Business Strategy Report: Macro and Micro Environment Analysis of Uber

This report provides a comprehensive analysis of Uber's business strategy, examining both its macro and micro environments. The introduction provides an overview of Uber Technologies Inc., highlighting its services like ride-sharing and food delivery, and its market share. The main body of the report delves into the impact of the macro environment using PESTEL analysis, considering political, economic, social, technological, environmental, and legal factors. It also includes a stakeholder analysis, categorizing stakeholders based on their power and interest. Furthermore, the report analyzes Uber's internal environment, employing the McKinsey 7S model, benchmarking, and VRIO analysis to assess its strategy, structure, systems, shared values, style, staff, and skills. The report explores the value chain analysis, identifying primary activities like inbound logistics and operations. Finally, it discusses strategies, models, and objectives for Uber's business development, concluding with a summary of the key findings and references.

Higher Nationals
Project Brief –
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Date
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BUSINESS STRATEGY

Table of Contents
Higher Nationals .............................................................................................................................1
Project Brief –.................................................................................................................................1
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................5
P1 Appropriate frameworks analyse impact and influence on Macro Environment...................5
P2 Internal environment analyse:.................................................................................................8
Value Chain Analysis................................................................................................................11
P3 Porter's Five Force Model analysis.......................................................................................13
P4 Strategies, Models and objectives.........................................................................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business strategy refer to the process of developing the strategies for the business to
increase the working in the business to achieving business objectives and goals. Uber
Technologies Inc. Uber is an American technology company. It provides services like rides, food
delivery, courier, freight transportation. Uber have 24% market share for the food delivery and
67% market share for ride-sharing. The report will explain the analysis impact and their
influence of macro environment on the organization. Further the report will discuss the internal
environment and will provide the analysis of Porter's five force model in the report. The analysis
and the theories, concept with models will be discussed with strategic planning for the
organization (Mwadime, 2020).
MAIN BODY
P1 Appropriate frameworks analyse impact and influence on Macro Environment
There are different types of Framework for macro environment on the UBER are as
follows:
PESTEL analysis
PESTEL analysis refer to the analysis of external environment factors which directly or
indirectly impacton the organization.
 Political Factor
Political factors refer to the factors which impacted by the policies and regulation of the
government in the country the organization is working or want to work. Political factors are the
necessary policies and the guidelines which the organization needs to follow to increase the
working with better resources and legal. It includes the minimum wage low Known by The Fair
Labour Standard Act (FLSA) of the drivers which UBER need to make sure that they provide to
their workers according to the policies of the country. Political factors can make a huge impact
on the working of UBER as they can make changes their operational activities and prices of their
product and services. (Mhlanga and Steyn, 2017).
 Economic Factor
UBER has huge impact from the economic factors like Increase in unemployment
within the US can have can create opportunities for the company because employees will be
ready to work for the company in lower wages so UBER can use some of the coast to provide
skilful training to their workforce. While increase in the employment rates Can have negative

impact because employees will demand for the higher salary and company have to cut from their
profits.
 Social Factor
These factors are important in today's world as people or customer want services which
can be easy to handle and also provide the impact in the working of development. They want to
utilize the services which are easy and fast to assess. The social factor of the UBER is the easy
availability of the service the organization is providing to its customer.
 Technology Factor
UBER utilize the technologies and make sure that they are providing the information
about their working to every person they can through social media and marketing on internet.
The technologies are used in such a way that it help the customer in getting the entire details
about the services the organization is providing to their customer. Technologies also help UBER
in gaining a lot of benefit including the fast service they are providing and the ways they are
utilizing and promoting the services of the company helps in creating better impact (How to use
the Uber app, 2021).
 Environmental Factor
Environmental factors also have huge impact on the operations and US government is
strictly forcing companies to run eco friendly activities within their operation. To cover the
environmental issues company has launched UBER green which is a low emission ride option
available for the customers. Customers can choose green option and UBER will send them
Hybrid and electrics cars that does not impact on the environment. It helps UBER to take
competitive Advantages and create good image in customers mind.
 Legal
Legal factor are one of the most important factor in the business and external or macro
environment factors include a huge impact on the UBER business. The legal factors need to be
understood by the organization legal factors like Tex, Government polices etc. , and they need to
make sure that they are following all the legal laws including the technologies' law, labour law,
copyright law etc (Zhao and et.al., 2018).
Stakeholder analysis

