Redbus Case StudyEssay Preview: Redbus Case StudyReport this essaySituation Analysis:The inter-bus city transportation in India is dominated by manual ticket booking process in which there is a dependency on travel agents on getting the tickets. The overall industry has a fragmented supply chain in which bus operators heavily rely on agents for getting customers. There is the lack of transparency for both bus operators and travellers.
From 2006 ,redBus Pioneered in the development of more transparent , Online bus ticket booking process which replaced the manual ticket booking process .redBus introduced a technology between platform which acted as a real-time interface between bus operators and travellers .It has also facilitated an alternate channel for ticket cancellation via call centres.
By 2012 redBus had 65 percent share in the overall online transport booking industry and is one of the most dominant players in India in all regards. The yearly income of redBus has increased from to 345 million INR in 2012 from 0.4 million INR in 2007.
Bus Travel industry in India is growing at a rate of 25% for each annum, with market size of US$2.5 billion with annual sale of 220 million tickets which shows the tremendous potential of growth that lies within this industry
Online travel ticketing industry has high undiscovered potential as seen by yearly development rate of 47% in 2011.Problem Statement:What short term strategy and action plan redBus should opt for to achieve a total turnover of 1 billion by 2015?Option:1) Vertical integration2) go global3) Increase service portfolio4) Maintain core focusCriteria for evaluation:1) Turnover of 1 billion by 2015(Target Turnover).2) Customer base3) Capital Required4) CompetitionEvaluation of options:Vertical Integration –Target turnover difficult to achieve, Capital requirement high with moderate competition.Increase service portfolio – target turnover achievable ,Need to build customer base and competition from dominant playersGo global – Cultural, socio-economic, political factors complicate the process of going global.Core business with value added services –Profit margins are very thin difficult to achieve target turnover in 3 years.Recommendation:
3) ____________________________________________________________________I offer the following recommendations.1) Increase service portfolio2) Increase capital requirement3) Improve customer base.4) Increase the value of services on public transport and local bus networks3) Improve the integration of technologies and make more targeted investments5) Improve the value and profitability of these resources.6) Acquire new customer and continue to grow for the future.7) Take control and accelerate project development for all the potential customers and project funding target for the next 25 years to the fullest possible.The next step is to establish what the technology infrastructure will be required, along with what new capabilities are in the market. In our opinion that’s the next step. Our analysis shows that the market needs to invest in technologies that provide the most value and a faster, more efficient user experience. In other words, the consumer’s mobile device or mobile service cannot be completely replaced by digital products.In conclusion, we believe that a 3-year vision of using technologies such as virtual personal assistants and other personal assistants will be very effective. With such a vision that is very well supported by the population, we expect that 3-year vision will get the consumer interested in technology. The 3D printed and computer-aided design will create value and create a good product that satisfies consumers and will ultimately become the core of every new mobile devices.