INTRODUCTION

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INTRODUCTION: Surface Transport Infrastructure plays a vital role for a countrys rapid Economic Development and Growth hence it is imperative for India to have a well developed and well coordinated system of Transport comprising Rail, Road and Sea for its Rapid Economic Development. Indias Transport system is one of the largest in the world serving a population of over one billion. Over the last 51 years the length of Surfaced road , the passengers and freight carried on Indias Roads and Railways network as well as the freight handled by major and minor ports has increased by leaps and bounds, but much more needs to be done. As the key priorities for Indias growth is infrastructure, the Government of India has embarked on one of the largest public private partnership schemes in history, the cost of which will amount to US $ 20 billion , 60% of which will come from the private sector. It is estimated that there is an investment opportunity of the Roads and Highways would require US $70 billion in the next few years to realize plans to build 20 Km of Roads per day and the Indian Railways Annual Plan for 2011-12 has been proposed at almost US $ 13 billion which is the highest ever in a single year. Given the vast potential for investment and growth in this sector, CII is organizing the 2nd edition of Surface Transport 2012, Exhibition and Summit to showcase the latest technologies and services that would create viable alternatives for sustainable economic development and growth. Indias network of Roads, Railways and Ports is one of the largest in the world serving a land mass of 3.3 million square km and a population of over one billion. The existing issues and concerns, the congestion and constraints in movement leading to higher transport costs and other unfinished tasks will be some of the challenges that need to be met. A huge increase in demand for both railways and road transport will require massive investments to meet the growth in demand and public expectations. Considering the developing nature of the country and the deficiencies in its transport system, a larger proportion of resources will need to be invested in improvements to the transport infrastructure.

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Today the leading companies in surface transportation are: 1. TCI freight 2. Associated Road Carriers Ltd 3. V- Trans 4. VRL Logistics 5. V-express 6. Lalji-Mulji 7. Jaipur Golden 8. Fed-Ex 9. Patel Roadways 10. XPS-cargo Further, the sector is going to become even more attractive with tremendous improvements in the road network that are expected under the National Projects. In the relocation industry, the need for faster and reliable means of transportation is increasing at a fast pace. Intelligent Transportation Systems (ITS) are hence gaining importance in the surface moving and packing industry. They improve the safety, efficiency, and convenience of both people and goods. The two branches of surface transportation are: Road Transportation and Rail Transportation. The usage of one mode over other, differs from economy to economy. For instance, in India, long-distance transport has shown a substantial modal shift in favor of roads, both in passenger and freight transport, in the past few decades. At present, roads cater to 85 of passenger and over 70% of the freight traffic the reasons for this can be: 1. More roads are equipped with electronic tolling and variable message signs. 2. Various passenger vehicles have navigation products and emergency notification systems. 3. Commercial vehicles are equipped for nonstop weighing and cross-border credentials checking. 4. Transit vehicles have location and communications systems. 5. Availability of automatic tracking for better management of traffic flow . Road transport has the advantage of being user-friendly. Some of the advantages of road transportation for moving and packing industry are : Greater flexibility Economical Easy Escort Service Door-to-Door Service Easy Tracking

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NEED FOR THE STUDY: The competition is rising very fast among several transport providers and especially the emergence of new transport companies is making the competition very complex. ARC Ltd is the 2nd largest surface transport co., but now it wants to be in the top by tapping the untapped market. The survey has its own importance due to several reasons. The feedbacks from the existing customers about the ARCs services can be known directly, Problems and suggestions about the improvement of services can be identified. The survey can provide a clear picture about the present services by ARC; it can help understand the customers needs better. Though the survey would be in samples, it can provide a glimpse of the actions to be taken. The changing transportation system presents an enormous challenge for traditional transportation business, but at the same time it creates a vast array of opportunities and options as the importance of transportation is gaining much importance. The survey has been undertaken to study whether the ARC has a good presence in the local market. This survey would help analyze the key points to be considered upon by ARC to improve its business. Hence the study is needed.

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OBJECTIVES:

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To measure ARCs brand recognition and perception To determine if ARC is offering right products to clients or whether they need to adapt their product range for better market penetration.

