International Strategic Management Sample

Introduction:The Goal for International Management of Strategy (ISM) and RedBus’s Global Expansion Strategy

The goal for international management of strategy (ISM), a continuing planning and management procedure, is to develop strategies which will allow an organisation to expand globally and operate internationally. RedBus seeks to reinvent the way travellers travel through encouraging creativity and communication, with the objective to grow into the leading company worldwide in online bus ticket. The goal is to offer smooth bus service that links individuals, locations, and cultures across the globe. RedBus is committed to upgrading the bus experience more than an average journey, prioritising ease, accessibility, and cooperation for thousands of customers globally. The report explores RedBus's positioning strategy by using Porter's five principles to analyse company variables and PESTEL to analyse the microenvironment at large. The discussion includes the creation, operation, and review of tactics which reflect RedBus's devotion to long-term viability social responsibility as a business, and its plans for transforming worldwide bus service.

2. Strategic Position

Importance of environmental analysis: 

RedBus appreciates environmental evaluation highly because it could act as a strategy beacon that assists the company traverse its difficult worldwide climate. An extensive assessment of the environment is crucial in the ever-evolving world of internet-based bus tickets, where regulations, standards, and customer tastes are always evolving. As a proactive device, it helps RedBus anticipate changes, spot possibilities, and minimise risks. This type of insight is particularly essential in the rapid digital age because it enables the organisation to stay ahead of the tendencies while rapidly adjust its strategies as needed.

In addition, RedBus utilises ecological evaluation as a lens for comprehending the intricate details of the markets that it services. It exposes aspects associated with the economy, politics, culture, technology, and surroundings, providing an in-depth insight of each operating setting (Henry, 2021). RedBus can guarantee both short-term flexibility and for a long time growth and sustainability in the worldwide marketplace by matching its offerings with varied social conventions and legal structures through the implementation of an integrated viewpoint. Essentially RedBus's strategy flexibility and resilience depend on environmental assessment, allowing the business an advantage in the constantly evolving the internet travel industry.

Translating environmental analysis into performance 

Short- term performance: Short-term in nature RedBus's ability to swiftly adapt to changing market circumstances is seriously affected by its thorough environment research. Proactive risk management along with rapid reactions to emerging trends enhance robustness and profit in the short term (Dess, et.al, 2021). To guarantee experienced relevancy in a disturbed market, the organisation, for instance, right away altered its offerings to meet new travelling needs throughout the COVID-19 pandemic.

Long term performance: RedBus's the capacity to employ the information acquired through environmental evaluations to promote continuous growth will influence its long-term viability. RedBus puts itself up for a prosperous future in the ever-changing global marketplace by recognising and embracing novel opportunities, correcting flaws, and integrating international developments like environmentally conscious travel.

a. Macro-environment (PESTEL)

• Political factors: Getting an in-depth knowledge of laws and regulations is crucial for negotiating varied political contexts. RedBus's flexibility in managing compliance ensures that local laws are adhered to, which nurtures good relations with government agencies.
• Economic factors: The condition of economic conditions affects patterns of travel. RedBus is robust in times of financial instability due to its based on data approach, allowing it to foresee changes in demand as well as price patterns.
• Social and cultural factors: Consumer behaviour is significantly impacted by peculiarities of culture (Red Bus: The Next Step for Growth PESTEL, 2023). The key to RedBus's success is altering its range of services to suit local tastes, fostering cultural diversity, and enhancing every customer's experiences.
• Technological factors: RedBus is a technologies-driven system that stays up with the latest advancements in technologies. The system is kept current and easy to use in the constantly shifting online environment by constant creativity.
• Environmental factors: RedBus understands that being environmentally friendly is becoming more and more significant. Programmes which promote environmentally conscious travel help both the natural world and customers who concern about the natural world.
• Legal factors: RedBus's worldwide approach depends extensively on legal issues. Long-lasting achievement and risk reduction depend significantly on negotiating an array of rules and regulations, assuring contractual conformity, protecting property rights, and attending to laws pertaining to employment.

b. Industry environment (five forces)

The Porter's five-force model provides an extensive framework for evaluating the competitive landscape of the digital bus ticket industry. This model focuses at five primary variables which influence the fiercely an industry operates. Understanding how these factors impact makes it essential for RedBus, an important participant in the around the world online bus ticketing marketplace, to make strategic choices.

