Green Cabs Case Study

1650 WordsMay 10, 20117 Pages
MANT 303 – Entrepreneurship Assignment One – Green Cabs case study 1. Green Cabs has many opportunities to grow their business into other locations and also diversify into other services (e.g. courier services, shuttles, vans). They have resisted these opportunities to date. Should Green Cabs be taking these growth opportunities? Why or why not? I believe the decision to expand areas of Green Cabs opertaions is one that Callum Brown should offer more thought. Green Cabs currently possesses strong market positions in Auckland, Wellington and Christchurch and a distinct image with their bright green cabs. They have recently secured priority spaces at New Zealand’s three main airports and are increasing their exposure to consumers with a…show more content…
Green Cabs already have elements of prospector strategy because they have introduced an eco-fiendly option to the taxi transport service – an innovative idea. To implement prospector strategy a company must make a point of difference to consumers and sell their product based on that difference. This strategy focusses on customer service and advertising their advantage to competitors. Whilst Green Cabs has introduced an innovative idea to the taxi transport industry, they will struggle to maintain a prospector strategy as it is likely that they will not be able to maintain a high level of innovation. Google is a company that has a true prospector strategy as they are constantly developing new products in a wide range of industries. The nature of prospecting strategic behavior is now becoming more of a competitive requirement (The Economist, 1998) with little sanctuary from aggressive competitive actions in most product-markets (Doyle and Wong, 1998). This is evident in the fact that Green Cabs competitors are making the change to hybrid vehicles in order to be more efficient. Analyser strategy is slightly differenet to prospector strategy in the way that it tries to find a balance bewtween innovation and maintaining a solid market position. I think analyser strategy is the best option forward for Green Cabs. Whilst they were pioneers of the eco-friendly taxi transport option (which is a characterisitc of a prospector
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