Answer

Urban Mobility

Table of Contents

1. Task 1. 3
2. Task 2. 10

2.1          Urban Mobility. 10

2.2          The changing landscape. 11

2.3          The SEAT’s Minimo. 11

2.4          Satara Macro-Environmental Factors. 13

1. Political Analysis. 13
2. Economic Factors. 14

iii.              Social-cultural Factors. 15

1. Technological Factors. 16
2. Demographic Factors. 17
3. Ecological/Environmental Factors. 18
4. Conclusion. 18
5. References. 19

Task 1

UK and Australia Macro-environmental Factors

Comparison between Manchester and Melbourne Mobility Analysis

Key Mobility Statistics between Manchester and Melbourne

Journey Modal Split between Manchester and Melbourne

Future of Mobility Capability

                                                                                         Manchester

Significant        Passive Environment   Proactive environment   Proactive environment

to work with      (a number of barriers)      (some barriers)             (Few barriers)

                                                                                         Melbourne

Significant        Passive Environment   Proactive environment   Proactive environment

to work with      (a number of barriers)      (some barriers)             (Few barriers)

Strengths and Weaknesses

Forces of the Macro-Environment in Australia

Task 2

Urban Mobility

Establishing a sustainable transportation system is one of the challenges affecting urban centers owing to the rapid increase of population and preferences. The demand for effective mobility has forced automobile companies to introduce new approaches to satisfy the market. However, these strategies are determined by macro-environment factors that dictate whether a defined initiative will succeed or fail. Currently, this is the predicament affecting SEAT, S.A, a Spanish automobile manufacturer opting to invest in its technology in developed cities. Settling on Manchester as the most preferred region, this essay will analyze SEAT’s new strategy in connecting with the apparent macro-environmental factors.

Analysts suggest that major OEMs have been reluctant to venture into the car-sharing game. Nevertheless, it has been concluded that within a short time these companies are moving towards a dominant position especially in big cities, and have confirmed to be the most innovative B2C operators (Tart, Wells & Beccaria, 2019). In the last few years, various companies have embedded this method in their operations intending to increase their marginal profits. For instance, GM merged all its existing sharing schemes to form Maven which focused on offering effective transportation to residents from specific apartments building in big cities. Ford also launched GoDrive, a single but inclusive transportation system that offered free membership to potential clients. Within 5 years, the platform became one of the largest car-sharing schemes in the world, largely supported by its commitment to becoming the most flexible, one-way sharing option.

The changing landscape

There are a variety of reasons for this but the most crucial and painful cause is the reality that the global mobility market is advancing and if OEMs are to survive, they ought to adapt. The scuffle is no longer fought in the forecourt, but on telecommunication gadget, in the shared parking bay, as well as on price comparison websites. Car sharing consents OEMs to exploit the likelihood of their embedded telematics approaches and delivers an extra shop window whereby they can showcase their latest models (Tart, Wells & Beccaria, 2019). A significant number of OEMs have a wide range of models which allow them to dominate and capture the budget as well as the luxury market.

Regardless, it is evident that the car-sharing market will not follow the same trend as other forms of businesses where monopoly determines the type of product or service allocated to the masses. In addition to competing with each other, OEMs will certainly experience increasing contentions from peer-to-peer networks from new companies.

The SEAT’s Minimo

Aside from remodeling the wheel with the Cupra Formentor Concept crossover, SEAT has prepared a rather intriguing mobility proposition known as Minimo (Ciferri, 2019). Though the company envisioned the revelation of the new concept at the 2019 Geneva International Motor Show, it was initially introduced at the Mobile World Congress in Barcelona a few days before the Geneva unveiling.

The Minimo is a small two-seat automobile that combines the features of superminis with the expediency of motorcycles. In terms of length, the automobile is 8.2 feet, which is similar to the first smart ForTwo. Unlike its predecessor, however, the Minimo’s width is 4 feet and has doors that open upwards to suit the in-town ambiance (Ciferri, 2019). The narrow and agile design of the vehicle makes it easier to navigate around big cities and the enclosed setting makes it safer to serve a wider number of the customer’s needs. The description resembles the Renault Twizy but the new Minimo does not have the same features as the electric quadricycle from Renault as it is filled with advanced technology which the SEAT management guarantees is the solution that many car-sharing firms have been anticipating.