It is a process of identification of the stakeholder before the project begins:
Step 1: Determination of the stakeholders
Internal stakeholders
 Marketing
 Sales
 Finance
 Owner
 Leaders and managers
External stakeholder
 Government
 Suppliers
 Customers
Step 2: Group and priorities the stakeholders
 High Power, High Interest
Business owners of the company have High interest and high power within the UBER.
They are those who have more power in controlling the process of the working. Owner of the
UBER take higher decision of the company and their interest is high because they take all the
profits of the business
 High Power, Low Interest
Government is an external stakeholder of the company who have high power, but they
are having low interest within the companies activities. They do not enter fear in companies
activities, but they have power to take strict action upon UBER.
 Low Power, High Interest
Customers are the types of stakeholders that have low power within the company but
their interest in the UBER product and services are high. Customers use the product and services
from the UBER and satisfy their needs, and they do not participate in any of the companies
activities.

 Low Power, Low Interest
Employees are the types of stakeholder who are having low power and low interest
within the UBER. They just do what their leaders and managers tell them to do and take their
Strategies and their power is also law because they work on the lower level and if they get
promoted then their power also incensed with the position within the UBER.
P2 Internal environment analyse:
Internal analysis of the micro environment factor which affect the business from internal
ways are very important for the organization to control and to develop the process of working.
They need to consider the internal analysis as crucial because it provides them information as
what is affecting the business internally. Here are some following internal analysis of
environment :
McKinsey 7S
 Strategy
UBER need to make sure that their strategy is totally different from the competitor to
gain the competitive advantage in the market. It is important to understand the working of the
strategies. There are some strategies like fast food delivery, using the technology like mobile
application, social media advertisement and competitive pricing strategy to increase their shares
within the US market.
 Structure
The structure of the organization is flat and the UBER are using it in developing a fast
process of commanding to increase the efficiency of the business. Structured organization help in
increasing communication and also solve issues which the company can face in the future.
 System
System is the process which the employee of the UBER utilize to complete their daily
task and job duties. They need to make sure that they are using the system and work. The system
help both the customer and the employee with proper details which help in understanding better.
 Shared Values.
It refers to the process of developing the values and the organization is providing the
values as they are developing the safety of the customer and also giving the best procedure in the

services which shows that they value their customer (Humadi and Hussein, 2019). Every
company have its core value, and they make their core values through their work and statements.
The core value of the UBER is to seek out the problems to solves them, and they help each and
people who matter to them (About us, 2021).
 Style
The leadership style of the UBER is Autocratic as the CEO of the organization just want
to win the competition and is focused in achieving the entire projects of the business objective
through command and passion.
 Staff
The staff of the UBER are focused, and they work with motivation to increase the
organization objective and also to make sure that they always have the competitive advantages in
the market.
 Skills
Organization employees are working with the technologies and practical skills to increase
the performance of the organization and to increase the overall objective of the business to
remain the giant of the industry.
Benchmarking
Benchmarking analysis is referred as the market research which allow the organization to
compare the performance and make new improvements in the business to increase the
performance of UBER. There are many types of Benchmarking but the most common are the
process, performance, and strategic.
 STEP 1: Planning- UBER need to make a proper planning to utilize the Benchmarking
in development of the performance of the business. They also need to identify the
resources they required and the documentation of the existing activity.
 STEP 2: Analysis- Analysis of the Benchmarking include the identification of the
improvement and to collect information which can help UBER in development.
Comparing of the existing process of working to the changes which can develop the
process of the organization in increasing of business objective.

 STEP 3: Action- Actions refer to the steps UBER is taking in development of the
performance and to increase the Benchmarking with the plan of improvement as well as
monitoring or reviewing which is necessary.
 STEP 4: Review- Review performance when the changes have been implemented in the
organization and what result the company gets.
VRIO Analysis
Valuable Rare Inimitable Organized
 High quality of
services
provided by the
UBER is
available
because it is
helping their to
take
competitive
advantages.
Food services
are fast as
compare to the
other
companies
within the
market, and
they also
provide UBER
green which is
unique services
by UBER.
 Company is
engaged in
providing high
quality and
safety
transformation
which is rarely
present in the
other Taxi
companies
(Stoyanova and
Angelova,
2018).
 UBER also
provide
different
segments of
auto mobile
according to the
choices of
customer with
their status like
 UBER Logo
cannot be
copied by any
other
organization
because it
comes under
the patent rights
rights and
UBER is
having patent
for their logo .
It makes them
different form
others. They
have secured
their logo.
 Company is also
engaged in
providing
training to
employees so
that skills of
workers can be
increased and by
this organization
culture is also
being improved.

