with less.
Build a team of passionate people!
Give it all you got and be fearless.
What you do is more important than who you are.
Trust and empower people.
Make life simple, convenient and easy for our people and customers.
Create happiness for self and others.
Embed ethics and transparency in everything we do.
Be humble and respectful.
Organizational Structure
“TCS Hazir (‘Hazir’ is an Urdu word which, in literal terms, means ‘present’) is a pick-up and delivery service
available 24/7, where the courier comes for the purpose of delivery or pick-up right to the customer’s doorstep in 60
minutes, and no more. We would personally prefer to be there in 60 seconds, and be for our valued customers that
which the Lamp and its Genie were to Aladin. Time and Technology are driving paradigm changes in our times,
and the possibilities are limitless. Teleportation may yet make TCS Hazir the 60 Seconds Man!”
Paradigm Changing Step
Chinese wisdom has it that the genius of life is to carry the spirit of youth into old age. At 33 years of age,
TCS is not exactly old and yet the many challenges of growing up in Pakistan have made them wiser beyond
their years. Even so, they carry within them the irresistible enthusiasm of youth, complete with relentless
spirit of inquiry that keeps them happily on their toes in search of solutions that will make their customers
world champions in their chosen fields of endeavor. Hazir SabKuch is one paradigm changing step in this
direction.
Objective:
SubKuch service is aimed to leverage TCS strengths in fascinating customer and earn good reputation and
revenue by making his desired legal and permissible (Halal) product available at his door steps and
providing him with a practical and convenient way to help him save time, increase efficiency and revitalize
his current lifestyle, leaving him with an impression of:
Aladin-ka-Chiraag!
TCS have launched TCS Hazir SabKuch in Karachi, Lahore, Rawalpindi and Islamabad. In the first phase,
customers can summon them via:
The second phase will provide customers with the additional option of SMS, making the chore of shipping
packages all the more convenient and easy. In the third phase they’d in all probability see the TCS Teleport
App, turning TCS Hazir into Aladin-ka- Chiraag! According to data from the latest Economic Survey of
Pakistan, transport, storage and communication enjoy the second biggest share of GDP at 13.7%, next to
the retail sector. The collective contribution of the services sector – at 57.7% - is more than that of
agriculture and industry combined.
One Window Operation
TCS has a total of 14 businesses which encompass Express & Logistics, Mail Management Solutions, Gifts
& Greetings, Air Freight Solutions, Supply Chain, Visa Delivery, Travel Services, and Corporate Training &
Event Management. With a nationwide network of 10,000+ professionals (including over 4000 couriers),
over 740 TCS Express Centers (retail outlets) and nearly 2000+ online and offline locations, TCS is the first
preference for those using courier services.
Now, you don’t courier a package; you simply ‘TCS’ it!
Dedicated to making the customer’s life simpler and more satisfying in every way possible, the energetic
teams of creative geniuses at TCS are hard at work turning the impossible into possible. They’ve done this
by taking their customer’s hands off their daily chores, like paying bills and buying groceries; or dropping
off clothes to the cleaners, and getting them back. It’s a fairly endless array of possibilities that came to
mind when they sat down to figure the ways they can serve their customers.
M.A. Mannan, the President & CEO of TCS Holdings says that he did a lot of research on the global logistics
and courier industry before he joined TCS, and came to the conclusion that customers were looking for
on-time deliveries and shipment packing. It’s that simple, he felt, and in that simplicity he thought that
the TCS universe was at stake.
“However, during an orientation session I witnessed something firsthand at an Express Center which
changed my perception of the service industry,” he says. “As I was standing there I saw a mother come
in to ship a shirt to her son a thousand miles away. As our Express Center staff quickly put it into the
Red Box, she leaned over the counter and fixed that shirt just a little bit. I thought to myself that this
shirt was going to travel via truck to an airplane, to another truck, onto a courier’s motorbike, and then
be delivered. But all the mother cared about was just that one little crease on the shirt which she wanted
to be just right for her son.”
In that one moment M.A. Mannan realized that TCS was not in the shipments business, nor the
parcels business, but that TCS was, and is in the emotions business.
Therefore considering HSK as a parcel delivery service will be contrary to the very philosophy this product
was conceived on. TCS wants to break away from the perception that it’s a company which specializes in
“Parcels and Letter” delivery only.
Every shipment super special Each one of the 129 million shipments that TCS moves every year has a
special significance, and this fact is not lost upon TCS Hazir Sab Kuch. TCS is highly sensitized to all the
important human factors behind each and every shipment. In our pursuit of excellence we are committed
to nurturing high performance teams that can bring down to zero the margin for error, and get it right
first time, every time in the service of our most valued customers.
