LEVC's Electric Black Cab Overseas Expansion: A Strategic Analysis

This report analyzes the strategic challenges and opportunities faced by the London Electric Vehicle Company (LEVC) as it plans to expand its electric black cab business into overseas markets. It examines the issues of emission standards, infrastructure development (charging points), and competitive strategies within the automotive industry. The report provides an overview of the competitive landscape, including analysis of rival brands and the importance of marketing and advertisement. It also includes recommendations for business expansion, such as targeting pollution-affected areas and the potential for expansion in Birmingham. The report draws on industry articles and scholarly sources to justify the selected issues and inform its conclusions, emphasizing the importance of adopting sustainable strategies, particularly in light of government regulations and the evolving market for electric vehicles.

London's electric black cab
plans to drive into second
overseas market after
Amsterdam deal

Executive summary
Present report is based on the analysis of competitive strategies that needs to be adopted
by LEVC which is Automotive sector company, planning to drive its new electronic vehicles in
overseas market. Study of various journals, articles have been accomplished to analyse the
opportunities for business to achieve successful in its operations. Critical analysis of Article
provided information that government has provided a deadline of January for newly licensed
taxis in London to be zero emission capable but concerns remains over the infrastructure
capability in the capital. Analysis of other competitive brands have been done which has
provided understanding that organisation needs to adopt the effective competitive strategies of
promotion and advertisement in pollution affected areas for increasing the sales and profitability.
Recommendation is also provided to organisation for expansion of business operation in
Birmingham where they will found more target customers for selling their products and services.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Issues, problems or concerns raised there in and selection of important issue..................1
2. Justification of selected issue using scholar and industry article.......................................3
3. Appraisal of sources of information to inform recommendation. .....................................5
Conclusion and recommendation.....................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business expansion plans are made by various domestic and global business enterprises
by making proper research of issues faced by them currently and in the future (Shaheen and
Pogodzinski, 2014). Present report is based on analysis of case study of London electric vehicle
company (LEVC) which has planned to drive their business in second overseas nation's market
after their Amsterdam deal. Various critical issues and business problems faced by the
organization are discussed along with the sources of information. Justification has also been
provided behind selection of issues by using scholar and industry articles.
MAIN BODY
1. Issues, problems or concerns raised there in and selection of important issue.
Business expansion plan in the overseas market is considered as a crucial task for
organization as it involves a complete research and analysis of various important issues and
problems that may arise in the future. Present case study has provided an understanding about the
business expansion of London electric vehicle company (LEVC) which is a leading global
manufacturer and retailer of purpose of built taxis. They are the major manufacturers of black
cabs which has become a global icon (Daziano and Chiew, 2012). Their taxis are considered as
professional choice for drivers and fleet operators worldwide. As per given scenario, company
has planned to increase its business and service across the another overseas market. For this
business expansion, LEVC was required to analyse the issues that they will have to face in
manufacturing of these taxis in other overseas.
On October 2017, company has started its final phase of testing vehicles, by collection of
information from the drivers related to emission savings made and the performance charging
point infrastructure in London. Through market research, it has been analysed that company is
facing various issues that may create problems in driving business to other overseas market.
Critical analysis of industry article provided information that LEVC has faced issues such as
Emission not yet ascertained, high expenditure and requirement of marketing and advertisement,
development of effective infrastructure at charging points, fulfilment of requirement of charging
points at consecutive distance and there was also requirement to analysis from the other market
as well in order to accomplish the requirements of business expansion.
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From the above analysis, major problems was identified which is faced by LEVC in
October 2017 while final face of testing in which they have not found any perfect technique to
identify the level of emission of exerts by their vehicles on the roads (Frynas and Mellahi, 2015).
As per the government rules and regulations, automotive manufacturers and retailers need to
undertake an emission before launching their products and its services in market. It was the
major problem for company to analyse the amount emissions which are exerted by cars. Without
a proper emission test, they will be able to introduce their cars in new overseas market. Critical
analysis of Article provided information that government has provided a deadline of January for
newly licensed taxis in London to be zero emission capable but concerns remains over the
infrastructure capability in the capital.
Other than this, a huge requirement of marketing and advertisement is also major
challenge for LEVC in overseas market. It has increased the expenditure of company in business
expansion. For marketing and creation of high brand image among the customers, organization
needs to adopt new and effective advertisement policies which aids them in expansion of
business operations (Fisher, 2017). Increase in expenditure of advertisement will tend to raise
issues in availability of financial resources.
