Business Strategy Report: Uber's Strategic Capabilities and Analysis

This report provides a comprehensive analysis of Uber's business strategy. It begins with an introduction to business strategy and its application to Uber, outlining its mission, vision, and objectives. The report delves into the macro environment, using PESTLE analysis to examine political, economic, social, technological, environmental, and legal factors impacting Uber's performance. It includes a SWOT analysis to assess Uber's strengths, weaknesses, opportunities, and threats. The report then evaluates Uber's internal environment, exploring strategic capabilities, resource-based strategies, and the McKinsey 7-S model. It utilizes the VRIO framework to assess the value, rarity, imitability, and organization of Uber's resources, and concludes with a discussion of benchmarking to develop a competitive advantage. The report covers various aspects of the business environment to understand the strategic position of the company and its future prospects.

Business Strategy
1

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
P1 Impact and influence of macro environment.....................................................................3
TASK 2............................................................................................................................................6
P2 Evaluation of internal environment factors which intervention capabilities of organisation.
................................................................................................................................................6
TASK 3............................................................................................................................................9
P3 Porter's five forces model..................................................................................................9
TASK 4..........................................................................................................................................12
P4 Interpret and devise strategic planning through different theories..................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and journals...............................................................................................................14
REFERENCES..............................................................................................................................15
2

INTRODUCTION
Business strategy can be defined as plan and Framework which is designed to achieve the
goals and objective of organisation. It is a step-by-step guidance which is followed by the team
members and manager of the organisation in order to reach their objectives (Chen, Eshleman and
Soileau, 2017). This managed various decisions and successful way. This report is based on
study of uber. Uber is dealing in food services courier services rental services and many other
from 2009. This report is a discussion on internal and external analysis of business environment.
Helpful in conducting different strategies related to the goals and objectives and achievement of
successful business outcomes.
TASK 1
P1 Impact and influence of macro environment
Describe mission, vision and objectives of company.
Mission-: The major mission of Uber is to provide better standard of living and quality
products and services to its customer.
Vision-: the current version of the organisation is to focus on its transport system by
providing good quality services to the customers.
Objectives-: Uber is operating its function at global level where it wants to expand its
market to various economies in order to increase profitability .
SWOT analysis
This is model which mostly companies utilise in order to find out the opportunities in
market. It includes strength, weakness, threats and opportunities.
Strength Weaknesses
 Uber is the largest right sharing
technology organisation which provide
more than 40 million active monthly
users in 760 cities.
 Uber also use dynamic pricing strategy
where company follow the higher
demand had the prices. This is helpful
to the firm in managing the revenue
 Negative image within the market is a
major weakness of the organisation
because there are number of scandals in
which company is losing its goodwill.
These are related to sexual harassment
cases and target attacks on the founders
and co founders.
 Dependence on the workforce is also in
3

and beneficial to the drivers within the
industry (Fiorino and Bhan, 2016).
weakness for the firm because
organisation is highly dependent on its
workers where the used to decrease
organisations performance by regular
strike and other methods.
Opportunities Threats
 Increasing accountability and
performance is a major opportunity in
front of organisation where it can be
used to track the performance of
drivers. Company can use identify the
top performers and their accountability
 Improvement in technology is also
appropriate system in a positive which
can be adopted by Uber as it can use
the driverless cars which are in trend in
current time (Ghemawat, 2016).
 Increasing competition is a major threat
in front of Uber as there are various
other organisation like Ola which are
giving a tough competition to the firm
in its Asian markets.
 High employee turnover is also threat
to the organisation because company
not able to retain its employee for long
period of time which impacting on its
employee turnover and can cause
negative impact.
Evaluation of macro environment factors which affects the company performances.
Micro environment scanning can be defined as a system which is used by the
organisation in relation to identifying external factors which are impacting on the performance of
firm within the external market. In relation to uber, there is discussion about the pastel analysis
of firm. This is helpful to the organisation in managing its environment and using the
environment in relation to the objectives of the firm. Pestle analysis consists of discussion about
different factors in external environment which can impact the performance of the firm. All this
factor in context of uber discuss below
Political factors-: Political factors are those factors which include the condition of the
political environment the area where the organisation is working. In context of political
environment, it includes rules and regulations which impact on the organisation. Uber is
performing its function at global level. This makes it essential for the form to follow the norms
4

