Macro-environment Analysis of UBER

This presentation provides a macro-environment analysis of UBER, including its business model, competitive analysis, growth strategy, and recommendations for overcoming barriers and achieving growth.

ame of the Student:

Introduction:

Macro-environment Analysis of UBER:

Organizational Environment:
There exists an essential need for conducting the competitive analysis for the purpose of identifying
the various problems which are faced by the customers and in addition to this the business model along
with the strategies adopted by UBER also needs to be conducted for the purpose of dealing with the
different kind of customers which are faced by the customers (Angrist, Caldwell and Hall 2017). The
increased usage of the smartphones in today’s world assisted by the improved technologies and the
increased value of perception related to the time has been associated with helping in the establishment of
the increased value which has been experienced by UBER so far. Besides this there also exists various
environmental factors as well which is mainly associated with including the different kind of weather
conditions which are in turn responsible for having a huge impact upon the demand and is initially
responsible for the increased price of the entire journey of the customers.

Business Model of UBER:
Once the screening of the vehicles is completed, UBER moves forward towards the recruiting of the drivers who
would be serving them. The reason behind following this recruitment process is for making sure that the car which would be
serving the organization is at all worthy for serving the roads or not (McKenzie and Baéz 2016). Another reason lying
behind the screening of the vehicle before recruiting the driver is that, UBER wants to provide the customers a comfortable
as well as safe ride to the customers while they are riding the cars provided by UBER. UBER is often associated with
providing a smartphone to the drivers once they have been endorsed as a member. This is mainly done for the purpose of
making sure that the drivers are having an access to the applications of the organization in a convenient way as well as in a
more effective way. Besides all this the drivers working for UBER is also provided with an extra facility related to non-
payment of the tax licenses and any other type of taxes which are seen to be paid by the other drivers working for similar
type of service providing organizations such as the Black Cabs (Wyman 2017). All this in turn are associated with helping
the UBER drivers in earning much more than the other cab drivers serving other organizations.
The customers are provided with the facility of tracking and accessing the cars once they have successfully booked a
car by making use of the UBER application from their smart phones. Besides this the application of UBER is also associated
with providing other information to the customers as well such as the approx. fare, the license plate of the car, information
about the driver and many more (Glöss, McGregor and Brown 2016). In addition to all this the customers are also provided
with the facility of viewing the previous reviews about the driver as well along with the ratings which is provided to the
driver and a photo of the driver is also provided after a customer books an UBER successfully. There exists numerous factors
which are responsible for determination of the price for booking and the factors include the distance which is to be covered,
the demand for cars, and the type of car which is being selected for booking and many more. In many cases the price of
booking might vary in accordance to the weather condition. The payments can be made by means of net banking, cash or
cards (Jiang et al. 2018). The online method of payment is considered to be much more secure and once an online payment is
made UBER is then associated with splitting of the receipt with the driver.

Porters Five Force analysis:
This is the tool which is used for the purpose of analyzing the completion which
is faced by a particular business. Amongst these five forces three of the forces are
incorporated by the horizontal competition whereas the other two are incorporated as
the vertical competition. The horizontal competition is associated with including the
“The danger from Substitution by new products or services”, “risks posed because of
the rivals already existing in the market” and “the threats faced by the new entrants.”
The vertical competition is associated with including the “bargaining power of the
supplier” and the “bargaining power of the buyers”.

Threats due to new entrants:
The reassurance which is proved by the new ride-sharing firms is seen to be
lacking and they might be associated with charging more without any kind of
reason for the same amount of distance covered. At the time of establishment
UBER got separated from its prime supporters which took away a sizeable
measure of capital (Sun et al. 2018). The agreement which UBER is having is
associated with including the offerings of software applications without expecting
nothing in return from the customers, who are having the capability of switching to
some other service at zero cost. Because of the reason that the cost which is
needed for the offset is evitable in nature, UBER is entirely susceptible to any type
of rates which are seen to be raising in a subsequent manner and this generally
seen to be followed by the process of infiltration of the industry by UBER in an
easy way.

