Evaluating Competitive Advantage Factors

The assignment requires analyzing the Uber case study using the VRIN framework to determine if a resource is considered a source of sustainable competitive advantage. The student must demonstrate an understanding of dynamic managerial capabilities, entrepreneurial ecosystems, and process eco-innovation. They should also recognize the importance of corporate culture in resolving business problems and challenges, as well as the role of socialization and patronage in purchase decisions. A literature review suggests that this assignment will assess the student's ability to integrate concepts from various fields, including innovation, technology, and management, to provide a comprehensive understanding of entrepreneurial ecosystems.

INNOVATION

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION..........................................................................................................................2
LO1..................................................................................................................................................2
Business environment of UBER.............................................................................................2
Impact of emerging trends from the macro environment.......................................................4
Implications for survival and success in the future................................................................4
LO 2.................................................................................................................................................5
Organization's strategy...........................................................................................................5
LO 3.................................................................................................................................................8
Culture, structure, management systems and human resource strategy of UBER.................8
LO 4.................................................................................................................................................9
Sustainability of competitive advantage of firm in the future................................................9
Comparison of strategy with key success factors ..................................................................9
Internal consistency..............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
Innovations is considered as most essential for every business enterprise in order to
sustain a competitive advantage over its rivals. In present report, case study of UBER which is
an international business firm UBER operating in travel industry, for understanding the
problems which are faced by the company by serious claims sexual harassment at workplace
made by Susan Fowler and their other female staff. As per the case study, There are various
implication have been faced by UBER due to their unstrained workplace culture in San
Francisco. PEST analysis has provided an understanding that external environment of company
will provide both positive and negative impact on there business operations. Various emerging
trends and key business success factors have also been taken in to considerations for
development of the best suitable strategy for organization.
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INTRODUCTION
Innovation is analysed as successful ideas of business or a behaviour that is being
implemented in industry or market of organization in order to change its process. These ideas
are adopted and implemented with the organization to improve efficiency (Paradkar, Knight and
Hansen, 2015). Present business report is based on the analysis of international business firm
UBER operating in travel industry, for understanding the problems which are faced by the
company by serious claims sexual harassment at workplace made by Susan Fowler and their
other female staff. As per the case study, There are various implication have been faced by
UBER due to their unstrained workplace culture in San Francisco. Their employees have said
that, Hobbesian environment in the company has tends to some workers pitted on each other and
the top performers were also not considered as important by management. Many political and
legal challenges have been faced by company due to it is their negative behaviour of there
managers with employees and the HR strategies were also not appropriate for retention.
Discrimination in company has created problems of labour turnover for company in various
countries. Further, in order to remove these implications a new CEO Dara Khosrowshahi was
appointed for the implementation of anew corporate culture. It has developed various strategies
through which the company has turned back to its previous dominant position and removed
those problems.
LO1
Business environment of UBER
PEST analysis is used to analyse the external environment of that impacts on its business
operations. These factors are mentioned above: Political factors: As per case scenario, there are various controversies have been faced
by UBER in its initial development stages as it didn't the clear regulations (Helfat, and
Martin, 2015). Many political factors like advertising charges, drivers not having license,
minimum wage laws etc. Further, Claims made by the female employees have also made
various restrictions and influence on its operations. Economic factors: Case study has provided an understanding that the industry in which
the UBER has its operations is the sharing economy which implies that economy is
based on sharing of physical and intellectual resources. According to Travis Kalanick,
Continuous rise economic growth has provided positive impact on company's operations
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and made it now a dominant ride hailing company in US and it is also rapidly growing in
south America, India and other Asian countries along with countries in UK. It has grown
exponentially from its initial launch by there are various countries who have banned its
services due to its unfair competition against regular taxis. Social Factors: various factors like customer's perception, feelings, thoughts and
experience has also affected the operations of UBER. Claim made by female employees
in San Francisco has changed perception of various female towards the firms and there
was a decline in number of customers (Slack, 2015). Further, there are some other
customers who had enjoyed their rides and posted about their experience on social media
which has increased their public transportation service in UK.
 Technological factors: As per the case study, organisation's business has been started by
making technology as base for their operations. Customers make booking for their ride
on their applications which also them information about availability of cabs at different
locations. Thus, technology has provided a positive impact on their business.