of each political government where it is working. In most of the economies there is political
stability which helped the over in narration its business activities. This impact positively on the
organisation as it can work freely without hesitation (Gumusluoglu and Acur, 2016).
Economic factors-: Economic factors are those which include the condition of the
economy in the area where the organisation is working. It includes different factors like GDP
growth economic growth and many others. In relation to uber, organisation is facing difficulty
from the economic factors. Due to changes in taxation policy, Uber is facing loss of revenue
which impacting on the profitability in Goodwill of the firm within the market. Increase GDP
rate within some economies is helpful to the over in managing its operations. This economic
factor is impacting positively on the firm and helping in increase business.
Social factors-: social factors are those which are impacting on the performance of
organisation from the perspective of society. In context of uber, there are various social factors
which are impacting on the performance of form. In the current business smartphone are playing
important role where Uber is using these smartphone applications for managing the pickup time
and booking the cabs. This is changing the social pattern within the society and helpful to the
organisation in increasing its profits and impacting positively on the firm (Habib and Hasan,
2017).
Technology-: Technology factors are also crucial for the fore in relation to managing it
system and achieving the objectives. In context of current time, there are number of technology
factors which are helpful to the Uber in managing the customers. Companies using booking cabs
for the use of Uber app which is the better technological system and provide would experience to
the customer. Impacting positively on the phone as organisation can manage functioning system.
Technological factors impact directly on the Uber performance as using appropriate technology
will boost the performance of Uber and help in achieving business objectives.
Environmental factors-: Environmental factors are those which are related to changes
within the natural environment affecting on the organisations performance in current business
world. In context of uber, techniques using biofuel, implementation of electric cars and many
other. It Help the company in improving its image within the market and fulfilling its target
related to environmental factors (Holotiuk and Beimborn, 2017). Better environment factors and
using effective tools and techniques in order to manage the environment impact and positively on
uber.
5

Legal factors-: legal factors of those which are related to rules and regulations in the
society which are formulated by government authorities and organisations. It is necessary for the
organisation to fulfil the legal rules and regulations to achieve its objectives. This Factors
impacting negatively on the uber. As, organisation is facing various kinds of cases in relation to
sexual harassment and many other because of unethical practices. There is Requirement to fulfil
this social regulation in relation to managing the Goodwill of firm and achieve the objectives.
It can be identified that macro environment factors impacted positively and the
performance of Uber where organisation can use its function in order to improve its profitability
within the market where it is operating. Therefore, all above concepts related to PESTEL model
which help to analysis of external factors in order to impact on business performance,
profitability, and objective of company.
TASK 2
P2 Evaluation of internal environment factors which intervention capabilities of organisation.
Internal factors of the organisation are also important for the firm in relation to identify its
capacity and managing the firm according to the requirements. There are various kinds of
internal factors which impact on the profitability and productivity which has to be plant by the
firm in order to achieve the objectives and bridge the gap between opportunities and success.
Uber is a global performing organisation which uses different systems which are helpful for
making the effective strategies and enhancing the strength of the business.
Strategic capabilities-: Strategic capabilities of the organisation can be defined as a
capacity of the firm performing in competitive market by using an appropriate strategy to
eliminate the competitors and achieving the business objectives. In context of uber, organisation
is using a strong system which helps the company in utilising the resources in appropriate way
and managing a stronger function within the market. Here, Company used to increase the
credibility of its drivers for managing the success and increasing their competitiveness to
compete with the main components of the form such as Ola and other service providers
(Iamratanakul,, 2018).
Resources based strategy-: Resource based strategies are those which are used by the
organisation according to the availability of the resources. These strategies are dependent on the
managerial framework of the firm and are helpful in facing the competition by utilising the
6

