Case Study: TRANSNET: THE SOUTH AFRICA'S TRANSPORT MONOPOLY

Title
TRANSNET: THE SOUTH AFRICA'S TRANSPORT MONOPOLY 

Author
Srikanth, G ; Guru Dutta, P 

Pages
11 pp 

Product Type
 

Reference #
304-362-1 

Teaching Note
 

Institute
ICFAI Business School Case Development Centre 

Setting
 

Year
 

Keywords
Transnet Limited ; South African transport monopoly ; African National Congress ; Business strategy ; Parastatals, public corporations ; Maria Ramos ; Competition landscape of South Africa's transport industry ; Turnaround strategy ; South African railways, airways, road transport, harbour ; Privatisation ; National Ports Authority, Portnet ; Spoornet, Propnet, Transtel, Transwerk ; South African ports operations ; Petronet, Metrorail, Freightdynamics ; Business environment in South Africa



Summary/
Abstract
For a decade, South Africa's Transnet, enjoyed absolute monopoly of the country's transportation sector. It had control over virtually the entire transportation sector in South Africa. This made the executives of the company lethargic, which led to heightened competition. The company was heading towards a deep financial crisis. The new CEO, Maria Ramos, who strongly believed that, one couldn't have a better tomorrow if one was thinking about yesterday all the time, considered various options to revive the company. This case offers a scope for discussing the problems faced by the large monopolies such as Transnet and the probable revival measures.

 

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