Porter's five force model Industry competitiveness: Intense competition has been faced by cited company in most
of major market for UBER including the US. They have faced competition with service
of companies like Lyft, whose structure is also same as of organisation and provide a
tough competition in terms of market share. Threats of new entrants: Any new company needs to make entry within industry with
the similar model of business, the investments and barriers of entry are very low (Pang,
Lee and DeLone, 2014). Thus, there is high threat of new entrants to this market. Threat of substitute: As per external analysis, substitutes of UBER are considered as
those who have direct competition and having same business model along with other
regular taxi service providers. Further, these alternatives provides major threats to UBER
as there local service have been used by customers which has reduced the sale of
company. Bargaining power of suppliers: Suppliers as per the case of UBER have high bargaining
power because they do not have their own vehicles operating in its name which provides
an upper hand to its suppliers. They also need to take care of drivers while outsourcing
because any default to their business prospects.
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 Customer's power: Buyers of UBER are not permanent to them unless they become very
loyal to the service provided by company at low prices. Moreover, after this scandal
safety has also become a question market for female customers which has reduced their
image in market between competitors.
Thus, it can be said that external environment of company will provide both positive and
negative impact on there business operations.
Impact of emerging trends from the macro environment.
Below given are the five emerging trends which have direct impact on UBER like: Economy: Sales of company depends upon the wealth, ability of population borrow
money to make their purchases. As per case study, when economic condition of Uber
was bright, then they have adjusted their strategy which means layoffs, cost cutting and
price reduced prices to increase sale volume. Cultural shifts: After the scandal, company there are various problems have been faced
by due shift preference of people in society (Wright, Siegel and Mustar, 2017). Thus,
they have to pay more focus to trends and fads as well as also made several changes in
their policies to provide security to their customers as well as female employees. Politics: The political forces have altered the business field of UBER physically through
changes in laws, minimum wages, taxation and permitting fees etc. thus, these forces are
needed to be analysed by company will development of strategy. Technology: As per the case study, rise in technology is analysed as emerging trend
which has provided a base for company to expand its business operations by providing
digital services to their local customers in countries.
 Nature: It also considered as the least predictable factors which also influence the
organization and they to make an estimation and keep funds to remove those challenges.
Through development of effective strategy by CEO company has its achieved its desired
position and reduce the market of all other brands.
Implications for survival and success in the future.
With the continuous improvement in their service and transportation facilities, UBER
will expect to survive in competitive market and achieve growth (Spiegel and et.al., 2016). As
per the case scenario, company has analysed major key success factors for development of
strategy like benefits of customers by reducing prices and providing safety, benefits for Uber
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drivers by creating various employment service and increasing profit margin, early adaptation of
new technology services in business operations, Word of mouth publicity by providing quality
experience to users and price surging (6 Key Success Factors Behind Uber Growth, 2017). Thus,
these key factors have provided major importance as they tend to raise economic growth of
company and make them able to survive in sharing economy across the world.
LO 2
Organization's strategy
Strategy or organisation is sum of actions a company willing to take in order to achieve
long term goals. These actions further make up strategic plans of company.
 Strategic resources and capabilities: From case study, it has been analysed that
company has various strategic resources like human capital, vehicles and behaviour etc.
It clearly indicates that Uber use the resources of which it is not the direct owner, is the
case of experience skills and knowledge of there employees (Ma, Zhou and Fan, 2015).
There is vast communication along with personal technology and digital service are
considered as major resources for company to accomplish its long term goal. Further,
existing in more than 500 regions across the countries is considered as high capabilities
of firms to expand is business operations and make innovation in their services.
Decentralized work culture provides high competency to company for taking
participation of employees in making decisions at workplace. Thus, these major
resources and capabilities will be considered by enterprise in order to develop a new
business strategy. Firm's resources and capabilities combined together to create
distinctive capabilities.
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 Differentiation: In this, company will focus on those activities which are linked with
core competencies and capabilities in order to perform them better than its competitors
(Schaffer and et.al., 2011). As per the analysis, competitive advantage is created by
using the resources and capabilities to achieve either a lower cost structure or
differentiated product. Positions of firm itself in its industry through their selection of
low cost or differentiation of product. For achievement of competitive advantage, Uber
will need to develop their new services which offers unique attributes to their customer
and that services will be better than and different from other competitors.
