1 Company Overview

2 Strategic Profile and Case Analysis Purpose

3 Situation Analysis
A. General Environment Analysis
B. Industry Analysis
C. Competitor Analysis
CONTENTS D. Internal Analysis
4 Identification of Environmental Opportunities and
Threats and Firm Strengths and Weaknesses (SWOT
Analysis)

5 Financial Performance & News

6 Strategy Formulation

2
~ KONSORTIUM TRANSNASIONAL BERHAD (KTB) made its debut on Bursa
Malaysia on June 15, 2007 engages primarily in the bus transportation system
comprising stage and express bus operations within Peninsular Malaysia.

~ The stage and express bus operations provide the most extensive coverage
throughout Peninsular Malaysia, covering almost all major cities and towns as well
as Singapore.

~ The nationwide network is serviced by a fleet of more than 1,500 buses that covers
more than 250 routes, generating more than 1,000 trips daily and this translates to
around 60 million passengers a year.

~ KTB commands the largest market share, with Transnasional being the leader in the
express bus industry in Peninsular Malaysia. Besides Transnasional, KTB also
operates Cityliner stage buses, Plusliner economy express buses and luxury bus
services under the Nice brand.
Ref: Annual Report 2010
Category : STAGE BUS
Fleet : 800 buses (300 powered by Compressed Natural Gas (CNG))
Target : Daily travellers
Focus : Kelantan (100%), Kedah & Seberang Perai (40%), Selangor, Negeri Sembilan
(85%) and Pahang (active in Temerloh & Jerantut)
MILESTONES : Pioneered the use of CNG in 2007

Category : CROSS-COUNTRY EXPRESS BUS (ECONOMY)

Fleet : 600 express buses of different range (75 powered by CNG)
Target : Malay communities
Focus : Travellers to and from the east coast
MILESTONES:
Introduced Transnasional Club Class to target solo travellers especially young
Malay women who prefer to seat independently or with their own sex.
Ensures high standards of safety with compliance to European ECE R66 safety
regulations on roof crash standards
Provides e-ticket service: Transnasional e-tickets can be purchased 60 days ahead of
departure from 177 agents nationwide (32 from Petronas stations)
Category : HIGHWAY EXPRESS COACH
Fleet : 150 coaches
Target : Youngsters, students of higher learning institutions and non-malay communities
Focus : Communities connected by highways
Track record : 15 years as a single-deck express
MILESTONES: In 2010, the Plusliner Xtreme was introduced. It is a double decker coach with
the latest technology for comfort and safety, and the largest capacity express in the country with
72 passenger capacity.

Category : EXECUTIVE/LUXURY COACH

Fleet : 50 coaches
Target : Upper middle class and Business travellers
Focus : Singapore, Kuala Lumpur and Penang (expanded to another 5 townships in 2010)
MILESTONES:
Executive lounges at start and end destinations for passengers to relax in air-conditioned
comfort, enjoy free snacks and drinks, and surf the net.
Largest operator in the country, supported by more than 20,000 Nice loyalty members
Members receive privileged points that can be exchanged for free tickets, merchandizes or
holiday packages
Nice ++ is one of the first in the country with individual LCD screen for passengers with a
selection of pre-programmed digital movies
 A) General Environment Analysis (External Environment Analysis)
* Every $1 invested in
55 mill 1. GENERAL public transportation
passenger projects generates
annually The largest operator of public approximately $6 in
1,500 buses - transportation in Malaysia local economic activity.
cover 234 routes - * Every $1.25 billion
5,200 trips daily. SOCIOCULTURAL
investment in the
170 ticketing nations transportation
agents, include infrastructure supports
2. INDUSTRY
Petronas Mesra approximately 35,000
Stores has been PORTERS 5
jobs.(www.publictransp
appointed for FORCES ort.org)
greater
accessibility 3. COMPETITOR Public transport around the
SANI EXPRESS / world has seen a surge in
popularity in response to
E-ticketing MARALINER high fuel prices and growing
NGV buses. TRANSTAR
POLITICAL/LE concerns about climate
PHYSICAL
Skyview buses GAL
change .
introduced in SPAD In the 10 years to 2016,
2007 Government Express Buses industry value-added is
Initiatives and Stage Buses forecast to increase at an
subsidy. average annual rate of 1.9%,
while the US economy is
expected to grow by 2.0%.
 B) Industry Analysis

HIGH
new comer for profitable trip
strategic alliance travel agent & local co.
Threat Of
New
Entrants

