CONCOR – NO MORE A MONOPOLY

The caselet discusses CONCOR’s logistical operations using the hub and spoke model. It also throws light on the strategic moves taken by the company to face the challenges posed by the entry of new players in the container transport industry in India. Finally, the caselet describes the company’s plans to focus on specific areas of logistics with plans to provide cold storage facilities across the entire cold chain.
Issues:
Q1. The importance of rail transport for bulk transportation of goods

Q2. The end of CONCOR’s monopoly in the container cargo transportation business in India
Q3. Importance of joint ventures and diversification as a means to counter competition
Q4. Strategic planning as a key to long-term success
Introduction
Container Corporation of India Ltd. (CONCOR) will no more be a monopoly in the container transportation business in India. In December 2005, the railway minister, Lalu Prasad Yadav announced the opening up of the container cargo transportation business to private players.Until then, CONCOR was the only rail-based container cargo transportation player in India, as this sector was not opened for private players even after the liberalization of the Indian economy in 1991.Under the new policy of the Railway ministry, any business entity with a net worth or annual turnover of over Rs.100 crores (Rs.1 billion) could apply for a license….

Questions for Discussion:

Everything is in place. We are all geared up to face the competition.’What steps did CONCOR take to ensure that it is ready to take on competition after the opening up of the container cargo transportation business to private players?
Analyze the various strengths and weaknesses of CONCOR in light of the future competition. Do you think CONCOR can beat the competition successfully? Give reasons for your answer.