Self driving,
fast food
delivery and
luxury car
services.
Value Chain Analysis
Value Chain Analysis
Value Chain Analysis refer to the process of developing the understanding of the
improvement and the information which can help the organization in developing better future
goals. It will help in development of the business goals and objective as it will enhance the
working of the organization with better performance. This help in reducing the cost and increase
the differentiation (Beretta, Stucki and Hellweg, 2017).
The value chain UBER to identify the strengths and weaknesses, consists of the
following:
Primary activities
 Inbound logistics
Inbound logistics are very important for the organization as it include the warehousing of product
and the inventory control of UBER. It needs to be controlled so that the organization can develop
a better process in providing the services.
 Operations
This is the process in which the raw material and product are converted into finished
goods. It is the process of changing inputs into the outputs. UBER purchase food material from
the farms and stores within their warehouses and here their operation team use those products to
make the finished food item and deliver to the customers.
 Outbound logistics
`These are those activities concerned with delivering the product of UBER , outbound
logistics of UBER is to provide them deliveries and services which they are offering to their

customer. Outbound logistics create impact on the UBER business as they are providing the
additional services apart from the inbound working (Rosales and et.al., 2017). outbound
services of the UBER are delivering food to the customers, handover vehicles to the customers.
 Marketing and sales
Marketing and sales are the process in which the UBER focus in marketing their product
and services to their customer marketing strategies like social media advertisement are mostly
used by the marketing team of UBER. Marketing and sale are very important for the UBER and
thorough the marketing company make customers and sales helps to provide them profitability
and competitive advantages within US market.
Support activities – The support act play the primary action so that UBER can accomplish
competitive advantage. The main areas of support activities are as follows:
 Firm infrastructure –
The infrastructure need to be attractive so that the people are ready to take services which
the organization is asking for. It helps in development of the process working in operation. Firm
infrastructure helps to increase the flow of communication and communication plays most
important part to make business successful.
 Human resource management
HRM of the UBER work in development of the paperwork of the drivers who are
working for the organization and also include the process of verification of the details they are
giving to the organization. They work in development of the man power of the organization.
HRM to create strategies in increasing the performance of the business.
 Technology development
Technologies development is important and the organization and UBER is taking huge
advantage of the technology. Application for the UBER food , UBER drive etc. are available on
the play store and apple stores so customers can download and order their food and taxi. They
also bring updates within their technology to make it more effective.
P3 Porter's Five Force Model analysis.
1. Bargaining power of buyers

Bargaining power of buyers is High in the industry because there are a lot of competition
in the industry and the customer are having a variety of choices to choose the services from. Thy
can opt from different organization who are the competitor of UBER. The organization need to
understand and maker the strategies accordingly, they need to see the competitive advantages to
increase the efficiency in market and to gain business objective. The bargaining power of the
buyer is high which is an important point for the UBER to make sure that they make new ways
and also work on the trends and preferences of the customer to make the bargaining power of the
buyer gets normal (Bruijl, 2018). to decrease the threat of customers UBER use standard like
standards within their cars. If customers have low budget then they can order the small taxi and
similarly people who can spent more have luxury options as well.
2. Bargaining power of suppliers
Bargaining power of the supplier is medium. The UBER is having different supplier who
are ready to provide them with different supplies so that the organization work does not get
stopped and it continues to keep going. This help the organization in increasing the workforce
and also get the competitive advantages into the US market. UBER is having a great goodwill
into the market which help them in getting more of the supplier which increase and helps them in
competitive advantage in market they are working. If the organization is not satisfied from the
buyers they can also opt from different places and can change the supplier and its easy for them
to identify the buyer due to the brand value they are having in the market (Kawira, 2017).
3. Threat of new entrants
Threat of new entrant is very low. The entrant threat is low for UBER because the
industry the organization is working is huge and it required a great amount of capital. The
resources of capital need to be too strong and it also needs to have a good supplies which make it
bit tough for the Marketing and sales are the process in which the UBER focus in marketing their
product and services which they are offering to their customer and the strategies they want to use
to increase the sales. Marketing and sale are very important as the organization are into the
process of providing service which need a good sale. new entrant to make it affective for the
UBER.
4. Threat of substitutes
Threat of substitute are high because there are a lot of competition in the market which
impact the UBER and it is important for them to make sure that they are developing new

