Strategic Case Analysis-

GATI

Project Report Submission

By Group 7
Mohammad Thanveer M091/12
NNS Manogana M092/12
Nakul Bindlish M093/12
Neha Upadhye M094/12
Nikita JohariM095/12

3/19/2013
 STRATEGIC MANAGEMENT
P R O J E CT R EPORT B Y G R O U P 8 , S E CT I O N B PAGE 1

Strategic Case Analysis (Gati)

19/03/2013

All about GATI

Inside This Issue

1 All about GATI (Situation Analysis)
2 Vision – Strategy – Business
Model Congruence
1) Do an External / Industry
Analysis using PESTLE / 5 -
Forces approaches
2) Do an Internal Analysis using
Balanced Scorecard approach
3) Do a Business Model Analysis
3 Portfolio Decisions
1) Do an analysis using the BCG
and GE Matrix of the assigned
industry in terms of the products
/ brands available for all the
players taken together
2) Construct a composite GE
Matrix (both the axes) for the
above purpose
3) Develop a product portfolio
strategy for the leader of the
assigned industry
You may use the IFE and EFE
approaches
4 Do a Growth Options Assessment
using Ansoff Matrix
Gati Ltd started operations in 1989 as a door-to-door cargo company. A
division of Transport Corporation of India (TCI), Currently, Gati is one of the
leading express distribution and supply chain solution companies in India.
The company's scale of operations is large, ranging over a wide network
connecting 603 districts across India. Gati provides multi-modal transport
services with connectivity across air, road, ocean and rail. During 2009-10,
the company introduced a new division called ‗RedSun‘, which offers
services related to weather sensitive items, reengineering items; value added
distribution and SME logistics support. In 2010-11, Gati came up with the Go-
To-Market strategy under the Express Distribution Service segment, which
offers differential pricing option based on distance and time sensitivity.
Gati was introduced in the market as a door-to-door cargo company with
commitment on delivery and money back guarantee. The first experiment
was conducted between Chennai and Madurai. Gati operated its business
with a group of front-end entrepreneurial delivery set-up. Members of this
set- up were known as Gati Associates (GAs). This concept was new.
Some of the key clients are Sony, Hitachi, LG, Samsung, Onida, Nokia,
Electrolux, Titan, HUL, Dabur, Cummins, Ingram Micro, DataCraft, ABB,
Siemens, Schneider Electric, Asian Paints, Cadila, Wipro, UTI Bank, Ashok
Leyland, HDFC Bank, Mahindra Group, Hero Honda, Tata Motors etc.

Main business segments

Strategic growth analysis
1. Coast-to-coast shipping
of GATI as it is one of the
leading distribution and 2. Express Distribution and Supply Chain (EDSC)
Supply chain companies
in India
 PAGE 2
Vision is to be a globally
preferred provider of India-
centric Supply Chain Services
and Solutions and a leader in
the Asia Pacific region.
Latest financial summary of GATI
STRATEGY PROJECT
Coast to coast Shipping
Gati's shipping division - was established in 1986. The company has four ships
providing liner and break bulk services between Chennai, Andaman,
Vishakhapatnam in India and Yangon and Ranong (Thailand). During 2008-
09, the company added two container vessels aggregating to a capacity of
about 18,000 dead weight tons (DWT). The shipping industry continues to
face a slowdown as freight rates have not improved in line with the increase
in fuel costs. This coupled with the decline in cargo volumes adversely
impacted the division. During 2011-12, the shipping division recorded a
revenue of Rs 163 million and an operating loss of Rs 1,263 million as against
a revenue of Rs 910 million and operating loss of about half a million in the
previous year.
Express Distribution and Supply Chain
Gati is one of the leading road freight transport operators in India. The road
transport business of the company provides both bulk and container
services. It has an online cargo tracking facility, which helps customers track
the movement of their cargo. The company also provides services like door-
to-door pick-up and delivery, documentation, etc. under express distribution
segment. In addition, Gati provides integrated logistics solutions, linking all
stages of business i.e. procurement, production, delivery, after sales service
and reverse logistics. In December 2007, Gati acquired Kausar India Ltd, a
company which has been in the business of transportation of perishable
goods since the last 25 years. The company has made Kausar a part of its
new division RedSun so as to provide complete supply chain solutions. In
2011-12, the company formed a 70:30 JV, Gati-Kintetsu Express Pvt. Ltd with
Kintetsu World Express (KWE). KWE, a Japanese company, is a global
provider of logistic services and solutions. During 2011-12, the segment's
revenues declined by 17 per cent y-o-y to Rs 6,812 million, while the PBIT
margins increased to 44.3 per cent from 12.5 per cent in 2010-11.2
Vision
 Be a globally preferred provider of India-centric Supply Chain
Services and Solutions and aleader in the Asia Pacific region.
 Delight customers with quality service by setting new trends through
innovation and technology
 Be the most preferred organization for all stakeholders.
 Be a responsible corporate citizen with unwavering commitment to
environmental protection andconservation.
STRATEGIC MANAGEMENT PAGE 3

