Impact of External Environment on Uber

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Impact and influence of external environment on Uber.........................................................3
LO 2.................................................................................................................................................5
P2 Internal capabilities of Uber...................................................................................................5
LO 3.................................................................................................................................................6
P3 Porter five forces to Uber.......................................................................................................6
LO 4.................................................................................................................................................7
P4 Theories and models for strategic planning............................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business Strategy is defined as set of action or plan which are formed to strengthen
organizational performance for achievement of organizational goals and objectives. Business
strategy is formed for purpose of Achieving effectiveness and efficiency in work processes, Grab
resources and opportunities, Securing position beneficial for organization., Facing threats and
challenges, Planning and directing behaviour at workplace, Controlling situations by taking
corrective measures (Acuña-Carvajal, and et.al., 2019). Business strategy helps in attainment of
desired ends which are being set for specific procedure to be accomplished. Particular framework
is required for setting business strategy which assists in planning and effectively direct towards
the end. Business Strategy Formulation for creating effective business strategy, it is important
that that proper formulation of all factors and aspects are measured which helps organization
grow on larger scale. For business to be efficient, strategy is formulated which is described as
Defining the organization and its environment which consists of target market, offerings
customers, changes and challenges, adapting according to it, describing the strategic mission and
vision constituting of long run perspective, core values of the entity, position of organization in
market, Set strategic objectives, the competitive strategy being framed and its implementation
and Evaluate progress and effectiveness, Uber is known as a big shot within shared economy as
it is well known for its cheapness, ease of use and also for controversies.
LO 1
P1 Impact and influence of external environment on Uber
Uber is a firm headquartered in United States as well as operates all over the world. Firm
can deals with marketing , developing as well as operating car transportation services, also they
have their own food home delivery apps.
Pestle analysis of Uber
It is an analysis of Framework that can be more imperative for firms such as Uber that aids to
understand market dynamics as well as improves its business more continuously.
Pestle analysis- Uber has always faced endless debates all over the world. Most of the
government are worried regarding guidelines of economy sharing. Also, rising uber has also
troubling impact on the traditional taxi services that ultimately leads to the disapproval against
them within various stages (Chen,, Eshleman, and Soileau, 2017). They also faced scrutiny all
over the world as France filed charges relied on advertisings, also. Netherlands also ruled against
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the Uber for their drivers as they not having Taxi licenses and also in Asian nations ban
considerations. Also there were political discussions regarding minimum wage laws within such
industry. The government also needs commercial license needs, Uber in order to givers
documentation.
Economic factors- The industry where the Uber operates is considered as the sharing economy
that means economy relied on the intellectual and physical resources. Within the case of Uber
hires the drivers in order to respond to the consumer as well as drive them at particular location.
Uber is even cheaper than traditional taxis as well as easier to schedule an appointment (Kong
and et.al., 2020).. Nations have banned its services as against taxis Uber have unfair competition.
As per the study people are studying such type of the economy brings several new opportunities
regarding career for lower pay. Here one thing is sure, Uber has grown at rapid rate
Social factor- One of the vital thing that consumer enjoy is that Uber is easy to access platform.
Choosing an appointment as well as pick up time is considered as very easy by using the app by
the help of the smartphone. It needs no communication instead a few presses of a button and also
at the same time cheaper prizes is always attractive to many that led to the explosion of the
Uber's growth all over the world. As costumers enjoys ride and gives feedback regarding their
experience on social media, but also with enhance prices within the major cities also rose too.
Thus, due to ease of use consumes also picks Uber Frequently.
Technological Factors- Through social media Uber spread wildfire as people are sharing their
rides experiences online shares stories. It also boosted new users in order to do within a similar
way. Buyers are also searching for transportation which is cheaper as well as Uber fulfilled this
requirement. Consumers are also makes appointment by the app. This app is vital to Uber as it is
unable to function if the app suffers difficulties or goes down (Lim, Chalmers and Hanlon,
2018). The firm must assures everything is working. Here several drivers use 4G network in
order to connect to the application.
Legal Factors- These are the factors that were touched as Uber faces much bans, criticism as
well as attempted bans within location all over the world. The firm also must follow copyright
laws, usage laws, labour and employee safety laws. So, these factors has highly impacted on
company brand image and value in the market.
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