resources for increasing profitability and. This also brings smoothness in the operations for better
results.
Mckinsey's 7S model-:
This is a model which is used to illustrate the seven elements and their alignment with the
effectiveness of business strategy. It includes 7 types of elements which are structure system
style staff style strategy and shared value. These are further categorised in hard and soft skills. In
context of uber the hard elements are discussed below:
Strategy: in relation to Uber eight use cost leadership business strategy. This is because
the ride hailing giant is performing the at cost advantage where it use internet based nature of the
business model to describe the traditional taxi system.
Structure: in relation to the hierarchy of structure, organisation use structure which help
the company in managing the effectiveness in communication across the various department and
performing in a long-term manner (Mohelska and Sokolova, 2016).
System: in context of Uber organisation is following wide range of systems which are
helpful to the farmer in growing the business for a long perspective. It include employee
recruitment and selection, team development system, orientation systems, transaction processing
system and many other.
There are various other elements and this model which is helpful to the uber in increasing
the functioning of the firm in includes style staff skills and share values. It is helpful to the form
in managing the functions in achieving the objectives.
VRIO framework
7

From the above mentioned table it can be concluded that there are four important
resources in uber. These are innovation customer loyalty service quality and financial position.
Innovation is a temporary advantage to the organisation because it act as and valuable costly to
imitate and exploitability by the organisation is high for this resource. It is difficult to make it
there for the form which acts advantage to the firm (Moseley III, 2017). Customer loyalty is a
parity for Uber as it is difficult to judge that it is a costly immediate by its competitor. Service
quality of the organisation is competitive parity for the firm this is because there is only loose
point in this set it is not there for the organisation. Financial position of the organisation is actor
substation advantage to the firm because it is only valuable and rare for the organisation in this
competitive market.
Benchmarking
Benchmarking can be defined as a Framework which is used by the organisation in
relation to developing the competitive advantage within the market. Benchmarking provide four
types of competitive advantage to the organisation which are related to performance internal and
external and practice. In context of uber, technological factors are enabling the organisation to
develop in a performance benchmark which can be practiced and developed by the organisation
through fulfilling the gaps in performance. This can also seen that there are various kind of
8

technological changes within the function of over which are improving the internal
benchmarking system and improving the performance of internal departments. In context of
external benchmarking, it is a system which comprises of different identification of different
computers and using the similar or better strategies to minimise the competition from the
computers and increasing the benefit of the organisation (Peng, 2020).
Value chain analysis
Value chain analysis can be define as a primary activity with support inbound logistics,
operations, outbound logistics, marketing and sales services. In context of this companies are
using technologies, hardware, digital media and many other platforms which are providing
support the primary activities. Supporting activities of the company are those which are related
to building and better infrastructure of software so that form can perform its function and achieve
its objectives. In context of this human resources department and the raw materials are included
in these activities for uber (Shuen, 2018). Value chain analysis is useful and organisation which
consist of different factors. In context of Tesco organisation is using appropriate infrastructure
human resources technological development and procurement of employees which help company
in performing in an appropriate manner create function and act as supporting activities. the
major activities of organisation are inbound logistics operations and outbound logistic and sales
9

and services which are used by Organisation in an effective manner and will help in creating a
value change which will promote effective functions
TASK 3
P3 Porter's five forces model
Balance score card
Balanced scorecard financial system which is related to identifying and analysing the
different ways by which the organisation can improve the practices and skills of employees to
achieve its objectives. Appropriate balance score card structure includes the four different stages
which are discussed below according to the uber:
Customer and stakeholder perspective: under this system, is providing plot number of
services by managing the quality of services so that it can improve the trust of stakeholders and
gain the positive reviews on the system of firm. Company is also using appropriate feedback
management system to fulfil the requirements (Sia, Soh and Weill, 2016).
Internal process: improving internal process is also technique which is included and the
balanced scorecard system. It includes the record of cost schedule quality and various operations
of the form. In order to improve the technology, Uber is using this factor to record the current
status.
Learning and growth objective: it is the third factor in this process. Under this,
organisation used to measure the process performance by increasing the learning activities and
developing the growth objective to drive success.
Financial perspective: finance factors and backbone of every business function which
make it essential for the management to identify use it in appropriate manner. In context of uber,
organisation using reliable services picture fast and cost effective. These are helpful in attaining
the profit and managing the customer because of regular revenue (Vlachos, 2016).
Stakeholder Analysis
This Framework can be defined as a tool which is used by the management within the
organisation for monitoring the activities related to the stakeholders. these stakeholders are
government suppliers customers vendors and many other. This metric is measured on four
quadrants which are discussed below:
10