To identify the untapped business potential and suggestion for conversion into the business growth.

To understand why customers sometimes decide to use competitive modes of transportation.

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To learn how ARC can achieve rapid growth in business on sustainable terms It helps to know other core information and customers views for growth in business and services standards.

Our main objective is to identify the untapped business potential and how ARC can achieve rapid growth in parcel business.

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SCOPE OF THE STUDY: The present study is undertaken with an intention that it would be helpful in surveying the companies for the improvements of business of Associated Road Carriers Ltd. The Study also represents the present scenario of the Transport industry in the National and also global market as a whole and the contribution of Associated Road Carriers Ltd in the Indian market and state market. The study includes various aspects regarding market penetration of untapped business and also how to increase the parcel business in transportation. Thus a good deal of ground is covered in the Study, including the trend of marketing in the transportation field and the study is restricted to Ahmedabad jurisdiction of ARC and analysed the transportation in general and ARC business in particular through this study.

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RESEARCH DESIGN: The present study is based on both primary and secondary sources of data. Most of the data has been collected from the survey of different companies. The collected data has been tabulated and interpreted. At the end feedback of all the existing and non existing companies are mentioned and suitable suggestions are offered for improving the efficiency of management in ARC Ltd.

In methodology data collected in two ways. They are

1. 2.

Primary data Secondary data

1. Primary Data: The primary data comprises information obtained by me through surveying different companies and detailed discussions with Managers and from the meeting with officials, staff and workers of the particular company during the period to arrive at certain conclusions about the study.

2. Secondary Data: Secondary data is the data which is already existed in the form of records etc. The secondary data has been collected from information through Website, Bulletin and other Printed Materials supplied by the Company.

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METHODOLOGY:

In the survey, the feedback and the customers perception towards ARC Ltd and the other transport service providers have been studied and the method of data collection was only by the way of Questionnaire. The sample size has been collected from industrial customers covering 12 areas in Ahmadabad viz. Odhav, Kathwada, Memco, Rakhial, Vatva, Naroda, Narol, Santej, Kalupur, Kankaria, Aslali, Sarkhej. The data has been collected on random basis with an emphasis on covering all the industries in a particular area. I had visited more than 200 companies in which most of them are manufacturing units. Total days of Survey: 36 Total companies visited: 237

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ORGANIZATION PROFILE

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COMPANY PROFILE: ARC today is 40 years old company with its turnover reaching to an outstanding feet of Rs.1000Crs for the year 2011. It is the 2 nd largest Surface Transport Company with its main operations being in Parcel services. The turnover of the company in its first year was just Rs.7lacs. Its goal is to become No.1. It is also ISO 9001-2008 certified Surface Transport Organization and has evolved into a huge corporate conglomerate. ARC is built on strong pillars of Integrity, Massive Infrastructure, Operational Expertise, Financial Soundness and a Professional team with a Strong Will to serve by adhering to enduring traditions and lasting values. Associated Road Carriers Ltd., doing business as Speedage Express Cargo Services, operates as a surface transport company in India. The company specializes in parcel, heavy, and odd dimensional cargo; and project transportation, containers movement, and port clearance. Its services include full and part load, and containerized and parcel services; transportation of high valued, delicate, fragile, and sophisticated goods; packing and moving of household goods; and warehousing and scheduled dispatches/delivery services, and deputing account managers. Associated Road Carriers Ltd. offers its services in various areas, including power and oil exploration, iron and steel, cement and refractories, textile and engineering, fertilizers and chemicals, petrochemical and bulk drugs, and plastics and fiber. The company was founded in 1972 and is based in Secunderabad, India. It has regional offices in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai; and divisional offices in Allahabad, Baroda, Chandigarh, Coimbatore, Durgapur, Hubli, Indore, Jaipur, Jamshedpur, Kanpur, Nagpur, Pune, Trichy, U.P.Border, and Visakhapatnam.

