Business Strategy Report: Analyzing Uber's Strategic Approach

This report provides a detailed analysis of Uber's business strategy. It begins with an introduction to business strategy and then focuses on Uber, examining the impact of macro-environmental factors using the PESTEL framework. The report then delves into an internal analysis of Uber's capabilities using SWOT analysis and the VRIO model. Furthermore, the report applies Porter's Five Forces model to analyze the competitive landscape and discusses various strategic planning models. The report concludes with an overview of the findings, providing insights into Uber's strategic approach and its position in the market. The report aims to provide a comprehensive understanding of Uber's strategic decisions and their implications.

Business Strategy

INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Determine effect of macro environment in reference of entity.....................................................3
TASK 2.................................................................................................................................................6
P2 Briefly describe internal analysis of firm......................................................................................6
TASK 3.................................................................................................................................................9
P3 Examine Porter Five Forces Model..............................................................................................9
TASK 4...............................................................................................................................................10
P4 Discuss wide number of theories, concepts/ model, interpret & implement strategic planning. 10
CONCLUSION..................................................................................................................................12

INTRODUCTION
Business strategy is explained as course of action and collected decision which assist
in assistance to an entrepreneur in accomplishing desired goals & objectives in better way. In
addition to this, business strategy is master plan that management of a business firm
implements for gaining competitive benefits within market area, pleasing consumers,
carrying operations as well as accomplishing desired end of an organisation. Although, in
simple term it can be said that business strategy is long term sketch of direction, image and
destination of an business firm. This report is based on Uber which is American company that
offers food delivery, package delivery, vehicles for hire, couriers, freight transportation and
many more. Uber was founded in 2009 by Garrett Camp and Travis Kalanick.
For better understanding of busines strategy concept this report will be going to
examine impact and influence of macro environmental factors on organisation by using
PESTEL framework. Along with this, Internal environmental capabilities will analyse
through SWOT analyse. Moreover, Porter’s five force analyses model will use for analysing
competitive forces along with other strategic planning model.
TASK 1
P1 Determine effect of macro environment in reference of entity
Uber is American company that offers food delivery, package delivery, vehicles for
hire, couriers, freight transportation and many more. Company was founded in 2009 by
Garrett Camp and Travis Kalanick. In addition to this, company’s mission, vision and values
are mention as follows-
Mission – Firm main operations is related to elite data integration services & Solution
Company.
Vision – Integrate World’s data, bit by bit
Values – There are some values of Uber company which are as follows:-
 Honesty and Integrity
 Passion for customers, partners and technology
Strategy – It is the action that manager will take for achieving one or more than that goals
in effective manner. moreover, strategy is business is blue print which help in decision
making whose goals and objectives are several. There are numerous strategies in organisation

that assist in accomplishing predetermined goals and objectives of Uber company in better
manner. Explanation of these are as follows :-
 Strategy is crucial because without this it is not possible for company to accomplish
desired goals and objectives. By using effectual strategy business form will able to
deal with uncertain events in better manner which take place in business environment.
 Moreover, strategy assist Uber company within long duration focusing on the daily
operations such as new method of dealing with latest offerings or production. These
steps result in accomplishing goals and objectives in better manner.
Strategic planning techniques – It refers to process of developing and executing planning &
there are numerous strategic planning techniques which Uber company can apply in their
working. These are as follows:-
 Business model – This is an framework that use by an organisation for analysing their
values in business environment. Moreover, strategy add products, services and
capabilities in current business model of Uber that will assist them in conducting
activities in better manner and accomplishing desired goals and objectives.
 Benchmarking – This is an procedure that will assist Uber company is performance
analyses of products, services and process. Moreover, benchmarking gives essential
insights for developing better understanding related to business through comparing
with same sector organisation.
PESTEL analysis – It is an framework that is imperative for business firms like Uber as it
provide assistance in understanding market dynamics as well as improve its business
operations. It is described as under-
 Political – It is the first element of framework in which it reflects that at what level
government interfere with an economy. Moreover, it has been also seen that these
political factors are not controllable by entity. In context of selected corporation, it
has been a evaluated that due to impact of Brexit the business operations of company
is banned in United Kingdom. It has limited profitability and access to more physical
and tangible resources. Also, they are being impacted by employment law because of
paying fewer wages to drivers and other workers.
 Economic – Then arises economic factor in which it reflects several types of factors
such as tariff and non-tariff, inflation and deflation rate and many more. In context of
given firm, it has been seen that due to flexible rates of foreign exchange they get

