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Report on Issues in Business Management- Uber

   

Added on  2020-02-14

11 Pages3088 Words46 Views
CRITICAL ISSUES IN BUSINESS MANAGEMENT1

Table of ContentsINTRODUCTION................................................................................................................................31. Analysing and discussing the nature of innovation brought by Uber in private vehicle industry...........................................................................................................................................................32.) Identify and analyse main driver encouraged Uber to innovate in the industry..........................43.) Critically evaluate the factors that enabled Uber to innovate in the industry.............................54) Evaluate the extent to which Uber is a disruptive innovation in the industry..............................7CONCLUSION....................................................................................................................................7REFERENCES.....................................................................................................................................92

INTRODUCTION Business management is method of designing the strategies, plans, polices and procedurethat provide direction to company on routine and long term basis. It further includes coordinating,employees, finance, technical and other material resources to attain overall goals of company. Thereare large numbers of issues that can be faced by company during business management. In thisreport,various aspects of critical issues in business management will be studied in the context ofUber. It is an American global online transportation network company founded in 2009 andheadquartered in San Francisco. The entity is known for providing taxicab, vehicle for hire to itscustomers. The organization is known for its innovation which means introducing new ideas, finesolutions or methods that meet new and emerging needs of market. In this report, discussion will beprovided about nature of innovation brought by Uber in taxi and private hire vehicle industry.Thereafter, the key drivers that encourage Uber to innovate in this industry will be identified. 1. Analysing and discussing the nature of innovation brought by Uber in private vehicle industry. The Uber has revolutionized the taxi cab business by developing mobile application whichpermit the users with Smartphone to proposing a trip request, which is programmed by software andthat request is automatically send to the driver of company located nearly to customer andinforming it about the location of consumer. The mobile application also help in calculating the fareand transfer the payment to the driver. 1.Focus of innovation: The core competency of Uber lies in its efficiency to innovate andinfuse new ideas into business. The main consideration of company is on technology push.With this aspect, company makes investment n research and development areas so that newtechnology can be evolved which further become base of development of new products(Aplin and et.al., 2015.). However, Uber in future consider market pull strategy wheremarket competition or changing needs of customers forces entity to develop new product.2.Levels of innovation: There are various phases of innovation that can be focussed by Uberto stay ahead of its rivals. Such as, entity can consider incremental innovation which enablesentity in building upon present knowledge and resources (Billig and Waterman, eds., 2014).The present technology is exploited as it involve less cost. The radical innovation meansinput new knowledge and resources in business. However, it may result into loss of value ofpresent competency. Also, the risk of uncertainty is more in radical innovation as comparedto incremental one. The sustaining technology means encouraging enhance productperformance. While, disruptive technology is aspect that leads to development of newmarket and value network leading to discontinuance of present market. 3

3.Type of innovation: The innovation can be in different areas which are discussed as follows:Product: In this aspect, new and features can be incorporated into product which furtherlead to its improved functionality. Uber modified its product so that customer not face anytype of problem at the time of travelling. Service: The innovation in service areas help in supporting and enhancing the value ofproduct (Coccia, 2016). Like, Uber locate the driver located nearest to customer so as toreduce waiting time of consumer. Process: This aspect enable company to use trademarks or superior ways to perform variousfunctions. Uber can provided all its services to customer in systematic process so that itscustomer not face any type of issues. Further. It focus on fulfilling the needs and demand ofits customer on time so that it can increase the satisfaction level of its customer. Strategy: It refers to tactics that are used by entity to develop uniqueness in its offerings. Their are some disruptive strategy of innovation that is as follows;Elimination of various transaction costs: In the taxi industry the car rentals and car hires have monopoly on the transport industry.This help organization in setting their own fair rates and charges. Uber has made some changes sothat transaction cost no longer exist. If any car is reserves by customer through mobile app thencustomer not need to pay any extra charges. Doblin group of framework: It is important aspect that states that the innovation can beclassified into ten types that further help organization in bringing creativity and newconcepts into their business (Edison, Bin Ali and Torkar, 2013). The ten types framework issthree color-coded categories,configuration, offering and experience. It is represented asfollows:4

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