Strategy and Business Model

When Gati entered market the concept of door-to-door package delivery
did not exist in India. Gati got into express cargo business with the vision of
"Service first, cost next5". Based on the volume of traffic and the origin and
destination information, Gati systematically developed relationships with
airlines and railways to use their cargo capacity to deliver products and
services. Gati had a long-term contract on cargo capacity with Indian
Airlines and other airlines on the first flight from specific origin to destination
for a fixed price no matter what the actual traffic was. This enabled Gati to
deliver priority and courier bookings with remarkable ease and accuracy.
During 2001-2003, Gati undertook a major organization restructuring
exercise.

With restructuring

 every division and region was expected to set its targets (in
consultation with the corporate office)

 Region should manage their funds (making each region as a cost

center)

 Each Region can resolve structural issues; modify procedures,

refund customer (claim) settlement, and damages. Virtually they
are independent subject to broad policy issues. An ideal business model

 Regions are now divided based on intensity of activity.

 The new system is driven by performance measures and

empowerment. Responsibilities have been redefined and
refocused, and reporting relationships have changed.

Asset Light Business Model

―Asset-Light‖— is an industry jargon for franchising out or managing
companies whose bricks-and-mortar belong to someone else, often an
individual or an investment fund6. The asset-light operations canbe
understood as follows: under conditions of inadequate resources, leverage
the use of other assets to thelowest input to achieve the Strategic
Management of maximizing shareholder value.

Some companies that have used Asset-Light Model are for example,
Motorola, Dow Chemicals Companyetc. In the hospitality industry, hotels
such as Hilton‗s or Marriott are applying successfully asset-lightbusiness
model. In Europe, the asset-light strategy has been a popular way to
unlock capital by selling theGati‘s own only a fleet of 200 trucks. The rest is
actually are sourced from vendors (intotal 2000 of them) with whom Gati
has a strategic relationship. This model helpscompany respond to client
demand more quickly by expanding its fleet on short notice. In
warehousing, the company strategies to maintain a balance between
private andleased warehouses so as to reduce its capital expenditure and
focus on offering servicesthan managing assets.
 PAGE 4 STRATEGY PROJECT

Coast to coast Shipping

The pan-India network for express shipment gives Gati India-centric
distribution domain8 expertise. Development of warehousing in a hub and
spoke model will increase volume and margins going forward, in our view.
In February 2012, GATI
Growth of air cargo business completes the express distribution chain: The
joined hands with Kentetsu
planned leasing of five Boeing 737 freighters should increase air freight
World Express, Japan’s revenue from current levels.
leading logistics service
Gati has a strong market presence in Asia-Pacific region and SAARC
provider to form GATI-KWE,
countries, with offices in Bhutan, China, Dubai, Nepal, Malaysia, Hong Kong,
latter having 30 pc stakes.
Singapore and Thailand. With increasing competition and cost pressures,
This tie-up will give Indian
companies are progressively focusing on their core competencies by
enterprises the global
outsourcing their logistics requirements to third party logistics (3 PL) players.
advantage. Gati’s bottom -
line grew at a CAGR of In a vibrant environment, where corporations seek competitive advantage,
asset-light approach becomes increasingly used, especially by companies
~25% between FY08 and
that invest in Asia or the Middle East and Gati has truly embraced the model
FY12. In FY12, it increased 5X
for its success in Asia Pacific.
year- on-year to Rs 72 crores
from Rs 14.30 crores.
Operating Profit margins
Commitment to Environmental Protection
increased by 14.11 percent Some of the CSR initiatives of Gati include
y-o-y to 24.38% on account
of streamlining of IT
 Support to Wealth out of Waste ("WOW") Project
technology and strict
control over operating  Recycling of eWaste, an initiative towards Green IT
expenses.  Relief initiative to the Assam Flood survivors

