Applied Corporate Strategy: Analysis of Uber's External and Internal Capabilities

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
External analysis using PESTELof taxi industry in UK.............................................................1
Porters's five forces model..........................................................................................................3
PART 2............................................................................................................................................4
Resources of Uber that create competitive advantyage..............................................................4
VRIO analysis of Uber................................................................................................................4
Porter’s Value Chain Analysis....................................................................................................5
TOWS.........................................................................................................................................7
PART 3............................................................................................................................................8
SAFe Criteria..............................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Corporate strategy takes a functional approach to strategical judgement making by
looking across all of a concern business to ascertain how to make-up the most value using the
applied corporate strategies (Cardoni, Kiseleva and Lombardi, 2020). Uber a popular name in the
taxi industry providing locomotive automotive vehicle service through out the world. Company
has the vision to be raise as the cheapest brand in the world and made transportation service of
the modern customer reliable as water. Uber has tremendous hike over its competitors due to its
cost leadership strategies that help it to resume despite the being completely stop due to COVID-
19 pandemic. Uber business model is being copied and adopted by many new model which is
called as the uberification because everyone try to be next Uber. In the recent corporate
strategies, Uber acquire its rival Postmates for a whopping price of about $2.65 Billion to grow
its food delivery business that has upsurge during pandemic crisis. The main purpose behind
acquisition of the Postmates is to offer more tools and technology to the restaurant and
merchants so that they can easily and cost-effectively connect with a bigger consumer base.
Following report present the applied strategies at Uber by analysing the external and internal
capability of the environmental factors.
PART 1
External analysis using PESTELof taxi industry in UK.
 Political- Political factors means the rules and regulations that the government have made
for the companies and the policies of trade in which companies can perform accordingly.
In UK the political goverenace system is of stable nature that assist many Taxi industry to
form business strategies based on the stable political governance. Moreover, Taxi
industry doesn't not being much influence by the Brexit policy because these industry has
their long tail root in the many countries across the globe (Glushakova, Chernikova and
Strekalova, 2020). The major thereat in contrast to the apolitical system is that
government enforced certain laws regarding motar vehicle act and enacted various safety
norms which a taxi industry like Uber need to follow up to operate within the governed
policies. After the terrorist strike of 9/11, Prudence policy is enacted to provide insurance
and other types of hedging instruments to reduces the looses occurring and safeguard the
taxi industry from the threat of terrorist attacks.
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 Economic- Economic factors are those which affects the country's economy including
tax rates, inflation, interest rates etc. They are not directly interrelated with the business
but influences the working of the business. The economic component that impact the taxi
industry consider the change in fuel prices, tax rates and many more (Davis and Lescott,
2019). However, threat in economic factors which taxi industry are facing in the UK is
fluctuation rate of currencies. Major opportunity in the economic factor for transportation
industry is regards to the demands shift from the goods economic to the service economic
which gives rise to various company such as Uber, Lyft and Postmate etc. Social: social factors show the consumer behaviour, age groups, safety, health, age
distribution etc. Customers usually found modern transportation services to be enjoyable,
easy to use platform. The prices that the transportation company are follows are
comparatively cheaper and the quality offered by the company is satisfied by the
customers (Alemi and et. al., 2019). People attitude towards the modern transportation
industry are changing, they prefer ride hailing options despite moving with own vehicles
which supports many taxi industry to expends there operations to serve society better. Technology: Technology role as the driving power for the development and improvement
of the company. Technology important component for achieving prosperity in this
competitive digitalisation era across the globe. Technological revolution has turn around
the whole transportation industry in the UK by adopting Uberfication and online service
that made people life more easier and company can expends its consumer base. Other
than this, modern transportation industry uses various technology such as GPS for live
tracking, RFID for managing supply of the cars and motors in the particular area.
Technology with digital drive brings more transparency to business to track the motion of
their vehicles, acceptance of the mobile payment and integration of technology into
society and business process are some opportunity in the technological approach for a
transport/ taxi industry. Legal: These factors includes the laws and regulations which government frame for the
organisations impacting the business work directly or indirectly. Transport industry have
faced the trouble for following the laws and regulations worldwide (Chan, 2019). UK
government have taken the legal action for not treating the drivers as employees against
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