Threat of new entrants: Barriers to entry are prevalent in the internet-based bus ticket marketplace, mainly due to reputable businesses like RedBus and a need for an extensive technology base. Since RedBus's parent company operations, Make my Trip limited, gives a financial padding, it is challenging for new rivals to equal the size and impact left by a market leadership. Furthermore, RedBus's broad range of collaborations with bus operators presents an obstacle because they enhance the amenities provided by the site while making it hard for prospective rivals to quickly replicate those.

Bargaining power of buyers: Buyers, as portrayed by travellers, have medium to powerful of power argument in the internet bus ticketing industry. Buyers can compare prices and offerings with simplicity due to the wide range of choices and clarity of changing between sites (Doole, et al, 2019). RedBus, on the opposite hand, reduces this by providing an easy-to-use interface, an extensive bus operators system and encourage programmes. The business's concentration on offering excellent service to its clients while remaining consumer-centric helps keep consumers loyal thereby lowers customers' total power during negotiations.

Bargaining power of suppliers: In this instance, the bus owners are providers. While the negotiating power of specific bus companies might be low, their cumulative impact is significant since an extensive and extensive network is needed to cover an assortment of lines and places. RedBus achieves this by creating advantageous partnerships while making certain that its suppliers maintain win-win contracts. The marketplace's the capacity to steer a significant amount of revenue to its associate bus operators, establishing a relationship that is beneficial to both parties, improves its edge in negotiations.

Threat of substitutes: In the world of online bus ticketing marketplace, substitutes pose only a small risk. RedBus resolves this by defining it as the ideal bus travel venue. Other kinds of transport, such railways or flights, could be replaced. RedBus enjoys an advantageous market position due to its accessibility, cost-effectiveness, and simplicity of its bus journey, which reduces the number of competitors.

Intensity of competitive rivalry: There's moderate to substantial rivalry in the via the internet bus ticketing market. Significant rivals battle for share of the market that encourages creativity and improvements to services. RedBus keeps its competitive edge via development in the internet, top-notch support for customers, and an international reputation in the marketplace (Adefarati and Bansal, 2019). Having an edge over others via on-going technological advances and cooperative agreements keeps the company one step ahead of competitors.

RedBus works in an ever-changing industry that is affected by a number of distinct variables. While well-established companies and technological platforms reduce the threat to new entrants, consumer and supplier power of negotiation remains an important consideration for taking into consideration. RedBus develops collaborative relationships and puts an intense focus on customer focus in order to control these forces. By highlighting the special benefits of bus travel, the threat of competitor’s decreases and rivalry between companies can be overcome by constant creativity and global growth. RedBus has the capacity to sustain growth and resiliency in the midst of marketplace shifts by successfully overcoming and understanding all of these variables while retaining an advantageous position within the secure online bus ticket market.

3. Strategy In Action

a. Strategy evaluation (SWOT)

• Strengths: Key internal traits of RedBus are its extensive base of local connections, strong reputation as a brand, and technological expertise. Investments in strategy and innovation are rendered feasible by the solid financial basis offered by the parent business of MakeMyTrip Ltd.
• Weaknesses: Possible international regulatory challenges, the need for continuing advancements in technology, and handling varying cultural standards make up the difficulties (RedBus The Next Step for Growth SWOT Analysis, 2023). RedBus is working diligently to develop legal methods and technological solutions as a way to tackle such problems.
• Opportunities: The worldwide movement towards environmentally conscious travel gives RedBus the opportunity to incorporate environmentally friendly practises into the products and services it provides. An additional possibility for growth includes undiscovered markets as well as potential partnerships in additional areas.
• Threats: Geopolitical worries affecting operations overseas, intense rivalry and unpredictability in regulations are instances of external hazards. RedBus utilises an evolving risk management method to effectively deal with these risks.

