Strategic Analysis of Uber Technologies: External and Internal Analysis

Uber to acquire rival
Postmates for 265
billion

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External Analysis....................................................................................................................3
Internal Analysis.....................................................................................................................6
Evaluation of Strategy............................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic Analysis refers as process of formulating effective strategy by conducting research
on the organisation as well on the environment in which it is operating. It analysis the internal
and external factors present in the environment. The analysis is effectively done with the usage
of models such as Porter’s Five Forces, SWOT/ TOWS analysis. The strategic analysis helps the
organisation to gain advantage from these factors evolving in the environment. Further analysis
is beneficial for the organisation in devising business plans for new or existing products or
services (Do and et. al., 2017).
Uber Technologies, Inc. an American technology company famously known as Uber. It
offers the services of transportation, food and package delivery, couriers. The company aims to
provide its customer with easy transportation access. Further the company furnishes its social
responsibility by providing employment opportunities. The company effectively operates under
transportation industry. The report examines the external and internal strategic analysis of the
company.
MAIN BODY
External Analysis
PESTEL Analysis
PESTEL analysis is often used in the large organisation to identify the opportunities and
threats by considering all the possible external factors evolving in the environment. The six
determinants in the PESTEL analysis are discussed below.
POLITICAL
The factor access the stability of the political environment (Pal, 2018). The policies and
regulations formulated by the companies differs in the countries. The factors includes the tax
policies, tariffs, treaties which might create opportunities and threats for the company. One of its
example is Tax fluctuation, government might impose heavy taxes on the companies. These
factors mostly causes adverse effect on the companies and thus, are unpredictable. Uber has been
facing political discussion in relation to piece of employment legislation which is minimum
wages law. The question was raised whether the Uber is abiding these rules. Furthermore, the
government intervenes and requires Uber with proper documentation and licenses.
ECONOMIC
The factor access the economic conditions prevailing in the market in which the
organisations are operating. The company introduces employment opportunities which ultimately

led contribution in the economy. The factors includes inflation, foreign exchange rates, GDP. It
can be seen as opportunity, for example the company devises opportunities where decisions are
made in respect of interest rate. Further Uber faced hit hard because of the COVID-19 pandemic.
The company is banned because of its unfair competition with the regular commercial vehicles.
(Deshpande, 2019).
SOCIAL
The factor access the social and cultural influence on the company. It varies in the
countries and the business strategy need to update accordingly. The factors include distinct
cultural views, religions, local languages and others. Nowadays, the role of masculine and
feminine is trendy in society. Social Factors is seen as an opportunity in many companies as
they promote local norms and values with the help of Hofstede Cultural Dimensions.
Furthermore, the easy availability is one of advantage favouring social factors. It cost effective
travelling led to the company’s growth. Also accepting women as part of skilled workforce
devises opportunities for many organisations, since the company engages female drivers.
TECHNOLOGICAL
The technological factors led to threats and opportunities for the organisation. The pace
of technology provides opportunities for the company to innovate new products or services
accompanied by better quality. The customers can book taxi through app with an aim to provide
users best service. Online payment is another feature along with the credit option in case of
emergency. The company even through app makes sure the activity of its drivers. The company
grabs the opportunities of technology so as to achieve the desired goals by satisfying the trendy
needs and wants of the customers.
ENVIRONMENTAL
The factor access the environmental or ecological condition in the market (Chai, Li and
Zhao, 2020). The factor includes geographical climate, regulations in respect of environmental
law, climate change. Nowadays, environmental factor has become concern and treated as
strategic tool. The Uber service has reduced the usage of public transportation. Due to cost
effective travelling people prefer Uber and thus, leading to traffic congestion. The company is
taking environmental measures such as reducing carbon emission with an aim of zero emissions
target through EV or hybrid vehicle.
LEGAL
The factor access the laws and regulations prevailing in the countries. The factors
includes employment law, product regulations, health and safety laws and others. Legal issues