Impact and Influence of Macro Environment on Uber

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Impact and influence of macro environment...............................................................................3
LO 2.................................................................................................................................................6
Internal environment and capabilities..........................................................................................6
LO 3.................................................................................................................................................9
Porter’s five forces model............................................................................................................9
LO 4...............................................................................................................................................11
Theories, models, concepts and strategic planning...................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategies help businesses in the market to have a vision and mission without
risks and smooth long term goals. The competition in the market is increasing therefore making
the right decisions in the market is essential for the businesses. Uber was established in 2009 and
is having its headquarters in California, US. The company is serving over 900 metropolitan areas
in 69 countries. This industry belongs from the transportation industry and is public type
organization and was formerly known as Ubercab from 2009 to 2011. There are different types
of strategies which are going to be analysed and then a plan is going to be presented in the
further report. Different analyses like internal, external factor and competitive analysis so that
there can be a strong strategic plan which can be made so that the organization has a simple and
right sense of direction to operate into.
LO 1
Impact and influence of macro environment
Uber is having a lot of competitors coming up in the market like Ola, Lyft, local taxi, etc.
therefore it is very important for the organization to analyse the market effectively so that there
are going to be less factors which are going to impact in the future (Arieftiara, Utama and
Wardhani, 2017). To reduce the risks and external impact on the organization the company will
have to analyse and the report is going to discuss with the help of two frameworks which being
PESTLE and stakeholder analysis.
PESTLE
 Political Factors
There are a lot of controversies which are present in the market for Uber which have to be
worked upon so that there are going to be effective working. There were no clean regulations in
the organization and when in case of accidents then who has to be blamed for it, the drive or
company. There are minimum wages for employees which laws for this industry were also not
well maintained and followed. In countries like South Africa the Uber cabs were seized since the
drivers did not have a permit of taxi. The traditional services of taxi are getting affected and the

government as well will have to make new commandments for these services so that this
business operates effectively in the countries (PESTLE Analysis of Uber, 2017).
 Economic Factors
There is large number of people in different countries which are getting employed which is a
great factor. The company is providing the customers with travelling facilities at low cost which
is making the functioning and local drivers lose their jobs which can be a threat as well. The
products and services of the organization are cheap which is why the company is being able to
grow in the market so effectively and efficiently. To compete with the existing the company
made sure that the products and services of the organization are going to be lower so that the
organization will be able to operate effectively in the market.
 Social Factors
Uber focuses on the satisfaction of the customers and that make the organization improve
from time to time so that there is going to be better functioning (Chen and Keung, 2019). There
are smart phones which are being used by the organization so that there is door to door drop
which is going to be present for the customers which is going to make the organization have
more customers. There are social media, ads, etc platforms which are being used by the
organization so that the customers are aware of the changes and due to it s availability as well
there is a growth which is visible.
 Technological Factors
In the 21st century there are a lot of developments which have taken place in technology and
this is one of them which Uber takes advantage of for the satisfaction of the customers.
Customers want to have better experience and innovative ideas in the market so that there are
going to be better functioning (Peris-Ortiz and Ferreira, 2017). Uber has all the latest updates on
technology so that the customers can have better experience and it is also a quick developer in
the market which is making the company have a strong base for themselves in the market.
 Legal Factors