Uber to Acquire Rival Postmates for $2.65 Billion

UBER to Acquire Rival Post mates
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
External analysis with the help of Pestle and Porter....................................................................3
TASK 2............................................................................................................................................7
Internal analysis with the help of Value Chain and VRIO..........................................................7
TASK 3..........................................................................................................................................10
Evaluation of strategy with the help of SAFe framework.........................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic formulation is an important exercise that not only help to gain competitive
advantage but simultaneously providing opportunities to hold large market share. It is important
for all organisations that work in direction of building effective strategies so able to deliver
positive outcomes as per the existing demand in market. In this regard, it is important for
management to do external and internal analysis. This will not only be providing the information
about trends and needs in market but aid in effective decision making over building and selection
of effective strategies. Management of an organisation is also responsible for evaluating
strategies. This is so because it not only helps to determine the viability but aid to made further
changes as per flaws. The main aim of this report is also to ascertain the contribution of business
environment conditions towards development of effective strategy (Arbogast and Kumar, 2018).
Here, covering about the functioning of Uber in same respect of strategy formulation and
assessment. Uber is an American technology company which having global level operations. The
main services in which this organisation deals include ride-hailing, food delivery (Uber
Eats), package delivery, couriers, freight transportation etc. This organization has business
operations in transportation industry where it holds around 71% of market share in area of ride
sharing. It was founded in 2009 and currently having around 27000 working employees at global
level. Now, the main strategy of an organization is about acquirement of post mates for
improvement of market share.
The aspects going to cover in this report are external analysis with the aid of Pestle and
Porter, internal analysis with aid of Value Chain and VRIO and evaluation of strategy by use of
SAFe framework.
MAIN BODY
TASK 1
External analysis with the help of Pestle and Porter
External analysis is an aspect of analyzing existing conditions in business environment and
their impact over industry and organizational operations. There are many tools that can be used
for the purpose of completing exercise of external analysis. The main which are commonly uses
by all different organizations are Pestle and Porter. Both are having their own level of
contribution in determination of conditions and their impact. Pestle analysis help to determine
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factors and their impact such as political, economic, social, technological, legal and
environmental. On the other hand, Porter help to analyze industry. This includes the use of points
such as power of suppliers, power of buyers, threat of substitute goods, threat of new market
players and competitive rivalry. It is a duty over management of an organization that effectively
use both tools in the direction of analyze market conditions so able to determine appropriate
nature of opportunities and threats. This exercise has further amount of benefits to an
organization such as development of strategies and procurement of resources as per the current
nature of trends. In overall manner, it helps an organization to gain sustainability in market.
Currently, going to analyze external environment to determine the significance of Uber strategy
about acquirement of post mates through analysis of industry based opportunities and threats
(Cardoni, Kiseleva and Lombardi, 2020).
PESTLE
It is a tool that has effective contribution in direction of analyzing business conditions in
external environment. It focuses over the analyzation of various aspects such as political,
economic, social, technological, legal and environmental. Here, this is use to determine
opportunities and threats existing in transportation industry in which Uber having its business
operations. Its main purpose is to determine viability of Uber strategy.
Political: This includes the analysis of all political influences that having further impact on
business operations either in positive or negative manner. Uber is global organization and having
worldwide operations. So, it is necessary for an organization that focus over political situations
of all nations and then build different strategies as per the existence of condition. At global level,
political parties are concerning towards strengthen transportation sector for improvement of
overall infrastructure and visitors experience. Also, at global level political parties are
strengthened and having proper decision making authorities that focuses over effective
regulation of transportation industry. This is creating opportunities for organizations that grab
benefits at different business level and diversify business in terms of servicing and fulfilling new
consumer needs.
Economical: It help in determining economic conditions existing at different nations. It is
necessary to determine because it help in expansion and starting of business activities. This
factor is also help to determine viability of business operations at some particular location or
nation. In current condition, economies are not strengthened due to the situation of pandemic.
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