Geely Case Analysis

1005 words, 5 pages

Intro Sample...


UGBA167
Question 1
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 »

Body Sample...


A big problem they face is losing out to other competitors because their cars are more expensive. If Geely could reduce the price of their vehicle they may be able to compete with the other taxi makers.
Price coincides with Geely’s product. Geely can also change up their product by making a cheaper, cost efficient car, the NX4 light. Geely can capitalize on having Volvo in their portfolio to create synergies between the NX4 and Volvo cars to use similar parts and production facilities to make a cheaper car that is also cheaper to produce. This strategy will help Geely compete with taxi makers such as Ford and Nissan.
Geely can also choose to expand into specific markets. Their car design is vintage and different from most other taxis, and they can use this aspect to expand into certain countries that have a high demand for taxis. They can also look to expand mainly in cities that have less public transportation or fewer cars per population such as Hong Kong. This coincides with the assumption that with less cars per population more individuals really on taxis and public transportation.
Another decision I considered, though not as important as the other three, was for Geely to lobby in certain countries or cities. They can lobby to either stop TNCs or to increase regulations on taxi cars in cities that have less regulation than the U.K. Though very expensive, these two scenarios will help stop the spread of TNCs and stop the sale of competitor taxis are not as specialized as Geely’s taxis.
Question 3
Geely can certainly use probability to help in its decision making ...

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