BUSN 09044 - Uber's Strategic Audit, Analysis & Recommendations

This report provides a strategic analysis of Uber Technologies Inc., focusing on its performance over the past three years. It includes a strategic audit using SWOT analysis to assess Uber's financial and business performance, followed by an analysis of strategic actions using the Ansoff matrix to justify recommendations. The report suggests that Uber should focus on growth strategies such as market penetration to improve its market share. A VRIO analysis examines Uber's resources and competitive advantages. The report concludes with a critical reflection on the learning process and knowledge gained through the study. The analysis highlights challenges faced by Uber, including financial losses and reputational issues, and proposes strategies for future growth and improved profitability. Desklib offers a platform for students to access similar solved assignments and study resources.

STRATEGY &
STRATEGISTS

Table of Contents
TASKS.............................................................................................................................................3
EXECUTIVE SUMMARY.........................................................................................................3
Strategic audit..............................................................................................................................3
Analysis.......................................................................................................................................5
VRIO analysis..................................................................................................................................6
Critical Reflection............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals....................................................................................................................11

TASKS
EXECUTIVE SUMMARY
Present report was based on Uber technologies Inc. that is an online transportation
network company headquartered in San Francisco California. Uber is stand for My unified the
best economical ride with the tag-line of try it, like it! And it is public organization via initial
public offerings based an American based ride sharing company which is operated by mobile
application and ride-sharing network (Grabher and van Tuijl, 2020). Also, shared rides are
provided by Uber drives to passengers in order to pay money for each ride they receive. There
are various services offered by company such as food delivery, rides or shipping. This is one of
the biggest source of revenue is its delivery services that generates most of the profits. From last
three year UBER can make growth because in the year 2018, company has lost $15.6 billion on
the other hand, it cut cost by $400 million in 2021 (Stanton, , Salmon and Stanton, 2019).
It has been recommended that company should focus on the growth strategies such as
intensive growth, integrative growth and diversification growth strategies. Also, it has been
recommended that market penetration is one of the best strategy which can be used by Uber for
growth. In this situation company can decided to grow in existing market with existing product
also this is increasing by increasing market share. Chosen report discussed on the basis of
strategic audit with the relevant framework of SWOT analysis in order to analyses the financial
and business performance. Further, studied by analysed the strategic action which can be taken
by company in order to justify and support by executive summary with the help of relevant
framework Ansoff matrix. Lastly recommended the best strategy which can be used by Uber and
also provided critical reflection on study which help for enhance the knowledge through writing
critical reflection.
Strategic audit
Strategic audit is one of the important part of business in order to identify the strategy
which is sued by company for grow its business by using all resources effectively and other
competencies that are necessary for evaluate. There are internal environment which is necessary
to identify for which strategy used by company in order to create the opportunities. Also, with
the help of swot analysis framework company can analyse the internal environments of business
and how it is impact the long term goals. In SWOT audit strategic management provides the
insight to leaders in order to analyse the threat and seize opportunities accordingly.

SWOT analysis
Strength- Uber has make its positioned as largest ride sharing technology in worlds
because with the application there are more than 105 users are used Uber online in 95 countries
over 950 cities. Also, it provides opportunity to more than 5 million drivers. Then, it has strong
brand recognition by maintaining in 50 countries which is already taken by Ford, Honda etc.
with the other strategy company can make new technology features which can be predicted by
enhancing the services by 2025 (Thelen, 2018). Also, Uber has the benefit for attracting large
number of customer by providing them low prices services as compared to other taxi services,
this is one of the major difference which is help company to makes its good position in company.
Then it's pricing strategy has beneficial for the customer of Uber as well as cheaper than Sidecar
and Lyft.
Weakness- There are multiple scandal faced by company from last three years such as
cases of sexual harassment and targeted attacks defamed organization. Due to this the were more
500K people deleted account on Uber. Also, faced losses due to growing competition which
providing bonus to its drivers and discount to customers. There were net losses exceed by $2.75
billion in 2018. Also, business model used by organization was not good that is why government
and workers union want to change the business model. Then company has poor working
condition in order to invest heavily to support their employees which exposes the risk in security
such as repairs, insurance and gas.
Opportunities- Uber has the opportunity regarding accountability and performance in
which customers are impressed by cab services also company can use the strategy of tracking the
performance of drivers that identify top performers (Dash, Gao and Chu, 2021). With the help
of digitization company can use its services by interconnected each other by smartphones. Uber
should continue invest in services which is related to Uber eats and fast food delivery services.
Company not operated its services in Denmark and China which help to increase customer base
and then expanding the operations.
Threats- There were more than 30,000 of Uber drivers filled lawsuits bys minimum wage
policy as well as this is settled out of court by threaten and damage Uber's public image ( Dash,
Gao and Chu, 2021). Then, economic uncertainty faced by company in market which is forced to
lay off 1000 employees.

