Uber's Innovative Practices and Disruption

This assignment delves into the innovative strategies employed by Uber within the transportation industry. It examines the company's utilization of mobile applications, GPS technology, and partnerships to enhance business performance. The analysis also explores Uber's environmental initiatives and its impact on the existing market structure, concluding whether Uber represents a disruptive innovation.

CRITICAL ISSUES IN
BUSINESS
MANAGEMENT

INTRODUCTION
In the modern era with the rise in level of issues in the market it has become difficult for
businesses to survive in the market. Further, majority of the companies operating in the market
have started to adopt innovation as one of the main tool through which market performance has
been enhanced. Apart from this, it has allowed organization to gain competitive advantage and in
turn large number of benefits can be obtained easily (Ramanujam and Tacke, 2016). For
conducting the present study organization chosen is Uber where company is American
worldwide online transportation network headquartered in San Francisco, California.
Organization operates its market with the help of online app and this supports in providing
convenience to the target market in every possible manner. Various areas have been covered in
the report which involves nature of innovation, main drives that encouraged Uber to innovate in
the industry etc.
ASSESSMENT 1
Nature of innovation brought by Uber
Organization like Uber carries out all its operations on wider basis and due to this reason
business has employed innovative tools for enhancing its market presence. Further, innovative
activities have been undertaken so as to deal with challenges being present in the business
environment (Meyer, 2012). Technology employed by Uber is most popular in the market which
has transformed the entire transport industry. The presence of innovative tool made it possible
for the taxi or cab riding public to avail of Uber drivers with the help of advanced mobile
application on their smartphones. In order to understand the nature of innovation it is necessary
to identify how Uber works where three main things are mainly required which involves
smartphone, mobile app and internet connectivity. By carrying out market analysis it has been
found that Uber is required to understand the actual need and requirement of the target market so
as to deliver them effective services.
The mobile application being introduced by the target market is compatible with both Ios and
Android and due to this reason greater number of customers make purchase of services offered
by Uber. The main innovation is in the type of option which is given to customers where they
can easily choose vehicle type as per this need and business provides them private car.
Customers are allowed to mark their location where driver can pick and the fare system
developed is based on time along with distance travelled. When any customer sign in then
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individual is asked for the billing information and the fare payment is automatically charged to
the credit card and at last customers are given option to rate driver and this represents actual
level of satisfaction. Uber has employed technology push strategy by conducting proper market
research and analysis so as to introduce new concept in the market. Further, mobile application
technique has supported customers to avail services in convenient way (Narayanan, 2011).
Incremental innovation takes into consideration series of small enhancements. Further,
Uber is required to rely on such type of innovation as service of car booking as taxi is already
present in the market. Due to this basic reason organization has focused on practice of
incremental innovation which has enhanced its service area and introduction of mobile
application has proved to be convenient. Further, radical innovation was another type of level
brought upon by Uber which undertakes the concept of GPS through which taxi can be tracked
easily. So it allowed business in strengthening its customer base.
Therefore, this clearly highlights the nature of innovative activities being carried out by
Uber. Apart from this, with the use of internet and ICT application has generally transformed the
way most of the world works (Meyer and Crane, 2015). The entire taxi and ride sharing industry
is full of innovation where Uber has introduce large number of new concepts and this has
directly allowed Uber in gaining competitive edge. Most innovative strategies being employed
by Uber are as follows:
 One of the best strategies employed by Uber is use of mobile application where
smartphones can be easily used to book taxi etc. Company has been directly benefitted
from collaborative consumption by developing mobile application with more attractive
features and this directly provided convenience to the target market such as use of GPS
for matching drivers along with their cars with passengers and presence of effective
tracking system (Denning, 2012).
Therefore, in this way the nature of innovation being brought up by Uber was highly
advanced and it provided base to enterprise in serving its customers in better manner.
Highlighting the overall process of innovation Uber has introduced cab services in the
market where taxi can be booked with the help of mobile application and GPS system where cars
can be tracked easily. Therefore, the unique booking system has supported in attracting
customers where Uber has become worldwide famous.
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Further, in order to gain knowledge regarding the entire speed of diffusion the model
Roger is considered. There is presence of varied elements that affects the speed which includes
application of new idea, innovation as well as communication that assist in providing advantages
to taxi drivers. The company has made adoption of these procedure but overall process of
innovation is slow and it consumes large amount of time and cost.
Main drivers that encouraged Uber to innovate in the industry
Company has invested large amount of funds in its major activities due to which
convenience was provided to the target market in every possible manner. So, this directly
assisted in accomplishment of desired goals and objectives (Narayanan, 2011).
Shorter product life cycle was the main driver as competition level was quite high in the
market and due to this reason life cycle of services was small. Along with these customer
expectations was rising at faster pace in relation with products and services due to which more
focus was on innovative practices (Nicoll and Armstrong, 2016). This directly led to enhanced
