redBus: The Next Step for Growth
(10 pages of text)
redBus has enjoyed tremendous success in the structurally unattractive, fragmented, and non-transparent market for private bus travel bookings by introducing a technology platform to bridge the supply-demand gap in real-time. This technology platform connects the bus operators, travel agents, and bus travelers in a seamless and transparent manner. redBus is considered an industry transformation change agent that has altered the dynamics of the bus travel booking industry by using a disruptive business model to eliminate the pain points of the bus operators and travelers and provide greater convenience and efficiency. This case examines the evolution of the company’s business model and considers redBus’s next growth step. Should it expand beyond the Indian market to receptive Western and Asian markets, diversify its portfolio of service offerings to include air travel, hotels, and tour packages, or simply continue to focus on what it does best?
This case is designed to explain the business model concept. The target audiences are MBA students specializing in strategy and middle- and senior-level managers in executive programs in management science. The case examines the following elements of strategy:
- Consistent long-term goals (customer need to be addressed, value offering, goal/target).
- Competitive environment (4Cs Analysis, Porter’s Five Forces).
- Firm-level resources and capabilities (value chain analysis and activity map).
- Implementation strategy (business model map).
Transportation and Warehousing
India, Large, 2012
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