Discuss how your chosen company can reduces issues and challenges of the market with the help of innovation.
The primary purpose of this paper is to provide brief information about the innovation in Victoria taxi association. VTA encourages the operations and activities of taxi industry in the city. The paper explains the significance and impacts of innovation. The company faces enormous issues and challenges in the city while making innovation. More detail of the task has been detailed below.
Victoria taxi association is the representative body of the taxi operator’s organizations in the Victoria state. VTA promotes and encourages the work of taxi industry in the global market. It shall be noted that VTA closely work with Victorian government for expansion and development of the taxi industry in the competitive market (Cairns & Liston-Heyes, 1996). Victoria taxi association identifies and measures the new opportunities within the state in order to engage in social activities and operations. It will help to maximize and increase the revenue and profitability of the firm. It shall be analyzed that taxi industry in Australia is largely regulated and operated by the state authorities and government (Rose & Hensher, 2014). It is noted that taxi regulations are very harsh and complicated in the country that could affect the success and growth of the firm. Drivers are considered the heart and soul of the taxi industry in the Australian country. In today’s era, the significance of taxi industry is increasing and improving day by day. It shall be stated that excellent and unique services are being provided by the taxi drivers in the global market. In today’s era, various factors may influence the success and growth of the firm. Disruption in the taxi industry creates fluctuations and further it affects the efficiency and effectiveness of the individual operators (Hwang & Christensen, 2008).
Innovation may be defined as a new idea, device and method to accomplish the long term goals and objectives of the firm. It is crucial and effective to the continuing success and growth of any company. Innovation is done by Victoria taxi association in a large extent. State regulators and commentators believed that emergence of Uber and other booking apps as some sort of miracle developed by forces outside the taxi establishment. VTA structure is focused on the top down models of control and command. A single vertically integrated biggest player, cab charge, has dominated the taxi industry. Therefore, the industry can be portrayed as an oligopoly. These innovations improve and enhance Cab charge profitability and revenue. It also helps in providing safety and security of the passengers. Innovation is done by VTA at three levels to maximize the profitability and returns within the organization. These three levels include renewal, revolution and resilience. There are two types of innovation including sustainable innovation and disruptive innovation. Disruptive innovation may be defined as a innovation that creates a new market and network and ultimately disrupts an existing and new market, growth and value network. The disruptive innovation focuses on the product and service which has not been presented in the market. It helps in reducing the prices of the product and service with increasing in market share. On the other hand, sustainable innovation focuses on the better product and high profit margin in the sales. Both the innovation are done by VTA while performing business activities and operations in the global market (Gevero, Alves & Durante, 2015).
It shall be noted that VTA is increasing and improving the technological presence that can helps to gain competitive advantages in the market. If the company uses new and innovative technology then it will help to make a good image in the minds of the consumers (Meng et al, 2015). App based taxi booking is done by VTA to increase and enhance the profitability in the taxi industry. It will also help to maintain sustainability in the country (Gander et al, 2011). Under innovation, integration and effective fare collection system would be used by the industry. Along with this, the industry needs to focus on the needs and requirements of the drivers to expand and flourish the business of taxi. In addition, VTA needs to implement the peak time fare and off-peak fare collection system to increase and enhance the outcomes. The industry also focuses on the simplicity and convenience to attract wide range of customers in the global market (Kefauver, 2014). It has been studied that VTA has created an interactive learning lab where employees, students and technology partners can collaborate and communicate on a wide variety of innovative transportation tasks and projects (Noble, 2013). The innovation center includes workstations where staff and participants can build, test and showcase new technology that will improve and enhance the transit consumer experience and optimize the functioning of the company’s vehicles as well (Lam, 2004). It will also help to improve the transportation infrastructure. VTA is working on the various new projects to improve the transportation system (VTA, 2018). It has been stated that VTA has opened a new innovation center at River Oaks headquarters on February 2018 as a space where VTA companies and teams can improve the technology and transportation system (Maciejewski & Bischoff, 2015). Many of the exciting projects are being undergone by VTA to focus on the mobile apps, big data, and connected vehicles. The industry is trying to develop a zero emission vehicle with dynamic features and quality to attract more clients (VTA, 2018). The taxi industry is trying to enlist potential and talented candidates to drive the taxi industry in the country. Moreover, pilot programs were designed by VTA to interact with taxi passengers at various stages of their journey. It increases awareness among the passengers while travelling. The red dot projects are being undergone by VTA in the city (Abelson, 2010).
Innovation helps VTA to make a strong goodwill in the marketplace. Furthermore, it provides competitive advantages to the industry. If the innovation is done by VTA then it can increase market share and profitability in the rivalries market. Along with this, it also maximizes operating income and revenue of VTA. Innovation in VTA also helps in predicting future risks and challenges of the market. It also improves and enhances the transportation system. Innovation is done by VTA to earn more income in the competitive market. Innovation in software allows drivers to better utilize their time and services. If VTA hires talented and potential drivers then the customers can take more advantages by using taxi services. Furthermore, it helps in making good relationship with customers in the market. Innovation also helps to identify and analyze the plans, policies and strategies of the competitors. Besides this, it also empowers the employees to innovate and improve their work processes provide a sense of sovereignty that develops and boost morale and job satisfaction in the workplace. Innovation also provides new opportunities to the consumers as well as VTA (Victoria Taxi Association, 2017).
