Required Assignment 18.
2
Ola's Growth Strategy
Ola, a leading ride-hailing platform, has made significant strides in revolutionizing urban
mobility in India and beyond. Founded in 2011, Ola has continually evolved its growth
strategy to stay ahead in the competitive market, focusing on technology, customer
satisfaction, and market expansion. This document will study Ola’s growth strategy using
Ansoff Matrix, and how Ola approached various strategies in Market penetration, market
development, product development and diversification.
Market Penetration
This strategy involves increasing user base of the existing product within the existing
market. Ola applied following methods for market penetration
1) Increased promotion, discounts and offers
2) Offered competitive pricing and loyalty programs to retain existing customers and
attract new ones.
3) Strategic partnership with corporates and events for increasing urban customer
4) Aggressive digital marketing using various platforms like facebook, youtube and
Instagram
5) Heavy referral benefits
6) Leveraging AI and machine learning for route optimizations, ride matching and wait
times, thereby increasing customer experience and retention.
Ola has employed several of above tactics to penetrate the Indian ride-hailing market more
deeply.
Market Development
Market Development involves expanding into new geographical markets to expand its
customer base.
Ola first started in Bangalore on Dec 34 2010 and within 2 years expanded its market to all
major cities of India. After gaining traction in local Indian market in January 2018, Ola
expanded into first international market Australia and launched itself in New Zealand in
September 2018.
The company's foray into international markets such as Australia, New Zealand, and the
United Kingdom exemplifies its market development strategy. By tailoring its services to
meet the unique demands of these new markets, Ola has successfully established a foothold
and continues to grow its presence globally.
By entering new domestic market and new international market, Ola continued its growth in
upwards trajectory.
Product Development
Product development is a strategy to offer improved products/ new offerings to existing
customer base.
Ola's primary product development growth strategy focuses on customer-centric innovation,
prioritizing local needs, and diversifying service offerings by introducing new vehicle types
like bikes and autos, while heavily investing in research and development to create advanced
electric vehicle technologies to solidify its position as a leader in the electric mobility
market, particularly in India; this includes expanding their product range with scooters,
motorcycles, and eventually electric cars, all while leveraging their existing app platform and
strong customer base to drive adoption.
Ola has expanded its service offerings significantly, introducing a variety of transportation
options such as Ola Auto, Ola Bike, and Ola Electric. Each of these services addresses specific
customer requirements, from cost-effective short-distance travel to environmentally-friendly
commuting options.
Ola also associated itself with other firms like Google, Airtel, and Zomato thereby improving
the product for corporate consumers. Collaborations with leading technology firms have
facilitated the integration of advanced technologies into Ola's platform. Partnerships with
companies specializing in AI, cybersecurity, and data analytics have been instrumental in
enhancing service quality and operational efficiency.
Diversification
Diversification involves entering new markets with new products. Ola's diversification
strategy is evident in its expansion into sectors beyond ride-hailing. Ola saw an opportunity
to enter an emerging market with its Ola Electric adding diversification to its product lines.
Furthermore, the launch of Ola Foods and Ola Financial Services demonstrates the
company's commitment to diversifying its portfolio. By venturing into these new domains,
Ola not only mitigates risks associated with the ride-hailing industry but also taps into new
revenue streams.
Ola also launched Ola Cars, a new vehicle platform through which consumers will be able to
buy and manage pre owned cars.
This comprehensive approach using the Ansoff Matrix has allowed Ola to stay resilient and
adaptive in a highly competitive market, ensuring sustained growth and market leadership.
Conclusion
Ola's growth strategy is a multifaceted approach encompassing technological innovation,
service diversification, strategic partnerships, customer experience enhancement, and
sustainability. By continuously adapting to market trends and customer needs, Ola has
positioned itself as a leader in the ride-hailing industry. As the company explores new
frontiers and embraces future challenges, its commitment to excellence and innovation will
undoubtedly drive sustained growth and success.
