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Uber Uber is a global transportation and entertainment company

   

Added on  2020-02-24

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Competitive strategy 1COMPETITIVE STRATEGYAuthorCourseProfessorUniversityCity, StateDate
Uber Uber is a global transportation and entertainment company_1

Competitive strategy 2COMPETITIVE STRATEGYIntroduction- UberUber was founded in 2009 and by 2015 was operating in more than 300 cities and 50 countries. The company currently has a valuation of more than $ 60 billion with a total funding of more than $50 billion (Kim 2017). It posted net revenues of more than $6 billion in 2016 and had more than $20 billion in gross bookings. The company provides a cheaper alternative to conventional taxi services and has more than 1 million drivers currently working for the company. The success is seen in the number of user’s which stands at more than 1 million daily globally and 8 million regular users.StrategyMarket- Uber competes in the taxi services market which is was premised on fixed fares using a meter inside the cab or taxi. This market is big and has not reached saturation as it offers flexibility and convenience. The Uber model is based a ridesharing using apps that allow the client to locate the nearest Uber car near them. The use of cars owned by the driver but operatingwith apps and software proprietary to Uber eliminated the need to invest resources in buying cars. This gave Uber competitive advantage in market entry and positioning over traditional taxi operators.Unique value- Uber operates with a unique value proposition on several elements. It solves practical daily problems such as locating a taxi. Its disciplined drivers provide a refreshingexperience for the rider when compared to drivers of traditional taxis. Some Uber rides create additional value by giving customers free items such as water and mints. UberKITTENS in the US allows clients to cuddle real kittens during their ride for extra payment (Kim 2017). The proceeds support centers which care for animals. This adds value at the social level. CAGE FRAMEWORK
Uber Uber is a global transportation and entertainment company_2

Competitive strategy 3Using the CAGE framework, Uber has leveraged its services globally. The use of Uber isnot affected by cultural distance in terms of language, religion or social norms as taxi services are universal in nature (Ghemawat 2015). In terms of geography, it requires minimum geographic supervision as it operates with three executives for each city. Administrative distancevaries but is generally low with most governments allowing for free market dynamics to operate. The economic distance is low as Uber services are not affected by the size of the country’s economy.Model of InnovationThe business model is to increase customer value while reducing their cost of using the Uber ride. The customer uses apps to locate the nearest ride available using their smartphone (Borker 2016). The driver using company software is able to identify the shortest route to the customer’s destination using GPS. The customer benefits by lower fares while the driver uses less fuel and time. Value is created mutually for both the customer and the driver and makes the business model innovative and sustainable. It engenders loyalty in the customers and drivers and contributes to its success as ride sharing company.Introduction- Microsoft CorporationMicrosoft has been operating for more than forty years and is presently the largest software maker worldwide. Its operating system (OS) for computers accounts for 90% of all installations across the world. In 2016 the company posted a profit margin of 28% on revenues of more than $70 billion (Statista 2017). Its innovative culture has resulted in new versions of itsOS such as Windows XP after Windows 98. It has also made major inroads into the home video game sector which contributes significantly to its profits. The X-Box is one major profitable product the company has innovated.
Uber Uber is a global transportation and entertainment company_3

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