The paper “ The Most Profitable Place the OYBike Should Extend Its Business” is an intriguing example of a case study on marketing. OYBike is a bicycle docking system that uses mobile phones to hire and terminate the leasing of bicycles. Mr. Henning discovered in 2000 discovered this method of bicycle hire. He then developed this technology and in 2004 he started to operate this system in London. This method of hiring a bicycle has become very common in London. This is because this method has become very economical and convenient as a way of London residents accessing a bicycle.
In London anyone who is a member of OYBike now can easily access a bicycle, they only need to select a bike from the OYBike dock and then call the OYBike docking control to be given the authorization to use the bicycle. This is generally done at any of the OYBike docking stations, which are strategically located all over London. The process is very economical because it saves bicycle users the cost of purchasing a bicycle as they are assured of getting a bike from the OYBike at any given time.
Due to it's populated the OYBike have decided to expand their business and operate in other regions. This process requires the OYBike to establish a very strategic plan and place for its implementation. One of this calculated area it should choose to expand its business to is Nairobi city. This is because Nairobi can offer a very good market for its services and hence should consider extending its business there. The city has a population of around 8 million people that can provide a good market for their services.
This is because most of these people that live the city use tax to move from one part to the next within the city. Some other people use their own bicycles to move within the town. Therefore the expansion of OYBike into Nairobi city will be a good opportunity for the company to get more customers and also the move will benefit the locals greatly to access more convenient and economical means of movement within the city. (Gerald 2001) Problem StatementThe OYBike has a need to extend their business from London and operate in other places within and outside Europe.
The company is faced with two challenges, one of the problems is to determine where they will expand their business to and the other one is how to establish how they should launch a good promotion for their business in their new operating place. Aims and Objectives. The aim of this report is to determine the most strategic place that OYBike will expand its business. The report will also identify the best methods that OYBike Company will use to establish a good market for their business. Objectives. The objectives of this report are: 1.
To determine the most profitable place the OYBike should extend its business to. 2. To determine the best methods it should use to create awareness for its product in the chosen place. 3. To establish the challenges that the OYBike will experience in its new operating place. HypothesisThe most opportune place for OYBike to extend its business to is Nairobi city.