5th European International Conference on Industrial Engineering and Operations Management

Porter’s Generic Strategies: A Case Study of The Transition of Indonesian Conventional Taxi Company to An Online Based

Aliya Qonita, Djoko Nurprawito & Marissa Puspita
Publisher: IEOM Society International
0 Paper Citations
Track: Business Management

Today's technology has experienced a fairly rapid development. This is marked by the presence of the internet which can facilitate communication and information for its users. And over time, some companies began to combine transportation and technology to meet the needs of human movement that is considered vital. This digital strategy also has an impact on the development of the global transportation industry. So that an online-based transportation service is formed, where conventional taxis are the ones that have adapted from these technological developments. Taxis are one of the most widely used forms of transportation in big cities. The cost of this transportation fare is more expensive than public transportation because taxi fares are calculated using a meter, based on the distance traveled. Competition for each taxi company is getting tougher because of the presence of online taxis (Grab-Car and Go-Car) which are more popular than conventional taxis. To compete with online taxis, taxi companies need a competitive strategy to develop their business. This study aims to determine the implementation of Porter's Generic strategy and form a SWOT analysis on conventional taxi companies in Indonesia. Based on this research, it was found that taxi companies implement a differentiation strategy and focus on developing mobile applications in ordering taxis. Therefore, this research helps to find out the right competitive strategy based on the company's strengths and threats.

Digital Strategy, Conventional Taxi, Porter's Five Generic Strategies, SWOT Analysis.

Published in: 5th European International Conference on Industrial Engineering and Operations Management, Rome, Italy

Publisher: IEOM Society International
Date of Conference: July 26-28, 2022

ISBN: 978-1-7923-9161-3
ISSN/E-ISSN: 2169-8767