Strategic choices short-term as well as long-term are influenced by the entire perspective of SWOT analysis provides. The business's adaptability, proficiency in technology and commitment to recognising and understanding local cultures can be seen by its ability to perform well in an array of governmental contexts. 

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b. Strategy process (formal planning versus emergent)

Formal planning: 

RedBus's systematic method to creating plans is obvious proof of its formal preparation. Setting organisational orientation is the first stage in the process, in which the company sets out specific goals related to its development path. At RedBus, formal preparation in the setting of growth in the market includes determining target customer groups or geographic regions. This ensures a concentrated and clear development plan. Following that, goals for strategy are carefully developed to be measurable and clear, reflecting the objectives of growing the marketplace (Planned Versus Emergent Strategy, 2023). RedBus could, for instance, set goals with the objective of growing its customer base or earnings in the targeted regions. The methodical strategy gives the organisation a road map, which makes it easier to understand its objectives and the steps needed for reaching there.

Emergent approach: 

RedBus is conscious of the downsides of a tight tactics, however, given the speed at which the marketplace is changing. The developing method is used when ideas evolve organically over a period of time. The emergent approach in the setting of expanding the market permits RedBus to adapt and modify its strategies in accordance with immediate input, unanticipated hurdles, or new prospects.

At RedBus, connecting with key players in emerging industries is an excellent instance of the emerging technique (Paul and Jefferson, 2019). Traditional planning renders obvious that community members have to be involved, but emergent design recognises that those relationships' dynamic could evolve as time passes. 

Ansoff matrix recommendation for Redbus: 

Market development: Considering RedBus's enormous international reach and potential for ongoing growth within the web bus ticket industry, it is obvious that this sector development is the correct course of activity. RedBus offers the choice of expanding into novel regions or explore new areas within its present operating area. This includes reaching out to new customers or expanding products that meet different groups of people. Growth in the market enables RedBus to build on its present technological strengths and operating expertise, complementing the business's goal of providing a perfect bus travelling experience to all areas of the globe.

Strategy process: 

The vision, mission and purpose of the company: 

Launched in 2006, Red Bus is the biggest and most cutting-edge digital bus ticket system in India. Thousands of Indian travellers have discovered it to be simple and hassle-free, showing its transformational effect on travelling by bus within the country. Red Bus is an international phenomenon that has gained the confidence of more than 25 million individuals worldwide, thus becoming not just a national success story (Red Bus, 2023). In alongside a critical examination of Red Bus's visible international approach and its corporate social responsibility policies, this assessment will go deeper into the business's vision, goal, and mission.

Vision: RedBus believes an age whereby riding the bus is an activity characterised by comfort, access, and seamless connection instead of just a means by which to get someplace (Kostova, et.al, 2020). The company seeks to rule worldwide of online bus ticketing while setting novel standards for reliability, creativity, and service to customers.

Mission: RedBus intends to completely alter the way individuals think about and appreciate bus travel. RedBus aims to serve as a one-stop shop for every bus-related need by utilising the internet, giving customers a simple journey. The objective of the organisation is to offer travellers with a comparable level of ease across borders worldwide.

Purpose: RedBus offers far more than a mere booking location. It is driven by a desire to enhance every aspect of travel, transforming it from an ordinary means of transport into a vital aspect of the voyage. RedBus utilises its products and services to link individuals, places, and cultures in a bid to encourage togetherness and discovery.

