The following words will be present in important aspects of discussing the best solution from the previously discuss solutions. Is the solution here selected implementation and adaptation of new technology used by taxi to enable them self and to equip themselves to emerge from the current scenario of degrading marketing value. The following work will contain Mind Map that will provide as a brief knowledge regarding how the solution was selected and other aspects related to it technological component, opportunities and other issues that may occur while implementation.
Figure 1: Mind map
(Source: created by author)
The preparation of Mind Map is always upon the thought and the time when used upon justifying the exact use of resources. With the help of Mind Map one helps other leaders to understand the steps required or taken to ensure selection of ideas from the very beginning of the work. In the very beginning of the time map that is being provided above shows the identification of the general issue of declining value of taxi in society of Australia. Following that there are stages where mitigating the problem of taxi ultimately comes out after discussion of porters five Force model. Preparing or coming up with innovation or sustaining is also provided in The Mind Map above. Discussion of all the possible changes that can be made in the taxi services of Australia is presented in a flow chart format in The Mind Map presented above. The Mind Map above shows how decision is undertaken in discussion and evaluating ideal which is The Mind Map above shows how decision is undertaken in discussing and evaluating ideal which is to be selected in order to implement those for future development of taxi services in Australia. With the efficiency of Mind Map there is also situation marked where it is shown that evaluation of Ideas if not done properly then what extra steps are to be taken in order to Reconcile with the ideas that would be better for the taxi services.
The changes in the transportation system taxi in and around the society of Australia are going down in its market appearances. The lowering of the market appearance is due to the in capability that they are facing in terms of competition with a way that is growing in market with huge market share and the great customer satisfaction value (Remane, Hanelt, Nickerson & Kolbe, 2017). Evaluation of the situation in current scenario is quite clear that taxi in Australia and around the world is not as much popular as they were a decade ago. Popularity of taxi is somewhat indirectly proportional to that of the rise of uber. Now, it is high time for the taxi owners and the organisation dealing with sexy animals to invent new ways or innovate possible outcomes that could relate to the chance for gathering their old Glory again. But gathering of old Glory is not easy when there is a huge competition around the market and the competitors is quite ahead in every context observed by taxi driver or organisational owners (Quinton & Simkin, 2017).
From the critical evaluation of the porters five force over the market around taxi in Australia we have justified that there is a huge requirement for implementing new changes in order to make sure that taxi emerges from the current situation of degrading market support and come up as a competitive position in the world again. Configuring every possible situation and solution implementation or adaptation of latest technology seems to be the most viable feasible and to the context solution that the taxi owner and organisation can implement (Parviainen, Tihinen, Kääriäinen & Teppola, 2017). The implementation of new technology in texting will leads to a positive test scenario is properly managed and considered through routing development with every update option made available. Buy this developing of an app could be the ultimate option for innovating in a disruptive model. Improvising up on development of mobile apps for taxi businesses will help in becoming an essential element whenever it comes to hiring a taxi and differentiating between the other substitute ride option in the society (Sung, 2018).
A solution must be so created are implemented in award force so that the options for positive factors and opportunities does not only relies upon one way but gathers or two-way fulfilment of expectation. To emerge from the current situation taxi operations must Think for the fulfilment of satisfaction level that the consumer expects from other substitute rides present in society. Competing with an well established Uber in Australia is quite difficult and therefore opportunities of passengers must be evaluated in the very beginning of implementing an innovative idea in the operation of taxi services.
Opportunity for the passengers
After considering the opportunity that the mobile app for the taxi ride will be providing to the customers, there will be requirement for understanding the benefits that can be gathered by the drivers.
The simple difference that exists between sustaining and disruptive innovation is mostly misunderstood by many of the business individuals. The main characteristic of sustaining innovation is that it comes from listening to the demand of the customer who already exists in the market thus a product can be created that will be successful in satisfying the needs and demands of the future (Chiaroni et al. 2015). Whereas a disruptive innovation will successfully create a market tha5t6 will deviate from the mainstream markets and thus there valuation will be unknown during the conception of the technology. A sustaining innovation can be used by established leaders of the market as they can exploit by the kilometre by fuelling the short term growth of their company. Innovations that are disruptive on the other hand pose a challenge that are often misunderstood by many and are not overcome successfully. A disruptive innovation will create a market that will at first not be relevant to large companies initially as they can have small initial returns. This inability of the large firms to enter the market of disruptive innovation gives a chance to the smaller firms to take advantage and become dominant in this new emerging market that will hold a lot of capacity (Denning, 2016). Though it is impossible to identify the end and predict accurately the situation of these disruptive technologies because they are not pre existing but companies should pursue the path that is being created by these innovations. Only these measures can lead to the formulation of plan that will be exact if their company will choose to enter a new market.
