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Harvard Case - Maritime Bus: Goal Setting and Surviving the Pandemic Crisis

"Maritime Bus: Goal Setting and Surviving the Pandemic Crisis" Harvard business case study is written by Matthew Pauley, Xiao Chen. It deals with the challenges in the field of Entrepreneurship. The case study is 12 page(s) long and it was first published on : Jun 12, 2023

At Fern Fort University, we recommend Maritime Bus implement a multi-pronged strategy to navigate the post-pandemic landscape and achieve sustainable growth. This strategy involves leveraging technology and analytics to optimize operations, expanding into new markets through strategic partnerships, and adapting its business model to cater to evolving customer needs.

2. Background

Maritime Bus, a successful regional bus operator, faced unprecedented challenges during the COVID-19 pandemic. The company, founded by entrepreneurs with a strong focus on customer service and innovation, saw ridership plummet due to travel restrictions and health concerns. The case study explores the company?s efforts to adapt, including implementing safety measures, exploring new revenue streams, and navigating the financial strain. The main protagonists are the company?s founders, who face the critical decision of how to steer Maritime Bus towards a sustainable future.

3. Analysis of the Case Study

This case study highlights the importance of agility and strategic thinking in the face of disruptive events. Maritime Bus, initially operating in a stable and predictable market, was forced to adapt its business model and operations to survive. The pandemic exposed vulnerabilities in the company?s reliance on traditional transportation services and emphasized the need for diversification and technological innovation.

Key Considerations:

  • Market Dynamics: The pandemic significantly impacted the travel industry, forcing Maritime Bus to adapt to a new reality of reduced ridership and evolving customer preferences.
  • Financial Sustainability: The company faced significant financial challenges, requiring strategic cost management and exploration of alternative revenue streams.
  • Technology and Innovation: The case study highlights the importance of leveraging technology to enhance operations, improve customer experience, and explore new business models.
  • Strategic Partnerships: Collaborating with other companies and organizations can provide access to new markets, resources, and expertise, enabling Maritime Bus to expand its reach and diversify its offerings.

Framework:

We can analyze the case study using the Porter?s Five Forces framework to understand the competitive landscape and identify opportunities for Maritime Bus.

  • Threat of New Entrants: The bus transportation industry is relatively mature, but new entrants could emerge with innovative business models or technology-driven solutions.
  • Bargaining Power of Suppliers: Maritime Bus relies on suppliers for fuel, maintenance, and other resources. The bargaining power of these suppliers could impact the company?s profitability.
  • Bargaining Power of Buyers: Passengers have a range of transportation options, including personal vehicles, ride-sharing services, and airlines. This gives buyers significant bargaining power.
  • Threat of Substitute Products: The availability of alternative transportation modes, such as ride-sharing services and electric vehicles, poses a threat to Maritime Bus?s market share.
  • Competitive Rivalry: The bus transportation industry is characterized by intense competition, with established players vying for market share.

4. Recommendations

To navigate the post-pandemic landscape and achieve sustainable growth, Maritime Bus should implement the following recommendations:

1. Leverage Technology and Analytics:

  • Optimize Operations: Implement route optimization software and real-time tracking systems to improve efficiency, reduce fuel consumption, and enhance customer experience.
  • Data-Driven Decision Making: Utilize data analytics to understand customer preferences, identify trends, and make informed decisions regarding route planning, pricing, and marketing.
  • Digital Marketing: Invest in a robust online presence, including a user-friendly website and mobile app, to enhance customer engagement and streamline booking processes.

2. Explore New Markets and Partnerships:

  • Expand into New Regions: Identify underserved markets with potential for growth, such as rural areas or smaller cities, and consider expanding operations through strategic acquisitions or partnerships.
  • Develop Niche Services: Offer specialized services, such as airport shuttles, corporate transportation, or tour packages, to attract new customer segments.
  • Strategic Partnerships: Collaborate with other transportation providers, travel agencies, or tourism organizations to create bundled packages and expand reach.

