logistics industry and pestle and marketing mix swot analyis of it

LogisticsIndustry

Presented by:

Anubhav tiwari (07)

Ajit thakur (04)

Pratik louhar (41)

Jignesh kuhada (24)

Deepak soni (11)

Flow of presentation

Logistics Industry

Introduction

PESTLE Analysis

7 P’s of Marketing

Mix

Companies Financials

SWOT Analysis

What is Logistics..?

• Order Processing

• Inventory Management

• Transportations

• Warehousing, Storage, Material Handling, Packaging

• Facilitate Network Design

• Information and Inventory Flow

Work of Logistics

Design, Administer

and Control the

systems

Movement and Global Positioning

Raw materials, Work-in-progress, Finished Goods

Logistics

Political

• Implementation of Tax Reforms in different

countries

• Variation in commodity prices due to

political reasons, fuel prices variations, oil

rates.

• Political inferences and instabilities.

• GST

Economical

• Relationships between variable economic

factors and transportation costs

• Fluctuation in commodity prices.

• Economic growth rates, Manufacturing

sectors, Industrial Environment.

• Commodity rates in Different geographical

regions.

Social

• Social impacts:

• Purchasing

• Discrimination for minority suppliers

• Labour use

• Transportation

• Social issues with drivers

• Warehousing

Technological

• Development of Common and Consistent

Database Systems, ERPs

• Adaptation to technological Advancements

• Real Time Data management, Trackers, Dish

Antenna.

• Information flow process

Legal

• Price Discrimination

• Compliance of Legal Documentation and

Contractual Obligations.

• Dealing with Issues of goods which are restricted

in different countries.

• Merger and Acquisition Regulations

Environmental

• Transportation via heavy load vehicle

affects Air Quality, Create Noise, Global

Warming effects

• CO2 emissions during transportations,

warehousing and material handling

• Combined effects of Logistics firms

globally.

• Oil spills: Impacts on the ocean lives.

• Introducing Eco-friendly vehicles

• Paper less Systems for mode of

transportation

Company Introduction

TYPE : Public

INDUSTRY : Courier (logistics)

FOUNDED : 1971

KEY PEOPLE : Frederick W. Smith (CEO

, Chairman)

Headquarters : Memphis, U.S.

Employees : 4,00,000 (2016)

Revenue :US$47.453 Billion (2015)

Tagline : “The world of time”

INDUSTRY : Courier (logistics)

FOUNDED : 1989

HEADQUATER : Singapore

EMPLOYEES : 3500

KEY PEOPLE : Mr. Mahendra

Agarwal,( MD & CEO),

PARENT INDUSTRY : Gati Coast to Coast

(GCTC)

Revenue : Rs. 485.64 crore

Tagline : “Ahead in reach”

INDUSTRY : Logistics and

transportation

FOUNDED : 1993

KEY PEOPLE : Shashi kiran Shetty

Employees : 12000

Revenue : USD 900 Million.

Headquarters: Mumbai

Tagline : “Geography simplified”

Marketing Mix

Product

Price

Place

Promotion

People

Process

Physical Evidence

GATI FedEx All cargo logistics

ltd.

Products.

Global Shipping and

Freight

Air, Water, Road, Critical

Freight

Customs Brokerage

Package Shipments

Logistics solutions

Supply chain services

Global Shipping and

Freight

Export and Import

Shipping, Global

Returns

Globally Heavyweight

Shipments

Domestic Shipping

Custom Clearance

Solution Expertise

NVOCC(non- Vessel

Operating Carrier)

Project and engineering

solutions

E- commerce logistics

Coastal shipping

Contract logistics

Price Industry wise Discount

Pricing

Premium Pricing for

Specialised Products

Low Pricing

Competitive Pricing

Premium Pricing

Seasonal Pricing

Student Offers

Professionals Offers

Premium Pricing

Varied Pricing in

Different countries as

per Weight and

Distance

Place Head office: Singapore

Offices In more than 60

countries

Approaching more than

200 countries

Across 672 district in

India

Head office:

Memphis(U.S.)

Approaching more than

220 countries

Across all the

metropolitan cities and

one tier and two tier

cities

Head office: Mumbai

Offices: 30 offices in

India

Approaching across 90

countries of the globe

GATI FedEx All cargo logistics

ltd.

Promotion Promoting events

CSR activity

Outdoor Advertising

Hording

Money Back Guarantee

Sports Sponsorships

FedEx Branding

Television Advertising

Hording

All cargo logistics packaging

Sports Sponsorships

CSR activity

Hording

People More than 8000 employees More than 400000 More than 12000 employees

Process Average express transit

time: 17 hours 51 minutes

Door to Door Collection and

Drop off services

Real Time Tracking

Average Express Transit

time: 17 hours 21 minutes

Tie ups with Local Delivery

Firms

Door to Door Collection

and Drop off services

Real Time Tracking

43000 shipments a day

Door to Door Collection and

Drop off

Real Time Tracking

Physical Evidence.