quality of the services being offered to them.
Development of the mobile application market was also one of the main driver where in the
modern era majority of the customers prefer to purchase any kind of service through mobile
application. Therefore, it also supported Uber in serving its customers and the overall outcome
was also favorable for company (Denning, 2014).
Through development of effective strategies it became easy for business to survive in the
market where customers are served in more convenient way. Introduction of new IT tools along
with technology has also provided base to organization in adopting this tool for rendering taxi
services and overall outcomes were also favorable for organization in every possible manner. At
present market share of Uber is quite high in the transport sector which business is appraised for
the kind of services it offers to its target market. Further, the growing market of digital platform
has provided base to the business which has created value for customers (Exploring Uber’s
Potential, 2014).
Factors that enabled and hindered Uber to innovate within the industry
Large numbers of factors are present that enable Uber in getting involved into innovative
practices. The major one is advancement in the information technology system which allowed
company to invest in advanced tools with the help of which services are delivered to target
market. So, this proved to be convenient for customers in every possible manner and provided
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base in enhancing market performance of enterprise. In short, concept of innovation has directly
benefitted Uber where its services are worldwide and it is not possible for any other firm to
compete with Uber in the market (Nicoll and Armstrong, 2016). Apart from this, it is analyzed
that customers only prefer to buy products that offer them greater convenience. So, in this case
target market of Uber can call taxi on one touch and this became beneficial for the entire
organization. Moreover, fares of Uber are cheaper as compared with other companies and along
with this safety is one of the main attribute being considered by company while targeting its
customers. So, all these factors strongly encouraged Uber to indulge into innovative practices so
as to focus on accomplishment of desired objectives.
Moreover, it become one of the most challenging task for business and inadequacy of funds
can surely decrease the performance of organization in the market. Tax burden is also one of the
major factor which is affecting business performance. At present company is receiving
complaints from government regarding shrinking of tax liability and the drivers are often non
complaint about payment of taxes (Denning, 2012).
Individual level
Training: Uber has launched different type of training programs so as to enhance knowledge
along with the skill level of the staff members. This supported in serving customers of Uber in
better manner where they are able to understand about the innovative practices in the form of
new tools and techniques (Nicoll and Armstrong, 2016). So, the new concepts were applied for
performing better in the market.
Organizational level
Environmental scanning: Uber carries out its operations in the environment which is quite
challenging and due to this reason business has to scan the environment for identifying actual
need and requirement of target market.
Environmental level
In the entire market competition level is quite high and out of all the firms services
rendered by company are quite unique in the form of innovative technology such as mobile
application, GPS etc. All such innovative practices have allowed to enhance business
performance in the market where competition level has been tackled easily. Moreover, in the
entire market complaints have been increased in relation with pollution and to deal with this
issue company has taken serious steps which involve regular check up of cars etc. The overall
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steps undertaken for protecting environment has positively affecting organization and due to this
reason first choice of customers is Uber as compared with other businesses in the market.
Partnership and alliances: It has been analyzed that partnership along with alliance is providing
every kind of benefit to Uber where business can easily indulge into innovative practices which
are quite unique in every possible manner.
Project level
Diverse mix of project team: Developing team of large number of individual who are skilled
along with knowledgeable can support organization in innovating new ideas and thoughts where
objectives of business can be accomplished easily. Further, through such factors Uber can
manage its activities and for indulging into innovative practices new software can be introduced
through which customers can easily book taxi. Uber can indulge its employees into decision
making process for its development in near future.
Extent to which Uber is a disruptive innovation in the industry?
Innovation which is disruptive implies that it is one that builds a newer market and existing
market is basically disrupted along with value network. Not every type of innovative practice is
regarded to be innovative and they can be revolutionary. Such type of practice can only be
applicable with the help of entrepreneurs rather than existing market businesses. Considering the
case of Uber where business deliver its services with the help of mobile applications and internet
tools. Organization was founded in the year 2009 and the business enjoyed strong financial
growth along with high profitability. Uber, in US is effectively transforming the business of taxi
within the market.
Innovative activities of Uber are considered to be disruptive as business started its activities
into two type of markets (Christensen, Raynor and McDonald, 2015). So, through this it can be
stated that Uber is a disruptive innovation in the industry. Moreover, organization also relies on
sustaining innovation where its concept is totally different from those of disruptive one. Through
this better services can be delivered to the target market which is above their expectation level.
So, with the help of this it can be said that Uber is not linked with disruptive innovation.
CONCLUSION
It can be concluded from the present study that Uber is making implementation of the
innovative practices in the market. Moreover technological advanced tools are applied by
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business such as introduction of application along with IT systems were highly beneficial which
provided convenience to target market.
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