Network, Infrastructure & Service: As from little acorns grow mighty oaks, from one truck, five branches and a staff of fifteen, the size and magnitude of ARC have grown to achieve a massive turnover with over 2200 dedicated professionals, 575+ owned outlets in 375+ cities/towns, spanning the length and breadth of the nation. At any given point of time, over 3500 vehicles are traversing the roads, covering about 3,00,000 km. every day, delivering consignments to 4500+ destinations. More than 2.5 million tons of cargo is transported annually, adding up to a whopping Rs.10000 Crores worth of material. ARC has the complete transport expertise to handle from the smallest parcel to the Heavy & Odd Dimensional Cargo, Project Transportation, Containers Movement & Port Clearance, serving all vital areas of the Indian industry such as Power & Oil Exploration, Iron & Steel,

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Cement & Refractorys, Textile & Engineering, Fertilisers & Chemicals, Petrochemical & Bulk Drugs, Plastics & Fibre and many others. Fleet: To facilitate swift movement of cargo to even the farthest corners of the country, ARC has a well-maintained large fleet comprising of Special Trailers, Open Trucks, Containerised Vehicles, Standard Trucks and LCVs.

Storage & Handling: For safety of cargo while in transit and while loading & unloading, ARC boasts of allweather proof sealed godown space with the latest handling equipment and mobile cranes.

Information Technology: ARC, in tune with changing times, has adopted the State-of-the-Art Communication Technology and integrated IT with the latest techniques of management to be ahead of times. To harness the power and capabilities of the latest technologies, ARC has invested substantially in building an extensive communication network and in computerising its operations. Most of our offices are computerised and connected through VPN (Virtual Private Network) and Broadband connectivity. Customers are provided with 24x7 web-based online consignment tracking.

Clientele: We take pride in serving more than 50,000 customers, which include almost all of Indias prestigious Maharatna & Navaratna CPSEs, MNCs, Public & Private Limited Companies, Medium & small-scale industries and traders.

CRM: ARC believes that it carries not just material consignments but the trust and aspirations of our customers. An excellent customer care network has been setup at all our Regional Offices, Divisional Offices, Major Branches and Transhipment Centres with guidance and monitoring of the CRM Department at the Corporate Office in Secunderabad

Purpose of ARC Ltd:

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It was started by a group of young professionals in 1972 with an investment of just Rs.50000 and with just one truck and 5 branches with 15 staffs. The purpose of building this organization is very clear: To build an Organization that would revolutionalize services in the road transportation industry while being Customer Centric in all its activities.

Vision: Market leadership with effective systems and excellence in service standards for profitable growth.

Mission: We are committed in achieving Customer Delight and to the Pursuit of Excellence through constant improvement in Quality Service, continuous enhancement of Human Resources and ceaseless endeavour to provide Customised Solutions that meet Corporate Objectives, and thereby establish ourselves as trusted Business Partners. We will always strive to improve the Quality of Life of our People and the Community by implementing Enlightened Practices and Welfare Schemes.

Quality Policy: ARC shall provide "Accessible", "Reliable", "Customised", surface transportation services in India through its extensive network and a team of professionals with a strong WILL TO SERVE. It shall be the endeavour of each one of us to achieve planned objectives and targets of the organization in an efficient manner. We will continue to work together and adopt changes that shall help us to improve our systems, practices and business performance. We shall be committed to comply with the requirements of international standards on quality management system and continually improve its effectiveness in its true spirits.

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TRANSPORT SERVICE PROVIDER FUNCTIONS:

A. Planning: Internal information about available transport means, transport handling equipment, crew, operators, workers etc is taken into account during the planning. Information about the Certificates & Licences is used. It also requires information about the transport infrastructure which is available by means of the Network and Traffic Status Package. It also considers laws and regulations to be carried out. Last but not least knowledge about existing transport service, the market and historical information is used.

B. Transport Service Marketing: Information about the planned services is made available to the market. In Freight wise this is carried out by means of the transport service Description Information package, where the transport service providers publish information to attract business from transport users. The services are published in a standard way so that internet search engines and/or potential transport users receive information about services in a standard way and thereby will be in a better position to select a service that meets their needs.

