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    RedBUS RedBUS Presentation Transcript

    • redBus Group 4Anand Kumar 12P127Bhoomi Ashwin 12P131Chirayu Gandhi 12P135 Rakshit Sharma 12P160 Saurabh Saxena 12P167 Soumyajit Sengupta 12P171 Section C 1 PGPM 2012-14
    • Decision Dilemmas MAINTAIN VERTICAL CORE FOCUS INTEGRATION IMPROVE SERVICE GO GLOBAL PORTFOLIO Strategy Management redBus 2
    • GOAL To Achieve Annual Revenue Of INR 5 Billion by 2015 This target will require more focus on short term strategiesStrategy Focus on the Core Business with Value Added Services Attract New Travelers and Increase Customer Base Increase their Network by Attracting new Bus Operators Increase Customer Retention by Increasing Customer Satisfaction Marketing – To increase Awareness and Credibility
    • Focus on the Core Business -Strategy IMPLEMENTATION Attract New Travelers and Increase CustomerSTEP 1 Base Winning the Confidence of travellers is important to attract new users Needs Marketing Efforts to Generate Nation Wide Awareness ( PRIORITY) Marketing will help explain its Credibility & Convenience it provides to travellers Conduct Low Cost Marketing Campaigns like 1) Viral Marketing using YouTube 2) Form Informative Pages on Facebook displaying its services and range. 3) Use Creative Bill Boards and Hoardings
    • Strategy IMPLEMENTATION Continued . . . Increase their Network by Attracting New BusSTEP 2 Operators To Penetrate the market RedBus needs to Expand its Network of Bus Operators Attract new Operators by showcasing them the advantages they will avail. Explain them the benefits by showing the results of their partner operators
    • Strategy IMPLEMENTATION Continued . . . Increase Customer Retention by Increasing CustomerSTEP 2 Satisfaction Bus Lounges for RedBus Travellers - Travellers will be relieved from the extreme weather of India. Travellers satisfaction with the services will help in winning their Loyalty - It will also improve Visibility of RedBus helping in increasing its awareness Launch Loyalty Programs to Retain existing travellers
    • Strategy Reasons to Focus on the Core Business Market Share is 4% which is growing at 25% annually Scope of Bus Travel is Increasing. Potential Customer base is Increasing Untapped Domestic Market. First Mover Advantage Largest Business Operators Network Considerable Increase in Internet Penetration and Mobile Users Applying Following Tools Helped us in understanding the reasons to Focus on Core Business 1) Poter’s Five Forces Model for Industry Analysis 2) SWOT Analysis
    • Industry Analysis Using Porter’s Five Forces Model Threat Of New Entrants Bargaining Power Of Buyers [LOW] [HIGH]•Reach, Credibility, •Low productVisibility differentiation•Low Profit Margins •Indian Middleclass: price•Require continuous consciousinnovation Threat Of Competitors•Background in services [Medium] •redBus is the biggest player in the online bus booking segment, but faces continuous threat Bargaining Power Of from bigger players, Suppliers [Medium] travel agents and OTAs Threat Of Substitutes [High]•The Bus operators aredependent on Red Bus for •Threat of substitutes isgetting the customers high in smaller cities•Red Bus needs to where the availability ofassociate with larger internet is lownumber of operators
    • SWOT Analysis• Early Mover Advantage •Entrepreneurial culture• Simple Business Model •Needs external funding for• Large network of Bus Capital intensive projects Operators •Seasonal disturbances in demand• High Levels of Customer •Less reliability on Online Satisfaction Payments Strengths Weaknesses Threats Opportunities •Increasing no. of players in •Vertical Integration with the Online Booking segment procurement of Buses •Seasonal disturbances in •Horizontal Integration with demand venturing into airline Booking •Un organized market in Non- •Global Expansion into Metro cities Overseas markets 9
    • OPTION 2 Vertical Integration – Launch its own Private Buses PROs CONs• Attain a higher synergy • Capital Intensive Extend the value Huge Investments chain backward required in owning towards the supply buses side • Management Issues• Strong analytics and Will increase the data mining abilities burden of managing Identify the most travels profitable routes and • Diverging from core launch their own business buses on these routes
    • OPTION 3 Increase in Services Portfolio PROs CONs• All these add-on offerings • Competition is high in carried high value the online air travel transactions, which industry translated into higher revenues and • Requires lot more commissions operational and• Majority of the players in management bandwidth online travel commerce • Not the core generated revenues from competency of the online bookings company• Increase in customer • May lead to loss of traffic by offering a wider focus from the core variety of services business
    • OPTION 4 GO GLOBAL – Long Term Strategy PROs CONs• Huge Opportunities • Small Management No strong online team for expansion in infrastructure for global market internet booking • Will need to hire a team to study global• Global markets can be markets – Study explored in long term to economic & political sustain their growth conditions and travellers behavior
    • THANK YOU!