 Plantation of the Green Belt under Metro Track

 Tsunami relief fund

Each Regionwas managed

Increased competition
by Regional Managers forced Gati to focus
GATI
more on delivery and
Marketing

Reg-1 Reg-2 Reg-3 Reg-4 Reg-5 Reg-6 Reg-7 Reg-8 Reg-9 Reg-10
STRATEGIC MANAGEMENT
PESTEL Analysis
POLITICAL
1. Legal permit to cross state and national borders High rail
tariffs and oversaturation of important rail networks due to
the policy of subsidizing passenger traffic with freight traffic
has made roads (Trucks) the predominant mode of freight
transportation even if it is much less efficient. Gati Ltd is the
first transport company in India to do parcel movement by
rail in 2002-03. It has strengthened its ties over the years and
operates over 50 trains. It has helped it to be cost
competitive, with safer, secure delivery and a better transit
time.
2. Complex taxation policies, border, custom and control
delays, congested and inadequate highways and ports.
The multiple state and central taxes lead to a considerable
loss of time in transit especially for road freight.
3. Dismal warehousing facilities: it is estimated 20-25% of the
total logistics cost is from warehousing. More than 80-85% of
warehouses are only than 10,000 square feet. Fragmentized
warehouse space is a disincentive to the creation of
integrated warehousing spaces especially in the case of
low margin goods. There is a huge deficit of adequate
warehouse space.
4. Government agencies have the largest warehouses but
they are mainly for food grains. The state of cold storage is
dismal and lack of recognition of the concept of multi-
logistic has hampered their development and permissions
have not been granted.
5. Declining foreign investment has stalled growth and
transformation due to delays in passing/approving key
policies like the implementation of GST.
ECONOMIC
1. India spends around 13% of the GDP on logistics which
is much higher than that of developed countries.
Logistics include warehousing, transport etc. a look at
India‘s distribution of logistic costs show that a large
portion of the logistics cost is from losses. Also the cost
of logistics as a proportion of product cost is 4-5 times
higher than that in developed countries.
2. The logistics industry has created employment foe
more than 43 million people and will grow as the
industry develops.
PAGE 5
3. The industry suffers from structural inefficiencies and
high cost of capital. As a result investments for improving
logistics efficiency have been delayed.
4. High competition has led to price reduction strategies
not supported by efficiency improvements. This has
seriously affected margins further eroding the industry‘s
ability to invest in future growth.
5. The increase in agricultural food wastage has provided
an impetus to the developing of cold storage facilities.
The industry based benefits arising from the FY2012
budget has improved the investment landscape.
6. Exchange Rate Risk: Gati Ltd has international
operations which makes it susceptible to exchange rate
risk (the rupee has depreciated quite steeply over the
past year although it has more or less stabilized now). This
should have boosted exports but has been hampered by
the slow development of India as a global
manufacturing hub.
SOCIAL
1. E- commerce: The rapid growth of e-commerce
provides opportunities for the logistics industry to tap into
new revenue streams. This industry is a 36 INR billion
(FY2011) and is expected to reach 530 INR billion by
FY20I5.
2. Sustainability: With India signing many MEA‘s there has
been increasing pressure reduce greenhouse gas
emissions by switching to alternative, cleaner fuels.
TECHNOLOGY
1. The logistics industry has low rates of technology
adoption. The industry has now started investing and
developing its IT infrastructure (RIFD, Vehicle tracking,
warehouse management) and Gati Ltd has one of the
best IT infrastructures in the industry.
2. Low levels of Automation and standardization further
exacerbated by the high level of industry fragmentation.
3. The skill level is very low. Lack of professional institutes
offering courses on the logistics industry has made
recruitment of highly quality professionals daunting.
Logistics is a cost conscious industry at present in India
and the lack of easily available skilled professionals will
push up the personnel cost.
PAGE 6 STRATEGY PROJECT

