Case Study of Citybird's Expansion Strategy
Strategy Executive Memo Citybird
Issue
Citybird has decided to launch the concept in Lyon that could not be appropriated to the city and the population. The problem of obtaining the insurance for two-wheeled taxis is also a challenge. The market isn’t sure and the expansion of the brand could be difficult in such a big city and good results are necessary.
At risk are the failure of the project and the loss of many revenue and opportunity. This would be a real blow to the company in terms of business and image.
Discussion of alternatives
Citybird is a company that offers service of Motorcycle Taxi to simplify paths and avoid traffic jam. The start-up began well in Paris, as a matter of fact the company realized a revenue up from 734 000 € last year. The new objectives are risky: the achievement of 1000 000 € revenue by launching the brand in Lyon.
The respect of the spirit and the demands of the city and finding specialized insurers to cover Lyon are the major part of the strategic decisions. The company is seeking expansion, new customers and wants to develop the concept as fast as possible. The installation is complicated and the implantation on a new market requires important strategic choices. The challenge is to develop Citybird in a new city while minimizing the risk of failure.
There are three alternatives that the company could adopt: 1- Deepen the market in Paris and not taking risk in expanding the company in new cities.
There is no more risk, the target and the market are renowned. Moreover Paris is the corporate headquarter of Citybird so that it is simpler in case of any problem. The major drawback is that with this solution, it will be very difficult to increase the revenue. As a matter of fact without new concept and new market, the achievement of 1000 000 € of profit is impossible.
2- Launch Citybird in Lyon.
Lyon is a big city, there are many opportunities to catch and we can find many
Issue
Citybird has decided to launch the concept in Lyon that could not be appropriated to the city and the population. The problem of obtaining the insurance for two-wheeled taxis is also a challenge. The market isn’t sure and the expansion of the brand could be difficult in such a big city and good results are necessary.
At risk are the failure of the project and the loss of many revenue and opportunity. This would be a real blow to the company in terms of business and image.
Discussion of alternatives
Citybird is a company that offers service of Motorcycle Taxi to simplify paths and avoid traffic jam. The start-up began well in Paris, as a matter of fact the company realized a revenue up from 734 000 € last year. The new objectives are risky: the achievement of 1000 000 € revenue by launching the brand in Lyon.
The respect of the spirit and the demands of the city and finding specialized insurers to cover Lyon are the major part of the strategic decisions. The company is seeking expansion, new customers and wants to develop the concept as fast as possible. The installation is complicated and the implantation on a new market requires important strategic choices. The challenge is to develop Citybird in a new city while minimizing the risk of failure.
There are three alternatives that the company could adopt: 1- Deepen the market in Paris and not taking risk in expanding the company in new cities.
There is no more risk, the target and the market are renowned. Moreover Paris is the corporate headquarter of Citybird so that it is simpler in case of any problem. The major drawback is that with this solution, it will be very difficult to increase the revenue. As a matter of fact without new concept and new market, the achievement of 1000 000 € of profit is impossible.
2- Launch Citybird in Lyon.
Lyon is a big city, there are many opportunities to catch and we can find many