Bargaining power of the
Suppliers:There exists no such own vehicle in the fleet of UBER. The business model which
UBER is having mainly subjected to the drivers as well as to the partners who are seen
to be responsible for the holding of the rides. For this reason it is possible to state that
the strategy related to outsourcing has been adopted by the organization so as to do the
work and assets to the persons who are seen to be capable of meeting the terms and
conditions of the organization is order to utilize the web based application (Henama and
Sifolo 2017). Additionally the driver substitution is also seen to be very much difficult.
UBER is associated with providing the owners of the vehicle with a specific option
related to choosing of the association or the rivals and this in turn is associated with
leading to the consultation for a superior regards in terms of the expenses made by the
organization. This is responsible for proving the fact that the suppliers are consisting of
a higher ground for having an impact upon the executions of UBER.

Bargaining power of the buyers:
The services which are seen to be provided by UBER might not be required by the
customer’s every time. The services which are provided by the organization is seen to be
required at particular situations or instances and this situations mainly includes those
when a user is in hurry such as when the user is late for office or in situation when a
convenient mean of transport is not available (Zhao et al. 2016). For this reason the
customers are choose from any of the taxi services and besides this the switching which
is required by the customers is also low and the reason behind this is that the customers
need not to pay any kind fee as the registration is entirely free so as to use the
application.

Rivalry with other competitors:
There exists many organizations which are seen to be responsible for the
providing of similar services as that of UBER and along with this it is also observed
that they are having the same business model as well as operations. Additionally the
demands related to the corporation which is existing in the business world of present
day so as to focus upon the customer base in a particular geographical location in
order to cut the cost is seen to be requiring different kind of operations (Chen and
Sheldon 2016). UBER has been capable of establishing a business system along with
a massive investment of capital.

The threats of Substitutes:
Substitute mainly refers to the typical constraints which are focused upon the business
environment such as the opponent who is closest or the potential substitutes of the organization. So
it can be stated that a slight increase in the fare of UBER might be resulting in the grasping of the
customers by the other competitors.

Competitive Structure of UBER:
Competitive advantage generally refers to the resultant of the firm’s value which is initially seen to be
responsible for leading to the creation of the advantages which are gained by the customers and are seen to be
exceeding the costs which are required by the firm while it is being created. There exists two ways of increasing
the utility along with the services which are provided by UBER. The first way is associated with involving the
enhancements in the process of service delivery and this mainly seen to be done by means of reduction in the
time needed for reaching out to the customers whenever there is an need of services which are provided by
UBER (Mutai 2017). Besides this there also exists the need of being reliable by the cab and the driver as well in
order to make sure of the fact that the customers are getting satisfied with the services which are provided by
UBER. There also exists another way of improving the competence of the personnel and this is associated with
including the ensuring of the fact that the services which are being provided by the professional drivers is
satisfactory for the customers and this is to be done by means of providing training to the drivers. The training
provided to the drivers would be helping in making sure that the drivers are providing a personalized customer
service.

Growth strategy adopted by
UBER:
There always exists certain circumstances which are seen to be utilized by the organization
UBER so as to get developed in a good way and this type of circumstances have been referred to
as the Accelerants (Correa, Xie and Ozbay 2017). This type of accelerants are generally seen to
be associated with the demonstration of the real along with the transitory requirements that the
UBER administration is having.

Holidays and Occasions:
There exists numerous events which are associated with providing the organization
with a great opportunity for taking the stand by the business model of UBER and this
would be associated with making the organization capable of conveying a very good
service which in turn would be responsible for the creation of the new buzz for the
administration (Chang 2017). Different type of occasions are associated with the creation
of the new as well as unusual requests along with the weights for the purpose of getting
new clients who would be associated with taking their first ride. In addition to this it would
be responsible for driving the spike in the new riders who are responsible for the
aggregation of the rides.