Analysis
Uber has faced various issues which impact on the growth of company or business
strategy that make sudden changes in organization. There are different types of growth model or
strategic action taken by company so that it can cover the issues accordingly. Also, there is
negative impact on performance of organization by decreasing the profit margin by 30% from
last three years. Also, with the help of Ansoff matrix company can analyse the best strategy
which can be used by it as well as make profit by execute the support plan.
Ansoff matrix
It has been analysed that there are successful global operations and business which is
based on the strategic growth choices and decision. This also possible that there are different
growth paths have been varied by different region which is related to internals and external
organizational factors. In context to Uber it can be said that there are Ansoff matrix successfully
help for leading and generating giants internationally (Skok and Baker, 2018). There are some
strategies which can be used for growth of Uber by successfully based under Ansoff matrix on
the basis of different categories such as follows:
Market penetration- In this strategy company can sale its existing product in existing
market in order to use sale promotion technique. In this strategy it has been suggested that there
it can used at the lowest risk for company in order to sell its product or services at existing
market which is already by customers and able to established channels. Also, there are various
types of elements are used in context to making changes in marketing mix as well as it is help for
discounting and other promotional activity used by company in order to penetrate the market
with the help of other expense.
In context to Uber, company can be use the strategy by providing different strategy such
market penetration by increasing production capacity with the help of allow Uber to catch or
reach to more customer in order to provide them extra services in same market such as discount
or offered rewards to customer (Prananda and Chuen, 2020). Also, the aims of the strategy is to
increasing the market share on the basis of low risk and getting opportunity to grow effectively.
Market development-
This is the another strategy which is used by developing new market with existing
product or services. There are good research done by company in order to focus on targeted new
groups or countries and only minor changes can be done in products in order to adapt the new

markets. This strategy also called market expansions in order to provide different category of
product portfolio by expanding product.
In context to Uber, company can use the same services in another market such as in
China and Denmark Uber not providing its services but with the help of this strategy company
can focus on growth in new market which help to increase the customer base as well as provide
the benefit of target the new customer in new market (Prananda and Chuen, 2020).
Product development-
This is the strategy of selling new product in existing market which help for product
development as well as it is help for providing the benefit to new customer by target them. This
strategy help to target this customer who are already related to Uber. That is why it is one of the
strategy which used by Uber.
Diversification-
In this strategy company can sale its new product in new market which help to target new
customer as well as it help to cover new market. Then in this strategy company can follow the
strategy by minor changes in the existing products so that it help to attract large number of
customer.
In context to Uber company can provide different version of services such as on
different levels such as expand the services such as international transportation technology which
help to increasing the services continuously. This is help for increasing the customer as well as
help to addition in the new category of product by minor changes.
It has been recommended that Uber should the strategy of market penetration which help
to attract large number of customer by providing them high quality services as well as it help to
target them unconditional by improving market share.
VRIO analysis
This strategic analytical tools aims to undertake resource oriented analysis where the analysis
pertaining to valuable, rare, imitable and organized resources held by Uber will be done. Uber’s
mission involves changing the way in which the world is moving (Bohn, Friederici and
Gümüsay, 2020). On conducting the resource based analysis of Uber’s strategy, an opportunity
will be identified with respect to building a sustainable competitive advantage within the
industry over its competitive firms. The sustainable competitive advantage the company is

enjoying based on its resources are beneficial in terms of obtaining above the average profits
within the industry along with combating competitive pressures. The following table would show
the resource held with Uber that are valuable, rare and imitable / non – imitable and providing
with competitive advantage or not.
Resources Value Rare Imitation Organization Competitive
advantage
Cost
competitiveness
Yes, it would
lead to higher
profits
No Difficult but
not
impossible
to be
imitated by
competitors
Yes Provide for
competitive
advantage
ranging from
medium to
long term.
Pricing
strategies
Yes No Industry
players are
regularly
imitating the
pricing
strategies
Yes, as Uber
is having
engine for
pricing
analytics.
Provides for
temporary
competitive
advantage.
Global
presence
Yes, because
it facilitates
diversification
of revenue
streams along
with isolating
the balance
sheet of the
company
from
economic
cycles.
Yes Yes Yes, Uber is
considered as
the most
diversified
player of the
industry
Strong
competitive
advantage
Brand Yes No Yes, Yes, because Temporary

positioning competitors
can imitate
but would
require huge
budget for
marketing
the
positioning
has been
done by Uber
on the basis
of consumer
behavior
competitive
advantage
Financial
resources
Yes No No, market
liquidity &
financial
instruments
are
accessible to
other players
of the
industry as
well.
Yes, Uber is
enjoying
sustainable
financial
position
Temporary
competitive
advantage
Marketing
expertise
Yes, Uber has
adopted
differentiation
marketing
strategy
giving its
brand a
unique
identification
in the market
No, other
players are
also having
decent know
how for
marketing.
Yes, because
pricing
strategies of
different
players are
always
matching.
Yes, as Uber
is
successfully
leveraging its
in – house
expertise.
Temporary
competitive
advantage
Ability to
attract talent in
different
market
Yes Yes, because
talent is of
great
significance
No, difficult
to be imitate
by
competitors
Yes Strong
competitive
advantage

