Strategic Management for Ingogo: A Case Study with Reference to Sun Tzu on the Art of War

This paper discusses the strategic management of Ingogo, an Australian company specializing in online taxi booking and transportation, with reference to Sun Tzu's Art of War. It also includes a PEST analysis of the organization.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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The market competition among the business organizations is significantly visible in
the modern business context with the considerable number of new entries into the market and
the increased amount of usage of the price reduction tactics. The organizations are observed
to conduct a significantly complex and effective strategy making in meeting their desired
outcome. The paper specifies the case of one such organization in the form of Ingogo, an
Australian company that specializes in the online taxi booking and transportation. The paper
highlights the strategic planning of the organization with reference to the book named as Sun
Tzu on the Art of War. Apart from that, the paper contains a PEST analysis of the mentioned
organization as well.
Summary of Sun Tzu on the Art of War:
The book in its first chapter specifies the importance and the mechanism of laying the
plans (Clavell & Tzu, 2013). In organizational context, the chapter is significantly important
as the organizations put strong emphasis on the formation of the plan and the parts of the
chapter like identification of the moral law, the commander in the form of the managers or
the leaders who forms the plan and the method or the mechanism to take account of, are
significant.
The second chapter is the waging war which signifies the importance of continuing
the fight for long time. In business context, the organizations struggle for the survival can be
denoted by the part where the focus is to be operational.
The chapter 3 indicates that the destruction of opposition in the battle field will less
productive compared to the taking over of the entire assets of the opposition. In
organizational context, the chapter focuses on the expansion of the business by the
acquisitions or the mergers.
The chapter 4 claims that any fighter must think about his or her own protection even
before thinking regarding the processes for the elimination of his or her counterpart. In
organization context, the competitive rivalry is best experienced through the price cuts. In
response to this, the chapter warns the organizations to think more on the viability of their
strategy rather than the competitive rivalry.
The chapter 5 and 6 specify the fact that the leaders of the war are usually
significantly focused regarding the amount of resources that they have to fight and the weak
and strong points of the resources that they have to utilise. The identification of the weak and

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the strong points help them to get the perfect and timely utilization of it. In organizational
context the chapter indicates the allocation of the resources in accordance to the positive
qualities or capabilities that employees have.
The chapter 7 and 8 are concentrated on the proper integration of the fighters and the
modifications in the tactics as the impact of their incapability of managing the situation or the
impact of their unavailability. In the organizational context, the team work becomes
significantly important for the organizations to get the best results and in addition to that, the
impact of the unavailability or the separation of the employees with the organization is
significantly portrayed by the chapter.
The chapter 9 and 10 focuses on the elements like the production of the motivation to
the army for the striving forward and the following chapter 10 provides significant details and
information regarding the fields of the operation and the conditions of it. In organizational
context, it is observed that motivations to the employees in order to get the smooth business
conduction along with higher growth rate, much needed and the chapter 10 portrays that the
organizations will be subjected to various phases depending on the complexity levels.
On the other hand, the chapter 11 states the very basic fact of the various situations
that a company faces in its lifespan. The chapter specifies the various situations like difficult,
serious or desperate grounds in a battle field. Similar to that the organizations experience
difficult stages or the desperate stage where the organization preferably considers the change
inside it.
In the chapter 12, the explanation regarding the competitive strategy is achieved. In
the chapter, the author provides a detail specification regarding the strategy that a team forms
and implements in order to put the opposition down. The organizations of the modern world
is related to a significant amount of competition and the policies like the price reduction or
the improved promotional activities are like weapons a described in the chapter.
In the chapter 13, the usage of the spies is described. In business context, this means
the market research and the identification of the factors that are the reasons behind the
competitor’s success.
PEST Analysis:
The chosen company operates in Australia.

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Political:
The political impact on the organization is significantly limited as the country is able
to form a simple but effective motor vehicles and commercial car rules. The Australian Taxi
Industry Association is the biggest organization in the nation which has the power to monitor
the operations of the various agencies and the taxi agencies are liable to obey the productivity
commission rules, passenger transport fares rule, driver’s code of conduct along with the Taxi
legislations 1995 and the Taxi act of 1994.
Economic:
In addition to this, the organization had a significantly growing market for the growth
of it. The below mentioned information will be significant in understanding the growth of the
Australian Taxi market.
Operational Areas of the
Company
Average Fare in $ for the
year 2013
Average Fare in $ for the
year 2014
Sydney 24.15 24.75
Brisbane 21.30 24.16
Adelaide 21.10 21.50
Melbourne 21.10 21.50
(Information Courtesy: Atia.com, 2018)
Social:
The chosen organization was the first transport agency in Australia which
implemented a business strategy that was significantly in alignment with the customer’s
concerns. The customers were facing the tremendous problem with the surge pricing as many
of the organizations were charging the customers for the toll taxes that they pay to the
government, the additional changes for their services during the times of the natural disasters
(Zha, Yin & Du, 2017). The company introduced a strategy where the organization was able
to express that they will not charge a single penny in the name of surge pricing. The company
was the first one to do it in Australia and hat was significant for the society as well.

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Technological:
The organization was able to use GPS enable booking system for the reduction in the
efforts and the complexity of the customers in booking their cabs and apart from hat he
organization were observed to use the digital mode of payment from their customers as well.
Mapping of the company:
The organization was able to be understood the concern of the Australian people
regarding the surge pricing and that made them plan in such a manner that they be the first
one to eliminate and attract the customers concerns and customers respectively.
The organizations financial statement specifies that the organization suffered a
preliminary struggle with repetitive losses and that is in alignment with the topic of the
second chapter that is the continuation of the fight (Ingogo.com, 2018).
Apart from this, the organization implemented he strategy of no surge pricing which
was significant in the elimination of the competitors and at the same time, the strategy of
enabling taxis of other organization take the fare for Ingogo signifies the importance of the 4th
chapter.
The organization was able to invest significantly on the website for the promotions as
they were able to understand the ease of tech-savvy people of Australia in finding out the
services online and on the other hand, the focus of it on enabling the people to book the cabs
even in advance of two day was significant finding of the strong point of the organization’s
resources.
The organization is observed to focus on enabling other taxi agencies take fare on
behalf them which integrates more number of drivers for them and the organization is
observed to come up with a plan or modification for the payment concerns of the people
paying via debit cards.
The organization is observed to implement rewarding policy for the drivers who will
be able to take maximum number of orders and along with that the struggle of the
organization during the initial stages and the success of it during the years of 2013 to 2015
are significant in stating the various phases that the organizations experience during its life
span.

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The identification of the concerns of the people of Australia regarding the surge
pricing is significant in stating the excellence of the market research that the organization
conducted and along with that, it can be stated that it was notable competitive strategy from
the part of the organization in increasing the profit compared to the competitors.

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References:
Atia.com (2018). Taxi Statistics | ATIA. (2018). Retrieved from
https://www.atia.com.au/taxi-statistics/
Clavell, J., & Tzu, S. (2013). The art of war. Hachette UK.
Ingogo.com (2018). Ltd, i. (2018). ingogo | Taxis done better. For Passengers, Drivers and
Businesses. Retrieved from https://www.ingogo.com.au/
Zha, L., Yin, Y., & Du, Y. (2017). Surge pricing and labor supply in the ride-sourcing
market. Transportation Research Procedia, 23, 2-21.