Porter’s Five Forces

A structured framework for

industry analysis and business
strategy development

Threat of new entrants: Medium-High

On one hand barriers to entry is low in terms
of ease of getting a license; industry is Bargaining power of Suppliers: Medium
vulnerable to intense competition and easy Government control of fuel prices makes it
scale-up; Can be provided without assets. difficult to control,predict and pass on the
However the cost of capital is high with fuel costs to customers
complex taxation laws, congestion of key rail,
raod and port networks.

Rivalry among competitors: High

Highly fragmented- large number of local, regional and national players.
Commoditization of products due to lack of differenciation leading to further
price erosion. Gati's competitors have business models which allow them to
offer services at pricings to cost senstive customers which Gati cannot.

Bargaining power of buyers: Medium

Threat of Substitutes: Medium
A few large sectors and companies like the
Highly customer oriented company with
automobile sector are able to get significant
multiple vendor options
discounts.
STRATEGIC MANAGEMENT
Balanced Scorecard
Internal Process
Strategic Objective
Global provider of India- centric
supply chain services
Services leader in the rapidly
growing online retail sector
Leader in Asia pacific region of
global SCM solutions
Responsible corporate citizen -
"Green Gati".
Financial
Strategy
Grow shipping business
profitably
profitable growth of
e-Commerce, Cold Chain and
International Freight Forwarding
businesses
PAGE 7
Initiative
Establishment of Gati-Kintetsu Express, a joint venture with
Kintetsu World Express (KWE) which has in 200 cities across
30 countries. Gain from KWE's operational expertise in
warehousing services and 3PL.
Dedicated e-commerce logistics services covering
warehouse, online and home delivery
requirements has been planned and is on track
Expansion with a number of locations across India and Asia
Pacific. Company has consolidated position in China,
Hongkong, Thailand & Singapore and re-structured
investment in international subsidiaries. Control will be
through the Singapore subsidiary company i.e. Gati Asia
Pacific Pte Ltd., (GAP) and it has closed Gati Holdings
Ltd.,(GHL) Mauritius, the erstwhile direct subsidiary.
The main focus areas are Education, Community &
Environment. Initiatives:
Gati MC High School, Nagore, Tamil Nadu
Relief Initiative to the Assam Floodvictims
Health checkup camp for drivers & handlers
Gati Government High School, Hyderabad, Andhra Pradesh
Green Belt Plantation
Blood Donation Camp
Initiative
During FY2012 the shipping division recorded a revenue of
Rs. 180 mn and loss from operations of Rs. 288 mn against
Rs. 923 mn and Rs. 162 mn respectively in the previous
year. Gati has restructured the shipping business into a
wholly owned subsidiary -Gati Ship Private
Limited and inducted a strategic partner to raise
required capital.
Investment in increasing capacity to cater to this industry.
PAGE 8 STRATEGY PROJECT

Employee/ Learning and development

Strategy Initiative
Best employer with latest HR Series of innovative Hr-practices including e-HR containing
practices information of every employee. Talent for tomorrow-
promotion policy allowing high performers to achieve fast
track growth. Opportunities for lateral shifting-
geographical and functional
Manpower Skill enhancement Training is a thrust area for Gati Ltd. Had it had co-opted
consultants from AIMA, XLRI, NIIT, FCCI etc

Customer

Strategy
High quality valued service
Attract new customers and
retain old ones
Initiative
ISO 9001:2000 company- certified for marketing and
providing logistics and cargo management services; valued
added service like door to door delivery, online tracking etc,
e-Pod.
Leveraging service advantage through technological
capabilities and supporting customersOperations.
Build forge long-term relationships with customer; almost
75% of top customers have been with the company for
more than three years.

