Addison Lee Business Management: Strategies, Analysis, and Expansion

This report provides a comprehensive analysis of Addison Lee's business management strategies. It begins with an executive summary and table of contents, followed by an evaluation of marketing, including production, selling, product, and market orientation. Task 1 assesses Addison Lee's marketing approach. Task 2 delves into the marketing environment, including the impact of the macroenvironment, PESTEL analysis, competitors, and an internal SWOT analysis. Task 3 focuses on marketing strategies, specifically market segmentation and its approach. Task 4 examines the marketing mix, including the 7Ps of marketing, and offers recommendations for business expansion. The report highlights Addison Lee's innovative technological strategies and their impact on customer satisfaction, as well as the challenges and opportunities within the competitive UK market, like Uber and Gold Line Cabs. The analysis includes strengths, weaknesses, opportunities, and threats (SWOT) to the company's business model and potential for future growth.

Running head: BUSINESS MANAGEMENT OF ADDISON LEE
BUSINESS MANAGEMENT OF ADDISON LEE
Name of the student
Name of the University
Author Note

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Executive Summary
The report had surfaced on the Business management and their expansion in Addison Lee
organization. Addison Lee has served their customers with better quality and best price rates.
They are the only company in Europe who has started their business in logistics also and that
also makes a good strength in their business. The products quality they have served is the best
compared to the price. They have also made certain innovate technological strategies so that
customer can relate the changes and satisfy with the company as the customer satisfaction is the
ultimate requirement for the company. They have introduced some strategic changes in the
period of Christmas of a special discount for the particular age group; all these are highlighting
the business strategies implemented for the expanding of their business. For the better business
expansion, the company has to implement new recommendation as well, like mobile app
establishment; phone hotline for the customers would help the growing business in a sustainable
way.

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Table of Contents
Introduction..........................................................................................................................4
Task 1...................................................................................................................................4
Evaluation of Marketing......................................................................................................4
A. Production...................................................................................................................4
B. Marketing approach.....................................................................................................6
Task 2...................................................................................................................................6
Marketing environment.......................................................................................................6
B. Impact of macroenvironment in Business...................................................................7
PESTEL Analysis................................................................................................................7
C. Competitors and threat................................................................................................8
D. Internal environment in business................................................................................9
SWOT Analysis...................................................................................................................9
Task 3.................................................................................................................................11
Marketing Strategies..........................................................................................................11
A. Market Segmentation................................................................................................11
B. Segmentation approach.............................................................................................11
Task 4.................................................................................................................................12
Marketing Mix...................................................................................................................12
A. 7P’s of Marketing Strategies.....................................................................................12

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B. Recommendation.......................................................................................................13
Conclusion.........................................................................................................................13

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Introduction
Business management and implementation of the innovative strategy is the first and
foremost requirement for a company to compete in the globalized business scenario. The strategy
must be innovative and provide a good impact on the customers. Customers are the main concern
of the company so their benefit and need is the basic consideration for the company. In this given
case study, Addison Lee is Europe's major private hire car service company which was founded
in 1975 and through their innovative technology; they have continued their business for 40 long
years. Moreover, the company approved more than 20,000 jobs every day which is a huge
database of employees that engaged with the company so the company's sustainability is the key
attribute for the employees and market (Addison Lee 2017).
Task 1
Evaluation of Marketing
A. Production
The methods that used for the tangible and intangible inputs and provide
clarification over the services and goods are stated as production. Addison Lee innovative
app has provided a 40% growth in advance booking in 2015 compared with 2014. In the
Christmas campaigning process, the company has created a slogan ‘Have a surge free Christmas'
which resulted as the busiest ever Christmas for them as the mobile booking app has got the
highest percentage of booking form the customers.
Selling

