Report on Success Factors of Taxi Industry in England

This report examines the critical success factors of the taxi industry in England, utilizing PEST and Porter's Five Forces models. The PEST analysis identifies political stability, economic resources, shifting consumer preferences, and technological advancements as key factors. Porter's Five Forces analysis reveals the impact of new entrants, substitute modes of transport, customer bargaining power, supplier power, and industry rivalry on the taxi industry's profitability and competitive landscape. The report concludes that taxi companies in Britain must adapt to external market factors and prioritize customer-friendly strategies to achieve sustainable success and higher revenue. Desklib offers a wealth of resources for students, including similar reports and solved assignments.

Running head: SUCCESS FACTORS OF TAXI INDUSTRY IN ENGLAND
Success Factors of Taxi Industry in England
Name of the Student:
Name of the University:.
Author

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SUCCESS FACTORS OF TAXI INDUSTRY IN ENGLAND
Table of Contents
Introduction:...............................................................................................................................1
PEST analysis of taxicab industry in the UK:............................................................................1
Political:.................................................................................................................................1
Economic:..............................................................................................................................1
Social:.....................................................................................................................................2
Technological:........................................................................................................................2
Porters Five Forces model:.....................................................................................................2
Conclusion:................................................................................................................................4
References:.................................................................................................................................5

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SUCCESS FACTORS OF TAXI INDUSTRY IN ENGLAND
Introduction:
The aim of the paper is to study the critical success factors of the taxi industry. The
chosen country is Britain and the researcher has studies the success factors using the PEST
and Porter’s five forces model.
PEST analysis of taxicab industry in the UK:
The following is the PEST analysis of the taxicab industry of the UK:
Political:
United Kingdom is a politically stable economy with strict laws pertaining to
licensing, taxation, intellectual property rights (IPR) and corruption. This means that
firms of operating in the taxi industry must follow these laws to operate n the country. The
United Kingdom has strong foreign relationships. This means that the taxi firms operating in
the country can expand into foreign markets to maximise their revenue. These success factors
can encourage development of the taxi market (Tidd et al. 2017).
Economic:
The United Kingdom provides the taxi industry capital like easily available financial
help, highly skilled drivers and advanced technologies. It experiences high per capita
income, which means, people in the country have higher disposable income and can afford
personalised cab services. This analysis shows that the availability of resources, high per
capita income and high demand among the customers for personalised rides have prove to
be success factors for the cab service providing companies (Gill et al. 2014).
However, Britain would lose its free trade rights with Europe which would lead surge
the expenditures of British taxi service companies to conduct business with Europe. This

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SUCCESS FACTORS OF TAXI INDUSTRY IN ENGLAND
would prove a challenge for the cab service providing companies in the UK (Lockwood et al.
2017).
Social:
A very social factor responsible for the success of the taxis service industry in the UK
is, shifting of consumer preferences towards personalised taxi rides. The people of the UK
prefer availing personalised cab services due to increase in incomes. This encourages further
growth of the industry. However, there are protests against the personalised cab services
industry due to pollution caused by car exhaust. This analysis shows that the success of the
cab industry depends on its capability to minimise pollution and provide more environment
friendly services (Abdallah 2015).
Technological:
Technology plays a very role in the success of the cab industry because it is
dependent heavily on the use of advanced technology (Tidd et al. 2017). For example, the use
of advanced technology like online ordering system and general packet radio services enable
drivers to receive orders and navigate their ways through the cities. The next critical success
factor of the cab industry, which is driven by technology, is sustainability. The growing
governmental and social pressures on the cab companies to reduce exhaust emission have led
these companies to install more fuel-efficient engines and environment friendly fuel like
liquefied petroleum gas. Thus, the cab companies have succeeded in becoming more
sustainable and gaining stakeholder support, thus making it more profitable (Joung et al.
2013).
Porters Five Forces model:
Porters model
elements
Explanations

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SUCCESS FACTORS OF TAXI INDUSTRY IN ENGLAND
Threats of new
entrants
As pointed out, the society of Britain is experiencing surge in the demand for
personalised cab services owing to increase in disposable income. This has
made the industry extremely profitable, which has attracted new cab
companies. This shows that the critical success factors of the cab companies
depend on their ability to differentiate their products.
Threats of
substitutes
The cab companies face threats from substitute modes of transport like train.
This shows that they should provide offers that are more lucrative to
customers to successful in the market.
Bargaining powers
of customers
The cab industry has become extremely profitable which has attracted new
companies. Thus, the customers have more bargaining powers owing to
availability of large number of cab service providers and substitute modes of
transport like trains. This analysis shows that the critical success factors of the
cab service companies depend on providing more economic rates and more
efficient services like services in interior areas of Britain.
Bargaining power of
suppliers
An analysis of the cab services market in Britain shows that the suppliers
enjoy huge power. The suppliers like sellers of cabs and suppliers of fuel have
the power to influence the prices of the cab services by raising the prices of
the cabs and fuel respectively. This shows that the critical success factor of the
cab services providers here is to maintain a large number of suppliers and
acquire the cabs and the fuel from the suppliers, which charge the economic
rates. This would help the cab industry succeed in keeping its operating costs
low and earn more profits by serving more customers.
Industry Rivalry The cab market is very competitive which has large numbers of cab service

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SUCCESS FACTORS OF TAXI INDUSTRY IN ENGLAND
providers . These providers can influence each other profits by bringing about
changes in their service charges. Hence, the critical success factor here is the
ability of the cab companies to maintain low cost ride offers to serve a huge
customer base and earn huge revenue.
Figure 1. Porter's model
(Source: Author)
Conclusion:
This discussion shows that the cab industry in Britain should adapt to the external
market factors to be more successful in operating in the country. They should also operate in
more customer friendly like offering lucrative discounts to attract more customers and earn
higher revenue.

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SUCCESS FACTORS OF TAXI INDUSTRY IN ENGLAND
References:
Abdallah, I.S.E., 2015. Migration as a Factor Conditioning State Economic Control and
Financial Policy Options. The Politics of Arab Integration, p.141.
Gill, A., Biger, N., Dana, L.P., Obradovich, J.D. and Mohamed, A., 2014. Financial
institutions and the taxi-cab industry: an exploratory study in Canada. International Journal of
Entrepreneurship and Small Business, 22(3), pp.326-342.
Joung, C.B., Carrell, J., Sarkar, P. and Feng, S.C., 2013. Categorization of indicators for
sustainable manufacturing. Ecological Indicators, 24, pp.148-157.
Lockwood, M., Froggatt, A., Wright, G. and Dutton, J., 2017. The implications of Brexit for
the electricity sector in Great Britain: Trade-offs between market integration and policy
influence. Energy Policy, 110, pp.137-143.
Sachs, J.D., 2015. The age of sustainable development. Columbia University Press.
Tidd, J., Bessant, J., Jordan, J., Grant, R., Stewart, G., Brown, K., Rayner, C., Rees, G.,
French, R. and Rumbles, S. (2017). The cab market is very competitive which has large
numbers of cab service providers . These providers can influence each other profits by
bringing about changes in their service charges. Hence, the critical success factor here is the
ability of the cab companies to maintain low cost ride offers to serve a huge customer base
and earn huge revenue.. John Wiley & Sons, pp.85,86.