The origin of a disruptive innovation has to begin at a low end market and eventually move to a high end evaluation. Thus it will successfully create e new market where no0ne existed previously. Web based taxis rose from a low market foothold. It started as a black cab service that was available on demand. It was high end and mainly existed in the limousine market. It developed into the present all access application by improving its interface and adds features that were more pragmatic in the existing taxi cab market. It cannot be considered as a disruptive innovation as it did not create a new market but incidentally transitioned from a high end market to a low end accessible commodity (Lepore, 2014).
The introduction if a similar application for the already existing local taxi service will be an innovative innovation as it will boost an already existing market with a depleting market value. With its cost effectiveness the local taxi service is already at an advantage.. it needs to combine these advantages with modern technological innovation to become relevant in the market again.
It will improve safety standards of local taxis among other things. An app will provide further information regarding the destination the best possible routes and local emergency service in case there is a need (Skok & Baker, 2018). The efficiency that the local service lacks will be improved significantly with a technological innovation which will result in a constructive growth of a depletion market. It will sustain a market of state owned taxis which was disrupted by the arrival of services such as Uber.
The local taxi market was existed in an upstream business environment and started going down the market. It needs to get its a previous foothold back in this newly disruptive market and the introduction of this application will successfully do so by providing benefits to the user that were previously not present but were provided by private taxi chains, this will also ensure that the market for local taxi improves its service malignantly and vehemently in due course of time (Biber, Light, Ruhl & Salzman, 2017). Inefficiency and callousness that had gripped the present market will be be reduced by manifolds and thus sustenance of a depleting market will be reassured. Thus the introduction of an app based service in the taxi market can be identified properly as a sustainable innovation and not a disruptive one. Though the competition needs to be kept in void the objective of this innovation will be linear and ultimate. To provide a better and more efficient service to its customer that it previously lacked.
The Taxi that is generally introduced as a license acquired motor vehicle that can transport locomotors in exchange for a payment. In recent years this service has been replaced quite compromisingly by web based cab services that can provide taxi services more efficiently and innovatively. This has become a major competitive issue for the local taxi service providers who were more accustomed with a door to door service (Weckström et al. 2018). This unexpected competition and innovation has become a great economic issue for the state owned taxi service as they are personalised service is being replaced by more efficient and more customer friendly service. This innovation of a web based platform that can other apps that galore at a consumer. One of the most appealing feature of these web based taxi services in that it not only provides a taxi but rather it implements features more services that a common taxi does not. Features like Wireless internet and music are offered by these services as an extra to their already extravagant venture. The fate of the local taxis are completely regulated but web based services can demand a higher pricing in times of greater demand by implementing a piece surge feature (Dimitriou, Kourti, Christodoulou & Gkania, 2016). This is an opportunity for the local taxi services to improve their situation by providing a value added service to the customer. They can charge a lower fare than other privately owned services during these hours of price surge. This will ensure that more customers will travel; by these taxis due to their lower service charges.
Better customer care needs to be provided. A taxi that has been booked for a specific amount of time do appear late most of time or it might never turn up at all in certain cases. If a taxi that has been booked for a specific purpose of emergency but it does not show punctuality the customer will be dissatisfied and opt for the more efficient web based service. The taxi drivers have to show a greater frequency of availability and should be responsible enough to provide the customer with a significant traction for the traveller (Pojani & Stead, 2015). Taxi driver more often than not refuse to go to a certain destination as they might not get a return fare. The app that will be designed needs to add a feature that will show taxis availability with a flagging light. If a cab driver is not willing to travel to a certain are then he or she can flag himself as unavailable when customer requests for taxi. The app will need to show clearly and distinctly that they will, travel to designated locality only and if the driver fails to do so then they would have to accept any fare and any viable request by the customer (Rayle, Dai, Chan, Cervero & Shaheen, 2016).
