Bus operator growth strategy and transformation program

  • A leading bus operator in the Middle East was facing a number of strategic challenges, including accelerated market liberalization, loss of market share due to competition from informal players, and the entry of low-cost airlines that competed with its most profitable businesses.
  • Strategy& was retained to support the company in two phases. In the first phase, the firm would assist in the development of a growth strategy to ready the company for market liberalization. In the second phase, Strategy& would support the implementation of the proposed strategy.
  • The Strategy& team conducted an extensive assessment of the different lines of business and identified key strategic challenges. In parallel, the team reviewed the current organization structure; conducted benchmarking against global operators; and assessed maintenance, IT, and commercial capabilities. Strategy& designed a growth strategy based on the assessment that involved identifying more than 20 initiatives covering such critical areas as pricing, distribution network, advertising revenues, network restructuring, operating model, fleet planning, preventive maintenance, IT capabilities, and procurement.
  • In the second phase, the team worked on further details and program management of the different initiatives. The Strategy& team assisted in fleshing out the new organization structure and labor plan, developing a five-year fleet plan, designing a new pricing strategy, restructuring the distribution network and the terminals, developing an IT master plan, contracting with a media house for advertising on buses, and setting initiatives to improve maintenance and procurement.