Delhi Metro Rail Corporation -

Analysis of Operating Environment

& Competition

Presented By:

Ankit |Anoop
Ashok| Vikram
Amit
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.”
Delhi Metro Rail Corporation
The 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.

4
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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Total length – 65.1 km

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Total No. of Stations – 59

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PHASE – I Under Implementation

Underground
 Main Features Of Delhi Metro
 Air conditioning
Trains and all underground stations
are air conditioned.
Tunnels are only ventilated.

 System capacity
60,000 passengers per hour.

 Speed
Operating speed 50 km/h
7
 Main Features Of Delhi Metro
Ridership
 8 lakh passengers per day

Train frequency
 4 minutes

Fare collection
 Smart cards & Tokens

8
Macro Environmental Factors affecting
DMRC

DMRC
DMRC
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 Average Points
Weighta
ge
(Consumer’s
perspective)

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 3 4.29
need
Environmental Advantage 2 4.44

Online information 1 3.17

Frequency of service 3 4.09
Service during night 2 3.00
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
Travel Time (in mins.)

Bus

Auto Rikshaw

Metro Train

Price (in Rs.)

 Issues affecting “two wheeler” users for
mode shifting
Issue Metro Remarks
Bus
Door to door One has to walk up to bus One can reach to the metro Probability of shifting the
stop (maximum 500m) station by walk or by cycle mode is
service rickshaw, auto rickshaw or very low.
by
feeder bus.

Transfer If destination does not lie in

any bus route one has to
If direct route is not
available one has to get
Transfer type can be
different for
inconvenience shift in-between transferred in between metro and bus.

No need to follow One has to follow the

schedule of buses
One has to follow the metro If more frequencies are
schedules provided then it can help to
timings shift the two wheeler users
to bus or metro

Work/shopping In any case one will use In any case one will use two As distance is short
two wheeler only wheeler only probability of
place is very near shifting from two wheeler
to bus or metro is
negligible.
 Issues affecting “two wheeler” contd...
Issue Bus Metro Remarks

Travel timings If only in-vehicle time is

considered it takes more
If only in-vehicle time is As metro has less stoppage
compared, Metro takes less in comparison to bus and it
time than metro time. 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 For health conscious people
such the probability of shifting is
more.

Public Image Young students and working Relatively higher image.

professionals would not like
The probability for shifting
mode to metro is more than
to project themselves as shifting to bus.
someone using a 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 You