Setting particular objectives and targets that's in line with the growth of the market is an important component of developing an organisational orientation for RedBus. A company can pick regions to target, emphasising those which exhibit indications of future interest for online transportation tickets. RedBus may modify its approach in order to fulfil particular travel needs through recognising particular client groups within those areas.

The business objectives that RedBus has established for the growth of its market must be measurable and clear. Examples are achieving a particular growth in revenue goal or boosting the user base inside the areas of interest by a given percent. These targets provide an objective framework for assessing how effectively the market expansion programmes are doing.

In order to guarantee a seamless launch into new areas, RedBus must actively engage with neighbourhood stakeholders. This involves creating partnerships with neighbourhood bus operators to expand passenger coverage, discussing legal obligations with pertinent leaders, and investigating partnerships with potential neighbourhood partnerships who are acquainted with the particulars of the target area.

For RedBus to correctly distribute resources and visualise each stage, an exhaustive plan map is required (Addagarla and Amalanathan, 2019). The action plan ought to encompass the phases concerned, such as adapting technologies to suit local tastes, preparing for bus services economically, and developing advertising initiatives specific to each emerging market.

RedBus may put plans for growth into effect to help accomplish its targets for expanding its market. Company needs to lay more focus on Campaigning for localised advertising, products that are tailored to the particular pReferences of the newly emerging market. 

International strategy: 

RedBus's strategic choice to get into the international marketplace is in accordance with its objective to become a global leader. RedBus, which currently operates in Indonesia and Singapore, Malaysia, Ecuador, the nation of Colombia, and Peru, adopted a comprehensive global strategy. RedBus pledges itself to continuous creativity and change in its global strategy. RedBus conducts expenditures on research and development in order to keep ahead of new developments since it recognises the ever-changing character of the worldwide marketplace (Bockelie, 2019). The company uses statistical analysis and market knowledge to improve its products and services, ensuring their relevance throughout diverse culture and socioeconomic settings. In spite of growing the size of its customer base, RedBus develops a solid track record as being on the leading edge of technological advances and secures its position as the marketplace lead in online bus ticket through the development of an adaptable and flexible environment.

Market expansion: RedBus carefully evaluated markets which had untapped potential for bus ticketing services to be provided online (Shah, et.al, 2023). It has proven its position as an international leader by extending its business across multiple nations and meeting the various wants and appears of its customers.

Technological integration: RedBus's technological expertise is responsible for its continued success. Its platform's excellent international incorporation shows just how committed it is to localization and adaption. RedBus make sure that its equipment is a remedy intended to meet the particular needs of each market, instead of just a tool.

Partnerships and collaborations: Recognising the significance of regional cooperation, RedBus has built relationships with regional transportation providers in every nation. These collaborations show their commitment to environmentally friendly company practises through enhancing access to services and strengthening the local economies.

Customer- centric approach: Satisfaction with clients is an essential aspect of RedBus's global approach. The company wants to build an international track record for reliability as well as confidence by providing a consistent and great customer experience worldwide.

4. Strategic Choices 

RedBus emphasises the value of contributing back to the community it services as a responsibly global business. Its efforts to promote corporate social responsibility aim at having an advantageous impact on both the global and local levels. RedBus's corporate social obligation (CSR) efforts prioritise long-term welfare of society over immediate corporate objectives. The corporation takes an active role in charitable endeavours, supporting initiatives that encourage environmental preservation, health care, and educational. RedBus tackles societal problems at the level of the neighbourhood by collaborating with neighbourhood organisations and NGOs to broaden its impact on society. By putting an enormous value on staff engagement in initiatives related to CSR, RedBus nurtures an awareness of social obligation within its staff members (Thomas, Suggala and Agarwal, 2022). RedBus demonstrates an extensive approach to business responsibility by integrating its corporate social responsibility (CSR) efforts within the UN Global Sustainable Development Goals, thus improving the populations it services on an international basis.