TCS hasn’t done much marketing activities for Hazir Sab Kuch however, It has mostly been through word
of the mouth marketing, blogging and positive reviews on social media which has helped them. They did
run a short campaign on Facebook to test the waters and the campaign did have a positive impact on the
business volume.
The genesis of the thought behind HSK was due to the non-availability of any such concept in the market.
They had set plans of what do they wanted to do a year back.
But the market results made them change their strategy. They have learned that the idea (Hazir Sabkuch)
has more attraction when it comes to immediate pick and drop rather than goods procurement. They
thought it would be the other way round last year and therefore they changed their resource strategy.
Octara Training Consultancy is a subsidiary of TCS which specializes in corporate training, workshops,
seminars, conferences and publications. A premium training solutions provider that offers range of
training programs, Octara is affiliated with many leading industry practitioners from the UAE, UK, U.S,
Australia and Bangladesh.
Octara organized recently a seminar featuring the living legend Dr. Peter Senge, American systems
scientist, senior lecturer at the MIT Sloan School of Management, and founder of the Society for
Organizational Learning famous for his book ‘The Fifth Discipline: The Art and Practice of the Learning
Organization,’ In the book Dr. Peter Senge has spoken of the need for organizations to adopt an approach
that is geared towards learning for self-improvement, leading to long-term success.
In what ways can TCS abide by the standards of learning as described in the book?
At TCS the biggest factor that drives the desire for increased learning is aspiration; the ambition to be
better and perform better in order to reach a position that guarantees success and prosperity. Once that
is in place, the next elements that are involved are trust and openness. More often than not, problems
remain unresolved because people are either hesitant or just refuse to talk about them. In order for
constructive discussion regarding relevant issues to take place, it is necessary to create an environment
of openness which encourages people to engage in dialogue with each other, regardless of what role they
may occupy in a particular organization.
At TCS the CEO’s and senior management’s job is one defined by action, whether it’s making decisions,
mapping out strategy for the future, or driving the organization on to success and (hopefully) greatness
which is similar to any other organization. But the actions the CEO and senior management takes usually
occur at the intersection of what is known and what needs to happen.
Similarly, M.A Mannan (President & CEO) of TCS Holdings strives to embody the TCS Hazir tagline “We
change the rules” and keenly works to be a force of inspiration in adding value to the lives of others be it
the employee or the customer. What drives Mannan, is innovation to play some role in helping people
realize their way of doing things must evolve. Be it in the sphere of banking, remitting money, sending
things to their loved ones or online shopping. Mannan believes Pakistan must adapt to the changing
trends, and must grow accordingly.
TCS has another core value “Do More with Less”. While the management has been more than supportive
in smooth flow of funds, it is also the responsibility of the team to utilize them carefully.
HSK is a different concept from the main TCS business. The product is helping many individuals to come
under the fold of TCS who would have never tried our services. The loyalty developed by giving a wow
experience to the customers can be leveraged to offer many other products to these new-to-TCS-
customers.
HSK is the closest to a startup idea as it can get. It is unusual for a large corporate to get into this business.
Therefore the minds behind TCS Hazir Sab Kuch doubt the likelihoods of United Parcel Service and FedEx
would even think about this business in any of the markets they operate in. This concept is mostly left to
the small entrepreneurial ventures.
Delivery Chacha:
Delivery Chacha provides more or less similar services like TCS Hazir Sab Kuch, including food delivery,
grocery shopping, bills payment, picking up movie tickets and the like. However, for now their services
are confined to the boundaries of Karachi.
Bykea:
Bykea is another delivery services introduced recently providing a way for customers to get things done
fast, however again their services are restricted to Karachi, Lahore, Faisalabad, Islamabad-Pindi,
Peshawar, Multan.
Vendor Management
Vendor management is one of the factors that draws the line between TCS Hazir Sab Kuch and its
competitors.
As TCS Hazir Sab Kuch purchases products on their customer’s behalf and there happens to be a risk factor
involved, hence a dedicated vendor for entertaining customer’s purchase needs proved to be most
effective for smooth functioning of Purchase + Delivery Model.
