TiffanyChen GeelyLTI Indi2 .pdf
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Recommended Strategies in the Current Market
for Geely’s Taxi Manufacturing Business
read the instructions please. You are writing a brief to your boss who already knows this
In 2012, Geely had acquired the LTI TX4, London’s iconic taxi model. However, the entrance of a variety of new
competitors in the taxi market has continued to hinder sales of this model. As such, the current task at hand is to
develop and implement a competitive strategy to keep pace with the current market environment.
Geely demonstrates more than a few strengths in regards to its automobile venture. The company is proactive in
acquiring automobile brand and manufacturing companies, with more than two dozen subsidiaries under Geely
Automotive. As a result, Geely has immediate access to a plethora of patents and technological expertise. Even their
domestic brands - Emgrand, Englon, and Gleagle - are relatively successful in China, especially considering their
exceptional car manufacturing capabilities. Now with the TX4 joining the ranks, Geely has a superior taxi model
that is able to fully meet the needs of urban taxi companies.
Even with these strengths, Geely will no doubt face uncertainties and future concerns in the taxi market. It is
uncertain whether or not TNC’s, “transportation network companies”, like Uber will render traditional
or if regulations will materialize in favor of the taxi business. If TNC’s do continue to exist, there will need to be a
co-existence between the two types of services or direct competition. The future is also uncertain of whether
countries will eliminate or decrease regulations on taxi model features and driver qualifications, which will require a
new strategy altogether. New competitors will enter the market as well as the potential for existing competitors, like
the TNCs, mini-cab service, “limo” service, and the cheaper Nissan NV200 to gain the upper hand. Perhaps even the
development of driver-less automobile technologies may throw a wrench in the works of traditional taxi service,
making way for a new era of convenience transportation.
A number of strategies can be implemented with Geely’s resources and capabilities as an automobile manufacturing
A. Develop a “light” version of TX4: While the TX4 is necessary in London with its strict taxi feature
regulations, the high price tag deters many from purchasing the model in other countries. A “light” version
will include the minimal features to suit these less regulated regions. All features should remain except the
handicap ramp, tight turning radius capabilities, and intercom. A simple plastic or wire divider between the
driver and passenger is sufficient. This model should be sold in non-London regions or areas with looser
taxi feature regulations to compete with other cheaper high volume production vehicles. The original TX4
will still be offered in lower production to accommodate passengers with disabilities.
B. Offer taxi-specific version of existing brand: Geely should adapt one if its high volume subsidiary auto
brands, such as Volvo or Geagle, to offer a purpose-built taxi model that can compete with other cheaper
competitor offerings. The company can pull from existing resources and expertise while offering a
competitive product with the minimum necessary features.
C. Introduce new Geely taxi service: Geely should consider expanding their business to directly participate
in the taxi service industry. The service market is highly influential in the sales of taxi vehicles. With more
convenient options from TNC’s, Geely should invest in a partnership with tech. developers to create a
central dispatch system or a smart-phone application that is most useful in urban technology-dense regions.
With this service, Geely can compete with the convenience of TNCs and be able to partner with tourism
companies and businesses to be the sole taxi provider for its customers and employees. equipped with
useful features like in-car wi-fi.
In conclusion, Geely needs to make product modifications or expand into the service business in order to compete in
the current market, Using any or a combination of these strategies will aid in the growth of taxi vehicle sales .
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