Influence of Macro Environment on Uber and its Strategies

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY - ...............................................................................................................................3
P1.Influence of Macro environment on UBER and its strategies - .............................................3
P2. Internal Environment and capabilities of UBER -.................................................................5
P3. Porter's Five Forces Model -..................................................................................................8
P4. Strategic Directions available to Uber...................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business Strategy refers to the union of decisions taken and course of actions executed by the
organization to accomplish its goals and secure a competing position in the market. In other
words, business strategy is blueprint that management of the organization implements to have
competitive position, carry its operations, please customers and achieve desired outcomes of the
business.
Uber Technologies, Inc. was founded by Garrett Camp and Travis Kalanick in 2009, is
headquartered in San Francisco, California, US. It provides various services such as vehicles on
hire, package delivery, couriers, food delivery, transportation, freight by doing partnership with
Lime, motorized scooter and electric bicycle rental. Uber have its operations globally and is the
one of the largest provider in the gig economy.
This report evaluates the impacts that macro environment has on Uber and its Business Strategy,
determine Uber's internal environment and capabilities and analyse the UK market sector and
apply different models. Last but not the least, this report applies various theories, concepts
framework to understand and interpret the strategic directions available to Uber.
MAIN BODY -
P1.Influence of Macro environment on UBER and its strategies -
Pestle Analysis -
Political Factor – Uber faced many political controversy because it did not clearly define in its
rules and regulations initial stage. Different governments regulates different laws in different
countries cause the problems like as there were political discussions regarding minimum wage
laws and whether Uber abide by these rules or not.
Economical Factor – Every business gets affected by the economic factors too, sharing
economy has produced employment at large scale (Perera, 2017). Uber has provided large no. of
jobs to various individuals which contributes in the UK economy. Due to, minimal taxi price
drives provided by Uber has also impacted the other traditional Taxi drivers.
Social Factor – Social aspect of company is essential as both company and society have mutual
beneficial relationship. Uber has gained popularity and acceptance in UK because it offers low
price and quality customer services. These both are the points which differentiates and set it out
from its rivals. Despite facing tough challenges, Uber is able to maintain its strong social image.

Technological Factors – Technology is the backbone of Uber. Company uses excellent
technologies to provide its customers with the extraordinary features for the ease and quality
experience while using its app (Shtal and et.al., 2018). Few differentiating features are like
geolocation, message pop-up, free call to driver etc. it keeps on adding innovative features to
differentiate it from other rivals.
Legal Factors – Legal compliance is a essential challenge for the Uber, as company is not just
facing the problems related to taxes but is also facing issues regarding human resource. It should
follow the law of minimum wage pay to its drivers and abide by the proper guidelines regarding
driving otherwise it has to bear high fines and other repercussions.
Environmental Factors – Environmental elements also affects the business growth to avoid that
Uber gives importance to Sustainability. By considering Sustainability, Uber launched its pilot
project Uber Green, in which riders can request green ride with just tapping one option on its app
(Yuan and et.al., 2020). Uber pool service is also one of its Eco-friendly initiative taken by
company to save people money.
Stakeholder Analysis -
Stakeholder analysis helps in recognizing and prioritizing stakeholders before the project starts.
It basically organizes stakeholders according to their level of participation in the projects.1. Determining the Stakeholders – The first step in stakeholders analysis is to identify
various stakeholders interested in the company. Generally, it includes the owner,
investors & stockholders, buyers, customers &prospects, Competitors, Banks and
Creditors, Partners & Suppliers, Government regulators, Professional & Industry
associations, media, NGOs, communities and other interested group.
2. Categorize and prioritize these Stakeholders – After the Uber stakeholders are
determined the second step is to commence grouping with respect to their interest,
influence and level of particpation in the project (Sapapthai and et.al., 2020). For this
power/interest grid can be used -