Application based taxi service provides a more professional service than the local taxi cabs. Cab drivers in some instances have been known for not following the direction that were given but follow their own preferred route which takes up more time than the customer can afford to waste. This may appear to the customer as a way for the driver to earn a couple of more money on the meter. The driver needs to maintain mere professionalism in such cases provide a faithful device metro customer (Akaka, Vargo & Wieland, 2017).
A navigation system should be providing for the driver in the local cab system so that there is no more confusion regarding the direction of the destination. This will show more professionalism in part of the driver. An estimated time that will be required to complete the designated journey needs to be provided to add a certain amount of punctuality to the service. The company needs to understand that all the aforementioned suggestions are already being implemented by their competition thus improving their services manifold (Bashir, Yousaf & Verma, 2016). The market for local taxis has reasonably decreased due to the lack of their punctuality, professionalism and overall satisfaction of customer service. If the local cabs have an objective remains relevant in the current market they need to implement these suggestions into their web based application. Sticking to their past ways will only diminish their relevance and like much other service that lost its capacity to serve very soon (Wieland, Hartmann & Vargo, 2017).
Smartphone enabled taxi services have a already acquired an upper hand in the pre existing marketThough an app based booking system for these local taxis will provide them with a much needed innovation there is a long way to go before both of these transport system can have a head to head competition within the same levels (Litman, 2017). Taxis have been more traditional and for a long time they were the only viable personal transport system for hire thus giving them a trade monopoly in the market. But this has changed dramatically with the arrival of web based taxi services like uber. The previously present monopoly provided the local taxi drivers with a chance to become inefficient and at times unsafe. Uberx arrived on the market and changed the way people experienced the taxi cab service. It provided the traveller with a more safe efficient and a more customer friendly venture. The complete transaction is app based and there are no scopes of bargaining among the driver and the client (Lee, Hashim, Ho, Van Fan & Klemeš, 2017). With the arrival of a similar application for the local taxi cabs this may turn out to be an issue as they are more used to the traditional ways of transaction. They cannot earn a little extra and thus they may at times disable the application and look for fares like they previously did in order to earn a little extra on the side. This will make the introduction of the app a futile endeavour as the whole concept of this application is dependent on the driver’s discretion.
An advantage of local taxis is that a customer can hail a cab for small and quick trips in rush hour traffic to save time and money (Walker & Marchau, 2017). The drivers conveniently turn off their meters during such instances and ask for a certain amount regardless of the designated fare for a short journey. .
The pricing of the local taxis will also increase significantly to accommodate the added cost for the maintenance of the application this making its cost effectiveness extinct (Ganuza & Davis, 2017). If both an uber and a local taxi charges the same for a customer will generally opt for an uber. This may turn out to be huge problem for the system as with lack of passengers the price surge will also keep increasing in order to maintain its position on the market.
There is already proof that in a growing market ubers are replacing taxis at a prominent rate. This is happening as a result of uber providing its driver with extra benefits and incentives. Thus the introduction of the application for local taxis is the last effective chance for the local cabs to hold a position in the market as there is a growing rat e4ofg taxi drivers are replacing there taxis with uber for a more lucrative deal (Sheppard, 2017). If this happens the introduction of the web based application will have little effect on the situation as availability is the primary issue for local taxi and they are degrading service record. With less taxis and more uber on the street the app will do little to boost the use of local taxi by passengers.
While price surge remains a disadvantage for uber users with introduction of the new innovation it will also be a concern for the local taxis as with a lack of cabs and already booked ones not showing up the prices will have to be increased to ensure sustainability., uber charges in terms of both the distance covered and the time required to reach the destination. This provides the customer with a meter deal as the speed of the vehicle increases the amount charged will decrease (Zhang, 2016). Whereas a taxi will not provide the same deal as they are metering is based on the amount of fuel consumed. And it does not change even if the speed is increased or decreased. The introduction off this application though will reduce certain problems for the local taxi cabs they will certainly create new ones and it is all up to the driver’s discretion to cope up with.
Conclusion
The work provided above have evidently present the most suitable solution of innovation to make sure the taxi in Australia emerge from the grave situation of degrading importance and popularity . Recommendation that has been discussed in previous assignments valuated and the solution by implementation of new technologies was elected in the above part of work. Each and every aspect has been properly discussed where opportunities, problem and future aspects were discussed in descriptive format.
References
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