Critics attest that the Minimo is not presentable for a significant number of customers who prefer cars according to their looks. Contrarily, the automobile may just be the right solution for car-sharing firms (Satara, 2019). According to the management of the company, Minimo’s design indicates how engineers understand the concept of mobility: high value as well as cost-saving, and efficiency combined with an excellent design. The Minimo shows that there is ample space for enjoyment and elegance when it comes to electric and shared vehicles.

Satisfying the needs of an urban setting means giving individuals the ability and freedom to travel around with zero limits. The SEAT Minimo offers its clients going over 100km of range a single charge. But due to its inventive design, there is no need to wait for the car to recharge once the energy from the batteries is depleted (Satara, 2019). Packaged under the floor of the automobile in an accessible structure, the battery can be swapped with a recharged pack within seconds and with minimal hustle allowing the vehicle to resume its journey much quicker than other automobiles on the road.

What’s more, an all-electric automobile with zero emissions suggests that entering cities with even the strictest emission legislations is not a problem (Ciferri, 2019). Adding to this, the ability to swap battery packs to quickly as well as efficiently refuel the car significantly reduces the charging time for private clients and operation costs of urban car-sharing services.

These qualities have made SEAT’s Minimo be a top contender for the most preferred electric automobile in urban areas and the management anticipates introducing this new concept in bigger towns (, 2019). Ostensibly, research indicates that the SEAT’s project would highly succeed if it was to be introduced in Manchester, United Kingdom, owing to the advantages brought by the region’s macro-environmental factors.

Satara Macro-Environmental Factors

Political Analysis

The political landscape of the UK has for a long time been confined to the philosophy of its democracy. The nation’s steady governance system certifies that there is an outstanding constancy in policies. After the world wars, the country emerged as a key global power, largely backed by its economic development (The Global Competitiveness Report, 2019). With a stable political system, the country has been able to follow a democratic, parliamentary system of governance referred to as the Westminister which sensitizes the distribution of authority among its three arms of the government through checks and balances (The Global Competitiveness Report, 2019). According to the governance indicators of the World Bank, UK is one of the most prominent counties in terms of institutionalizing the rule of law, managing corruption, effective governing, regulating quality.

Other than an effective demographic setup, UK is considered to be having a strong position in global politics. In 2012, 4he country was ranked by the governance indicators as one of the few developed nations with effective governance scoring a whopping 92.42% (The Global Competitiveness Report, 2019). Through the years, the UK has been rebuilding itself into a prosperous as well as a modern State. Currently, it is a superpower in world politics on the account of being a permanent member of the G8, UN Security Council, and NATO. The country also has a significant influence on multinational institutions such as the World Bank and the International Monetary Fund (IMF). Consecutive decades of compact economic progress, previously supported by the industrial division and currently propped by the service industry, have guaranteed its firm institutionalization as a global business hub as well as an economic power. Owing to the adherence to individual rights and fair tax policies SEAT could effectively flourish in this environment with minimal setbacks.

In addition, the rate of corruption in the UK, which is relatively low, favors the establishment of SEAT in terms of obtaining business permits with ease. According to the world index, The UK is ranked 11^th out of 180 countries that are less corrupt. With less corruption, the level of bureaucracy is making the acquisition of business licenses and permits relatively easy. U.K’s political stability is currently facing terrorism threats since it actively participated in the Afghanistan war. An imminent attack would not only distort the country’s political stability but also economic stability since many people will migrate to peaceful regions leading to a reduction in the number of clients.

Economic Factors

The United Kingdom is one of the most successful economies in the European Union and is one of the most robust in terms of social wellbeing as well as the standard of living. The country boasts of a high per capita GDP- 2.829 trillion USD (2019) as well as a favorable investment climate (The Global Competitiveness Report, 2019). According to the World Bank, the UK is ranked among the top ten best countries in the globe to establish a business, Furthermore, the nation ranks 1^st in terms of getting credit, indicating that any firm wishing to invest in the UK market faces fewer challenges in terms of meeting, attaining working capital as well as long-term capital investments.

Another advantage is that the UK has an excellent environment for setting up businesses. The nation has an open and competitive economy to the point where International businesses consider the economic and political institutions favorable. The nation has a strong science base and flourishes on its high-tech manufacturing and producing capabilities in automobile, defense, and aerospace (The Global Competitiveness Report, 2019). The strength of the UK lies in the service industry sector such as banking, pharmaceuticals, and software. The country, viewed as the doorway to other countries in the EU, has an auspicious business environment concerning the availability of skilled labor. Located at the central time zone, the region is impeccably positioned between the east and the west, establishing a flexible regulatory environment for startup businesses and a leading global financial zone.

