Egyptian National Railways نظرة لتطوير سكك حديد مصر

2. CONTENTS
1- Company Profile.
2- Mission, Vision, Objectives.
3- Environmental scanning.
* External Scanning ( Country & Industrial )
* Internal Scanning ( SWOT analysis ).
4- Strategy Formulation (Hierarchy of Strategy)
* Corporate Strategy.
* Business Strategy.
* Functional Strategy.
5- Competitive Advantage.
6- Product Life Cycle.
7- BCG Matrix.
8- Strategy Implementation ,Evaluation & Control
9- Recommendations.

3. STRATEGIC MANAGEMENT MODEL

4. COMPANY PROFILE.
Who we are?
We are the first lines of railway created in Africa and the
Middle East , and the second in the world.
Construction of the first line in Egypt on 12 July, 1851, and
operating in 1854.
The total length of railways about 6,700 kilometers.
the number of stations and attitudes and drops block on the
network more than 820 stations.
The largest workshops of the railway workshop Faraz Cairo
area located Sharabiya bridge founded in the second half of
the eighties last century.
Working railroad iron Egypt 86,000 workers from all
disciplines are organized in several departments of art
central, divided body administratively into seven region.
The volume of passenger nearly 1.4 million passengers per
day.

7. VISION:
Being the largest railway network in middle east and
Africa.
MISSION:
• Our aim is to be the best passenger railway in
Africa by 2050.
• All day, every day, we aim to offer a reliable,
welcoming and value for money service.
• Our business will prosper because customers use
us repeatedly and recommend the service to
others.
•Having a market share of 25% of travelers across
Egypt.

8. OBJECTIVES
CITIZEN LEVEL
Encourage traveling economically , safely all over the country.
TOURISTIC LEVEL
Network between touristic cities Cairo, Alexandria , Matrouh
, Hurghada, Sham El Sheikh , Arish, Seawa, Luxor and Aswan
Future connection to Syria, Iraq , Jeddah, Khartoum and Libya
( Inter Arabian transport confederation )
INDUSTRIAL LEVEL
Refrigerated containers for transport of fish from Nasser lake to
ports
Containers for transport of raw materials (phosphate ,manganese,
and cement ,etc…..)to industrial Zones
Transporting Marble and Granite in & out of industrial zones
AGRICULTURAL LEVEL
Connecting Toshkey to encourage youth to reclaim , Investors to
invest and products to export

9. ENVIRONMENTAL SCANNING
External Scanning
COUNTRY ANALYSIS ( PEST )
Political-Legal Economic Socio-Cultural Technological
Forces Forces Forces Forces
Tax law Energy costs and Life Style changes Government
availability Spending
on R&D
Stability of Money Supply Population growth Telecom
government rate infrastructure
Inflation rate Age distribution Internet availability
GDP Availability of
certain technology
Price control

10. ENVIRONMENTAL SCANNING
External Scanning
INDUSTRIAL ANALYSIS (Porter’s 5 forces analysis )
Entry Barriers
Bargaining Power Rivalry among Bargaining Power
Of Suppliers Competition Of Buyers
Threat of
Substitute

11. PORTER’S 5 FORCES ANALYSIS
Industry Competitors
We are MONOPOLY
Rate of industry growth Low
Service characteristics are variable
Huge capacity
Amount of fixed cost High
Barriers to entry
Huge economy of scale
Product differentiation High
Switching cost Medium
Capital requirement High

12. PORTER’S 5 FORCES ANALYSIS
Threat of substitute
AVAILABILITY OF SUBSTITUTE
AT LONG DISTANCE LEVEL LOW
AT SHORT DISTANCE LEVEL MEDIUM
SWITCHING COST
PASSENGER LEVEL AT LONG DISTANCE LEVEL HIGH
AT SHORT DISTANCE LEVEL MEDIUM
CARGO LEVEL AT HIGH AMOUNT HIGH
AT LOW AMOUNT MEDIUM

13. PORTER’S 5 FORCES ANALYSIS
Buyers Power
Bargaining power Low
Cost of buyers backward integration High
switching cost High
High differentiated products
Suppliers Power
Bargaining power High

14. ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS
Strengths
Historical Heritage
Economic & safe
Powerful Distribution
Low Energy cost
Skillful working hands
Huge maintenances & workshops
No traffic problems in rush hours
Small land requirement
Loyal passenger
Environmental friendly

15. ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS
Weaknesses
Instabilityof management.
High initial investments
Unavailability of R & D
High cost and time consuming of lines dysfunction
History of timing issue either earlier or later
Limited in some areas
Limitation of privacy

16. ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS
Opportunities
High population growth rate
New places to invade
New customers to take
New categories of transportation
High number of tourists
Smart solution of Egypt’s transport problem
Expand new market around new lines
Ads on the train make new revenue

17. ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS
Threats
Workers strikes
Tax law
Energy costs
Inflation rate

19. Egyptian Population Growth 2050
Millions
120,000
100,000
80,000
60,000
Millions
40,000
20,000
0
1950 2000 2015 2025 2050

21. STRATEGY FORMULATION
(HIERARCHY OF STRATEGY)
• NATIONAL DEVELOPMENT PLAN
COUNTRY
• National development policies and indicative plans.
• RAILWAY CORPORATE STRATEGY
• Corporate Mission Statement- Broad Policy Guidelines- Socioeconomic
Indicators- Corporate level SWOT Analysis- Corporate Objectives- Broad
CORPORATE
Strategies (incl. Pricing)- Manpower Plan- Finance Plan -Investment Plan
• BUSINESS STRATEGY.
BUSINESS
• Competitive Advantage ( C.A )
• FUNCTIONAL STRATEGY.
• MARKETING PLAN + OPERATIONS PLAN + MECH. ENG. PLAN +
FUNCTIONAL CIVIL ENG. PLAN

22. RAILWAY CORPORATE STRATEGY
Customer
integration
Forward
Vertical Integration
New Product New Region
integration
Backward
Raw Material
Horizontal Integration

24. BUSINESS STRATEGY
Competitive
We compete every fuel burning vehicle on the
ground
Cooperative
Initiatenew companies transporting goods &
passengers in & out train stations.
Inter Arabian transport confederation railway.

26. COMPETITIVE ADVANTAGE
Degree of Differentiation
Maintain Outstanding
High
Specialty Success
Hope for Maintain Cost
Market Growth Advantage
Low
High Low
Relative Cost

27. PRODUCT LIFE CYCLE

28. PRODUCT LIFE CYCLE

29. PRODUCT LIFE CYCLE

30. BCG MATRIX

31. IMPLEMENTATION STRATEGY ,EVALUATION & CONTROL
CITIZEN LEVEL
reaching 25 % of travelers across Egypt by 2020.
TOURISTIC LEVEL
Network between touristic cities establishment
Achieving Inter Arabian transport confederation
INDUSTRIAL LEVEL
Reaching a valuable market share in industrial transportation
Nearly 50 %
AGRICULTURAL LEVEL
Become the favorable route of transporting agriculture products
Increasing Passengers Train speed from 80-100KMPH to 130-150KMPH
Reaching 25000 KMS of Lines

32. RECOMMENDATIONS
Need to use our good experience in this
field
Increasing R & D
Using the working hands wisely
Governmental support to achieve our plans
Developing old station
Establishing new products as GREEN TRAIN