Macro and Microenvironment Analysis of Uber

Submission Front Sheet
Programme BTEC Higher National Diploma (HND) in Business (RQF)
Unit Title and Number:Business Strategy (Unit 32)
Assignment title Business Strategy Assignment
Unit RQF level/Code
5/
(K/508/0574) Module Tutor
Name /Email
MD Hasan
m.hasan@mrcollege.a
c.uk
Credit Value 15
Assignment Brief
Code RQFBM-BS320203-V4
Cohort Name
HND MKT APRIL 20B
Assignment Date
Set
26th Apr 2021
Student’s Name
Zsolt Bandi
Student’s
Registration
Number
25229
Submission Date Distribution Date
Is this a first
submission
yes
Is this a referral
submission
Word Count
3341
Learner’s statement of authenticity
I certify that the work submitted for this assignment is my own. Where the work of others has
been used to support my work then credit has been acknowledged. I have identified and
acknowledged all sources used in this assignment and have referenced according to the
Harvard referencing system. I have read and understood the Plagiarism and Collusion section
provided with the assignment brief and understood the consequences of plagiarising.
Student’s Signature Zsolt Bandi Date 19/06/2021
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Table of Contents
Introduction............................................................................................................................................................3
An Overview of Uber.............................................................................................................................................4
Evaluation of the impact and influence of the macro environment on Uber and its business
strategies.................................................................................................................................................................4
Assessment of Uber’s internal environment and capabilities................................................................................8
Detailed Evaluation and analysis of Uber using Porter’s five forces model........................................................10
Interpretation of strategic directions using models, theories and concepts to assist with the
understanding.......................................................................................................................................................12
Conclusion............................................................................................................................................................14
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Introduction
The study highlights awareness of the various strategies which could be used as a strategic
framework for Uber.Uber is the most valuable and diversified ride sharing private organization
in the world. On a daily basis, and across 78 nations, over 15 million rides taken regularly. Uber
has diversified its network to great extent over the years globally, and has been greatly successful
because of its convenience and loyalty to its customers (Mittendorf, 2017).The report covers
strategic models, macro and microenvironment analysis of Uber and the importance of PESTLE
framework strategy.
An Overview of Uber
Uber is an American international mobile app-based technology company which focuses on
services like transport, food deliverance, stock delivery, couriers, payment processing. The
Founders of Uber are Garrett Camp and Travis Kalanick in March 2009; it has its headquarters in
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San Francisco, California, United states of America and has a diversified chain of network
serving more than 69 countries globally (Kim et al., 2017). Since its founding, Uber has
incorporated wide range of car services .For instance, Uber has added Uber XL, Uber black as
well as Hoover SUV to its basic and most affordable service UberX other car services includes
Presently, Uber is one of the leading transportation services in the world currently valued at
approximately 68 billion dollars. Uber stands as the world’s gigantic ride sharing technology
firm with booming diversifications globally and the world’s most beneficial startup (Mittendorf,
2017).
Evaluation of the impact and influence of the macro environment on Uber and its business
strategies
The impact of macro environment on Uber can be studied through PESTLE Analysis.
PESTLE Analysis of Uber
Political factor
Uber have gone through numerous controversies over a period of time due to government curbs,
political regulations and rules. In United States, local taxi organizations have been pushing local
governments to restrain Uber services. Besides this, supervisory board of San Fransico has
proposed a rise in cost of ride sharing services. New York too has restricted new licenses for on
demand four wheelers. Seattle too had permitted drivers to propose a bargain in the cost but was
denied. Thus, Uber faced lots of backlashes in issues like commercial advertising, minimum
wage issue and policies (Shapiro, 2018). Uber has counted this by paying the fine of any driver
and calling out to the public to write to members of parliament to demand that Uber be allowed
to operate. If it loses more court cases it could have significant ramifications for a range of
companies with similar business models in other industries such as accommodations with Airbnb
or general service with Air Tasca (David and West, 2017).
Economic factors
Uber has shown an exponential growth since its launch through new service lines and
diversification globally, it has left no stones unturned to reach the milestone (Horan, 2017).
Though, the status of the economy of the nation is directly correlated to their expenditure of the
customers. In some cases, customers may avail to public transport which is much cheaper or may
also resort to driving themselves. Besides this, they may prefer to stay home if the economy of
the nation declines eventually. Uber accounts for 70% of U.S. transport services and plans to
elevate over $9 billion in its services in United States in the coming years.
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