question 8

Columbia Southern University

E-Marketing

Proposed business

The proposed business to be ventured in as discussed in this paper is the taxi business. As with most other businesses, the start-up costs needed for starting a taxi business depends on the area that the business is set up. The taxi business has a number or critical issues that have to be chiefly considered in the course of setting it up; including licensing, insurance, business area, vehicles and other incidentals such as gas (Yannoupoous, 2011). Vehicles are core to the entire business and much of the capital will be directed towards the purchase of the type of cars to be used in the business while the other factors will be determined based on the type of car that is bought.

The intended taxi business will be offering transportation service across Washington DC exclusively and will have further sub-facets of available services in terms of packages. The different packages will cater for the different price ranges based on the covered distance, type of taxi vehicle used and privacy needs. The business is intended to operate 24 hours a day, seven days of the week; with the taxi drivers working in shifts.

Business model

The business model to be adopted by the proposed taxi business will be primarily based on the building of trust and a good relationship between the company and its customers. Research in the hospitality and service provision sector has shown that businesses which build a functional relationship between themselves and the customers have more loyal customers (Yannoupoous, 2011). The proposed business intends to use specific approach in going about its business and ensure that each customer is served to the best standards possible. In creating this relationship, the business will set up an online platform from which the customers will be able to seek out its services, make comments or suggestions and even evaluate the drivers. The internet platform will be set up so that the customers feel completely free and able to air whatever views that they may have. E-marketing for taxi services and other business has become relatively common in today’s business edge, but the proposed business seeks to make its approach unique. While making taxi orders online, the customers will be able to choose the particular taxi vehicle and driver they prefer; with the set service prices also being negotiable.

This business is intended to stay in the market for a long time and having firm roots will go a long way in securing its future. Despite making the customer happy, the employee will also be treated very comfortably as per the set business model. Remuneration of the employee will be based on the shift hours, response to urgency and customer reviews. It will be the business’s belief that a happy and satisfied employee equals a similarly satisfied customer.

Industry analysis and competitors

The taxi industry has been in existence for several years now and dates back to pre-historic times when the service providers used horses, carts and chariots. It is a steady business area and many revolutionary changes have been noted in the recent years; more so in relation to how customers access the taxi services. Since the proposed business is to be set up in Washington D.C, there are numerous competitors that it will have to face. At the top of the business however are Uber, MAT, Yellow Cab Company and Diamond Cab to state but a few. These are taxi service companies that have been existence for at least five years already and have each established their brands through their respective uniqueness. The proposed taxi business will have to come up with its own unique angle if it seeks to have any chance of success in the industry.

References

Kotler, P. (2008), The New Strategic Brand Management (4th edition), Kogan Pages Limited, London

Yannoupoous. P. (2011). Defensive and Offensive Market Strategies for Market Success. Wall street Journal of Business. 2:13