MKT6015: LYFT's Internationalization Strategy for Singapore

This report provides a detailed analysis of LYFT's potential entry into the Singaporean market. It begins with an introduction to LYFT and an evaluation of the target market, considering demographics such as age, gender, education, income, market size, and growth rate. The report then explores suitable marketing strategies, emphasizing early adopter advocacy, offers and referral codes, customer satisfaction, local driver hiring, and partnership strategies. A key recommendation is the acquisition of a local ride-hailing company, Tada, to facilitate market entry and minimize political risks. The report delves into the marketing mix, including product modifications, pricing strategies, place considerations, and promotional activities. Overall, the report presents a comprehensive international marketing plan for LYFT's successful expansion into Singapore, offering actionable recommendations based on market analysis and strategic considerations.

Internationalization
strategy

Contents
Introduction...........................................................................................................................................2
Evaluation of selected target market......................................................................................................2
Suitable Marketing Strategy for LYFT to enter in Singapore................................................................5
Suitability of market entry recommendations........................................................................................7
Marketing mix recommendations..........................................................................................................8
References...........................................................................................................................................12

Introduction
The report brings out a discussion on LYFT, which is a ride-hailing organisation in US. Lyft
is a ridesharing organisation headquartered in San Francisco operates in 644 cities in US and
12 cities in Canada. The company is the second largest ridesharing organisation in US with
28 percent market share after Uber. The report elaborates selected population (target market)
for the Lyft in the Singaporean market based on their income level, growth level, size of the
market, and demographics. Market entry strategies has to be formed according to the
Singaporean market. While establishing in the foreign market, the company has to use mode
of entry to penetrate the Singaporean market. Identifying the mode of entry is quite
important, as Lyft has to take a support from the local market so that it can make its own
position.
Evaluation of selected target market
Currently, the population of Singapore is estimated at 5830702 on the basis of world meter
elaboration of UN data. 100 % population resides in urban area in Singapore.
Demographics-

Ride sharing has emerged as one of the most transformational growth sectors of Singaporean
consumer market. It has been seen that capturing market at an expense not only taxi services
but also from different companies such as Ola and uber.
Singapore is a country of opportunities for the Transportation and Logistics Network industry
as the main leading industry for its development, since 1965, it has attained the global
identification and very strong image in as the rapid developing country setting the exemplary
image of development for other developing countries (Adams, 2020). It has several
opportunities for the Transportation and Logistics Network industry because it deals in the
global transhipment firm its port hence it has major opportunities for the foreign
transportation industries managing the balance between the government and private running
transportation services in the country like Uber and Grabtaxi services. Targeted market for
the Lyft to enter in the industry will be based on the given demographics-
Age Lyft has to plan its strategies to deal in the
all age groups of the passengers, with more
focusing to provide the facilities to the
passengers according to their age. It has to
facilitate the service based on the demand
made by the passengers, while getting an
idea about the age can add extra features to
the aged and child passengers returning the
profitable returns to the company as
customer satisfaction (Goodall, 2016).
Gender Lyft has made some case of female safety in
the market of the united states and Canada,
it can focus on extra safety and security

features added for the women safety
according the policies of the country is
essential and it have to target all genders
equally with better services.
Education and Income Employed workers, students, and passengers
with low income can be the target to deal
the industry. As these customers are
traveling daily from their residence to their
desired destination, distance they cover may
lead challenges due to using public
transportation. Shared rides with the cheaper
pricing strategy can attract these passengers
(Griffith, 2020).
Market Size Market of Transportation and Logistics
Network industry in the Singapore is very
developing and has opportunities for the
new entering companies; this market has
many aspects and features to deal by the
entering company. Daily travelling is
common and easy ride at affordable price
have large market size in the country and
other industries (Newlands, 2020).
Growth Rate Singapore has effective and continuously
rising growth rates, cost based
differentiation strategy of the Lyft can make

effective contribution towards the
development of the industry as well as in the
country economy. Because, Singapore has
effective opportunities for new entering and
previously dealing industries in the
Transportation and Logistics Network
industry of the country (Shen, Zhang and
Zhao, 2018).
Suitable Marketing Strategy for LYFT to enter in Singapore
Transportation and Logistics Network industry is the most developing industry in the
Singapore, and it is the most supportable industry to the development of economic
importance of the Singapore at international level. This industry support the overall growth of
the economy and other factors of the country hence it has many business entities dealing
successfully in the sector, making this sector very challenging for the new entering business
entities (Shen, Zhang and Zhao, 2018). LYFT needs to follow some effective and challenging
market entering and position maintaining strategies to beat the competition of the industry for
profit.
Early adopting advocacy
Lyft need to conduct the market research about the prevailing government and privately
owned Transportation and Logistics Network industry in the country and then needs to
change and plan its marketing strategies based in the early adaption of the competitive
strategies if the competitors (Shen, Zhang and Zhao, 2018). It is essential for an established

