Green Cabs Case Study
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 unique marketing campaign, which includes carbon offsetting. With such a succesful position aquired after only being founded in 2007, it is important that Green Cabs continues to expand into new cities. Their competitors are beginning to imitate Green Cabs’ initiative, they must ensure a presence in more cities to increase overall customer exposure.
Green Cabs controls a large portion of the market where their taxis are situated. With the ever increasing environmentally concious population, demand is likely to remain strong. Currently Green Cabs is a SME, operating in 3 main centres with 104 drivers. With the successes that the company has had in these cities, it would be a wise decision to start broadening Green Cabs horizons by testing the waters in more New Zealand cities. It would be wise for them to initially start offering franchise opportunities for taxi drivers situated in North Island centres close to Auckland such as Hamilton and Tauranga. This would enable close monitoring of the expansion and lower costs as they could probably run these centres through the Auckland call centre. After testing the waters in these areas, and strengthening their position on the national market, Green Cabs can look to expand to new
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 unique marketing campaign, which includes carbon offsetting. With such a succesful position aquired after only being founded in 2007, it is important that Green Cabs continues to expand into new cities. Their competitors are beginning to imitate Green Cabs’ initiative, they must ensure a presence in more cities to increase overall customer exposure.
Green Cabs controls a large portion of the market where their taxis are situated. With the ever increasing environmentally concious population, demand is likely to remain strong. Currently Green Cabs is a SME, operating in 3 main centres with 104 drivers. With the successes that the company has had in these cities, it would be a wise decision to start broadening Green Cabs horizons by testing the waters in more New Zealand cities. It would be wise for them to initially start offering franchise opportunities for taxi drivers situated in North Island centres close to Auckland such as Hamilton and Tauranga. This would enable close monitoring of the expansion and lower costs as they could probably run these centres through the Auckland call centre. After testing the waters in these areas, and strengthening their position on the national market, Green Cabs can look to expand to new
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