C. Order Management: This function includes negotiations and the development and up-dating of a transport Execution plan between the Transport Service Provider and the Transport User which allows for the exchange of information between the transport Service Provider and the Transport user. This information can relate to contract requirement of regulatory authorities. This function also includes the receipt of information from a traffic manager regarding the status as well as historical information about the network of infrastructure by use of the NTS.

D. Transport Operation Monitoring: The transport operation is monitored by keeping track of the driver, the transport means, load units and the goods. In freight wise this information collection is carried out only by the transport service provider without any need for an exchange of information with another organization and therefore isnt included in the FWF. The Traffic manager is providing the transport service provider with information about the transport network, the traffic and the status of an individual transport means. The transport regulator also receives information about the transport execution plan and is using the information as part of hazardous goods

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management and tax & customs management. The information from the monitoring function is put together and made available to the transport user by means of the Transport Execution Status transport item status information packages.

E. Statistics and management information administration: Required statistic information is collected, prepared and sent to the relevant statistical authorities. The data is entered into database and issued by the management through Management Information System. The data can be restored anytime if required; it will also keep track of existing and non existing customer profiles.

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ANALYSIS & INTERPRETATION

1. HIRING SERVICE OF ARC LTD

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Interpretati n: ARC i t second l est t nsport company but t rough survey it is found that 179 out of

237 companies dont even use the service of ARC Mostly people deal with in local only and there are some companies who send their goods according to their partys demand and also mpanies who use there are companys who doesnt even know about ARC There are 18 co ARCs service occasionally on demand of their party. 18 companies had discontinued ARC service as they faced lots of problem in rates as well as in goods delivery. They found their goods are being damaged if they send through ARC but other transport takes care of it. So it should take care of the goods while loading. They should give proper rates to their party. It has 25 regular party which also face problems in goods delivery and in rates. So please take care of those regular companies and also try to give better service to the companies who are discontinued. Regularly Occasionally Discontinued Never 25 18 15 179

200 150
100

179 50
0

25

Series1 18

15

2.

ODE OF

ATE IAL T ANSPORTATION

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Interpretati n: Every company send their consignment mostly through road. Some exporting companies s uses modes like sea and air. In survey it is found that 235 companies send their consignments through road and only 3 companies send through sea.

Road Rail Sea Air

235 3 -

250

235

200
150

100 50 3
0 Road Sea

Series1

Rail

Air

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3.

ONT L

TRANSPORTATION CHARGES IN TER S OF FREIGHT

A OUNT Interpretati n: Here at Ahmedabad there are thousands of company out of them some are largescale companies, some are medium and small scale. It has a huge industrial development within the country. Out of those according to survey there are 165 companies whose transportation charges is < Rs25000 per month. There are 87 companies whose charges remain in between Rs25000 to Rs50000 per month and 17 companies whose charges are in between Rs50000 to Rs100000 per month. There are 6 companies who spend more than Rs100000 per month.

< 25000 25000 50000 50000 100000 >100000

165 87 17 6

180 160 140 1 0 100 80 60 40 0 0

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165 87

Series1 17 6

4. USE SERVICE OF ARC LTD FOR Interpretati n: Out of 237 companies 165 requires transportation for outward purpose and 34 requires for inward. Even there are 38 companies who need transportation for both inward and outward.

Inward Outward Both

34 165 38

180

165

160
140

1 0 100 80 60 40
0 Series1

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34
38

0
Inward Outward

Both

5. PREFERRED SERVICES FRO Interpretati n:

ARC LTD

ARC mainly deals with FTL service which is 14, but there are many parties who send products in parcel service whose number is 199/237 according to the survey. ARC could make its network reached to that level where it can find many local and nationalpartys deals only with parcel service. Its main motto is to improve their parcel service for which it has to compete its competitors and should provide better service Even there are 22 parties who . prefer parcel as well as FTL service and 2 parties prefer FTL/ODC service.

