Competitive Forces of Uber

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1: Describe extrinsic factors of Uber Technologies Inc............................................................1
TASK2.............................................................................................................................................3
P2: Explain intrinsic forces that affect respective business........................................................3
TASK3.............................................................................................................................................7
P3: Define competitive forces of Uber........................................................................................7
TASK4.............................................................................................................................................9
P4: Describe theories and strategic business plan.......................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is refers as the group of decisions and activities needed for protecting
and securing position & place in market of business entities. In order to achieve objectives it is
essential to apply and implement these activities & decisions if effective and efficient ways.
Business strategies plays prominent role in smooth operation of business, getting competitive
significance and ensuring growth of business (Bayo-Moriones, Galdon-Sanchez and Martinez-
de-Morentin, 2020).
Uber Technologies Inc. is US based vehicle company that offers hire, couriers, food &
package delivery and freight transportation services to general people & business organisations.
It has a partnership with electric bicycles, scooter rental for above services. The company
developed in march, 2019 with its headquarter located at California, United States. Current firm
has $1.1 billion revenues with estimated 110 millions users monthly throughout the world.
The report is based on internal, external analysis of Uber with knowing strength &
weaknesses of business, opportunities for futures growth. Additionally, competitive forces and
theories, models are discussed with suitable plan.
TASK1
P1: Describe extrinsic factors of Uber Technologies Inc.
Pestle analysis is a tool used by the companies to monitor the macro or external environment that
may impact the organisation on which firm has no control. It has huge impact on company's
position within exiting industry or future expansions of business in several countries and many
areas of a particular nation. Pestle of UBER is defined as below:
Political factor: This factor can change because of the policies and actions of the
persuade government at every level. This element includes tax, laws, political stability. UBER
enjoy the advantage of the government solidity (Christodoulou and Cullinane, 2019). This leads
to create growth opportunities for respective organisation and long term sustainability of
business. In this business has required to follow different rules and regulations and with this
Uber follows all the legal formalities as per requirement as with this work is processed with
certain balance and easiness.
Economic factor: This determines impact of the change in economic rate that
influence the operations of the business. This factor includes interest rates, employment and
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unemployment rates, legislations of government, rate of inflations and recession, raw material
cost and foreign exchange rate. US has a adequate rates policies which provide support in the
smooth running performance of the firm and customers are also able to acquire premium services
which increase the profitability of the business and enhance brand awareness among customers
and market. As per the economic recession period working capabilities is reduced as with this
purchasing power of the public also get reduced and with this it is hard for Uber to manage its
working and for this different strategies is processed under which ability to attract more
customers is increases in successful manner.
Social factor : social aspects focus on the family, friends, neighbour, colleagues,
media and social groups which influenced someone's lifestyle, attitude, opinion, geographical
disputes, regional differences that directly have impact on the sales and the revenue earned by
the business. In US, people did not use their personal vehicles so the demand for the cab is high.
In order to fulfil the demand UBER enhance their business productivity (Shtal and et. al., 2018).
However, because of high demand people book cab frequently that results in unavailability of
service that affects the brand image of the entity.
Technological factor: this factor refers to the all externally generated changes in the
technologies and process that is uses by the companies in there operations. US has a rapidly
growing advance technology which will provide the advantage to the UBER in more effective
and efficient running of the business operations as it has its technology based operations. Fast
growing technology also has a negative impact as technology becomes obsolete easily and
required heavy investment. Uber uses advanced technology in its services so as to build unique
image in industry this contributes towards achievement of higher profits and revenues of
business as well as higher customer base.
Environment factor: This is refers to the temperature, food, pollutants, natural
calamities, pollution density, sound, and light that influence living organism. UBER uses the
petrol and diesel cars which produce carbon footprints and carbon emission in enormous quantity
for which it has to pay high penalties as according to the prevention and control of pollution laws
and rules. However, governments also provide the subsidy and compensation to the companies
who are using ozone-friendly process.
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