If the innovation is done by VTA then various challenges would be occurred in the global market. VTA is unable to differentiate and integrate innovative concepts in the marketplace that may affect the profitability and revenue of the taxi industry adversely. Huge cost is involved in the innovation therefore it reduces the revenue of the industry. Apart from this, it shall be noted that VTA has been unable to focus and identify the plans, actions and strategies of the competitors due to lack of talented and potential staff. There is a high chance of disruption innovation (Schwab, 2018). The government is not provided fund for innovation therefore VTA has to invest money that leads to insolvency. Illegal taxi operators may also influence the innovation in the city. Furthermore, rules and regulations that have been made by the government can disturb the innovation in the country. VTA needs to focus on these issues too overcome and strive with competitors in the international market (Samuel, 2015).
Now it is recommended that VTA should focus and identify the new and latest technology to stay in the competitive market. Along with this, it must establish the financial bank system for taxi drivers that can render assistance of insurance, car loan, medical insurance, accident claim, and superannuation. It shall be revealed that VTA should focus on the new business model for innovation. Besides this, the government should provide funds to VTA while making innovation. VTA should also focus on the macro environment factors for innovation and enhancement. In this way, VTA can achieve its long term mission and vision.
Conclusion
Form the above mentioned analysis, it can be concluded that Victoria taxi association provides various services to the passengers in the country. The paper explains the contextual factor innovation that could affect the revenue and returns adversely and positively as well. VTA needs to make effective strategies and policies for innovation. The taxi industry faces ample of issues while making innovation in the operations and projects. At the end, effective recommendations have been given to make a strong financial position in the market.
References
Abelson, P. (2010). The High Cost of Taxi Regulation, with Special Reference to Sydney. Agenda : A Journal of Policy Analysis and Reform, 17(2), 41-70
Cairns, R. D., & Liston-Heyes, C. (1996). Competition and regulation in the taxi industry. Journal of Public Economics, 59(1), 1-15.
Gander, P., Hartley, L., Powell, D., Cabon, P., Hitchcock, E., Mills, A., & Popkin, S. (2011). Fatigue risk management: Organizational factors at the regulatory and industry/company level. Accident Analysis & Prevention, 43(2), 573-590.
Gevero, A., Alves, E., & Durante, B. (2015). HOW UBER AND OTHER RIDE-SHARING COMPANIES ARE ROILING THE TAXI MEDALLION INDUSTRY. The RMA Journal, 98(4), 36-41,11.
Hwang, J., & Christensen, C. M. (2008). Disruptive innovation in health care delivery: a framework for business-model innovation. Health Affairs, 27(5), 1329-1335.
Kefauver, J. (2014). How apps like Uber, Airbnb could impact your business.(POLICY CHECK). Nation’s Restaurant News, 48(16), 11.
Lam, L. T. (2004). Environmental factors associated with crash-related mortality and injury among taxi drivers in New South Wales, Australia. Accident Analysis and Prevention, 36(5), 905-908. doi:10.1016/j.aap.2003.10.001
Maciejewski, M., & Bischoff, J. (2015). Large-scale Microscopic Simulation of Taxi Services. Procedia Computer Science, 52, 358-364. doi:10.1016/j.procs.2015.05.107
Meng, F., Li, S., Cao, L., Li, M., Peng, Q., Wang, C., & Zhang, W. (2015). Driving fatigue in professional drivers: a survey of truck and taxi drivers. Traffic injury prevention, 16(5), 474-483.
Noble, A. (2013). Victimized by regulation: the victimogenicity of taxi drivers. (United Kingdom) (Legal Perspectives on the Victim). Nottingham Law Journal, 22, 104.
Rose, J., & Hensher, D. (2014). Demand for taxi services: New elasticity evidence. Transportation, 41(4), 717-743.
Samuel, D. (2015). VTA Annual Report. Victoria Taxi Association. Victoria Pty Ltd. Retrieved 4 1, 2018, from https://www.victaxi.com.au/assets/downloads/VTA_AR_2015_16v5%20FINAL.pdf
Schwab, K. (2018). The Global Risks Report 2018. Retrieved April 2018, from World Economic Forum: https://www3.weforum.org/docs/WEF_GRR18_Report.pdf
Victoria Taxi Association. (2017, January 30). Australia Day ‘Multicultural Harmony’ award. Retrieved from Victoria Taxi Association: https://103.8.28.168/news-and-events/news/2017/01/30/australia-day-%E2%80%98multicultural-harmony%E2%80%99-award/
VTA.(2018). Innovation center, Retrieved from https://www.vta.org/projects-and-programs/programs/innovation-center
VTA.(2018). VTA opens innovation center to incubate and test new ideas, Retrieved from https://www.vta.org/News-and-Media/Connect-with-VTA/VTA-Opens-Innovation-Center-to-Incubate-and-Test-New-Ideas#.WwOYG-6FPIU
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