Vous êtes sur la page 1sur 13

redBus.

in the next step for


growth
Presented by:
Sambuddha Gupta
Nitesh Tripathi
Aman Jain
Gaurav Arora
Sunny Sharma
About redBus
redBus is the number 1 inter-city bus ticketing service in the
world
It is Indias largest bus ticketing company with highest bus
operator partners, largest distribution network and highest
sales
Part of ibibo Group , leading online travel group in India
Founded in 2006 in Bangalore, India
Has revolutionized the online bus ticket booking industry by
bringing together over 2,000 bus operators covering over
100,000 routes across countries
With the mobile app downloaded by over 7.5 million loyal
Industry Analysis Porters five
forces model
Threat of New Bargaining power of
Entrants buyers

Strong distribution Mainly caters to Indian


network req Middleclass , which is
Requires advanced Threat of Competitors price conscious
technology Low product
High Entry Barriers redBus is one of the biggest differentiation
player in online bus booking Threat of Substitutes
Bargaining power of but faces competition from
suppliers other big players, travel High threat in smaller
agents and OTAs cities where internet
redBus needs to associate availability is low and
with large number of bus booking is done
operators directly/via agent
High competition among In larger cities,
suppliers substitutes have lower
performance.
SWOT Analysis
STRENGTHS WEAKNESSE OPPORTUNIT THREATS
S IES
Early mover Increasing number
Entrepreneurial Vertical integration
advantage of players in online

Simple business culture with procurement of


booking segment
Needs external Buses
model Seasonal
funding for capital Horizontal
Large network of bus disturbance in
intensive projects integration with
operators demand
Seasonal venturing into
High level of Unorganized market
disturbances in Airlines booking
cutomer satisfaction in non-metros
Objectives for redBus
Aim to reach a turnover of US$1 billion by
2015

Make a transition from small to big company

Introduce new revenue streams

accordingly, the next course of action has to be planned to


achieve scalability and growth
Decision Dilemma for redBus

MAINTAIN VERTICAL
CORE INTEGRATI
FOCUS ON

IMPROVE
GO
SERVICE
GLOBAL
PORTFOLIO
MAINTAIN
CORE
FOCUS
PROs

Market leader in Online bus-ticket reservation


First mover advantage
High rate of adoption of Internet, and the online commerce market is
growing at a rate of 45-50 per cent per annum
Bus transportation industry growing at 25 per cent per annum.
Overall market size for bus transport approximately US$2.5 billion
CONs

Bus-ticket reservation has seasonal peaks


Not tapping into international markets which has great potential
IMPROVE
SERVICE
PORTFOLIO
PROs

Add-on offerings carried higher value transactions, which translated to


higher revenues
Increase in customer traffic by offering a wider variety of services
Venturing into Airlines booking with increase revenue by a huge scale

CONs

Very high competition


Requires high operational and management bandwidth
Not the core competency of the company
May lead to loss of focus from core business
VERTICAL
INTEGRATI
ON
PROs

Extend value chain backwards towards the supply side


Strong data mining and analytics abilities identify most profitable
routes
demand for inter-city and inter-state bus travel was growing at a rapid
rate due to the opening up of the services and manufacturing sectors

CONs

Capital intensive
Increase Management issues
Diverging from core business
GO
GLOBAL
PROs

Huge demand in other countries as they do not have similar ticket-


booking platforms in their countries
Global markets can be explored in the long term to sustain their growth

CONs

Management team too small to handle such operations


Entering global markets was quite complex and required careful
analysis of country-specific indicators like socio-economic trends,
population density, population growth, GDP, means of travel,
penetration of internet, etc.
Our suggestion
Right now,
redBus should
continue MAINTAIN VERTICAL In the long-
with this CORE INTEGRATI run,
strategy. It FOCUS ON company
should should
Attract new improve its
travellers IMPROVE manageme
Increase its network GO
and SERVICE nt to handle
by attracting bus GLOBAL
increase PORTFOLIO bigger
operators
its challenges
Increase
customer customer and tap
retention
base by improving into the
customer satisfaction global
market, in
which it
Thank You