3. Adapt the Business Model:

  • Flexible Pricing Strategies: Implement dynamic pricing models to adjust fares based on demand, time of day, and other factors.
  • Subscription Services: Offer subscription-based packages with discounted fares for frequent travelers.
  • Value-Added Services: Provide additional services, such as Wi-Fi, charging stations, and entertainment options, to enhance the customer experience.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies: Maritime Bus?s core competencies lie in its operational efficiency, customer service, and commitment to safety. These recommendations build upon these strengths and leverage them to create new opportunities.
  • External Customers and Internal Clients: The recommendations are designed to meet the evolving needs of customers, while also enhancing the efficiency and satisfaction of employees.
  • Competitors: These recommendations aim to differentiate Maritime Bus from competitors by leveraging technology, expanding into new markets, and offering innovative services.
  • Attractiveness: The recommendations are expected to improve profitability by optimizing operations, increasing customer loyalty, and expanding into new markets.

Assumptions:

  • The travel industry will continue to recover in the post-pandemic era.
  • Technology and analytics will play an increasingly important role in the transportation sector.
  • Customers will value convenience, affordability, and safety when choosing transportation options.

6. Conclusion

Maritime Bus has a strong foundation and a history of innovation. By embracing technology, expanding its market reach, and adapting its business model, the company can emerge from the pandemic stronger than ever. The recommendations outlined above provide a roadmap for achieving sustainable growth and securing a competitive advantage in the evolving transportation landscape.

7. Discussion

Alternatives:

  • Focusing solely on cost reduction: While cost management is essential, solely focusing on cutting expenses could lead to a decline in service quality and customer satisfaction.
  • Ignoring technological advancements: Failing to embrace technology could put Maritime Bus at a disadvantage in the long run, as competitors leverage digital solutions to enhance efficiency and customer experience.

Risks:

  • Technological implementation challenges: Implementing new technology requires significant investment and expertise. The company must ensure successful integration and training to avoid disruptions.
  • Market uncertainty: The transportation industry is subject to economic fluctuations and unforeseen events. Maritime Bus must be prepared to adapt to changing market conditions.

Key Assumptions:

  • The travel industry will continue to recover at a steady pace.
  • Technology will play a significant role in shaping the future of transportation.
  • Customers will be receptive to new services and technologies.

8. Next Steps

  • Develop a detailed implementation plan: Outline specific actions, timelines, and resource allocation for each recommendation.
  • Secure necessary funding: Identify funding sources for technology investments, market expansion, and business model development.
  • Build a strong team: Recruit and retain skilled employees with expertise in technology, marketing, and operations.
  • Monitor progress and adjust strategies: Regularly assess the effectiveness of implemented strategies and make necessary adjustments based on performance data.

By taking these steps, Maritime Bus can position itself for success in the post-pandemic world and achieve its long-term goals.

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Case Description

Mike Cassidy owned Maritime Bus, which provided an essential service built on efficient and effective travel and terminal-to-terminal package delivery in the Maritime provinces of Prince Edward Island (PEI), New Brunswick (NB), and Nova Scotia (NS). Headquartered in Charlottetown, PEI, the Maritime Bus company was part of the Cassidy Group, which employed over 500 people, including Cassidy's wife and three sons, and served over 80 per cent of the busing needs of the region. The company had experienced historic profits in 2018 and finally broke even in 2019; 2020 was supposed to be its first profitable year. However, the COVID-19 pandemic brought instability to the industry, and ridership shrunk to nearly zero. By December 31, 2020, Cassidy had covered over $2.2 million in business losses with personal retirement savings. Despite the large personal financial cost, he was determined not to let COVID-19 destroy his company's legacy. Canadian intercity busing was historically regional, and many prominent companies had failed without federal or provincial government bailouts. Facing surmounting financial pressures and lacking ridership as the company entered the 2021 season, Cassidy had to plan for the venture's survival.

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