company before entering in a new market to compare the profitable and harmful conditions of
a country by effective PESTLE analysis of the country, this facilitates the industry to work
upon its weaker and strongest aspect of the business and successfully enter in a new
challenging market.
Offers and referrals codes
Transportation and Logistics Network industry dealing the easy and affordable rides to the
customers have made many changes in the transportation industry, there is the most
profitable, and challenging aspect, that Lyft has to deal its pricing strategies to attract the
customers. These customers are already using the other services are challenging to divert
because long run use of a product or service made the brand popular among the users. Hence,
best price offers and effective referrals codes for the new joining customers; this code service
is already introduce by the company in 28 cities of the United States and more than 12 cities
of the Canada (Yuen, Thai and Wong, 2016).
Prefer the customer satisfaction
Dealing successfully in the United States and Canada, with many riding services, like shared
rides at the cheapest price, luxuries cars with 4-5 and SUV with the 6 seats facilities for the
shared rides for the passengers books the cabs for the same direction. This service gained
much attention from the customers as colleagues of an office; students of the universities are
the most focused segment for it. Hence, it can focus to identify the customer’s need,
requirement, and the aspect they find troubling for the prevailing cab services and can use
modification for them to attain the customer belief and satisfaction in the industry. Entering
in the sector of Transportation and Logistics Network industry is challenging but dealing a
long run journey with the customer satisfaction is more challenging than the entry. Therefore,

it has to manage the initial strategies based to attract the customers with aim to provide
maximum satisfaction from their services (Griffith, 2020).
Lead local hiring for the drivers
Local riders and drivers from the Singaporeans local people is profitable for the Lyft, because
these riders and drivers are familiar with the routes, charges, public interests, demand and
many other important aspect of the transportation and Logistics Network industry of
Singapore. Entrance of an innovative industry in the Singapore can made many profitable
changes for its economy, hiring of the local drivers and riders will increase the rate of
employment in the country(Griffith, 2020). Therefore, Lyft needs to deal with the
government agencies to gain their support for the establishment of their industry in a globally
challenged market of the transportation and Logistics Network industry in the Singapore.
Hiring a large number of cab drivers will result a solution for the unavailability of the cab at
the peak time or any other challenging situation for the passengers (Goodall, 2016).
Partnership strategy
Government of Singapore is very concerned about the development of transportation industry
in the country because it is the most important industry making the country string in the
economy, hence Lyft can enter into partnerships with the government to make effective
contribution in the industry and return positive values to the government. Singaporean
government has introduced many policies to develop the transport industry, partnership with
government for the international airport cab services, introducing the options for longer
booking and other facilitating options at the best price in the industry (Adams, 2020).
Suitability of market entry recommendations
Market strategy is planned distribution and other delivery methods of services to new target
market. Currently, there are many entry modes to new foreign market such as franchising,

partnering up, joint venture, acquisition, and licensing. It is important to know and consider
that not two nations are same, which entry strategies select two factors “one size fitting all.”
LYft must select to acquire with local organisation such as Singaporean largest taxi operator
“Tada” looking for overseas acquisition. Tada ride hailing application was launched in 2018
and it started offering 50 percent of cheaper rides. This app share booking mechanism
collaborate with taxi booking application at specific time and date (Surdu, and Mellahi,
2016).
Acquisition of business is the process of acquisition “Tada” while creating strengths and
weaknesses of acquiring organisation. Lyft will acquire with Tada with an aim to penetrate
the Singaporean market. Furthermore, licensing is quite important as arrangement between
Singaporean government and Lyft while running the business operations (Grünig, and
Morschett, 2017). The strategy will include another company`s control of share. The
organisation will purchase more than 50 percent of Tada`s holdings in terms of assets to
create decision in getting approval from organisation`s shareholders. The company will need
huge number of cars needing significant investment. This refers to acquire organisation so
that it can obtain extra income and reaching to the new markets (Singaporean market) (Surdu,
and Mellahi, 2016). Currently, “tada” has more than 19000 drivers as new mobile application
of nearly 2000 taxi drivers (Lay, 2018). Acquisition is the highly recommended option
through which the political risks can be minimised. Tada is a block chain system, which
gather data from its users to get feedback inclusive of driving speed, traffic records, and also
the repairing history. The acquisition will lead to capital growth when it values acquired
synergy effects in addition to the purchase price and liabilities. The quality of assumptions do
not depend on coordination between varied business units such as strategic planning, legal
section, finance department, and other activities involved (Gundelach, and Hansen, 2018).
Furthermore, .Lyft`s marketing skills can make a huge difference in attaining greater market.