Sustainable travel initiatives: RedBus proactively encourages bus companies to adopt environmentally conscious procedures in order to encourage environmentally friendly travel. By using the platform it has to educate and urge travellers to take environmentally conscious choices, it contributes to reducing the environmental impacts connected to travelling by bus.

Community engagement and empowerment: Recognising the value to community social security, RedBus engages in an array of initiatives aimed at boosting the communities throughout the regions where it operates. This helps to the overall economic prosperity of these areas and includes programmes for learning, improvement of skills, and assistance for local businesses.

Accessibility for all: RedBus has a commitment to allowing everyone, particularly those with particular requirements to make trips by bus. The site makes sure every one of its offerings and features are inclusively, serving an array of requirements and creating an inviting travel environment.

Ethical practices: RedBus conforms to the highest ethical business behaviour standards. Its CSR practises consist of making sure all involved parties, include suppliers and customers along with staff and are handled equitably and transparently. RedBus believes that ethical business practises are crucial for lasting achievement in the global marketplace as well as being imposed by legislation.

RedBus, a company celebrating a year of global quality, is evidence of the ground-breaking potential of technological advancement and creativity in the tourism industry. With an individual mission, an approach that prioritises customers, and an obligation to ethical behaviour worldwide, RedBus has transformed travel by bus and set a standard for ethical and environmentally friendly business practises worldwide. RedBus remains in an opportunity to affect the trajectory of global travel with just one ticket at a moment as it proceeds on its journey.

Operating in different institutional settings

Emerging countries: RedBus puts a high value on flexibility in nations that are developing. RedBus customises its product lines according to the unique needs of local clients by taking into consideration the unique possibilities as well as obstacles that developing nations provide. Effective expansion into the market is made possible by community involvement programmes and collaborative efforts with nearby bus companies.

Developed Countries: RedBus combines statistical analysis and gadgets know-how in wealthy nations to customise offerings to wealthy clients with discerning tastes (Addagarla and Amalanathan, 2019). The requirements of ecologically conscious customers in advanced nations are aligned with rigorous laws and regulations adherence and a focus on environmentally friendly tourism.

RedBus's capability to deal with global assessments of the environment using skill is closely linked to its achievement as an international corporation. Strategic choices short-term as well as long-term are influenced by the entire perspective of both internal and external variables that the analysis of SWOT provides. The business's adaptability, proficiency in technology, and commitment to recognising and understanding local cultures can be seen by its ability to perform well in an array of governmental contexts. RedBus's strategy environmental assessment continues to serve as a pillar of success in the ever-evolving realm of web-based bus tickets, as it thrives on an international basis.

5. Suggestions and recommendations 

• With the goal to maximise RedBus' development path, five significant suggestions have been put forth as it charts its next strategic way. In the beginning, it is essential to put first innovations in technology. Remain current with market developments, enhance customer service, and simplify activities, RedBus requires constantly make investments in state-of-the-art technologies. 
• Secondly, it's critical to expand market reach through deliberate geographic diversity. Finding and penetrating into undiscovered markets will increase RedBus's global presence while opening up exciting new business prospects, especially for countries that are developing.
• Thirdly, the basis of RedBus's future approach ought to be the creation of partnerships of strategic importance. RedBus might broaden its route coverage, increase its range of offerings, and forge beneficial collaborations with travel agencies, local bus managers, and suppliers of additional amenities. Implementing environmentally friendly methods additionally corresponds with evolving demands of customers. To contribute to the global ecological agenda, RedBus ought to devote emphasis to environmentally conscious initiatives which includes boosting environmentally friendly alternatives to travel and decreasing its ecological impact.
• Foremost, personalised interaction with clients ought to be put first. Using based on data strategies to identify and fulfil individual tastes increases customer satisfaction, perception of the brand, and commitment. It entails using statistical analysis to offer personalised services, advertisements, and a perfect booking experience.
• RedBus needs to put forth an intentional attempt to expand the variety of amenities it offers. By adding novel amenities like reward programmes, linked vacation packages, or collaborations with other transportation-related companies, RedBus could also set itself apart in the marketplace by offering customers full services. This diversity brings in more consumers that seek an array of vacation activities in along with enhancing the value provide for current consumers.