Parcel FTL Parcel/FTL FTL/ODC

199 14 22 2

200 180 160

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Series1

140 120 100 80 60 40 20 0

14

22

6. HOW OFTEN ARCS REPRESENTATIVES VISIT YOUR CO PANY Interpretati n: From the survey we came to know that representatives visit very casually to different companies. From the existing companies it is estimated that only 9 companies says that ARCs representative visit their company regularly. 9 company said they visit monthly. But there are 18 companys who said they visit occasionally and 17 said they never visit them. From the survey I found that representative doesnt visit traders market. But traders market is a place where ARC can increase its Parcel business.

Regular Monthly Occasionally Never

9 9 18 17

4 2 0 8

9 Series1

4 2 0 Regular m nthly

casually

Never

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8 7

7. EXPERIENCE REGARDING SERVICES OF ARC LTD Interpretati n: ARC provides good service but it had some customers who had discontinued due to some bad experiences which they had faced. Mainly in areas like Kathwada and Vatva some companies rated ARCs service as poor service in transportation. There were some potential customers who are discontinuing due to problem in rate and maintenance of goods.Many people prefer Jaipur golden, VRL, and TCI for transportation in south and in Mumbai which are the potential market in transportation. So it should work in a well structured manner to achieve the top position. It should make proper follow-ups with the clients.

Excellent Good Average Poor

10 34 4 10

30

20

10 10 4 Excellent
Good

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34

Series1

10

Average

Poor

8. USAGE OF ARC LTD WEBSITE i.e. WWW.ARCLI ITED.CO Interpretati n: Only 11 companies from the 58 existing companies use ARC website rest 47 doesnt even know about the website. It should maintain the tracking system properly so that clients can know up to which place their goods has been reached. Many people just make their contacts through phone, some doesnt know how to use the website. Website is not updated regularly by which clients face problem in tracking.

Known Unknown

11 47

50 45 40 35 30 25 20 15 10 5 0

47

Series1
11

Known Unknown

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FINDINGS, SUGGESTIONS & CONCLUSION

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FINDINGS

POSITIVE FINDINGS:
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ARC has an efficient transport facility. All the works at ARC are done in an ethical process. It has a huge network which helps customer in door to door delivery. It provides free storage of goods which is suitable for customers. It has different transhipment centres in the country. Customers trust ARC for better transportation of goods. It has some managers who perform all the responsibility in a trustful manner. Proper documentation is done for all consignments. Its main merit constitutes its branches which is located in every main towns and cities.

NEGATIVE FINDINGS:
y y y y y

Delivery is Late Rate is high Commitment on delivery is worst No Proper Response to clients Local managers at some areas like Kathwada are not responding properly to the calls of the clients

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Late replies to the quotations send by clients Godowns are small by which goods are overloaded which leads to damage COD payment doesnt come even after a month, its too late Not informing to customers after goods are received at godown Does not send vehicles to customers ware house Doesnt give proper rates to the customers Other transport companies rates are flexible but ARCs hidden charges are excessive. Goods were damaged during transportation Tracking system is not implemented well Charges are high comparable to other transport companies Representatives hardly visit any companies at Narol, Rakhiyal

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Some take charges for FTL but later they send some other clients good in that consignment

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Drivers should be responsible for the damages if any Drivers used to do some unethical process while transporting the goods, to get some commission from outer parties

No proper marketing network by ARC, at some places like rakhiyal, Narol, Vatva even people doesnt know about it

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They are very careless regarding handling of goods Some companies know about ARC but the representative doesnt reach to them, by which they couldnt communicate with ARC

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Doesnt provide good service, which lead to discontinuation of regular parties ARCs response is not at all good comparing to other competitors There are committed persons at ARC, but they are not at all professionals, they take every matter lightly which will lead to loss in market

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There are some local managers who take commission from other transports Kakariya and kalupur branch office locations are not suitable.

Some companies had shown their interest to create business with ARC but due to poor service their party does not recommend. Some companies discontinued due to above reasons and some prefer occasionally according to their partys demand.

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SUGGESTIONS:

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Rate should be flexible as other competitors like TCI, VRL, Jaipur-Golden have. Managers should behave well with the customers and should reply for every question they ask. They should not hesitate to respond their customers in case of late deliveries.

