Business Strategy for Uber

Business Strategy
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Impact and influence of macro environment.........................................................................3
M1 Analyse macro environment to determine strategic management decisions........................5
TASK 2............................................................................................................................................6
P2 Internal environment and capabilities of organisation...........................................................6
M2 Strength and weaknesses of internal capabilities, structure and skill sets............................9
TASK 3............................................................................................................................................9
P3 Porter's Five Forces Model....................................................................................................9
M3 Strategies to improve competitive edge and market position.............................................12
TASK 4..........................................................................................................................................13
P4 Interpret and devise strategic planning through different theories......................................13
M4 Strategic management plan with tangible and tactical strategic priorities and objectives. 14
D1 Produce a set of valid strategic directions, objectives and actions......................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
2

INTRODUCTION
Business strategy refers to a roadmap that is used by organisation to devise their future
plans and objectives. It is a step by step direction used by companies to reach their goals. There
are a number of decisions required to be taken by organization in it which is then followed by
management and all the employees of organisation (Sheng and et. al., 2019). In the following
business report a business strategy for Uber is devised. Uber is operating in transport industry
and was established in 2009.Company offers a number of different services to its customers
including cab services, rental services for vehicles, food delivery services, courier services and
so on. An analysis of internal and external capabilities of the company is conducted in this report
in order to come up with a strategical plan that will successfully help Uber to attain all its
business objectives and goals.
TASK 1
P1 Impact and influence of macro environment
Strategy involves all the goals and priorities that determine actions which are necessary
to achieve objectives through mobilizing the resources and executing various actions as well. It
basically determines ways in which all the goals will be achieved through the means available.
Mission-” Uber's mission is to bring transportation everywhere for everyone.”
Vision- Vision of Uber is to generate transportation that is safer, reliable and cheaper. They also
aim at becoming transportation that creates maximum job opportunities and incomes for drivers
as well”
Objective-Major objective of organisation is to increase their revenues while attaining
competitive edge in market.
Pestle analysis
Pestle analysis helps businesses to deal with external factors which are effecting business
or can bring benefits to business:Below mentioned are these factors:
Political factors affecting Uber and its functions includes taxes, trade policies, trade
restrictions, bureaucracy and tariffs. These are problems that company face due to unclear
concept of their business in different governments throughout the world (Kong, and et. al.,
2020). Whilw working in different countries UBER requires to analyse all the political factors in
the country and then formulate strategies fulfilling all the requirements.
3

Economical factors include inflation rates, exchange rates, unemployment and so on.
When taking Uber into consideration Uber can use its flexible pricing model to take advantage of
economic factors. It will allow them to achieve success and make benefit from economic
conditions prevailing in an economy.
Social factors are the creative and demographic factors and culture that decide behaviour
of consumer in market. The pick and drop features of Uber just with a click are helping
organisation to take advantage of social factors. They are taking the use of convenience factor in
social environment to enhance their business.
Technological factors are related to innovations that are brought by organisations in
order to make sure that they are successfully changing their operations as per external
environment. Maintaining their mobile applications and bringing changes regularly in
organisation will allow them to provide competitive edge.
Legal factors are the factors which help businesses in determining their scope. There are
a number of policies and laws affecting business that include intellectual property rights, industry
relation, license permits and so on. There is a number of property rights owns by UBER in order
to legalise their business and patents are attained to make sure that their competitors cannot copy
their strategies.
Environmental factors take into consideration climatic changes, natural disasters,
temperature and so on. In order to make sure that they are not negatively influencing
environment they are allowing pool facilities in their cabs as well.
Ansoff's growth vector matrix
There are four strategies that can be successfully adopted by a business when they are
looking to grow. These strategies have different objectives and focus upon different markets.
Below mentioned are the four strategies that can be used by Uber for their growth:
Market penetration is the strategy in which Uber requires to make sure that they are
successfully investing cost and efforts to attain maximum market share in the market in which
they are already dealing. There are a number of ways such as effective communication thorough
which organisation can achieve it (Chen and et. al., 2018). Uber is using Promotional tools to
expand their business in markets and enhance more consumers.
4