Business Organisational Strategy of 13 Cabs

This assignment examines the business organizational strategy of 13 Cabs, a taxi network service provider in Australia. It outlines their value proposition, customer relationships, target segments, channels, key partners, activities, resources, cost structure, and revenue system. The analysis highlights the company's successful model of creating a wide network but points out the emerging strategic challenge of environmental sustainability.

Running head: BUSINESS ORGANISATIONAL STRATEGY
BUSINESS ORGANISATIONAL STRATEGY
A case study of 13 Cabs (Black Taxi)
Name of the Student:
Name of the University:
Author Note:

BUSINESS ORGANISATIONAL STRATEGY 1
Table of Contents
Introduction: 2
Brief description: 2
Strategic issue to be faced: 4
References: 5

BUSINESS ORGANISATIONAL STRATEGY 2
Introduction:
13Cabs is the taxi network service provider that operates in different regions of Australia
like Hobart, Adelaide, Sydney, Newcastle and Melbourne. 13Cabs is owned by Cabcharge that
operates about 7, 400 taxis throughout Australia (13cabs.com.au. 2017). The service is operated
using the cab apps available in various app stores. The cab facility service has chosen the right
technology in order to carry out their business they use apps to connect with the customers. The
black taxis under this organisation are well known for the service provided by 13 Cabs.
Brief description:
Value proposition: 13 Cabs app is the most popular Australian taxi app that has connected
the largest fleet of cabs around the different regions of Australia
anywhere and anytime (13cabs.com.au. 2017). 13Cabs has also won
the Monash Business Awards that shows the efficiency in their
business.
Customer
relationship:
The customer care service is always available and any smart phone user
can easily get access to the service of the taxi apps. The customer
service is always available and the company is well known for the
service that it provides.
Customer segments: The cabs are grouped together by the means of apps and mobile
systems in order to create a large segment of taxis. The customers from
the segments like Sydney, Melbourne and other regions fall under the
customer segments of the cab service (13cabs.com.au. 2017).

BUSINESS ORGANISATIONAL STRATEGY 3
Channels: The channels used for the purpose of connecting with the customers are
through the web and any apps available in android or apple phones.
Key Partners: The key partners of 13 Cabs are ABC Taxis, Black Cabs Combined Pty
Ltd, Yellow Cabs, Maxi Taxis and others (13cabs.com.au. 2017).
Key Activities: The cab service maintains and develops the market based on ride
sharing activities. The service is available in the inner city and for long
journeys as well. The idea is to share the rides of the taxi among the
users in order to avoid the higher rates to be paid by the consumers.
Key Resources: The key resources are the IT platform or the software that is used for
carrying out the business activity (13cabs.com.au. 2017). The idea is to
utilise these resources in order to attract more consumers in the market.
Cost structure: The company operates in more than 76 locations and has huge fleet of
drivers. The cost structure is depended on the employees and the
partnership that the company has to maintain with others.
The fixed costs include the rent and the utilities and other costs needed
for the marketing and partnership activities of the organisation.
Revenue system: The current revenue of the company is 121, 000 AUD (13cabs.com.au.
2017).
Overall comment on
strategic business:
The business model used by the organisation is to create a wide
network that would attract the maximum number of passengers or

BUSINESS ORGANISATIONAL STRATEGY 4
customers (Yellowadelaide.com.au. 2017). This would definitely add to
the profitability of the business. However, the business model does not
consider other aspects of the business like sustainability and
competitive measures to improve business activities.
Strategic issue to be faced:
Environmental sustainability could be the most challenging issue faced by 13Cabs in the
near future. It has been evident that greater approaches have been made towards improving the
business activities that it would not cause harm to the environment. There have been no such
implications in the business strategies of 13 Cabs that would support sustainability of the
business and so this is the upcoming challenge faced by the organisation. The organisation needs
to support the sustainability approach in the coming 3-10 years of its business.

BUSINESS ORGANISATIONAL STRATEGY 5
References:
13cabs.com.au. (2017). 13 Cabs. [online] ProductReview.com.au. Available at:
https://www.productreview.com.au/p/13-cabs.html [Accessed 29 Aug. 2017].
13cabs.com.au. (2017). 13CABS App @ 13CABS. [online] Available at:
https://www.13cabs.com.au/IphoneApp [Accessed 29 Aug. 2017].
3cabs.com.au. (2017). Taxi Cab Service @ 13CABS. [online] Available at:
https://www.13cabs.com.au/ [Accessed 29 Aug. 2017].
Yellowadelaide.com.au. (2017). 13CABS Adelaide. [online] Available at:
http://www.yellowadelaide.com.au/ [Accessed 29 Aug. 2017].