Manage closely: Close management is a first quadrant in this analysis where organisation
has to identify the high power and high interest stakeholders in the firm. In reference of uber,
2015 and customer of the organisation which have high power and interesting firm.
Keep satisfied: It include those stakeholders in the organisation who has low interest but
high power in the firm. In relation to uber, add include investor government of the area where the
ovary is working (Vlachos, 2016).
Keep informed: In context of uber, it includes the employee and drivers of the over who
has low power but high interest in the organisation. This is the most influencing stakeholder in
context of because the work for the organisation and directly linked to the revenue of firm.
Monitored: It includes those stakeholders who have no interest within the firm as well as
their power is also low. It include the vendors and supplier of the company which has to be
monitored by the uber in a regular intervals for achieving the business objectives and paying
focus.
Porter’s analysis
Porter's five force model can be defined as a model which is used by the organisation in
relation to identification of competitive factors so that business can take effective decisions
according to it. All these are discussed below:
 Competitive rivalry: it is the prime factor in the porters five force model which is related
to the competitive rivalry within the market where the organisation is perform its
operations. In context of uber, there is no major rivalry of the organisation in the current
market. it states that the market is clear for the organisation where it can use effective
pricing strategies and can improve its functions.
 Threats of new entrants: this is also effective which impact organisational performance
within the competitive market. This factor is related to the third of a new entrant within
the market where the organisation is trading. Under this function, Uber is performing is in
global market where there are a large number of competitors who are trying to enter
within the market in which Uber is trading. but it is impossible for other competitors to
take on the market of Uber because it using a high investment by building a better
infrastructure and distribution channel.
 Bargaining power of suppliers: bargaining power of suppliers is also factor which impact
for organisations performance within the market. there is high bargaining power of
11

suppliers then organisation will face difficulty and it will act as a competitive
disadvantage of firm. In context of uber, Uber is dependent upon its drivers and suppliers
which directly states that the bargaining power of suppliers is higher in context of
company (Yuliansyah, Rammal and Rose, 2016).
 Power of customer: bargaining power of customer within the market of Uber is low as
compared to to other organisation. This is because Uber is providing world-class services
which are helpful to form in managing the operation in successful manner. this reduce the
parking power of customers within the market which impact positively on the
organisation and help as a competitive advantage. This is because a runnable to bargain
with organisation for its prices and its policies because of quality services.
 Threats of substitute: it is also factor which include in sports five force model which can
impact the organisational performance. In context of uber, it is operating in highly
competitive market where there are a large number of competitors from different nation.
it is essential for the for to manage the functions and achieve the objectives of managing
the competition from the local taxi owners and drivers.
TASK 4
P4 Interpret and devise strategic planning through different theories
Porter's generic strategy
Porter's generic strategies and Framework which is developed by Michael porter in
relation to identifying the different strategies for organisation to achieve competitive edge within
the market. Under this there are 4 kinds of strategies which are useful for the organisations such
as Uber to achieve their objectives and make sure that they can achieve it at collective level.
Some of these strategies are discussed below:
Cost leadership: It is a prime strategy under the photos and its strategy which is related
to achieving cost effectiveness within the organisation. In context of uber, organisation can use
the cost effectiveness which helps as in competitive edge within the market. Cost leadership can
be achieved by Uber by using effective system and minimising the wastage of resources so that it
can easily implement the effective strategies by reducing the cost and achieve a competitive edge
in the market.
12