BCG Matrix
Question-marks: Shipping industry is a question mark
for GATI as it has a relatively low market share in the
world with major players like UPS, Maersk, and FedEx
to compete with. However it is a growing sector as
increase in globalization increases trade to a great
extent implying a huge growth potential in this
sector.
Supply chain solutions: Gati solution division offers an
integrated supply Chain service to businesses across industry
verticals. It includes flexible point-to-point distribution
solutions or complex end-to-end integrated logistics
solutions or supply chain management. It is a relatively new
and a growing sector which has not reached its maturity in
growth cycle and hence has been classified as question
mark. These include Temperature Sensitive Services,
Warehouse Layout Design, and Logistics Process Re-
engineering and Logistics Network Optimization.
Both the above services need proper market penetration
and market development in order to survive in the sector.
Star: E-commerce and international services are on
an ever high currently because of increase in
globalization and technology advancement.
Cash Cow: express distribution and cold chain
solutions of Gati have a relatively high market share
in Asian markets and they generate major cash for
Gati. These sectors are responsible for GATI‘s steady
growth rate
Dog: Courier services can be rightly classified as
dog since there has been a steady decline in
courier and speed delivery services post the internet
era where major transactions are done online.
Internet usage boom has brought a downfall in this
part.
STRATEGIC MANAGEMENT PAGE 9

Market growth rate

Star Question Mark

International Shipping
Services Supply chain
E-commerce solutions

Relative market share

Cash Cow
Express Dog
Distribution Courier
Cold Chain Services
Solutions

Product Portfolio Analysis of Blue

Dart(Industry Leader)
Question-marks: Dart apex(speed delivery by air),
express pallet(above 100kg products delivered in
wooden boxes), airport-to-airport, smart
box(speedy delivery of 10/25kg boxes by air or road
as per time available)
Advantages:
 Proper classification of all land and air services
based on speed of delivery and quantity to be
delivered. This helps in a proper pricing structure to
maximize profits for the firm.

 Proper documentation of their services and cost

Star : International services online as compared to GATI

Cash Cow: Domestic priority 1030, 1200(delivery of

goods less than 32kg by road by 10.30 next day or
12.00 next day), Dart surface line(timely delivery of
above 10kg goods, temperature controlled
services,

Dog: regional services

PAGE 10 STRATEGY PROJECT

GE Matrix

Invest to build
Protect Position Build Selectively
International Services
Express distribution Shipping
E-commerce
Market Attractiveness

Selectivity/manage for earnings

Build Selectively Supply chain solutions Limited expansion or harvest
Cold chain Solutions Logistics network optimization Courier services
Logistics process reengineering

Protect and refocus Manage for earnings Divest

Business Strength
 STRATEGIC MANAGEMENT PAGE 11

IFE Matrix

Weighted
Internal Strength Weight Rating Score Rating on a 5 point Likert Scale
One of the largest supply chain
1-Major Weakness
solutions in Asia(major factor for 2-Minor Weakness
1 branding of logistics firm) 10 4 0.4 3-Neutral positioning
2 Supplies to all major firms 8 3.5 0.28 4-Minor Strength
3 Speed of Delivery, timely delivery 8 3.5 0.28 5-Major Strength
4 price of services 7 2 0.14
5 strong management team 4 3.5 0.14
History of minimal service
6 complaints 5 3 0.15
7 good reputation and image 7 4 0.28
8 proper warehouse management 7 4 0.28
Local employees, hence less labour
9 cost 6 4.5 0.27
10 Financial ratios 6 3.5 0.21

Internal Weaknesses
Saturated market, Excessive
1 competition 6 2 0.12
2 Little or Improper marketing 5 3 0.15
3 little diversification 5 2 0.1
4 HR issues, labour cost problems 4 4 0.16
Sensitive to oil prices, exchange rate
5 fluctuations 6 2 0.12
6 improper inventory management 6 3 0.18
100 3.26
 PAGE 12 STRATEGY PROJECT

Business Model of GATI

Gati's business model was vastly futuristic in comparison to
its competitors. It chose to focus on the customer‘s needs
from the start. Its key value proposition was time bound,
point to point delivery and premium priced cargo
management service. It developed the business partner
concept of ―Gati Associates‖ giving rise to a team of
entrepreneurs who were independent business partners of
Gati.
EVOLUTION OF BUSINESS MODEL OF GATI
Empowering the network: Strategic alliances and
customized service offerings (2007- 2009)
Gati expanded its network in India, China and Europe
following strategic tie-ups with logistic service partners.
Sophisticated vehicle tracking systems, technologically
superior container vehicles and Service Quality
Standardization were all introduced to strengthen and
enhance Gati‘s promise of superior service delivery.