6. CONCLUSION 

By concluding the report RedBus displays an unwavering strategic stance in the dynamic field of online bus tickets, rooted in an in-depth knowledge of it’s the macro-environment and marketplace dynamic. RedBus's capacity to adapt to economic, social, environmental, political, and legal constraints is emphasised by the PESTEL study that also ensures long-term viability relevance in society, and conformity. RedBus's dominant position versus novel rivals, buyer power, provider negotiations, alternatives, and rivalry for business is demonstrated by the Porter's five-force analysis, which additionally shows the business's leadership and strategy resilience. RedBus shows flexibility in adapting to changing market circumstances through integrating structured preparation with an emerging strategy for the implementation of its plans. RedBus's worldwide reach and technical strengths are utilised in the Ansoff Matrix's recommendations for growth in the market. The SWOT analysis emphasises RedBus's benefits tackles its drawbacks, looks at customers in environmentally conscious travel, and reduces risk by taking proactive steps.

REFERENCES 

Books and journals 

• Henry, A., 2021. Understanding strategic management. Oxford University Press.
• Dess, G., McNamara, G., Eisner, A.B. and Lee, S.H., 2021. Strategic management: text & case. McGraw-Hill.
• Doole, I., Lowe, R. and Kenyon, A., 2019. International marketing strategy: analysis, development and implementation. Cengage Learning.
• Adefarati, T. and Bansal, R.C., 2019. Reliability, economic and environmental analysis of a microgrid system in the presence of renewable energy resources. Applied energy, 236, pp.1089-1114.
• Paul, J. and Jefferson, F., 2019. A comparative analysis of student performance in an online vs. face-to-face environmental science course from 2009 to 2016. Frontiers in Computer Science, 1, p.7.
• Kostova, T., Beugelsdijk, S., Scott, W.R., Kunst, V.E., Chua, C.H. and van Essen, M., 2020. The construct of institutional distance through the lens of different institutional perspectives: Review, analysis, and recommendations. Journal of International Business Studies, 51, pp.467-497.
• Addagarla, S.K. and Amalanathan, A., 2019. A survey on comprehensive trends in recommendation systems & applications. International Journal of Electronic Commerce Studies, 10(1), pp.65-88. 
• Bockelie, A., 2019. Ancillary services in the airline industry: Passenger choice and revenue management optimization (Doctoral dissertation, Massachusetts Institute of Technology).
• Shah, S., Vasavada, M. and Sharma, M., 2023. Cause-related marketing online trust and purchase intention: investigating the role of CSR, cause involvement, perceived value and the moderating role of donation magnitude. International Journal of Electronic Marketing and Retailing, 14(2), pp.139-155.
• Thomas, S., Suggala, S. and Agarwal, D., 2022. Investigating the factors influencing consumers' purchase intention towards online private labels in the Indian context. International Journal of Business Competition and Growth, 8(1-2), pp.26-47.
• Addagarla, S.K. and Amalanathan, A., 2019. A survey on comprehensive trends in recommendation systems & applications. International Journal of Electronic Commerce Studies, 10(1), pp.65-88.
• Online 
• Red Bus: The Next Step for Growth PESTEL, 2023. Online. Available through https://embapro.com/frontpage/pestelcase/5610-bus-redbus#google_vignette
• RedBus The Next Step for Growth SWOT Analysis, 2023. Online. Available through https://www.case48.com/swot-case/5610-redBus-The-Next-Step-for-Growth
• Planned Versus Emergent Strategy, 2023. Online. Available through https://www.tutor2u.net/business/reference/emergent-strategy
• Red Bus, 2023. Online. Available through <https://www.redbus.in/info/aboutus>