Introduction of electric cars in the automotive sector has resolved various problems like
use of scarce resources and fuel which is harmful for environment of country. Critical analysis of
industry articles have provided understanding that current plan for the London Electric Vehicle
company is to manufacture and sell around the 10000 vehicles to the parties outside UK by the
turn of the next decade. Along with the manufacturing of electric cars for tax drivers, a major
problem that arise was related to requirement of charging points for the cars at consecutive
distance.
They have also decided to roll out 75 charging points by the end of year but it was
unlikely to be met until 2018 because mayor has told that does not have enough capital to
develop 79 charging points but they can only built 29 points. It is also essential for enterprise to
find out location for setting up charging points for cabs at appropriate distance in order to resolve
other problems. Increase in manufacturing of electric vehicles has raised the problem of charging
points and their low capacity (Geller, 2012).
Analysis of other markets is also a major task that needs to be undertaken by organization
to resolve the problems. Safety of passengers and drivers was the major focus of company due to
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which they installed world class active and passive systems that will help to protect both the
vehicle and other road users. Facilities of new features like sic seats, contactless card machines,
On board Wi-Fi, laptop and USB charging and aluminium body which is stronger and will better
protect the passengers are provided by company. In addition to this, market analysis is also an
important force for enterprise to become familiar with all the important aspects or market to
define target sector and company will be positioned in order to increase its share of sales
(Motavalli, 2014). In this expansion, company also has to face a strong competition in
Automotive manufacturing companies that supply Hydro and Volvo cars.
2. Justification of selected issue using scholar and industry article
Issues that are mentioned above are very critical and lead major impact on the decision of
LEVC for business expansion. In order to identify the information, adequate research is required
to be conducted by analysing various related journals, scholars and industry articles. Problems
which was described earlier about the company to expand its business. The major issue faced by
the organization is related with ascertaining emission which are exerted by the vehicles. Deadline
of January is provided by the government for newly licensed taxi to be emission free in order to
regulate in London. As per the views of Forsyth, (2014), profitable market in the country attract
new entrants in markets which erode the profitability. Unless the new entrants in overseas
markets have strong and durable barriers to entry. For example: Patents, economies of scale,
capital requirements or government policies, then profitability will decline to competitive rate. In
this, Arguable, regulation, taxation and trade policies have made the government a sixth force for
automotive industry in the UK (Hee, 2015). To resolve this problem of ascertaining emission,
company needs to adopt the competitive strategies. These strategies imply to the long term action
plans which is developed to help organization to develop a competitive advantage over its rivals.
This type of strategies are mainly used by somehow discrediting the competition's product or
service. For example: Toyota has also become loyal towards the green business world. In order
to promote the sustainability, company has adopted strategy of developing electric cars which are
free from emission.
Key aspects of ford's sustainability strategy has determined its real leadership such as it is
based on hard science. In this, Ford has worked back from his necessary future reality,
determined that the share of global emission from Toyota vehicles is around 2% and mapped out
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the fuel-efficiency levels that is required to meet the scientific (Winston, 2011). Although, ford
has also said that it tackles both long and short sustainability challenges by developing new
Electric vehicles and using the Echo boost engines in other cars to improve the fuel efficiency by
25%. Ford's competitive strategy is heretical which implies that company to explore sustainable
mobility they have worked on a pilot program, in the Toronto that tends to encourage the people
to use more public transit. In addition, Ford's strategy of sustainability will pursue a broad
portfolio approach, that related to making multiple bets on future. It is also analysed a major
contrast for competition in Automotive industry that have actually bet the farm on one
technology. Improvements of current portfolio of product(Klintsov and Mishchenko, 2016). This
major competitive strategy can drive a real innovation, new thinking and bring loyalty of
customers towards the brand that will maintain or growth the market share. Even, Fords in its
competitive strategy has also provided more focus towards mobility. Moreover, Ford's strategy
aims to pursue approach of brand portfolio. Making improvements in the environmental profile
of the existing product portfolio while introducing new leapfrog product is considered as a tough
balancing act.