The Beginning Years (1989 – 1994)

Year of Transformation, Recognition & Growth (2010-
2011)
Gati started its operations as a door-to-door cargo
company, a division of Transport Corporation of India (TCI)
In Jan 2010, Gati went a step forward to help its
in 1989. Mr. Mahendra Agarwal, founder & CEO of Gati
customer by providing complete integrated Supply
Ltd, wanted to rebuild TCI based on processes, systems
Chain Solution hence becoming a knowledgeable
and manage it professionally to meet consumer implicit
company by launching 'RedSun', Gati's Supply Chain
and explicit delivery needs.
Division. In Nov 2010, Gati also ventured into E-
From initial four years of its operation, delivery
Commerce business by launching 'makemygiftz.com',
commitments took priority over complete utilization of
Gati's new web service to offer its customer a complete
capacity and Gati was focused on to its aim to provide
e-commerce platform linked to a physical distribution
time bound and point to point delivery.
network.

Innovation, Value-addition and growth (1994 – 2001)

Gati added innovative strategies to capture the market

and make the transition from a small cargo services
company to cargo management. Among many, it
introduced desk-to-desk service to meet the price sensitive
customer market in 1994, introduced toll-free numbers for
the first time in the Indian logistics segment and became
the first 3PL service provider in India. Gati was also the first
logistics company in India to be awarded an ISO 9001
certification.
Gati also expanded its transportation medium by taking
over TCI‘s shipping division(which was renamed as Gati
Coast to Coast) and the TCI Highways division. Gati also
tied up with Indian Airlines (IA) to deliver cargo across 550
locations. Gati also expanded its service network to
include multi-modal services, courier services and
international operations to SAARC countries.

Gati Process, technology, automation and awards (2001-

2006)

To sharpen marketing focus, operational efficiency and

improve service quality, Gati reorganized itself right from the
zonal level and affected a separation of its verticals and
corporate functions. Gati became a process oriented
organization implementing performance metrics and
evaluations across the board – services, HR and operations.
STRATEGIC MANAGEMENT PAGE 13

Ansoff Matrix
Existing Product New Product

Market Product
Existing
Penetration development
market

Ansoff
Matrix

New market
Market
Diversification
Development

Market Penetration:
1. Eliminate Competition- GATI can follow an e-shopping type model where customers can place
their orders online be it couriers, refrigeration products or national and international
consignments andthen GATI can deploy transport on a daily basis for doorstep pick up of
orders. The current scenario is such that only doorstep delivery, especially in the case of couriers
is available there is no concept of doorstep pickup available for such services. Thus it will not
only eliminate competition but also capture a larger market share.
2. Rural Penetration-With the FDI in retail controversy resolved, more and more foreign investors will
look into India as a potential market. With the condition that a third of the raw material be
sourced from small and medium scale producers, they would inevitably look into the rural
market in India to source that raw material. GATI can quickly leverage this opportunity as its
competitive advantage if it has rural infrastructure in place and increase its present market
share by considerable numbers.
3. Cold Storage – GATI Kausar Cold chain solutions can form strategic alliances with the
government which at present lacks the proper infrastructure and transportation for proper
distribution and warehousing of grains, due which tons of food grains go wasted every year. By
providing them the required logistics support GATI can not only greatly enhance its revenues
but also a permanent and highly lucrative customer in the form of the Indian Government.

Product Development

1. Customized solutions- More customized solutions can be provided to each of the

customers. This can be done by outsourcing a part of the operations to 3PL or 4PL that is
third party logistics which will handle some particular part of operations for GATI and fourth
party logistics, which will handle multiple operations for GATI.
2. Reverse Logistics –Itis an emerging branch in logistics management and GATI can diversify
into a totally separate unit for reverse logistics management. Reverse logistics refers to the
PAGE 14 STRATEGY PROJECT

practice of taking the delivered product which may be in excess or which may be
defective or obsolete(in the case of electronics products) back to the manufacturer or at
least one step back in the supply chain for recycling, repair or for some other utilization.
Every year 4% to 6% of all retail purchases are returned, costing the industry about $40 billion
per year. Thus reverse logistics if done in a cost efficient manner is a huge source of
untapped revenue.

