The three factors that I see most relevant to Geely’s manufacture of the TX4, ordered by importance are: popularity of TNCs, prices that competitors set, regulation on the taxi industry, and the economy. TNCs have become increasingly popular in metropolitan areas because they address problems with the taxi system. These issues include: location, safety, payments, and supply. If TNCs continue to grow and take market share from the taxi industry, the demand for all taxi cars will decrease which will in turn affect Geely.
Price is the second most relevant uncertainty that Geely faces. A big problem with Geely’s current TX4 is that Geely cars are expensive compared to other vehicles due to U.K. regulatory standards. It... View More »