From the above analysis, it is clear that LEVC needs to adopt the sustainability strategy
in order to resolve the problems of emission. These competitive strategy will tend to reduce the
barriers for enterprise towards entering in to overseas market. Moreover, requirement of
advertisement and marketing of products and services in new market segment is also major
challenge for LEVC. Performing the marketing function for promotion of products requires a
huge amount of investments and requirement of qualified employees which tends to support in
development strategies for promotion (Mason and Harrison, 2015). In this, Automotive
companies needs to adopt various communication to provide information about their products
and services to customers. Along with this, there are various important business opportunities for
enterprise are available to gain the amount of investments from various individuals such as
competitors, shareholders and financial institution etc. In order to promote its products, company
needs to adopt competitive strategies that implies to selection of the best method of promotion
which requires less amount on investments. Company can use the media channels like TV, social
media, news channels, business Magazines and newspaper to promote their new electronic
vehicles in London.
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Apart from this, the makers of the London Black cab has also unveiled that the new, electric
design of cars tends to hit the capital records in November and it is estimated to sell to pollution
blight cities worldwide. Therefore, it is also essential for to promote their cars in pollution blight
cities of London. As per Transport for London (TFL), all the black cabs from the January 2018
are required to be electric or capable of producing the zero emission. It was also analysed the last
diesel cars from market will disappear from London By 2032. In addition, LEVC has observed
that their new cabs will be competent enough to compete in a world of prius owning the Uber
drivers , by Arguing that it will offer customers a premium price.
Requirements of charging points for electronic cars was also seriously a main issues that is faced
by company after decision of government to remove the fuel taxis. Due to this, company,
government and drivers have faced major problems related to charging points (Morecroft, 2015).
Government has expected to establish 79 changing points, but it has not become possible until
the year 2018. They only have capital to develop the 29 charging points and expected that the
next 15 charging points will be developed after one month. These problems of charging has also
provided on sales of black cabs. Requirements of competitive analysis is also major factor that
tends to provide an analysis of some important factors on which they need to focus on
differentiating the products. In order to reduce the problems of charging points, company has
decided to dedicate 80 charging points for black drivers by the start of next year that will be built
by TFL and other groups. This number will also tend to increase by the end of 2018 from 150 to
300 by the year 2020.
3. Appraisal of sources of information to inform recommendation.
From study of above articles, information about challenges which faced by LEVC in
Automotive sector of London are analysed effectively. These are secondary sources of
information which are used for conducting research on companies policies and practices which
they have to raise in order to increase its business. In order to get information, Scholar articles is
used which has provided a complete understanding business expansion is a strategy in which
growth is obtained by increasing the number of stores in which the clients can buy a company's
products and services (Piekkari, Welch and Welch, 2014). Some important business
responsibilities have been taken in to consideration in order to gain understanding about the
competitive strategies adopted y organisation to gain competencies. Critical analysis of industry
articles related to ford's sustainability competitive strategy has provided an understanding about
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the ways through which Automotive manufacturers and retail organisation can resolve the
problems of emission by manufacturing and selling electronic vehicles. Example of ford strategy
was every effective because it has provided deep knowledge for the organisation to adopt those
strategies which tends to increase their profitability. Key aspects of ford's sustainability strategy
has determined its real leadership such as it is based on hard science. In this, Ford has worked
back from his necessary future reality, determined that the share of global emission from Toyota
vehicles is around 2% and mapped out the fuel-efficiency levels that is required to meet the
scientific. Through the article, loop holes in the company's policies are identified along with
complete understanding of measures that needs to be applied by organization. In order to gain its
competition. Proper research has been conducted has been conducted by researcher in Articles on
industry of Automotive sector. Further, it has been analysed the Ford has faced major challenges
for regulation of its business competitive business environment and also faced issues related
production of emission free vehicles. In addition, Industry article has also provided information
about the laws made by government for ethical functioning of Automotive organisation. Rules
and policies have bounded in organisation to follow the rules of corporate social responsibilities.
As per government rules, corporates needs conduct their business in such a way that they will not
harm natural resources. Exertions of high level of Emission from vehicle manufactured by
Automotive companies has polluted environment and provided harmful effect on health of
people. Therefore, it is essential for companies to concentrate on these factors while
development of new products and service and performing business functions. It is clear that
LEVC needs to concentrate on following green business concepts just like Ford in order to
achieve success in expansion of business. Management of organisation is required to focus on
transformation of existing diesel cars in to electronic by using Echo boost engines in order to
reduce level of emission from their vehicles.
Other than this, scholar article was also very effective because it has provided information about
threats which are faced new companies towards expansion of business in overseas markets.