Restaurants and Nightlife:
This type of service is seen to be regular and for that reason there exists a regular need for
making a game plan which is to be followed for the purpose of helping the customers in
backpedaling to their home after completion of any kind of gathering. For this reason UBER
have been associated with rushing for the comprehension of all this and is seen to be associated
with offering its administration for having a meaningful nightlife focus in the cities (Dubal
2017). Beside this the individuals who are seen to be associated with gaining the profits
because of the administration has initially been turning out to be very much enthusiastic
towards the organization UBER and has been seen to be doing informal publicizing for the
purpose of spreading the words.

Weather:
This is one of the condition when the services provided by UBER is seen to be very much beneficial.
However the organization is seen to be having an outpouring estimated innovation and for that reason
it has been seen that there exists a rolling out of vast majority so as to have improvements in the
climate. During heavy when someone is stuck then they might eb requiring the services of UBER. The
service provided by UBER is the best at this time which is also the main accessible decision that can
be taken at that point of time (Rajesh and Chincholkar 2018). This procedure is likely to be associated
with prompting a feedback for the services provided by the organization which is seen to amid the
tropical storms which was named sandy when there was an expanding in the cost. In any of the cases
when all the things are being considered the concept of business can be stated as a business and the
major consent related to the trust is mainly seen to be regarding the matter that is UBER is having an
incomplete obvious related to the value surge innovation.

Strategies for Overcoming the Barriers and for
Growth:
Strategy at the business level:
UBER has been associated with providing a head path so as to oversee the transportation
and the application has been developed for providing of provision to the drivers. The
application helps in decreasing of anxiety amongst the clients while looking out for great as
well as reliable drivers where no fussing would be included related to the stockpiling of the
receipts so as to recover the income (Tzur 2017). So the clients are checked deliberately by
UBER in order to check for any kind of criminal records. In addition to this the drivers
working for UBER are also tried by usage of the numerous strides before they are
acknowledged.

The corporate level strategy:
At the corporate level UBER is associated with the usage of the techniques related to
item advancement. The ebb tide along with the advertisement has been used for updating
the nature of administration, which has been done by means of enhancements in the
application stage. This in turn has been associated with encouraging the association that
exists between the different stipulations and the drivers (Harding, S. Kandlikar and Gulati
2016). The expanded abilities are associated with making the drivers capable of acquiring
the entire business along with which numerous options and accommodations would be
provided to the shoppers as well.

Recommendations:
Providing of genuine solutions of the real world problems:
Every business is having the aim of existing so as to serve the requirements of the clients and this it is
seen that most of the business is associated with the usage of the similar as well as restricted
arrangements for the plans related to the actions which were once seen to be enough for tackling of the
different kind of distinctive difficulties so as to provide the clients with an comfort. Organizations
similar to UBER is associated with providing administration which is exceptional and is responsible
for providing of better offers.

Being an early adopter:
Being a market participant is considered to be one of the vital issue and being a ride-sharing
organization UBER is associated with enabling of the cutting of the huge shares from the market.
There are numerous rivals who have been associated with confronting themselves however UBER is
still a grounded branch and is considered to be the first business which has been associated with
showcasing the riding market.

Limitations of the infrastructural requirements:
Whenever an organization is starting up it faces higher costs at the time of development. And while
considering all the things, it is seen that there exists different ways by which it is possible for the
business to limit the expenses and one of the way of doing this is by diminishing the foundation set up.
The reason which lies behind the development of UBER is the lack of any overhead costs which the
customary taxi services are having.

Conclusion:
The above report has been associated with helping in concluding to the fact that being one of the
large cab service UBER has been associated with serving its customers to a large scale, the
application which UBER is having is associated with helping the customers and the drivers as well.
The aim of this organization is providing service which would be fully efficient along with being
helpful for the customers. The macro-environment analysis along with the organizational environment
helps in understanding the competitive market of UBER. The report also highlights the various
strategies which can be adopted by UBER so as to overcome the barriers as well as for the
organizational growth. The report has been associated with highlighting the barriers faced by UBER
as well. So it is very important to make sure that UBER is associated with moving forward by usage
of the readily available conditions so as to avoid any kind of problems.

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