1. redBus
Group 4
Anand Kumar 12P127
Bhoomi Ashwin 12P131
Chirayu Gandhi 12P135
Rakshit Sharma 12P160
Saurabh Saxena 12P167
Soumyajit Sengupta 12P171
Section C
1
PGPM 2012-14

2. Decision Dilemmas
MAINTAIN VERTICAL
CORE FOCUS INTEGRATION
IMPROVE
SERVICE GO GLOBAL
PORTFOLIO
Strategy Management redBus 2

3. GOAL To Achieve Annual Revenue Of INR 5 Billion by 2015
This target will require more focus on short term strategies
Strategy 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

4. Focus on the Core Business -
Strategy IMPLEMENTATION
Attract New Travelers and Increase Customer
STEP 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

5. Strategy IMPLEMENTATION Continued . . .
Increase their Network by Attracting New Bus
STEP 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

6. Strategy IMPLEMENTATION Continued . . .
Increase Customer Retention by Increasing Customer
STEP 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

7. 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

8. Industry Analysis Using Porter’s Five Forces Model
Threat Of New Entrants Bargaining Power Of Buyers
[LOW] [HIGH]
•Reach, Credibility, •Low product
Visibility differentiation
•Low Profit Margins •Indian Middleclass: price
•Require continuous conscious
innovation 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 are
dependent on Red Bus for •Threat of substitutes is
getting the customers high in smaller cities
•Red Bus needs to where the availability of
associate with larger internet is low
number of operators

9. 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

10. 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

11. 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

12. 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

13. THANK YOU!