Market Development

1. Currently GATI has international operations in Singapore, Hong Kong, China, Nepal,
Thailand; the current financial scenario indicates that there will be more trade in terms
of both exports and imports in the developing nations. GATI already has its operations
in the south east and the Middle East;it can also expand its operations to Brazil, Russia,
and Mexico which have are developing nations with high degrees of demand for
logistics as they are in the expanding phase. Due to global recession trade is in a
contractionary phase in the developed nations so more focus should be given to the
developing nations.
2. Military logistics- GATI has yet to penetrate the market for military logistics supply which
requires a high degree of uncertainty since wartime supply of utilities will be much
different than those of peacetimes. Also it will require a specialized wing of
transportation to cater to the military

Diversification:
1. International refrigeration facilities-Currently GATI does not supply trans-boundary
refrigeration facilities to its international customers. When it is foraying into new
markets like Mexico, Russia and Brazil it can include this new service offering.
2. Green Logistics

Manufacturing

Procurement Product
Logistics Logistics

Green Logistics

Raw Material
Consumption
Procurement

Waste
Disposal

The concept of Green logistics is an emerging concept and can be employed in the
emerging markets for GATI. With stricter governmental regulations regarding the
environmental costs and total carbon footprint of the company more and more
customers will opt for such services since such services tend to be more fuel efficient
and process efficient.
 STRATEGIC MANAGEMENT
References
OUR TAKEAWAY FROM THIS
PROJECT
We learnt about identification,
analysis and description of
strategies so as to achieve a
competitive advantage for an
organization. It is all about
decisions one takes which decides
the limits of a firm’s performance.
We also learn that one must have a
through general and specialist
knowledge in order to properly
analyze a firm and decide on the
organizational environment so as
to take the right decisions. Right
decisions involve all those
decisions that benefit the
organizational stakeholders.
PAGE 15
1. http://www.deloitte.com/assets/Dcom-
India/Local%20Assets/Documents/Thoughtware/Logistics%20Sector-
Present%20situation%20and%20way%20forward.pdf
2. http://www.gati.com/images/pdf/media-center/press-
kit/corporate_presentation_61211.pdf
3. http://www.gati.com/images/pdf/media-center/press-release/Gati-
transport-solutions-strengthens-its-current-Rail-network.pdf
4. http://site.securities.com/cgi-
bin/acerc/acerc/www/index.pl?app=Company&runmode=manage
ment_analysis&FinCode=16590029
5. http://www.deloitte.com/assets/Dcom-
India/Local%20Assets/Documents/Thoughtware/Logistics%20Sector-
Present%20situation%20and%20way%20forward.pdf
6. http://finance.yahoo.com/q?s=GATI.BO
7. http://www.gati.com/html/aboutus_gati-history.html
8. http://www.gati.com/html/corporate_social_responsibility.html
9. http://www.gati.com/html/aboutus_vision-values.html
10. http://en.wikipedia.org/wiki/Reverse_logistics
11. http://en.wikipedia.org/wiki/Military_logistics
12. www.gati.com/html/gati_international.html
13. http://en.wikipedia.org/wiki/Green_Logistics
14. http://www.gati.com/html/gati_international.html
15. Crisil Report
16. http://www.gati.com/html/aboutus_vision-values.html
17. Gati Limited: Evolution of a Third Party Logistics Organization by N.
Ravichandran, Indian Institute of Management Ahmedabad.
18. Case Analysis by G.R. Chandrashekhar,faculty of Strategic
Management at Indian Institute of Management
19. Indore,presentlyFaculty,Strategic Management at Indian Institute of
Management Ranchi.,
20. www.indiainfoline.com
21. The Economist
22. Romanian Economic and Business Review – Vol. 6, No. 1,The
Internationalization Process and the Asset-Light Approach
23. http://www.gati.com/html/corporate_social_responsibility.html ( in
tune to its vision)