Essay About Innovative Business Model And Various Modes

Redbus Marketing Management
Essay Preview: Redbus Marketing Management
Report this essay
Redbus has been one of the fastest growing companies in India over the last six years with its revenue rising exponentially from a mere INR 0.4 million in 2007 to INR 345 million in 2012. With the advent of internet technologies and riding on its innovative business model, Redbus has eliminated the possibility of information asymmetry amongst the stakeholders as well as lack of visibility from the bus traveler’s perspective. As format-independent bus ticketing company, it has simplified the booking through various modes such as the internet, call centers, seat seller network with online travel agents (OTAs). It has the market share of more than 65 percent in online bus ticket booking during 2011 and therefore faces very little competition from other online bus ticket booking companies. However, the target of annual revenue is set to be US 1 billion dollars by the financial year 2015. Depending on the growth, revenue and risk of diversifying the business process, all the available options need to be evaluated. A decision must be made whether the current business model could attain the target accounting various parameters of the market.Redbus has been one of the fastest growing companies in India over the last six years with its revenue rising exponentially from a mere INR 0.4 million in 2007 to INR 345 million in 2012. With the advent of internet technologies and riding on its innovative business model, Redbus has eliminated the possibility of information asymmetry amongst the stakeholders as well as lack of visibility from the bus traveler’s perspective. As format-independent bus ticketing company, it has simplified the booking through various modes such as the internet, call centers, seat seller network with online travel agents (OTAs). It has the market share of more than 65 percent in online bus ticket booking during 2011 and therefore faces very little competition from other online bus ticket booking companies. However, the target of annual revenue is set to be US 1 billion dollars by the financial year 2015. Depending on the growth, revenue and risk of diversifying the business process, all the available options need to be evaluated. A decision must be made whether the current business model could attain the target accounting various parameters of the market.