 Value chain: It is based on the principle that organization exist in business to create
value for their customers. According to scenario, Firm's activities are divided in to
separate set of activities that gives values. These set of activities are mentioned above:
◦ Inbound logistics: It implies to getting resources from suppliers, shareholders and
others for making investments in the business operations. Private investors has
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Illustration 1: Model of competitive advantage
(Source: Piñeiro-Otero and Martínez-Rolán, 2016)

valued the company $70 billions and presently it is operating in 70 countries and
provides possible return to their shareholders.
◦ Operations: Activities accomplished by Uber for creating values that transforms the
major inputs in to the final products (Freiling and Baron, 2017). After the scandal,
New CEO has been appointed by organization which has changed the scenario and
removed all those workers which are found guilty and also reduced the prices that is
being obsessed with the customers.
◦ Outbound logistics: By using various technologies and software, company has
provided facilities of assessing taxis nearby their places. They will also get the
information about availability of type of vehicles and prices which are to be charged
for the services and rides. These major technological development has been created
by firm to get their services to customers.
◦ Marketing and sales: There are several activities and task performed by the
management of Uber for influencing the buyers to made bookings for their services.
Company will use various channels like social media networking, applications,
online advertisement and e commerce websites like Amazon etc.
◦ Services: Application developed by company is used to provide customer support
and also provide safety to customers. Feedbacks are also been taken from customers
in order to reduce their problems.
 Business model Canvas: Strategic management and template of lean start up used by
Uber for development of new and documentation of existing business models (Cross,
2011). It includes various material components which is used by company for creations
and values and achievement of competitive advantage over its rivals.
◦ Customer segments: Uber has targeted segment of people with middle income
group who are expected to use the services regularly. These customers need to get
safe and less expensive transportation services.
◦ Value prepositions: By providing services at low prices, company will be able
influence its customers and customers will also get benefits on making e payment
and get assured cash back.
◦ Channels: This preposition are being promoted by Uber through various digital
media channels and social media networking, direct mailing etc.
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◦ Customers relationship: Appropriate communication needs to be developed with
the customer by employees in order to make them loyal towards the company.
◦ Key activities: By creating customers loyalty schemes and providing benefits on use
of service company will able to influence its customers and delivers its prepositions.
◦ Key resources: Employees and partners are considered as key resources of
organisation which provide them support in achievement of objectives.
◦ Key partners: People who are owner of vehicles which are operating by name of
Uber in countries are considered as their partners.
LO 3
Culture, structure, management systems and human resource strategy of UBER.
In order to get past its various scandals and self transformation in to Kinder, and gentle,
Uber will likely to follow a long and winding path. From the case study, it has been analysed
that there are various problems and challenges have been faced by company due their
obligations which has to be taken in to considerations in order to gain various important
business competitive advantage over their rival business firms. In order to remove the
ineffective corporate culture at workplace and reducing the problems. Culture: There are recommended steps the company needs to take to change its culture
like Review of their pay practices, modification of process of performance review,
making the clear the requirements of promotions and providing safety to women staff at
workplace (Edquist, 2010). Structure: Organization is following decentralized structure at workplace which is
beneficial for them to get the support of their employees in development effective
business strategies. Management Systems: Earlier the system of management was not effective as stated
Susan Fowler in her blog post. She has determined that, female employees were abused
and became a subject of harassment by there managers. Managers always tends to fight
with there peers and attempting to direct superiors so that they could have their direct
supervisors job. There company has taken a step to remove all those managers and also
hiring of new employees at workplace.
 HR strategy: Susan also stated that HR department has systematically ignored reports
which was sensed by her related to sexual harassment at the time she was employed at
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workplace. Therefore, CEO has also removed this HR professional from departments
and addressed employees retention and developed equal pay policies for its employees.
Other than this, they have also made various restrictions like employees those who getting
involved in relationship with their managers will be required to provide report on situation.
Other celebration and parties that involves hard drinks and other activities are prohibited. Thus,
through these actions, organizations will be able to develop its new culture.
LO 4
Sustainability of competitive advantage of firm in the future.