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Selling is the primary transaction that happens in between the seller and buyer and
that transaction is taken place by choosing the target market. From the statistical report
driven form 2014 have noticed 44% of extra booking has been done in 2015 (Addison Lee
2017). Addison Lee serves a good quality of products and they have their quality reputation for
the branding of product too. 177% expansion of courier division and the proper delivery time
rate is the enhancing management that the company has done throughout the years.
Product
Product is the tangible and intangible attributes that manufactures and redefined
for sale and this action and process depend on the buyer and seller strategy. Most of the
products from Addison Lee Company have the innovative nature and that also encourage the
drivers to work in an effective way. Cars are high in quality and those have so many innovative
features that met customer satisfaction and meet the revenue generation of products. The special
discounts over the service are also valuable in case of customers as these services or products are
being sold at a lesser price than expected.
Market orientation
This is a philosophical change that focused on the customer desire and discovers the
thought that market has produced to their existing customers. The company's strategy of
contribution permanent price fare compared to competitors who decide to considerably
augment their prices at the demanding period. So their business must be increased as the
customers prefer their business in their busy times in Christmas (Addison et al. 2017). The
company has doubled their fleet of vans and delivering the largest bicycle courier in Europe. The
company has provided the best drivers, great cars and fixed price that provide a good response

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from the customers. Most of the technological innovations are driven by them and they have
successfully implemented that in their strategies.
B. Marketing approach
Technical leadership has provided into the management so that Addison Lee can ensure
their best practice and maintain the standard in the developmental scenario. For the promotional
purposes, rich media has been used and web access is available for them.
At first, they have done their promotion through media, internet process and article and
newspapers. Sound processes to prop up the congregation of necessities, prioritization of
requests and deliverance of lofty excellence briefings, presentations and reports thus their
marketing strategy is based on the improved scenario of globalization (Wu, Chen and Olson
2014).
Secondly, Addison Lee has demonstrated their good relationship with the stakeholders of
the company for managing better data engineering process. The company’s approach to the
customer is accurate as they have set their target to reach more customers with innovative
strategic implementation.
Task 2
Marketing environment
The business environment in the organization and good operational method encourage
the form of management as well as improved the scenario of the business development (Li et al.
2014). For the environmental change in the organization introduction of the mobile app is
important. It allows London customers to order a cab in New York and be guaranteed of the lofty

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class practice over at hand. Customers’ good feedbacks are the essential need for company.
Organization environment often provides good behavior to their employees and that reflected on
the employees while dealing with the customers.
B. Impact of macroenvironment in Business
Addison Lee has become the latest company who has implemented the gig economy to
their organization. The economic practice has provided the legal battle for the employee rights
and possession. The economy of the company will increase by the implemented method of
imposing innovative strategies in the organization. 3% increase in car in the Christmas season
and the overall 40% increment in the overall season create an economic boost to the company.
On the other hand, the working experience of the company and the nature of the demands more
equivalent at this juncture when customer satisfaction is the major criteria of the organization.
PESTEL Analysis
The political section is important as the company will not take their stand if the
political assortment is not allowed and business has not been established. So for the
betterment in business, political understanding and legal support from the government is
needed for the development of the company.
The environmental factors are important for the company establishment as
company is not formed in the adverse condition when the environmental acceleration is not
support the view of the companies. Environmental aspects are important as the place and
environmental support the business for growing aspect.
With respect to the socio-cultural branding of the ecological issue and the maintenance of
licensing policy of the cab are to ensure the environmental and social aspect in the UK. There are

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different religion employees and customers have been served by the company thus company's
diverse attitude may help the process of finding a good socio-cultural aspect for the organization
and the whole society (Schaper et al. 2014).
Implementation of new technologies and applications are creating chances for a better
economic sustainable condition for the company. For the economic enhancement, more drivers
are recruited and the number increased by 3600 to 4450. If more employees are associated with
the company then their business process must get a huge boost as more review can be earned by
that process (Mishra, Mishra and Grubb 2015).
The economic progression is depending over the monetary position of people. The
place is suitable for the business and people have good amount of money and they can
easily avail those cars and this is the reason the company can flourish their business by
provinding more amount of cars and that encompasses their business as well. So the
economic stability of people encourages the business to extend their market and justify the
establishment.
The legal issues are also related to the business terms and for this reason
government has set some legal policies for the sustainable condition of business. In that
case legal aspect like promoting industries or the additional marketing structure
providence is important to mitigate their issue in terms of legal aspect.
C. Competitors and threat
They are also doing the same business in the UK and thus they also tried to improve their
marketing strategy so that they can get a competitive advantage than other similar companies.
UBER is one of the most competitive company and Gold line Cabs are another one who has the