Moreover, if customer requires purchasing and delivering certain good then time will also be an entity
which should be considered. In other words, the total branding of SubKuch will be at stake with “on time
delivery”. Therefore, in order to entertain the customer within a minimum time, TCS Hazir Sab Kuch
dedicated vendor for:
1. Grocery
2. Food items
3. Cinema tickets
4. Electronics and many other products.
EXPRESS BUSINESS: Delivery of shipments on overnight basis like if shipment is booked today
before cut off time, it would be delivered in next working day. There are two types of express
shipments:
General shipments:
Banking shipments:
OVERLAND:
OVERNIGHT:
SAME DAY EXPRESS:
SECOND DAY EXPRESS/ DETAIN SERVICE:
RED BOX SERVICE:
HOLIDAY DELIVERY:
FRAGILE SPECIAL HANDLING SHIPMENTS:
TEMPERATURE SENSITIVE:
OLE: Overland express – containers are moved from one place to another in order to
deliver shipments in 3-5working days.
INTIANA: (Travel Services) Intiana, a Tranzum enterprise, offers services for Umrah &
Travel. Intiana is dedicated to facilitating our customers in meeting all their travel
related needs with personalized services and well-trained staff for customer support.
TCS LOGISTICS: (Supply Chain) TCS Logistics Private Limited was incorporated on June
2002. Started as a transport provider however it soon grew into a total logistics solution
company offering trucking, distribution & warehousing facility in response to strong
customer demand.
BCG Matrix
The above is the Boston Matrix which shows the current scenario of the TCS products running in the
market. It could be easily seen that TCS is currently working in all the 4 segments of this matrix. Three of
its products are still in question mark category such as yayvo Hazir Sab kuch and Visatronics. Whereas
their Star Products are TCS Sentiments and MMS while TCS Express Logistics is considered to be their Cash
Cow because not much investment or marketing is required for it and it is the major source of their
revenue. And octra is considered as a product of Dog Category as it is not performing in the market at all
and needs a lot of attention and is almost near to its extinct.
SWOT Analysis
Porter 5 Model:
Below is the porter 5 model. The Bargaining power of the Buyer is High here since TCS Hazir has few
competitors in the market who are providing the same service at a cheaper price so it enables the
customer to have a power to bargain over different aspects. Threat of Suppliers is very low almost equal
to distinct as there is no as supplier involved in between beacuase TCS it self is the Supplier. Threat of
New Entrants in Modearate beacuase there is no as such limitations by the government in between or
any other regularaities in between but since big players Like TCS would make it very difficult for the new
entrants to make a market so the threat would be moderate here. There is no other substitute available
for the product so Threat of substitutes is also very Low. While Rivalry is bit high many players like Bykea
and Delivery Chacha also plays in the same segment with the similar service.
Blue Ocean Strategy
Strategy Canvas : Value Curve
6
0
Price Quality Brand Convenience Variety Availabilty Customer
Satisfaction
The Strategy Canvas Shows that TCS is way ahead of its competitors where as Bykea and Delivery
Chacha Competes with each other on quite similar pattern but accept for the customer Satisfaction and
price Tcs leads in all the other factors.
Limitations
As the name suggest SubKuch means ‘everything’, therefore, they try to provide endless possibilities to
their customers but remaining in the boundaries of legal and Halal requirements from the customers.
However, in initial phase, certain limits are set from business on following:
Labor Work
A customer wants to pick his fridge and go to electrician for repairing and get the fridge back. TCS Hazir
Sab Kuch will refuse this lead, which suggests that in primary phase of SubKuch courier will not do labor
work.
Limitations for Heavy Materials
In those instances, where customer demands to pick heavy material from their home/office and deliver
to some other place, like furniture’s, etc. Service Ambassador will transfer this type of lead to TCS
Overland Express or TCS Home Movers.
Fee/Bill Payment
For any kind of fee/bill payment the courier will collect the funds in advance from the customer before
depositing it
One big obstacle they see is bringing in efficiency in the model. They can’t simply continue hiring more
couriers as the business grows. They will have to continue inventing new models and processes to utilize
the resources more efficiently.
Externally there is always a chance of small startups mushrooming across the country. What they have
learnt in this business that the startup will require a constant flow in investment as the number of
orders grow. Therefore any sustainable competition at least in near future looks a far cry. But they
wouldn’t mind decent competition though.
Conclusion
TCS is an organization with its vision and continuously working to achieve it. They are giving
their services across the globe. Due to their trust and reliability and effective service the word
courier has been replaced by TCS. They are building the good relations with customer.
I don’t see it challenging other online shops for market share but it definitely has potential to
grow and it wouldn’t be surprising to see it evolve into more of a gift shop backed by authentic
products and on time delivery in future even if its performance as a pure e-marketplace isn’t
stellar.
Just to conclude here, we know from people close to TCS that they are working on payment
processing gateway as well. This is in addition to mobile banking solution that TCS is working
on. Hence payments through their own branchless banking will be an option too, just in few
months.