strategies in changing the working so that they can control the substitutes. The competition is not
only with the organization who working in the same field but also with the people who are
giving the same services in the same prices and can impact the overall business of the UBER are
a substitute for the organization.they are providing fast and additional services for their
customers that I help the UBER to decrease the threat of substitute, and they also provide some
services that order taxi companies not provide to their customers like Helicopter Rides, Luxury
rides, fast food delivery etc.
5. Rivalry among existing competitors
The rivalry among existing competitors is high and it is one of the competitive rivalry in
the market. There are different organization who are impacting the business of the UBER and
want to impact the overall business of the organization. There are a lot of competitors of the
UBER worldwide who want to give a great competition to the organization but the organization
is handling every issue and challenge they are facing with great strategies of pricing and
controlling market (Kharub and Sharma, 2017).
P4 Strategies, Models and objectives.
Porter's Generic Strategies
 Cost Leadership
UBER use the cost leadership strategies within their business and they are the leader of
the US market. The structure of the industry is impactful and UBER is utilizing it in developing
the competitive advantages due to cost leadership planning they ARE having. Being a low coast
producer help the organization in cost advantages (Islami, Mustafa and Latkovikj, 2020).
 Differentiation
UBER works in providing different strategies into the process of working which is
accepted by the buyers and it also helps them in developing the performance. They add some
additional services to their customers that I help the UBER to decrease the threat of substitute,
and they also provide some services that order taxi companies not provide to their customers like
Helicopter Rides, Luxury rides, fast food delivery etc.
 Cost Focus
UBER focus in the target market they are choosing to work in so that they can increase
the process of working (Omsa, Abdullah and Jamali, 2017). They utilize the process into

development of cost advantages so that the organization can work with competitive advantage in
the target segment.
 Differentiation Focus
Differentiation focus refer to the process when the organization seeks differentiation in its target
segment including the competition in the market. They make strategies to make themselves
different from other brand and it also done to increase the performance of the business with
better productivity and profitability (Hales and Mclarney, 2017).
Ansoff Matrix
Ansoff Matrix is developed to understand the risk factor in increasing the business and
the risk inherent in growing business. Here are the 4 steps of the Ansoff Matrix:
 Market Penetration
Market penetration is the process of focusing into the increasing of sales of the existing
product and services within the same market where they are already operating their business.
This will help UBER to increase their sales more, and they will able to gain more shares within
the US.
 Product Development
Product development is the process of introducing of new product into the existing
market. UBER is focusing in developing the services by promoting their new ways of business
including the UBER eats in the market and it also with the discounts in the process of marketing
with better development. It can help the organization in developing the services with new
features and developed working in quick respond to customer.
 Market Development
Market development is the strategy in which company introduce the new products in the
existing market. In is less risky because customers are already aware of the brand, and they can
trust the product and services.
 Diversification

Market development is the process in which company develop new product and enter
within the new market. UBER can use this strategy for their business expansion but it contains
higher risk to get failed within the market.
Recommendations
UBER can use the product development strategy that will helps them to gain
competitive advantages, by collecting the infuriation of the people within the market UBER can
create new products and expand their business internally.
Strategic management plan
Objectives Strategies Tactic Evaluation
Expansion of business in
new countries by 25% by
2023
 Service
developmen
t
 Merger or
acquisition
 Price
strategies
 Providing the
services
according to
the client
status.
 Changing of
price
strategies
according to
country
stability and
GDP.
 Finding the
brands to
merge in the
country to
improve
performance
 Calculating the
changes in the
targets achieved
by the
organization.
 Feedbacks about
the services
offered by the
UBER.

CONCLUSION
Business strategies are important and it helps in increasing the business objectives. It helps in
increasing the business performance as it create a working factors which deal in increase
performance and motivate employee to work. The report concluding that macro environment are
very important for the organization and UBER are developing the working into the macro
environment factors to increase the performance of the business. Porter five force help in
understanding the what is competitive situation is for the UBER and it provide the understanding
of the buyer, supplier and their impact on the business of the organization which they need to
control by strategies.

REFERENCES
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Online
About us. 2021. [Online]. Available Through: <https://www.uber.com/in/en/about/>. [Accessed
on 15 March, 2021].
How to use the Uber app. 2021. [Online]. Available Through:
<https://www.uber.com/in/en/about/how-does-uber-work/>. [Accessed on 15
March, 2021].