PEST Analysis Report: New Taxi Service Business in Global Market

This report presents a PEST analysis for a new taxi service, examining the external environment across political, economic, social, and technological factors. The analysis begins by introducing the new business, which focuses on airport-based taxi services in the US, differentiating itself through mobile application and phone-based booking options. The report emphasizes the importance of market exploration and promotional strategies for global expansion, including discounts, cashback offers, and brand ambassadors. The PEST analysis itself outlines specific factors within each category: political (environmental acts, taxation), economic (driver wages, competitor wages), social (user awareness, app usability), and technological (experience sharing, GPS technology). The report concludes by providing a comprehensive overview of the key external factors influencing the business's success and potential strategies for market entry and growth.

Running head: PEST ANALYSIS
Pest Analysis
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Author Note

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PEST ANALYSIS
New Business
Lately, the cab service business is a huge success in the market due to excellent
service quality of their cab services. In most of the cases, it is reported that, the car services
are based on the mobile application and from their mobile the users can book the taxi from
anywhere (Wirtz & Tang, 2016). In this new business, the company will focus specifically on
the taxi services around the airport area of US. In US, there are various taxi services in the
country; however there is no airport based taxi services in the country. So, this new business
will primarily focus to provide services to the travellers who are travelling to US or going
outside from US. So, this new business will help the travellers commute in more precise way.
Unlike the other taxi services present in the country, this new company will also provide
phone based services, that is the users can book their taxi by calling the company from their
mobile phone and the company will track the location of the travellers or the users by
tracking the GPS location. Not only that, the service will be also available for the customers
through the mobile phone application of the company .
Business in Global Environment
In order to develop this business in others countries of this world, the company should
first identify and explore the markets of the target country so that they can generate revenue
from the market of that country(Devarakonda et al., 2013). As a part of this, the new
company will perform a PEST analysis so that, the external environment of that particular
country can be understood and as per the PEST analysis the company can fix their business
strategy as well (Sammut‐Bonnici, & Galea, 2015). Not only this, in new country, the new
company should also use the attractive promotional strategy so that more number of people
can know about the new service of the company. As a part of this, the company may provide
discounts to the customers and it will attract more people to use the new service. Along with

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this they may provide cash back offer to the users during availing the first ride in their taxi
service. As the service is new in the market they can launch a renowned person of that
country as a brand ambassador of their company and it will help to attract more customers to
their services. As a part of the management role, they should arrange more cars to make the
service more frequent (Radhakrishnan et al., 2013). Along with this, for managing the
environmental condition, the company should use modern technology (modern engine) to
reduce the environmental pollution as well.

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PEST ANALYSIS
References
Devarakonda, S., Sevusu, P., Liu, H., Liu, R., Iftode, L., & Nath, B. (2013). Real-time air
quality monitoring through mobile sensing in metropolitan areas. In Proceedings of the
2nd ACM SIGKDD international workshop on urban computing (p. 15). ACM.
Radhakrishnan, M., Camp, G., Salazar, O., & Kalanick, T. C. (2013). U.S. Patent Application
No. 13/837,592.
Sammut‐Bonnici, T., & Galea, D. (2015). PEST analysis. Wiley Encyclopedia of
management, 1-1.
Wirtz, J., & Tang, C. (2016). Uber: Competing as market leader in the US versus being a
distant second in China. In SERVICES MARKETING: People Technology Strategy (pp.
626-632).

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Appendix.1
Political Factor
 Environmental acts of the country
 Taxation policy of the government
Economic Factor
 Enhancing wages of the drivers in the
particular country.
 Presence of other rival companies
providing more wages to the drivers
in the particular country.
Social Factor
 Awareness of the users regarding the
use of the service in the particular
country.
 Easy to use mobile application for the
users in the particular country.
Technological Factor
 Sharing of riding experience of the
users in the particular country.
 Use of GPS based technology and
phone booking systems reduce the
waiting time of the riders in the
particular country.
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PEST Analysis of New Taxi Service
This PEST Analysis looks at the validity in moving forward with the