Local company will help to know the audience with an apparent view and comply with the
legal standards as being regulated by the transportation laws (Gundelach, and Hansen, 2018).
Marketing mix recommendations
Modification is quite necessary in the marketing mix of Lyft so that it can penetrate the
Singaporean market. Growth of lyft has processed acquisition with an aim to expand
transportation system in lower income areas in the cities, in which it operates. The increasing
demand asks for the recognition of business level strategies and modifying them according to
the Singaporean market. The success factors of business arises from wide range of outcomes,
which can be predicted only after identifying external opportunities (Wu, and Li, 2018).
Product-
Currently, Riders download Lyft application in US to Android based mobile by signing up,
entering phone number, and entering payment form once funds are being debited from
funding source. Within the application, the company offers five types of rides such as shared
ride, Lux, Lux black, Lux Black XL, Lyft XL, and Lyft (Datta, Ailawadi, and Heerde, 2017).
Furthermore, currently it offers scooter ride and all the drivers will undergo checking of
backgrounds of drivers so that they can provide safe and secure ride to the customers.
According to the acquisition of company from the local market, it is seen that Lyft will offer
same services to the Singaporean market also by using taxis from Tada to have maximum
market share. In contrast to the current business strategies, Services will include-
Lyft-scooter- This will allow people to book their scooters through application and roam
around the place. As maximum population resides in the urban area, so they need services to
reach to their professional places (Wu, and Li, 2018). To become more competitive to uber, it
can offer Lyft can offer pool services, which will let them to travel with other travellers

moving in the same direction. This is a cheap source of transportation also; it reduces the
number of cars on road. This process will help Lyft to use the available resources of “Tada”.
Price-
The current situation in US says that lyft executives ask for increasing the number of
customers when paying full price for their rides even when promotional incentives have been
decreasing. Lyft has been acquiring and launching new initiatives to partner with
organisations so that it can strive for greater market share. The fact Lyft avails people with
the accessibility towards the air-conditioned and comfortable cars on trips. People often look
for rides that are quite comfortable and affordable. . In contrast to the current business
strategies, the company must use penetration pricing. Metros are too crowded as the
transportation agencies are stubborn with its illegal pricing methods. Lyft put towards
exploitation of travellers through local transportation, which indicates 10-11 people on daily
basis can use that one car. Pricing continues to act as an important role with an aim to
popularise Lyft, the company will offer reasonable discounts at cheapest price possible. The
organisation will provide most comfortable ride with best use of available options such as
Uber Moto, Uber Go and Uber Pool.
Place-
To enter into a new market, Business is required to consider the location and distribution
method to target customers with easily accessible in which Lyft will focus on target areas like
shopping areas, towns, corporate areas, industrial and the main is the airport. Lyft is required
to analyze the different locations where the demand for cab services is more. For making the
business effective and successful, it will be beneficial if the services will be started at the
airport as a large number to tourists travel from different countries and they require to book
can at cheaper prices to reach their location. In order to deliver the services and reach to a

huge number of customers, the organization is required to provide the services at tourist
locations like Raffles, marine bay area and Merlion (West, et al., 2015). The requirement of
ridesharing services is more at the tourist and corporate areas. In order to catch the eye of the
customers, the organization can provide the services to make it easy for them to avail of the
service in less time. Premium locations are necessary to be considered for attracting a large
number of customer. In Singapore, Orchard Road area is the shopping area which is
surrounded by residential area will be beneficial for starting the services of Lyft as the people
requires the ride services for reaching to the shopping area and it will be a good location for
marketing the product in Singapore. In Singapore, commercial areas like River Valley and
Suntec City are an effective area for beginning the ride-sharing services in Singapore and
more customers will be attracted to the Lyft services when the services will be provided at
cheap prices than other competitors. The transportation requirement statistics will be
analyzed for providing safe services to customers (Khan, 2014).
Promotion-
The challenge is to penetrate the market by making its own brand and reputation so that while
entering into such a dominated market, it is important that they will hire the contractors that
can attempt to convert local application users for travelling into lyft drivers during the ride
itself. Lyft needs. Social media refers to the series of marketing efforts, which will created by
the Lyft such as-
In contrast to the current business strategies, to solve the Singapore`s limited space and
parking issues, Lyft can accomplish “XL tissues for parking problems”. With this campaign,
it will reduce the idea of ownership of private cars by promoting several transportation
services and carpooling. There is always a rule to keep the customer’s first while marketing
the services. Pool services availed by the organisation will let big groups to revolve around

the country as tourist often have limited time to roam. Lyft can avail a sense of peace of mind
by reducing the traffic. Furthermore, it is an environmentally friendly concept, which will
reduce carbon footprint (Pomering, 2017).
By availing roadshows so that people can information regarding Lyft. Marketing campaigns
will communicate to the market to reinforce position of Lyft. Furthermore, marketing
campaigns can promote goods with different types of media, radio, television, and other
online platforms (Armstrong, Kotler, Harker, and Brennan, 2018). In contrast to the current
business strategies, campaigns are not reliant on advertising and it includes other interactive
techniques, which can induce customers to travel through Lyft. For example- Safety issues
and insecurities such as robbery, theft issues have become severe issue for customers
(Pomering, 2017).

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