Potentiality of Australian Market for Ola Cabs: External Business Factors Analysis

Running head: INTERNATIONAL MARKETING
International marketing
Name of the student
Name of the university
Author note

1INTERNATIONAL MARKETING
Executive summary
The aim of this report is to discuss about the potentiality of Australian market for Ola cabs. This
report discussed in brief about the company history of Ola and their expertise in operating in the
Indian market. In addition, this report also discussed about the external business environments
relevant in the Australian business scenario. The market competitiveness also discussed and
number of opportunities and challenges identified for Ola cabs. This report concluded with a few
recommendations that can further help Ola cabs to enhance their business potentiality in the
Australian market.

2INTERNATIONAL MARKETING
Table of Contents
Introduction......................................................................................................................................3
Company background......................................................................................................................3
Market selection...............................................................................................................................4
Political factors............................................................................................................................4
Economical factors......................................................................................................................4
Social factors...............................................................................................................................5
Technological factors...................................................................................................................5
Legal factors................................................................................................................................6
Environmental factors..................................................................................................................6
Determination of the market competitiveness.................................................................................6
Bargaining power of the buyers...................................................................................................7
Bargaining power of the suppliers...............................................................................................7
Threats of substitutes...................................................................................................................7
Threat of new entrants.................................................................................................................8
Competitive rivalry......................................................................................................................8
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................9
Reference.......................................................................................................................................10

3INTERNATIONAL MARKETING
Introduction
The aim of this report is to discuss the effectiveness of the micro level factors of Ola cabs
along with identifying the negative and positive factors of them. This report will also discuss
about the external business factors to be faced by Ola cabs in doing business in the Australian
market.
Company background
Ola cab is one of the major and leading cab aggregators in the Indian market. Ola cabs
were founded in 2010 and currently they are having more than 600,000 vehicles across India.
One of the major competencies for Ola cabs is offering diverse range of vehicles from luxury
sedans to non-ac cabs (Olacabs.com 2018). As of now, they are present in all the metro and tier I
cities of India. The major reasons of their immediate success in the Indian market are offering ac
cab services at an affordable rates and easy availability of the vehicles. In addition, the customer
convenience in booking the cab from the app is also contributed in succeeding in the market.
The major financial resources for Ola cabs are the backing of the Soft Bank of Japan.
They have heavily invested in Ola cabs and it is helping them to have seamless flow of funds for
the business development. It is also helping Ola cabs in invest heavily in their marketing
activities to attract customers. It is reported that Ola is having the market leadership in the online
cab market in India and they are way ahead than their close competitors Uber and Meru cabs.
Human resources are another major advantage for Ola cabs due to the reason that human
resources including the drivers are major sources of revenue and Ola cabs are having relatively
fewer issues in regards to human resources than Uber (Surie and Koduganti 2016). However, on
the other hand, the major negative factor for them is their organizational capability and expertise.