affected by economic and government at larger scale. When such type of factors
affect the business activities it become difficult to make decisions and proposed
solution for the same.
 Social – In this component, it includes social beliefs, values, religion, culture, etc.
Smart devices have made it simpler for customer society and other as because through
using their smart devices they can communicate in effective manner and easily. This
this has been taken as a competitive advantage by Uber as they have improved and
develop their business via applications. Furthermore, this is analysed that through
installing applications customers can book rides and use services of a company in
appropriate way. So, this culture of society of getting is services has impacted
positively impact company overall structure.
 Technology – It includes use of advances software, tools, technology tools etc. The
increasing use of technology has widened and impacts the shape of business structure
at larger scale. Moreover it is also seen that the level of technological field has been
evolving with changing period of time. So, it is examined that in context of choose
corporation they have been using technology through their applications and running
business activities threw involving software and hardware such as GPS smart devices
automobile knowledge etc.
 Environmental – This component comprises of pollution, green agenda, scarcity of
resources and many more. With price of securities in a market it has become
important to focus on these environmental factors. In relation with Chosen
Corporation, it has been seen that they have been criticized for negatively affecting
natural habitat has resources which they used for their cars such as petrol and diesel
negatively affect environment and surroundings.
 Legal - It is also an important element of pestle analysis as in this it includes and
focuses on laws as well as legislation such as environmental law contracts agreements
and many more. It is important to carry out business activities with proper conditions
and bi fall on government legal guidance and principles. Intelligence of undertaken
enterprise, baby charged by many people and passengers of harassment wrong
behaviour and attitude. Due to these illegal activities of drivers and company it is
negatively impacting upon their Goodwill as well as profitability.

TASK 2
P2 Briefly describe internal analysis of firm
SWOT analysis – It is necessary to determine internal analysis of a company for
making decisions effective. So, it is a type of a tool which is being utilised by enterprises to
access to their internal capabilities through examining strength weakness opportunity and
threat of a business. It is the time consuming procedure because it require reliable information
and market analysis to execute it properly.
Strength Weakness
 Main strength of choose
incorporation is that they run their
business activities at global level
which reflects their position of
financially strong and increase their
importance of resources.
 Moreover, Uber creating rating
system which assist customer in
rating their travelling experience as
well as drivers also. This rating
system assist in identifying best
driver as well as also help in
monitoring their performance.
 Multiple Scandals – Ubers company
has received negative coverage
within several scandals as well as
controversies. In addition to this,
cases like sexual harassment as well
as targeted attack have defamed the
business firm.
 Public Backlash – Uber company
faced various public backlash over
their pricing at the time of Hurricane
Sandy. This will result in forcing
respective organisation to revise
their policy.
Opportunity Threats
 Due to large number of services in
many foreign countries they have the
opportunity to worship with other IT
companies on the basis of which
business get expanded.
 Logistics – Uber have opportunity to
launched their own movers and
packers for ease of public. They
don’t have shortage of resources at
all.
 Customer and employee’s retention
– With high competition, customers
as well as employees retention
become challenge for Uber
company. Although, any financial
incentive is enough from
competitors to steal their employees
and customer base both.
 Increasing competitors – There are
several competitors such as Lyft as

well as other transportation services
like Ola in India have major impact
on Uber.
VRIO Model – This is an model which business firm use for identifying and
evaluating their capabilities in better manner. By using VRIO model company can determine
their vision statement as well as conduct internal and external analysis. In relation of Uber
company VRIO model are as follows :-
Factors Valuable Rarity Imitable Organized What is
results?
Global
presence
yes - - - Competitive
disadvantages
Products yes yes - - Achieved
benefits
Software yes yes Moderate - Gained
competitive
benefits
Employees Yes Yes Employees Yes Competitive
advantages
For determining capabilities of chosen Company it has been decided to analyse four
major factors which are global presence, products, software as well as employees.
Explanation are as follows :-
Valuable – It is related to the factors that are valuable for company as well as by using
valuable resources company will able to accomplish their goals and objectives in better
manner. Valuable factors in relation of Uber Company are as follows :-
 Global presence – Uber Company global presence is very effective as well as broad.
Due to that business firm will able to gain competitive advantages in effective
manner.
 Products – It includes offering of company which is of good quality with latest trends
designs that grab attention of customers on huge basis.