Brand logo on Airlines

Brand logo on Containers

Brand logo on Employee

Uniforms

Brandi logo on Vehicles

Brand logo on throughout

the stores

Brand logo on Air fleets

Brand logo on Cargos

Brand logo on Employee

Uniforms

Brand logo on Vehicles

Brand logo on Cargos

Brand logo on Packaging

Materials

Brand logo on vehicles

The current ratio is a liquidity ratio that

measures a company's ability to pay short-

term.

Current Ratio

Ideal ratio = 2:1

Current Ratio = Current Assets / Current Liabilities

1.82 1.841.5

0.87

1.481.24

1.33

1.06

3

0

0.38

0.5

0

1

2

3

4

5

6

7

2014 2015 2016

Fed Ex Allcargo GATI OVERALL INDUSTRIES

Current Ratio

The Asset Turnover ratio can often be used as an indicator

of the efficiency with which a company is deploying its

assets in generating revenue.

Assets Turnover Ratio

FORMULA:-

Asset Turnover = Sales or Revenues / Total Asset

1.38 1.281.09

0.7 0.780.82

0.27 0.52

3

0

0.5

1

1.5

2

2.5

3

3.5

2014 2015 2016

Fed Ex Allcargo GATI Overall industries

Assets Turnover Ratio

FORMULA:-

Interest Coverage=EBIT/Interest Expense

Interest Coverage ratio

The interest coverage ratio is a debt ratio and profitability

ratio used to determine how easily a company can pay

interest on outstanding debt.

21.56

7.929.15

3.46 4.36.88

3.74 3.062.27

18.31

13.8

0

5

10

15

20

25

2014 2015 2016

Fed Ex Allcargo GATI Overall Industries

Interest coverage ratio

Debt-Equity ratio

The D/E ratio indicates how much debt a company is using to

finance its assets relative to the amount of value represented in

shareholders’ equity.

FORMULA:-

Debt-Equity Ratio= Total Liabilities / Shareholders' Equity

0.31

0.48

1.01

0.06 0.180.15

0.290.39 0.4

0

0.2

0.4

0.6

0.8

1

1.2

2014 2015 2016

Fed Ex Allcargo GATI Overall Industries

Debt-Equity ratio

SWOT Analysis : Fed Ex

Positive Negative

Strengths

• Global network more than 200

countries.

•High investment in IT. First company

to introduce using www.tracking

products in transit.

•Large market share in airborne

services, three decades experience

in logistics.

Weakness

•More depended on US market.

•Rising fuel prices.

•World expansion is weak compare to

competitors.

•Many companies cannot incorporate

their software.

Opportunity

• Increases number of world wide

hub.

•Larger variety of shipping services.

•Challenging competitors with

merger or acquisition.

•Rapid Growth of logistic market.

threats

•Varying market demand.

•Rising fuel prices.

•Increases in competitors.

I

N

T

R

N

A

L

E

X

T

E

R

N

A

L

SWOT Analysis : GATI Positive Negative

Strengths

•Dominant player in the cargo

segment in India more tan 55%

market share.

•Hi-tech warehouses and distribution

infrastructure.

•Advanced it solutions to backup its

services.

•It provide multi modal connectivity.

Weakness

•Insufficient regional and global

presence.

•Neglecting courier segment.

Opportunity

•Expanding economy, WTO

agreements.

•Improved infrastructure.

•Entry of large global retailers

•Increases in investment, booming

manufacturing provides business

potential to express industry.

threats

•Global competitors.

•Direct competitions with unorganized

sectors.

•Space limitations.

I

N

T

R

N

A

L

E

X

T

E

R

N

A

L

SWOT Analysis : ALL CARGO LOGISTICS

LTDPositive Negative

Strengths

•2nd rank industry in India.

•Scale of operations across 62

countries and 400 ports.

•Robust distribution network.

•Superior performance and

innovative.

Weakness

•Strong dependency on weak

infrastructure .

•Taxes policies in India.

•Lack of adoption of new technology

compare with foreign competitors.

Opportunity

•To start 3PL its give more strong to

the company.

•Company utilize their fund to

expansions.

•Diversify new product portfolio to

enter in new service provided.

threats

•Competitors like DHL,TNT,UPS,BLUE

DART.

•Government t rules and regulations .

•Restriction on export and import

procedure.

I

N

T

R

N

A

L

E

X

T

E

R

N

A

L