Situational Analysis of Ingogo Taxi Service: MRKT20052

This presentation provides a comprehensive situational analysis of Ingogo, an online taxi service operating in Australia. The analysis includes an overview of Ingogo's values, segmentation, targeting, and positioning strategies, including its dynamic pricing model and partnerships with independent drivers. The presentation examines Ingogo's marketing strategies, focusing on brand strengthening and interaction with consumers. It delves into the company's core resources, key competencies, and competitive advantages, such as existing patents. A SWOT analysis is presented, outlining Ingogo's strengths (brand recognition, high service standards), weaknesses (privacy concerns, lack of customer bonding), opportunities (untapped markets, customer dissatisfaction with traditional taxis), and threats (self-driving cars). The presentation highlights the importance of adapting to macroeconomic indicators and diversifying services. References to relevant literature are also included, providing a foundation for the analysis.

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DATE:
INSTITUTION

Introduction
 Ingogo was founded in 2015 as an online taxi
business. The company operates in several
cities in Australia including Sydney.

Values of ingigo
 1) safety- for both the client and the driver
 2) reliability (the technology used by the company seeks to
effectively ensure quick selection of the car),
 3) availability (prices are usually lower than in local
services of a taxi).

Segmentation, Pricing targeting
and positioning approach
 Speaking about the price policy of the taxi order service,
it should be noted that Ingigo offers services in several
different price segments, each of which is determined by
the vehicle class available to the user. Company
concludes partnerships with independent drivers and has
a commission fromeach transaction in the amount of
about 20%.
 At the same time, the company adheres to the strategy
dynamic pricing: the total cost depends not only on the
classcar and the cost of travel, but also from fluctuations
in supply and demand at the time time (Baker, 2014).
 The technology platform used helps predict the
increased demand, which allows the company to respond
more effectively to increasing demand, increasing the
number of available machines (Kavadias et al.,2016).

Segmentation, targeting
and positioning approach
 Speaking about the price policy of the taxi order service, it
should be noted that Ingigo offers services in several different
price segments, each of which is determined by the vehicle
class available to the user. Company
 concludes partnerships with independent drivers and has a
commission fromeach transaction in the amount of about 20%.
At the same time, the company adheres to the strategy
 dynamic pricing: the total cost depends not only on the class
 car and the cost of travel, but also from fluctuations in supply
and demand at the time time. The technology platform used
helps predict the increased demand, which allows the company
to respond more effectively to increasing demand, increasing
the number of available machines (Kavadias et al.,2016).
 For a trip in Australia the user can pay both cash and account-
linked to their credit card.

Marketing strategy
 . Strengthening the brand of Ingigo service
With a standardized service, the strength of a particular brand
plays a very important role in increasing the competitive company.
Ingigo uses a relatively open strategy of interaction with the media, as
well as a great deal of attention to the opinions and wishes of
consumers, which they collect with the help of a form-connection after
the application is used (Massa eta al.,2017).
 competitive and more profitable markets.
Analysis of the core resources and key competencies of Ingigo.In
addition to analyzing the external environment, it is necessary to
analyze the key (Datta et al.,2017). competencies and resources of
the company to identify the sustainable benefits that Ingigo .
One of the competitive advantages of Ingigo are the current patents.
but it should be noted that the application for patents has not yet
been accepted. Since the competitors Ingigo use similar functional
technology and design, Ingigo can potentially to sue their competitors
only after approval of the filed applications for patents.

SWOT
 Strengths
 The brand is well recognized.
 The company has very high standards of
service and customers enjoy this.
 Ingigo has very many cars.
 The company has low cost of operation because
it does not require a dispatcher as all the
interaction is done on the app.
 Ingigo does not hire drivers and therefore it
does not have any responsibility towards
employees.

Cont..
 Speaking about macroeconomic indicators, it should be noted that
 real incomes of the population in Australia are falling, the value of the average check in the
market of taxi services
 decreases, as well as the profitability of companies. Accordingly, Ingigo is necessary diversify the
services portfolio to increase business margins use of its core resources, competencies, and
extensive clientbase.
 Analysis and evaluation of strategic options forcompanies, the selection of the most priority of
them was carried out, and the plan implementation of the chosen strategy.
 Weaknesses
 There are privacy concerns.
 Customers and company have no bonding, thus there is no real connection with the company.
 With the many cost such as insurance, fuel etc, the cost of operating this vehicle remains high.
 Opportunities
 Long waiting time and high prices experienced with traditional taxi companies have left
customer looking for an alternative.
 The company can tap in other markets outside Australia in countries like China and India where
the market is yet to be exploited.
 Threats
 With the introduction of self driving cars, the need for Ingigo and other digital hailing taxis will
decline.

References
 Cannon, S., & Summers, L. H. (2014). How Uber and the sharing economy can win over
regulators. Harvard business review, 13(10), 24-28.
 Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What is disruptive innovation. Harvard
Business Review, 93(12), 44-53.
 Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand equity
align with sales-based brand equity and marketing-mix response?. Journal of Marketing, 81(3), 1-
20.
 Eisenbrey, R., & Mishel, L. (2016). Uber business model does not justify a new ‘independent
worker’category. Report. Economic Policy Institute. Retrieved November, 3, 2016.
 Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far
have we come, and where should we go?. Journal of Management, 43(1), 200-227.
 Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand equity,
and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer,
New York, NY.
 Kavadias, S., Ladas, K., & Loch, C. (2016). The transformative business model. Harvard business
review, 94(10), 91-98.
 Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model
research. Academy of Management Annals, 11(1), 73-104.
 Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
 Poó, F. M., Ledesma, R. D., & López, S. S. (2018). The taxi industry: working conditions and health
of drivers, a literature review. Transport reviews, 38(3), 394-411.