gb plan 3

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1. ENTRY MODES

Six foreign entry modes exist for a company to choose from depending on the level of control, flexibility, involvement, risk, and commitment one desires. While exporting, licensing, creating turnkey projects, launching a wholly owned subsidiary, establishing joint ventures, and franchising all have their advantages, they each also have their disadvantages that must be taken into consideration when deciding on which entry mode to pursue. After careful analyzation, establishing a wholly owned subsidiary in Australia would be most beneficial for Lyft. While establishing a wholly owned subsidiary poses the highest risk and expense compared to the other optional entry modes, this route would allow Lyft to own one hundred percent of the stock, ensure full control over the company, and also allow the company the opportunity to capitalize on the Australian government’s incentives that are offered to attract foreign investment. By opting to move forward with the wholly owned subsidiary entry mode, the next course of action would be for Lyft to choose between either the greenfield venture strategy which allows the company to set up operations overseas from the ground up, while placing the company fully responsible for bearing the associated risks, or choose the acquisition strategy route which involves acquiring an established enterprise in the host country at the cost of the associated struggles of attempting to convert the operational routines and culture of the acquired firm. After careful consideration of both wholly owned subsidiary entry mode strategies, the greenfield venture strategy is the most appealing for our needs. While establishing Lyft in Australia through the greenfield venture strategy will require the company to learn to adapt to the cultural differences in everyday conversation and activities amongst the employees and counterparts of the organization in order to set the company up to be as effective and efficient as it possibly can be, this entry mode strategy will yield greater long term returns and provide greater flexibility in the establishment of this entity.

1. ORGANIZATIONAL STRUCTURE

Under the circumstances that Lyft will be competing in an industry where a global strategy is most important, the most appropriate organizational structure to abide by would be moderate decentralization with worldwide service divisions. On behalf that our company’s market is the consumers we serve, and that we seek economies of scale through the development and standardization of service, there needs to be several integrating mechanisms, high levels of coordination in place, as well as a strong culture. With respect to the branding of Lyft, as well as the marketing of its transportation services, Lyft will centralize its services. In regard to the delivery and operations of the business itself, these aspects will be decentralized. Adapting these aspects according to the country’s regional preferences will allow Lyft to build a sustainable competitive advantage throughout the Australian market.

1. STRATEGIC ALLIANCE

In order to continuously fulfill Lyft’s mission of “improving people’s lives with the world’s best transportation,” a few strategic alliances are under consideration (Investor Relations). By engaging in strategic alliances, both parties mutually benefit. Strategic alliances improve economic growth, drive recognition and awareness, as well as foster a competitive advantage. On behalf that DiDi is one of the largest taxi-hailing services operating in Asia, Australia and South America offering both taxis and private cars, this would be a promising company for Lyft to partner with. Another company that would be beneficial for Lyft to partner with is Spotify. By establishing a strategic alliance with Spotify, it would create a competitive advantage for Lyft over other ridesharing services by allowing riders to sync their Spotify accounts and stream their favorite stations to enjoy during their ride, all while fostering a more personal connection. Both alliances would allow the companies to capitalize on each other while also driving brand recognition, awareness, and growth.

1. PRODUCT CONCEPT

The Australian market has proved to provide market reception and adoption in similar lines with the U.S. and Canada where Lyft is currently successful. By means of expanding and adapting our services to the Australian region such as through offering cost-effective, safe, and convenient dockless bikes, scooters, rickshaw services, etc. to our customers, Lyft will be able to build a sustainable competitive advantage in the Australian market. By enabling riders to optimize routes across multiple modes of transportation, our company will provide a significant advantage over single modality providers. Through the utilization of strong data analytics, we will be able to forecast the demand of each region we operate in and will be able to accurately provide a well-proportioned supply of transportation offerings for commuters. In essence, the more the availability of ride-hailing services that exist in each area, the more these services will be utilized by the customers. We believe that we can gain a solid portion of our competitors’ market share by building our sustainable competitive advantage through adaptation and providing multiple modes of modality, customer loyalty, marketing, dynamic pricing, and focusing on purpose and those we serve.

1. PRODUCT LIFE CYCLE

Upon entry, with the Australian market being so vast, it will take a much longer period for the market to become saturated by the transportation services offered by Lyft. The large demand of rideshare services throughout Australia will naturally cause a gradual rise in the company’s sales curve and in turn, will spark a domino effect resulting in growth where the company will experience a peak in profit margins. As the market reaches maturity, higher levels of competition are going to develop, and sale may begin to decrease. In order to sustain growth, Lyft is going to have to fight to retain their customers, as well as attempt to lure customers in from their main competitors including Uber, DiDi, and Ola, among others. The inevitable decline stage will occur eventually but as aforementioned, the large market for transportation services that exist throughout Australia will allow a much longer time frame before this market becomes saturated. To move out of the decline stage and possibly back into the introduction stage, if accepted by consumers, Lyft may implement change to their offerings and expand their transportation services. Overall, due to the threat of several competitors that currently offer rideshare services in Australia, Lyft may transition through the various stages of the product life cycle rather quickly upon entry.

1. BRANDING AND PACKAGING

As we globalize Lyft in Australia, our goal is to continue to live up to the established brand name of our existing company. With the delivery of over one billion rides and Lyft already having established a high reputation throughout the United States and Canada for being a company driven by its mission, purpose, and activism, the clear-cut brand name to choose is Lyft. With its logo being a pink background with lowercase white letters, it promotes a friendly vibe and appeals to a wide audience that tends to be most popular with the younger generation. Although ridesharing services have been legalized in almost every Australian state and territory, Lyft would still have legal hurdles to face on behalf that ridesharing service regulations vary state to state. Lyft has branched out into branded entertainment and celebrity endorsements with numerous stars such as Kevin Hart, DJ Khaled, Demi Lovato, and Shaquille O’Neal, among others, throughout the United States and Canada (Beer, 2019). To continue to use this fun marketing approach as a basis to sustain its brand, Lyft will need to adapt its strategy as it enters the Australian market to accommodate the host culture.

1. TARGET MARKET

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