 Software – This is related to software that utilise by Uber Company for managing as
well as operate their function in better and safe manner.
 Employees – It is related to the workforce who assist Uber Company in
accomplishing desired goals and objectives in better manner.
Rarity – It includes those factors of company which are not rare because of that company can
gain competitive advantages in market area. In relation of chosen Company global presence
is not rare because there are numerous other corporations also who have equal presence at
global level. Rare products are mention below:-
 Products – This is offering of company and products has to be of best quality as well
as according to latest trends. So, that it is difficult for other entity to copy it in correct
procedure.
 Software – It is related to the software that developed as well as utilise through Uber
Company for maintaining records as well as software is rare because it designs as per
the requirement of company.
 Employees – Staff members of Uber Company are rare because every individual staff
their own skills as well as knowledge that assist in accomplishing goals and objectives
in better way.
Imitable – It is related to the products as well as services that cannot be copied or imitable
through company competitors. In relation of Uber Company their products are not imitable
because they can be copied by any other organisation for gaining competitive advantages
within market area. There are few factors that are not imitable mention below :-
 Software – It is utilising by Uber Company as well as develop by them according to
their requirement. Thus, it is not easy to copy for any competitive same sector
company.
 Employees – It is related to effective as well as efficient employees of Uber company
that is not possible to copy by company for accomplishing goals and objectives in
better way.
Organized – It is related to the factors that are required for organizing small aspects as well as
these will assist am business firm in order to accomplish goals and objectives in better
manner. Thus, software of Uber Company required to be organized on timely basis.

 Employees – It is the factors that require to be organized when any type of charges
will occur within an business firm. Such as employers plan training and development
activities for accomplishing their organisational goals and objectives in better manner.
TASK 3
P3 Examine Porter Five Forces Model
Organisation of business firm is measured by using various tools as well as
techniques. In addition to this, it will provide assistance in making plans as well as forming
policies in gaining positive results within possible manner. explanation are as follows :-
Balance Scorecard – It is the strategy performance management tools which is utilise
through managers in keeping track of each and every activity which perform in staff under
monitoring as well as controlling of consequences which arises because of several activities.
It is named as performance management report which applied through team where applying
strategy or operational activities can measured. Moreover, vision and strategy of organisation
has to be design according to business nature that has to be measured on continuous basis to
known whether they are working on right track in effective way.
Porter’s five force analysis – It is an analysis framework forces which shape overall
extent of competition within particular sector. There are five forces included in this model
such as bargaining power of buyers, bargaining power of suppliers, threats of substitute
products or services, threats of new entrants as well as rivalry among existing firms.
Explanations of these in relation of Uber company are as follows:-
 Threat of new entrants –. In this business sector of transportation services threat of
new entrants is basically low because to develop the service is high amount of
financial resources and capital is required which is difficult for others. In relevance of
chosen enterprise, the threat of new entrants is low which is beneficial for entity to
improve their weak areas and enlarge their customer base. It is necessary to be aware
about new entries within the market so that studies are implemented accordingly and
structure is changed according to market trends. Furthermore, more threat of entrance
of new businesses is low due to customer loyalty towards pre-existing brand, constant
mind-set of a market etc.
 Bargaining power of buyers- It is often seen that bargain power of a buyer impact
upon enterprise activities at largest level. It is duty of a manager to make ensure that
this power is measurable and determined significantly. Basically bargaining power of

