Traffic Congestion Case Study

Indian government is facing the problem of traffic congestion in its four metro cities namely Delhi, Mumbai, Kolkata and Chennai. Delhi is the worst affected. Reports say that on an average 1,200 vehicles are added to delhi roads daily. In September 2010, Mail Today carried a report quoting CRRI scientists. It said, "Six years of Delhites’, careers are spent in snarls as 7 million man hours and Rs. 100 crore in productivity are lost to gridlocks, making the capital the worst congested city in India."What has the ministry worried is that though the Master Plan projection for public transport usage is an impressive 80 per cent by 2020, it has actually slipped to under 40 per cent at current rates. For the purpose of managing the traffic and to meet the goals of the Master Plan, the government of Delhi has shortlisted your company in providing advice to conquer this problem.
Q1. What are the key factors you will consider in analyzing the problem? What methods you will use in analyzing the factors? (5)
Ans )
Impact of Economic development on urban Traffic:
With the increasing economic development in a country like India, car loans proliferate and the banks are ready at the door step of a middle class person to give away auto loans in order to nudge them off their motorcycles. Indians bought 1.5 million cars in 2007, more than double of that in 2003. The collective growth of the Passenger Automobiles segment during April 2008 – March 2009 was 12.18 percent. India's population and its traffic are focused within its cities. The migration of rural population to urban areas in search of better job prospects has made cities densely populated. About 27 per cent the population live in urban areas.

Some of the key facts behind the increasi...

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...ed much of advertisement to grab customers since people will come along with their vehicles to petrol station and can leave it there to the service center for servicing of it.
Customers can be served with a package service offers like :
1. 1 year Annual subscription includes following benefits
• Monthly servicing of your vehicle.
• 5/15/30 Ltrs. of petrol/diesel. Every month.
• Pick up and drop service.
• Monthly report of your vehicle performance.
All the above only for Rs. 30000 annually.
Similarly customers can be given an option to customize the package on month/quarterly basis and can add or remove a service from above in order to give the price flexibility.
This business can gain huge profit from tie-ups with small transportation companies which have daily trucks and cars running on the roads. These type of customers can bring in huge profit for the business.