There are various important factors which are highlighted by literatures on which the
organisation needs to focus while expansion of business. Article has provided information that
LEVC is considering an international market for the cabs and made its investments of £325m in
the factory Coventry as cities across the Europe and beyond impose stricter vehicle standards to
cut air pollution. Firm has also announced that it has been already received an order for the 225
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cars from the Amsterdam Taxi drivers, RMC. As per (), The UK must be proud of having
produced the London Electronic Vehicle company and its progressive Attitude towards cleaning
our air and reducing emissions. “ The major tide of turning on the diesel and it is situation for
Automotive industry as a whole to fully adopt the new electric technology in order to stay
relevant and competitive”
Other than this, Articles have not stated about the role of marketing and advertisement in
expansion of business operations. It was only focused on the issues related to emission and what
needs to done by LEVC to reduce the problems of emission. As per Shaheen and Pogodzinski,
(2014), companies will not be able to expand their business overseas and achieve success in
increasing sale of new products and service unless they will not apply an intensive and highly
effective advertisement and marketing policy. As it was stated in the case, LEVC has estimated
their sale will tend to raise till next year due to increase in sales of cars in pollution affected
cities in London and other countries. From this, it is clear that company will tend to achieve its
expected results of increasing its sales and profitability in span of 5 years by raising its
promotion and advertisement in areas or cities which are influenced by the problems of pollution
(Fisher, 2017). Amsterdam is one of the main city which has adopted these electronic vehicles to
reduce the level of pollution which is exerted by Vehicles and Taxis. Therefore, it is suggested to
the organisation that must use new and digital media channels such as E commerce websites,
sponsor events, Newspaper advertisement and digital media advertisement to raise in popularity
between taxi Drivers of London. For getting a remarkable sales as compared to any other
Automotive sector companies which provided electronic vehicles it needs to launch the cars at
effective prices in order to maintain or increase its markets share. Further, Scholar articles has
also covered research on another problems which has provided major impact on the policies of
organisation in business expansion (Daziano and Chiew, 2012). These are analysed as strategies
which that tends to be adopted by the competitors to increase their business in market. Thus, it is
recommended to the LEVC that they must adopt various important business policies in order to
expand their business and achieve success. Company is also required to follow the competitive
strategy which has been used by the other competitor brand in Automotive sector in order to
reduce the impact of government policies on business operations in overseas. In order to raise
the sales of new products and services in market company needs to identify various sources of
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raising funds and must prepare actions plans to influence the stakeholders to provide support in
business expansion plan.
Conclusion and recommendation
In this report, it is also concluded that business expansion plan in the overseas market is
considered as a crucial task for organization as it involves a complete research and analysis of
various important issues and problems that may arise in the future. adequate research is required
to be conducted by analysing various related journals, scholars and industry articles. Problems
which was described earlier about the company to expand its business. Further, Exertions of high
level of Emission from vehicle manufactured by Automotive companies has polluted
environment and provided harmful effect on health of people.
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REFERENCES
Books and Journals
Daziano, R.A. and Chiew, E., 2012. Electric vehicles rising from the dead: data needs for
forecasting consumer response toward sustainable energy sources in personal
transportation. Energy Policy, 51, pp.876-894.
Fisher, N., 2017. Environmental Issues as they affect business. In Greener Marketing (pp. 35-
54). Routledge.
Forsyth, T., 2014. International investment and climate change: energy technologies for
developing countries. Routledge.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Geller, H., 2012. Energy revolution: policies for a sustainable future. Island Press.
Hee, K. K., 2015. The Study about expansion plans for New Market Development in the side of
New Mega-Trends. e-비비비비비비, 16(2), pp.275-296.
Klintsov, L. M. and Mishchenko, M. V., 2016. INFORMATION SYSTEMS AND
TECHNOLOGY FOR CREATING BUSINESS PLANS OF SMALL
BUSINESSES. SCIENTIFIC BULLETIN OF POLISSIA, (1), pp.74-78.
Mason, C. M. and Harrison, R. T., 2015. Business angel investment activity in the financial
crisis: UK evidence and policy implications. Environment and Planning C: Government
and Policy, 33(1), pp.43-60.
Morecroft, J. D., 2015. Strategic modelling and business dynamics: a feedback systems
approach. John Wiley & Sons.
Motavalli, J., 2014. Forward Drive: The Race to Build the Clean Car of the Future. Routledge.
Online
Piekkari, R., Welch, D. and Welch, L. S., 2014. Language in international business: The
multilingual reality of global business expansion. Edward Elgar Publishing.
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