buyers depends upon few suppliers in the market, price of a product or service, size of
buyers in a target market and many more. It is also seen that in reference of
undertaken corporation, power of buyers is basically moderate because prices related
to services of Uber are affordable and buyers do not aim to bargain.
 Bargaining power of suppliers – One of the principle providers of the business
including an enormous number of individual drivers. The centralization of this
gathering of providers isn't exceptionally high, which to some broaden, has limited
the haggling intensity of providers. Oil and gas providers (and may likewise reach out
to half and half vehicles) is another principle provider. Oil cost has been plunged
since 2015 and the most minimal level has arrived at under $30 in January this year.
Exceptionally change of cost carries a higher danger to the market due to vulnerability
and non-consistency.
 Threat of substitutes - Considering about the administration quality that Uber applies,
the potential dangers originating from the conventional transportation industry
(counting the public transportations, taxicabs and private vehicles, and so forth) are
low a result of its cheaper and effectiveness, just as easy to use planning. The diagram
underneath shows that the normal coming season of both Uber vehicles and
customary taxicabs. Over 94% of the Uber vehicles will be shown up under 15 mins
while that number of customary taxicabs is just 27%.
 Rivalry among existing firms – It is another complete a force of tool in which it
reflects the intensity of competition and competitors in a specific field of business.
Rivalry among existing formed is necessary to be examined because by analysing it
helps in making decisions in appropriate manner. So, in context of given entity they
have many computers like Lyft, Ola cabs, which reflects high intensity of rivalry
across world.
Therefore, above paragraph shows that it is essential to about these forces which impacts
upon business. Throw using this model it helps in in analysing market situation and provides
a detailed overview of other businesses which directly impacts upon operations.
TASK 4
P4 Discuss wide number of theories, concepts/ model, interpret & implement strategic
planning
There are several strategic directions which available to business firm for
accomplishing goals as well as objectives in better manner. along with this, strategic planning

provide guidelines to company in gaining positive results. Ubers is describing model which
are as follows :-
Porter’s generic strategies – This is one of the profitable models for company as it helps them
in gaining competitive advantages. Explanation are as below-
 Cost leadership – It is explained as way in that organisation work as low cost
producer within specific industry. Moreover, stock and cost advantages are totally
depended on size of company
 Differentiation leadership – In differentiation strategy company wants to be unique
and different from other companies. Moreover, for differentiation there is requirement
of uniqueness along with premium pricing. Uber company is using Differentiation
leadership as they are bringing innovative product in market which will help them in
grabbing attention of people in effective manner.
 Focus – This strategy focusses on choice of narrow competitive in industry as well as
on focus strategy company can select group of segments within industry that can be
cost focus or differentiation focus. In addition to this, for cost focus business gain cost
advantages for segment which they targeted whereas, in differentiation focus they
seeks different in relation of target segment.
Thus, Uber is using differentiation leadership as they are bringing innovative product in
market which will help them in grabbing attention of people in effective manner.
Strategic Plan for Uber Company – In order to implement business plan in successful
manner company have to use several analysis which are mention below:-
Mission – This is explained as significant business plan purpose as well as mission
statement of Uber Company is to serve at global level. In same manner, Vision Statement of
respective company is to provide better quality products and services to customers in better
manner.
Objective – It is explained as collection of targets which has to be accomplish by
company for conducting distinct activities as well as operations in better manner. Main
objective of Uber Company are as follows:-
 Monitor business plan as well as their products & services.
 Make their global presence through franchise and licencing.

 Provide training to their employees for enhancing their skills as well as knowledge in
better manner.
CONCLUSION
After analysis of above report, it has been summarised that strategy is crucial for an
organisation as it provide assistance in achieving desired goals and objectives. This report
gives brief information about adopting business strategy in efficient way. It is stated that to
achieve benefit within a market area it is necessary for both knew as well as old companies to
implement effective tactics and strategies which assist them in achieving vision and mission.
While designing business strategy it is essential to analyse external organisational impact by
using PESTEL which assist in formulation of plans and policies in better manner. Along with
this, internal capabilities will be measure by using VRIO model & SWOT analysis for
determining strong and weak point of company. Further, for analysing competitive forces
Porter’s five force model will use as well as strategic planning will done in appropriate way
for gaining positive outcomes.