for the
growth of
the firm
Through the above analysis, it has been determined that:
 Uber is having financial resources which is highly valuable for its while making
investment into opportunities that came their way. Also, they could overcome the
external threats with the help of adequate financial resources (Isaac, 2019). Uber is facing
financial issues in terms of generating profits or incurring higher costs because of
investing in non-core business segments. Accordingly, with the help of financial
resources that the company is having, they must go for restrictive growth strategy to
ensure exploitation of profitable opportunities only.
 Company is enjoying marketing expertise due to its differentiating pricing strategy which
its competitors can easily imitate. Therefore, for better & effective marketing efforts, it
could go for launching marketing campaign over social networking sites which would
allow for targeting different group of customers in a unique manner. With this, Uber
could promote its new offers among its target audiences in the most efficient manner.
 Also, through the above analysis, it has been determined that Uber is having an expertise
in attracting talent in all the market it operations and this is found to be a rare resource of
the company because the level of skills and training inherent in Uber’s employees is not
the case with other players of the industry (Pelzer, Frenken and Boon, 2019).
Accordingly, to be successful for the upcoming years, it would be suggested that Uber
should plan for better work environment & compensation in order to make sure that their
employees would not left them for other firms.
Critical Reflection
By undertaking the case study analysis of a company like Uber which is failing from past
three years, I came across several concepts associated with strategic management. I came to
know about organizations that have been succeeded and failed in past many years. Accordingly, I
have updated my knowledge pertaining to current market conditions along with enhancing my

research skills. Due to the practicality of the issue associated with the case, I was able to enhance
my skills related to practical understanding.
Further, I have undertaken the strategic audit of Uber where I have determined several
business and financial aspects of the business indicating its performance metrics for the past
three years which leads to developing my understanding of financial concepts and analytical
techniques. The report consists of several tasks having different marketing schemes and
importance which in turn has made it important for me to prioritize the tasks based on their
relative importance. Also, I have limited time for completing this report, therefore, I have
assigned more time to those tasks that are important as well as containing highest marks. By
doing so, I have improvised my time management skills because prioritization and scheduling of
tasks allows me to accomplish the entire report on time.
On the other hand, I have faced difficulty in identifying the reasons that have resulted in
the failure of the organization. I also find it difficult to decide on whether the particular source
should be used for obtaining information specific to Uber organization or not. This has happened
because of my poor searching and writing skills. However, with the help of my tutor, I have
overcome this issue who assists me in identifying reliable and valid sources from which
information can be obtained. This problem arises because of my poor listening skills due to
which I was unable to pay required level of attention towards the instructions given by the tutor
in the beginning of the module which in turn has affected my performance while completing this
assessment.
Therefore, I would definitely be going to work on my searching and active listening skills
in order to accomplish my related projects in the future.

REFERENCES
Books and Journals
Bohn, S., Friederici, N. and Gümüsay, A. A., 2020. Too big to fail us? Platforms as systemically
relevant. Internet Policy Review.
Dash, B., Uber Driving Global Disruption: A study using SWOT and PEST framework.
Grabher, G. and van Tuijl, E., 2020. Uber-production: From global networks to digital
platforms. Environment and Planning A: Economy and Space, 52(5) pp.1005-1016.
Isaac, M., 2019. Super pumped: The battle for Uber. WW Norton & Company.
Liu, P., Gao, P. and Chu, P., 2021. How to evaluate the feasibility on renewables’ sharing
economy in China: A case study of Uber-like mode plus wind. Renewable Energy, 169
pp.80-94.
Pelzer, P., Frenken, K. and Boon, W., 2019. Institutional entrepreneurship in the platform
economy: How Uber tried (and failed) to change the Dutch taxi law. Environmental
Innovation and Societal Transitions, 33, pp.1-12.
Prananda, N.I. and Chuen, P.W., 2020. Go-Jek Company: Go-Jek’s Rise to Dominating
Indonesian’s Markets and Southeast Asean. Test Engineering and
Management, 82(1)pp.735-743.
Skok, W. and Baker, S., 2018. Evaluating the impact of Uber on London's taxi service: A
strategic review. Knowledge and Process Management, 25(4) pp.232-246.
Stanton, N.A., Salmon, P.M. and Stanton, M., 2019. Models and methods for collision analysis:
A comparison study based on the Uber collision with a pedestrian. Safety Science, 120,
pp.117-128.
Thelen, K., 2018. Regulating Uber: The politics of the platform economy in Europe and the
United States. Perspectives on Politics, 16(4) pp.938-953.