Who are the decision makers?

Organizations in themselves do not make decisions. Decisions are made by people within the organization and outside the organization. In many organizations, decisions are not made in isolation especially given that a network of influence affect all important decisions. Therefore, the decision maker may be single person or multiple people ranging from the managers, directors, supervisors and even customer who makes the decision of whether to buy a product or use a service. From the RedBus case study, the decision makers could include the passengers, the travel agents and the bus operators.

What are the challenges for redBus? And, is diversification a driver for redBus?

With the strong growth in the online travel market un India coupled with the entry of a large number of national and internal players, the main challenge facing redBus is the competition from big players like Indian Railways and OTAs which cumulatively control more than 80 per cent of the market share of the online travel market, individual travel agents and direct competition from online bus ticket-booking companies. In its bid for scalability and growth, diversification could be a driver for redBus. Through diversification, redBus could extend its value chain by diversifying into related value offerings like bookings for air travels, trains, hotels, cabs, tour packages amongst other services. Due to the socio-economic indicators, customer needs convenience and technological advancements, the travel industry has bright future prospects hence redBus could tap into this new segment especially with its strong technology platform and infrastructure which would facilitate efficient integration of these add-on value offerings with the current bus ticketing. Therefore, diversification does not only guarantee high revenues and commissions for redBus, but also enable the company penetrate the market at a fast rate.