Strategic Analysis of Uber: PESTEL, Porter's 5 Forces, Internal Analysis

Report

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
External analysis..............................................................................................................................1
PESTEL......................................................................................................................................1
Porters 5 Forces...........................................................................................................................3
Internal analysis...............................................................................................................................4
Resources....................................................................................................................................4
Competences...............................................................................................................................5
Value Chain...............................................................................................................................5
VRIO..........................................................................................................................................7
Evaluation........................................................................................................................................8
TOWS.........................................................................................................................................8
Power/Interest matrix..................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The Uber is technology organisation that is based on American technoogy along with this
comprise of food delivery, ride-hailing, courier, freight transportation and package delivery
along with this having partnership with electric bicyle, motorised scooter rental and Lime (Liu,
Brynjolfsson and Dowlatabadi, 2021). There are numerous services are offered by the Uber such
as UberX that is in resultant of affordable rides, Uber pool for shared rides, Uber comforts as
new cars with extra legroom and many ohers as well. It is a company of transportation industry
and contribute towards higher economy generation.
MAIN BODY
External analysis
It is an analysis that is based on micro environmental factors having direct and sustain
impact over the working of an organisation. Uber was founded in 2009 by Garrett camp and
Travis Kalanick with having headquartered in San Francisco, California, US. The company have
served the 69 countries as over 900 metropolitan areas as with own website and mobile
application. Uber works with 26900 number of employee and generate the revenue of
US$11.139 billion in 2020 with net income of US$−6.768 billion in the year 2020. In US Uber
have 22% of market share due to food delivery and 71% market share as due to ride sharing.
PESTEL
It is an analysis that more frequently dependent over regard of fastest and growing
application towards taxi sharing company and it is as explained below as:
Political: It is a factor that is dependent over the working consequences of business as
with this business must have followed all the rules and regulations so that working possibility is
processed in clear basis. In this Uber always faced endless of debates on global level and with
this many of government is affected due to sharing of economy and it induced trouble making
impact over traditional taxi services and it maintain lead towards rise of disapproval as against
various stages (Grabher and van Tuijl, 2020). It act as threat for the business for instance,
government of South African also initiated towards seizing of Uber cars as drivers doesnt have
the access to hold a taxi (Uber PESTLE Analysis, 2021). As business license is always be
required by the government with this prior documentation. The disruptive effect of traditional
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taxi service induced opportunities for Uber but for this authorities have concern about to bring
suitable laws for transportation companies.
Economical: It is a basis that is dependent over the economy generation or its support
that is in respect of organisational working. As Uber provides employment and unique jobs to a
lot of people or drivers at larger scale. It induced many other benefit as well that reduced the
searching cost of Taxi and the traditional taxi service also forced to cut down price. The threat
for the company is that transportation industry induced extraordinary competition and it is
typical for traditional service. If any company provide service at low cost get ahead in terms of
competition as people always looks forward and prefer cheaper product in comparison to
economic downturn (Angrist, Caldwell and Hall, 2021). The opportunity for Uber is that
company has grown exponentially since its launch and have wider acceptance over a larger
market so that ability to induced sustained change in respective manner is processed with
regularity.
Social: It is a factor that is in favoured of the company as customers of Uber been more
happy about the different offered services by an organisation. In addition, the wider usage of
smartphone induced positive impact over the Uber and also generate sustained opportunities as
well. The smartphone make even more easier for the people to get to know about picking point,
drop time, picking up time along with that also get track overall route. In addition, Uber also
provide the service as less as compared to its competitor and it assist the company to maintain
suitable lead and in this awareness must have spread with support of social media, advertisement
and by word of mouth as well. Furthermore, there is a threat as well the enhanced rate of rides
make sufficient increment in urban areas which is not accepted by many of customers thus they
get easily switch towards other service providers Lyft, Didi Chuxing, Grab and many others as
well.
Technological: The working basis of Uber is completely depend on technological
advancement and innovation is a enormous foundation of company that induced wider range of
development within business. The sharing ride of Uber induced incredible range of innovation
that foster working possibility and market attentiveness that advance the working possibility in
collective manner (Mohamed, Rye and Fonzone, 2019). The opportunity for the company is that
its management induced unique changes that process remarkable benefits for company. Besides
of it there are few threat as well such as an improvised form of innovation and its uses induced
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