Introduction
The trade-off between expanding to new cities or deepening market share in existing locations is a critical decision for Cabify's growth strategy. This scenario involves balancing the potential for rapid expansion against the benefits of consolidating our position in current markets. I'll analyze this trade-off by examining key business factors, user impact, technical considerations, and resource allocation.
I'd like to outline my approach to ensure we're aligned on the key areas I'll be covering in my analysis.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps determine if we have room for growth in existing markets Expected answer: Varied market shares, some dominant, some emerging Impact on approach: High market share might favor expansion, low share could prioritize deepening
Why it matters: Indicates where we're delivering the most value Expected answer: Higher retention in mature markets Impact on approach: Strong retention could support deepening strategy
Why it matters: Determines if rapid expansion is technically viable Expected answer: Significant headroom for growth Impact on approach: High scalability could favor expansion strategy
Why it matters: Indicates our current operational focus and capacity Expected answer: 70% existing markets, 30% expansion Impact on approach: Heavy existing market focus might suggest rebalancing towards expansion
Why it matters: Aligns strategy with long-term company goals Expected answer: Aiming for presence in 50 major global cities Impact on approach: Ambitious target would lean towards expansion strategy
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