HIGH HIGH
Fuel prices
Sani Express Rivalry Bargaining uncertainty - Petronas
Others Competitors Among
Competing
Power of Agent
Firms Suppliers Terminal owner
PORTERS Travel agent
5 FORCES High maintenance
cost/spare parts/
labour charges
Bus manufacturer
LOW HIGH

Threat of Bargaining Individual Customer

Seasonal express bus Substitute Power of Organizational Customers
Train efficiency Products Buyers Discount and early bird
Other cheaper & faster purchases offered by other
mode of transportation bus operators
i.e. AirAsia
C) Competitor Analysis

As a general rule, a firm enters the market only if it can earn positive profits.
When entry happens on a significant scale, it is expected that the
incumbent reacts.
All operators face the same costs;
All operators and passengers have complete information about services
and fares;
Operators have information about demand;
Each passenger has a preferred departure time but is indifferent between
backwards and forward rescheduling;
Traffic conditions are such that journey times are the same throughout the
day;
Departure times and fares of other operators are fixed.
 D) Internal Analysis

Cross-marketing
partnership
Joint-ventures

Service offering and, unique Replaced Corporate Web

FINANCIAL
distribution and delivery RESOURCES Portal
systems Develop Intranet Portal
PHYSICAL
RESOURCES TECHNOLOGY Virtualization of It services
RESOURCES Partnership with Telco

Resources Rebranding
differentiated by size and View
range of products, and are OPERATIONAL
Increased Companys value
REPUTATIONAL
customized to specific RESOURCES RESOURCES
& Brand
segments.

Innovation Product INNOVATIVE HUMAN

RESOURCES RESOURCES
R&D Investment
Agency Provident Fund Loyalty
Restructuring (myCare /
Agents
myDesk)
Continuous Training
Reenergizing Reward Project
 Strength Weaknesses

E Ticketing High operating cost

1,500 buses Lack of spare part for maintenance
More than 200 routes Low volume for certain routes
Lower fatality & accidents rates
comparing with other competitors
Goodwill

Opportunities Threat

Government support Gas price

NGV subsidy Unauthority ticket seller
Customers loyalty High quality competitors seat
Increase of population in medium Transport systems have significant
income impacts on the environment, 20% and
25% of worls energy consumption and
carbon dioxideemissions
 Collaboration with government
Collaboration with travel agent
Fully utilised customers during trip
Improve advertising and marketing
Strategic alliances with identify restaurant
Diversify business activity Hotel (Sani Express having own hotel)
Promote drivers efficiency, bus safety (In the transportation
industry, drivers play an important role as the key personnel in
delivering the products or passengers. They are in contact directly
with the customers.Without them, bus operations will grind to a halt
and this will affect the whole transportation system).
Customers loyalty program
Partnering with other courier agencies letter, small parcel, etc.
 Loss since 2009
No dividend has been paid since 2009.
FYE 31 December 2010, the Group incurred net losses of
RM31,140,000 and as at that date, the Groups current liabilities
exceeded its current assets by RM127,728,000. (Annual Report
2010)
Short-term solution: suspended their Cityliner, make Residents of
Taman Sentosa, a densely populated housing area here, staged a
protest against KTB for halting its Cityliner bus service in
Selangor. (The Star online, 3rd January 2012)
Long-term solution: important that all bus operators sit down
together and work out a strategic plan for the future. (The Star
online, 14th Dec 2011)
Financial Highlights
Sales RM 264,506,000 Revenue/Share 0.83
Loss RM 31,140,000 Earnings/Share -0.09
Net Profit Margin -11.87% Book Value/Share 0.36
Return on Equity -24.19% Dividend Rate No dividend paid
Debt/Equity Ratio 1.30 Payout Ratio 0
 Competitive Advantage

Cost Uniqueness

Cost Leadership Differentiation

Broad
target

Competitive Integrated Cost

Leadership /
Scope Differentiation
Narrow
target Focused Cost Focused
Leadership Differentiation
 Ancillary business
Plusliner Travel & Tour
Mobile advertising services for transport operations
Bus division
Stage and Express
Many routes
Quality
Products
Excellent customer service
 Focusing on differentiation strategy, whereby the
integrated set of action taken into consideration to
produce services, must be at an acceptable cost, that
customers perceive as being different in ways that are
important to them.
To work together with one or more competitors to
gain advantage against other competitors.
KTB to get governments fund or subsidy to maintain
the operational cost.