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strong base in the UK (Wild, Wild and Han 2014). Those companies have a respectable elasticity
in market and quality pricing system that provides the good organizational structure for the
development of the business. They have also implemented some strategic innovative changes for
the customers.
There are certain companies like UBER, which has cab locator system and split of billing
section that encourages their customer facility, however, Addison Lee has not implemented that
technological aspect. This has to be regarded as one of the threats. UBER is significantly cheaper
than the other companies due to their increasing demand so customer like the cab, but Addison
Lee has provided a good quality of cab and for this; they have to fix a particular price for that
(Adekola and Sergi 2016).
D. Internal environment in business
Addison Lee has some strengths and weakness that also impacted their organization with
respect to expanding their business.
SWOT Analysis
Strengths
The key strengths of the company are to assume investigation which quantifies promotion
opportunities with up-to-date information on business targets, pricing policy and other solution
aspects of the business (Aithal 2016). On the other hand, they have introduced technological
implementation like using driver PDAs, GPS tracking, and text massaging to drivers for the
better accessible for the customers. Addison Lee uses the modern technology that reduces
emanation of gases and has been awarded by "Green500" project. Suppliers are the main concern
for the company and they have also technologically sound as well. The marketing business will

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flourish as the by the proper distribution of the business. If people know about the company’s
policy and procedure they are quite happy to choose their operation as the imposed planning and
strategies are quite affordable for the customers.
Weakness
On the other hand, the company has certain weaknesses also that like to be highlighted
for the better recommendations. They have some problem regarding fines and payments. The
high court ruled for Addison Lee's drivers to use or instruct the bus lanes for the excessive fine
incidents. More fine cases have hindered company’s revenue (Khan 2014). The negative impact
of the company has affected when negative reviews have found form the company like iPhones
and for his application, company’s reputation got affected.
Opportunity
The marketing opportunity for the company is to provide better and hustle free
driving experience for customers. On the other hand the companies have imposed
technological assistance like chat with the driver, route mapping and route analyzing
option is another opportunity that can be provided by the company.
Threat
Customer feedback and competitive market are the threats that Addison Lee has
faced in quite a few years. There are UBER and other most recognized brand that provide
intact competition to Addison Lee by providing better customer facility and opportunity
and comfortable drive to them for that reason Addison Lee have to upgrade their
opportunity and facility so that sustainable business market can persisted for them.

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Task 3
Marketing Strategies
A. Market Segmentation
The marketing strategy that may enhance their business in the UK will be the
demographical presentation of car service business by targeting the age group of 16 to 25 years
young people. By the implementation of this strategy, company business has increased by 3%
which is a sound improvement that company has done in recent times. Implemented strategies
for tackling of courier marketing or delivering of luxury products are the prospect of providing
the market segmentation so that revenue can be generated from different ways (Lovelock and
Patterson 2015). Rebranding strategy of the company also encourages the business to provide
subdivision over the module and offering better quality and service to the passengers.
B. Segmentation approach
The chosen group for market segmentation is the people aged between 16 to 25 years.
The demographical presentation has made a proper establishment of sociological and economic
approaches. 3% business growth has depended on this target group to use their cabs and took
their service in a frequent manner. As the group is very young so special strategic changes like
reducing the fare or provide a certain special discount on the fare or free passes will be offered
from the mobile application that has been launched by the company (Al-Debi and Mustafa
2014). People like to use cabs for their traveling and this need is the ultimate reason behind the
running of Addison Lee business. Their business will flow as those range of people has to invest
a less amount of money and they traveled by cab, this has to be a good experience for them and
they like to use it more. By that process, their app also has got promoted as well and the range of