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Representatives should go to the customers for rate negotiation. They should reply the quotations as soon as possible, if they wont reply then there are other competitors who can take their consignments.

They should send their vehicles to the companys godown for machines weighing more than 500kg. From there it should directly send to transshipment centre or else in shifting process their machines get damage.

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They should improve the tracking system in their website. Materials should be delivered in good condition and in proper time. Material should not be overloaded at godown, and the godown should be larger at places like Kathwada and Kakariya.

Delivery time is too late comparable to other competitors like TCI, Lalji-Mulji, Jaipur golden. It should be done in time.

Goods are kept at branch godown for 2 to 3 days and then some more days at transshipment centre which makes delivery of goods late.

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COD payment should be given to the company as soon as possible. Hidden charges in the bills should be decreased. Rate should be decreased or else companys (J J aluminum, Kathwada road-6) may divert.

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They should make regular intimation with customers. Managers should be loyal and honest which will bring goodwill to the company. They should maintain regular follow-ups. There should be more transshipment centres at industrial areas which will make deliveries faster.

It should focus on advertising of the company, so that people can know about it and as it prefer for parcel business it will be more benefit.

It should focus on its existing customers but it also have to give some time for the companys which had discontinued. It should give better service to those companies so that they can get the trust again.

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FACTORS FOR HIRING TRANSPORT:

y y y y y y y y y y y y y y y y y

Faster and safer delivery Economical rate and less freight cost Good condition vehicles Transport service provider should be nearer to the companies Companys profile Brand image of the company Loyalty and belief Business strength and reliability Should have a proper schedule Company should have their own vehicles rather than getting on rent from brokers Well trained drivers Good Co-operation Proper response Placement of vehicle at required time Insurance coverage of the consignments Maintenance of goods at godowns Larger godown

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SWOT ANALYSIS OF ARC LTD:

I.
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Strengths: Complete transport expertise for more than 39 years, nationwide network. Dedicated and experienced operational team. Strong financial background. Decades old tested and trusted expertise in Fleet Management. Modern handling equipments & massive infrastructure. Capacity of the route survey & easy ilasioning due to the status of a National Carrier. Priority and easy access to the specialized vehicle supply market due to the trusted business relationship with the suppliers.

II.
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Weakness: It is considered to be slower in delivery process than its competitors. Lack of awareness in the local market like rakhiyal. Lower level management isnt reactive. It has still not been able to grab the parcel business growth. Lack of innovative information system. Not a big presence in the seasonal business.

III.
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Opportunities: It can diversify its business by entering into the courier services. Can achieve the target of more than Rs.1000 Crores in the current year. Trader & Industrial markets of Ahmadabad area is a huge potential for ARC to target. It can grab the local market if more of its marketing is done. More of the business can be brought back if there is a particular survey department who can visit the customers with proper negotiation.
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Listing of ARC in stock exchange is the big future Infrastructural growth.

IV.
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Threats: The increasing number of logistics co. can decrease the market share of ARC. Its inaccessibility in courier Business can drag customers out of ARC.

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y y y y

Poor maintenance of the companys website isnt a good sign of attracting prospects. Competitors can gain more local market share if serious actions arent taken. Delay in implementation of GPS system. Ignore of maintenance of the branch offices can result in the loss of orders from the big companies.

Unavailability of ARC branches in the growing industrial areas is a big concern.

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CONCLUSION: From the survey it can be conclude that ARC has to focus a lot on local markets from where they can get traders market, which have a huge potential for PARCEL business. So it should send their representatives to local markets like Rakhial, Kalupur, Sarkhej and other local traders point. It should improve its delivery process and also it has to make its rates flexible which will increase its business. ARC should have a check on lower management so that it can control all the happenings. It should maintain proper follow ups to reach its goals. ARC have resources but it has to use it correctly which will help in achieving its target very soon.

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BIBLIOGRAPHY: Websites: www.arclimited.com www.google.com Books:

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Philip Kotler & Kevin Lane Keller, 2007, Marketing Management, New Delhi, Prentice Hall of India

Etzel., 2008, Marketing Concepts & Cases, Tata Mc Graw Hill

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