In the previous analysis, there main key elements which are considered like resources
and capabilities, cost advantage or differentiation stage and creation of values chain. These three
major elements are being used by the enterprise in order to increase there market share in
industry as compared to rivals. Competitive advantage over rivals have been considered as
creation of an advantage over rivals that will enable the organization to accomplish its long term
goals by differentiation of products and services (Erdemir, 2016). There are various important
factors that has been taken in to consideration in order to gain business advantage. In this
context, there are major needs for Uber to increase its strategic resources like Human capital,
technologies and other important resources and also increase their capabilities which tends to
develop their distinctive competencies. These competencies will also provide them support in
application of differentiation strategy in order to make difference in their products and services
as compared to rivals like Lyft who also regulate with same business model and have their
major influence on their business operations. Through application of product differentiation
strategy organisation will be able sustain its make differentiates themselves from competitors on
basis of cost of services, various facilities, discount and channels used for communication et.
These extra services and benefits will create values among the customer which has been
described earlier in the value chain analysis of company. Thus, these major elements will
provide benefits to the enterprise in sustaining there competitive business advantage over its
rivals.
Comparison of strategy with key success factors
As per the given scenario, the firms needs to apply differentiation strategy in which they
will be differentiate their products and services on the basis of cost, discount facilities and other
benefits which will influence their customers and creates values as compared to rivals. This
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differentiation strategy will provide them support in increasing there market share and
achievement of growth. Sales of company depends upon the wealth, ability of population
borrow money to make their purchases (Hojnik and Ruzzier, 2016). As per case study, when
economic condition of Uber was bright, then they have adjusted their strategy which means lay-
offs, cost cutting and price reduced prices to increase sale volume. Further, differentiation
strategy will also provide benefits to respond the situation of decline in growth of company and
make them able to increase there sales volume by lowering the cost. After the scandal, company
there are various problems have been faced by due shift preference of people in society. Thus,
they have to pay more focus to trends and fads as well as also made several changes in their
policies to provide security to their customers as well as female employees. Benefits of
customers by reducing prices and providing safety, benefits for Uber drivers by creating various
employment service and increasing profit margin, early adaptation of new technology services
in business operations, Word of mouth publicity by providing quality experience to users and
price surging. These successful factors will also provide major influence on business operations
of enterprise and make them able to sustain there growth in market.
Internal consistency
Through development of new corporate culture,Uber will be able to remove their
business problems and challenges which are faced by them in past several as per the review of
case study. There are recommended steps the company needs to take to change its culture like
Review of their pay practices, modification of process of performance review, making the clear
the requirements of promotions and providing safety to women staff at workplace (Cross,
2011). Development of decentralized culture at workplace will also make the organisation more
competitive to increase participation of employees and removal of all the allegation which are
made by Susan Fowler in its blog post. In order to develop an internal consistency, CEO has
also changed the management system by removing the manager those who are involved in this
scandal and HR person who have reported there report of Susan and also apologise her for
mistakes. Through internal business consistency the organisation will be able be develop
effective perception and among its customers and able to increase its market share as well as
expansion of business operations with new products and services
Assessment of resources and capabilities
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VRIN framework will determine that if a resource is considered source of sustainable
competitive advantage. It included elements like: Valuable: It implies that the resources and capabilities needs to be valuable for
customers like decrease in prices of service, discount, qualified human capital,
technologies capabilities (Edquist, 2010). These key resources of UBER will make them
excellent among its customers and creates major values. Rare: These resources are also analysed as rare because getting an qualified personnel on
job and increasing the safety and discount facilities are considered as very rare and not
provided its rivals. Inimitable: These resources and capabilities of UBER are not being copied by other
rivals but through application of same strategies they will also be able to influence the
firm's competitive advantage (Erdemir, 2016).
 Non substitutable: It implies that there source which are developed by firm will not
substitute by other business enterprise.
CONCLUSION
In this report, it is analysed that Innovation is analysed as successful ideas of business or
a behaviour that is being implemented in industry or market of organization in order to change
its process. These ideas are adopted and implemented with the organization to improve
efficiency. Case study has provided an understanding that the industry in which the UBER has
its operations is the sharing economy which implies that economy is based on sharing of
physical and intellectual resources. Through development of new corporate culture,Uber will be
able to remove their business problems and challenges which are faced by them in past several
as per the review of case study. VRIN framework will determine that if a resource is considered
source of sustainable competitive advantage
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6 Key Success Factors Behind Uber Growth, 2017. [Online]. Avalaible
through:<https://taxistartup.com/blog/6-key-success-factors-behind-uber-growth/>
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