Business Case Studies, Microeconomics Case Study, Transnet Limited, South African transport monopoly

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Case Title:

Transnet: The South Africa’s Transport Monopoly

Publication Year : 2004

Authors: Guru Dutta, G Srikanth

Industry: Transportation

Region:South Africa

Case Code: MBM0008

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
For a decade, South Africa's Transnet enjoyed absolute monopoly over the country's transportation sector. Complacency on the part of Transnet’s management led to an increase in competition. Meanwhile, 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.

Pedagogical Objectives:

  • To discuss the problems faced by large monopolies like Transnet
  • To analyse the causes of the near financial crisis at Transnet and the probable revival measures.

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; Growth Strategies Case Study; 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

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