Owing to the economic advantages of the region, SEAT would easily flourish in this environment. This will highly be supported by the increase in consumer purchasing power. Over the last four years, there has been an increase in employment. With companies anticipating to employ qualified personnel, setting favorable earning becomes their bargaining chip. With rival companies also wanting to capitalize on the opportunities, they also increase their salaries. In the long run, employees are offered significant incentives allowing them to easily spend on consumer products. The open market indicates that SEAT’s strategy could easily and fairly compete with other businesses. Moreover, the UK has the capability of manufacturing automobiles, which will be beneficial for sourcing spare parts of the Minimo, thereby reducing costs.

Social-cultural Factors

The UK is one of the countries in the EU that has a high-quality educational system and has continuously attracted bright potential students from all over the world (The Global Competitiveness Report, 2019). The country’s tradition of establishing an efficient education system dates back to the early 18th century and has constantly been evolving. Qualifications affiliated with UK institutions are recommended respected and recognized worldwide. The nation has more than 170 universities as well as higher education institutes, in which three of its universities are ranked among the top 10 best universities in the world. This tradition has significantly contributed to the production of highly skilled labor. Employing professional labor will enable SEAT to increase production levels hence increasing its profits.

Other than having an apt education system, the UK also has one of the most successful healthcare systems. This has been propped by both the public and the private sectors. The government expenditure towards health services has traditionally been high in the UK hence helping the nation to maintain quality and efficiency (Deloitte Insights, 2020). Every UK resident, the European Economic Areas as well as nations that have bilateral healthcare settlements with the UK are entitled to NHS care. The availability of excellent healthcare systems assures the well-being of SEAT’s employees who will be fit to work at any given time.

SEAT’s innovations in the UK would bolster due to the country’s supportive social-cultural factors. The establishment of a quality education system will guarantee the production of a knowledgeable and skilled labor force who will be employed by SEAT to run its day-to-day operations (SEAT Minimó: A vision of the future of urban mobility (2019). Besides, the current demand for skilled labor is relatively high.

 Technological Factors

Regarding innovations, and R&D the UK is at the forefront of introducing new forms of technology that can be applied in different business sectors (The Global Competitiveness Report, 2019). Besides, the country has enacted laws concerning the protection of intellectual property rights (IPR). Though the country lacks a general statutory register of copyright, its Intellectual Property Office is responsible for keeping registers of designs, patents, and trademarks. The legislation regarding IORs is not only protected but also amended and enacted following industrial developments. Similarly, the country invests more than $65billion of its GDP to enhance the technological sector. With these policies, SEAT could safely introduce its new technology with the reassurance that no competitor will consider stealing their trademark or patents and that its employees will be up to the task.

Another technological factor that favors the establishment of new businesses is skilled personnel. The quality of education offered in research institutions has increased the number of skilled workers who can handle complex technical work. In connection to this, the country has experienced an increase in internet connection whereby private organizations and the government have set up effective broadband services to the people. This upsurge will benefit SEAT’s Minimo project since its operations solely rely on internet connections.

Demographic Factors

The current population of UK residents stands at 68 million which is equivalent to 0.87% of the total world population. Regarding transport mobility, 52% of the resident use private cars, 18% use public transport, 25% prefer walking and 5% opt for cycling.  In retrospect, the age distribution in the UK also favors the establishment of new businesses. For instance, the age bracket of people between 19 and 60 years was averagely above 4 million. This data indicates that there is a huge gap to be filled in terms of providing effective mobility services. In connection to this SEAT’s innovation of intruding the Minimo would suffice since a large number of individuals still prefer using automobiles to access different parts of the country.

Ecological/Environmental Factors

The UK is one of the countries in the EU where the preservation of the flora and fauna is key. Besides, the nation has enacted several measures that guarantee the protection of the environment (Deloitte Insights, 2020). This is because the country generates approximately more than 127 billion pounds per year in tourism. Concerning SEAT, the introduction of Minimo would be highly recommended since the cars have zero emissions of greenhouse gasses.

Conclusion

In conclusion, establishing a sustainable mobility service in urban centers is vital but also challenging, owing to the different macro-environmental factors affecting a given region. As for SEAT, the introduction of Minimo in the UK would be a success since both the demographic, economic, political, socio-cultural, technological, and ecological factors support its establishment. As such, the company should consider investing their new ideas in Manchester, one of the biggest cities in the UK.