Business Strategy Report: Uber's Autonomous Transport Analysis

This report provides a comprehensive analysis of Uber's business strategy, focusing on its position in the autonomous transport market. It begins with an introduction to business strategy and its importance, followed by an examination of Uber's macro environment using PESTLE and stakeholder analyses, considering political, economic, social, technological, legal, and environmental factors. The report then delves into Uber's micro environment, utilizing value chain and VRIO analyses to assess its internal capabilities and resources. Furthermore, it applies Porter's Five Forces model to evaluate the competitive forces within Uber's market segment. Finally, the report integrates various theories, models, and concepts to interpret and devise strategic planning recommendations for Uber, concluding with a summary of findings and cited references.

Business Strategy - Uber -
The state of autonomous
transport

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Apply appropriate framework which have impact of macro environment of organisation
and its strategies..........................................................................................................................1
TASK2.............................................................................................................................................4
P2 Examine micro environment and capabilities of organisation by use of appropriate
frameworks..................................................................................................................................4
TASK3.............................................................................................................................................7
P3 Use Porter's Five Forces model for evaluate competitive forces of market segment............7
TASK4.............................................................................................................................................8
P4 Apply various theories, models and concepts and interpret and devise strategic planning
for company................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
A business strategy can be described as the integration of all decision taken and action
presented by the organisation to achieve their business objectives and to secure a competitive
position in the market. It is known as backbone of the entity that leads for the set goals. It is
applied by the business to secure their position in competitive market and bring out all operations
in order to accomplish set goals at the end of financial year (Akterujjaman, Saha and Hossain,
2019). The main aim of the report to analysis of environment and strategic growth of
management. This report based on the Uber technologies inc. is American company that presents
vehicles for hire, package delivery, freight transportation, food delivery with partnership with
Lime, motorized scooter rental. In the United states company cover about 67% market share for
ride sharing and 24% market share for food delivery. In this report consist of determine of macro
environment in select business entity and internal environment capabilities using for set
framework. Along with using porters five forces model in selected market and apply a range for
theories, concepts and models at the end of project.
TASK 1
P1 Apply appropriate framework which have impact of macro environment of organisation and
its strategies
Macro environment analysis: The macro environment is defined as wide business
atmosphere across all market and industries. In this consider into the size and nature of entire
national economies and societies. To better understand the macro environment conduct different
models in context of Uber such as:
PESTLE analysis: The analysis of Uber brand on its business tactics in which analysis
of different external elements such as, political, economical, technological that affect on business
of the brand. It supports to understand market dynamics and enhance its business continuously
(Alda, 2019).
Political: Uber has always faced unlimited debates at worldwide level. Most of the
government are concerning about the guidelines of economy. Moreover, there were political
discussion about minimal wages laws in taxi industry and enduring by the rules. The government
needed commercial license and requiring Uber to provide that certification.
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 Positive: If government rules and regulations are in favour so it will help to Uber to
enhance their profitability.
 Negative: Such factors impact in negative manner when political situation is not
responding positively. Therefore, profitability of Uber can reduce due to face adverse
political situation in the market.
Economical: The range of economic elements impact on the entity in broad manner and
the most essential factors consist of macro economic atmosphere, inflation rate, interest rate.
Along with cost of labour, income of business and tax policy impact on the business
(Antamoshkina and Zinina, 2019). Positive: Uber business model depend on the sharing economy that applied in the
developed countries. Thus, Uber get income opportunities at the same time as taking
away jobs from local taxi drivers.
 Negative: When the economic situation are unfavourable then it will impact on business
in negative manner on Uber operations and revenue will be deducted.
Social: There are considering those factors that related with the social conditions and
norms. It is essential to manage a socially acceptable and respectable image. It has gained fast
acceptance and popularity in selected market. Positive: When the lifestyle of customers are changing so prefer to go with cab and
assure to spend money on their comfort that will boost Uber's business.
 Negative: If the faced controversies in regard of competition, laws, human resources and
attached with background checks for its drivers. As a result it impact on the revenue
generation in adverse manner.
Technological: It is most crucial factor that essential for business because Uber carry out
Autonomous transport due to apply advanced economy. It impact on the Uber operational
activities and way of get opportunities (Chen, 2019). Positive: When Uber apply advanced technology quickly so it will help to grab more
opportunities in the market positively.
 Negative: Due to use old technology so it will impact on the company in negative manner
and reduce their profitability.
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Legal: Laws and regulations is important challenge that face by every business due to
changes legal situation in a country and being unable to relate may outcome in large fines for
entity. Positive: When company follows all the legal activities in proper manner so it will
definitely help in generation of profitability (Chen, Eshleman and Soileau, 2017).
 Negative: If Uber do not follow all the legal activities then it will effect on the revenues
in deducting way.
Environmental: Sustainability is most important factor because government strictly
follow all environmental guidelines. Such factors become quite essential for the Uber.
 Positive: Uber started a pilot project that known as Uber green in which riders can
request a green ride at the tap of button.
 Negative: If Uber is not effectively apply all the environmental laws and regulations so
government take strict action against of company.
Stakeholder Analysis: A stakeholder analysis is a procedure in which recognising those
people before the project starting so collecting them as per the levels of participation, interest and
impact on the project to analysis how best involve and communicate in regard of stakeholder
groups. There are mentioned list of stakeholders of Uber such as: Riders: Uber must reckon its riders on top priority and valuable stakeholder. Without its
riders, the app would not be used so it impact on revenue stream in direct manner. Riders
have some expectations as well as demand from the application to fulfil their
requirements (Bıçakcıoğlu, Theoharakis, and Tanyeri, 2019). Drivers: The cars pickup by the drivers and deliver customers on desired destinations that
supports to generate profitability. They supply whether eiders are on demand and
presents now there is no decline in demand in sight. Investors: It is most important stakeholders that helps to conduct business activities in
proper manner. They are supporting in investing massive sums of cash to enhance their
market activities and adopt modern technologies.
 Mobile operating system providers: Uber's capability to provide services at broad manner
and easily use apps and convenience to riders and drivers. These system providers helps
to maintain Uber app in effective manner.
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TASK2
P2 Examine micro environment and capabilities of organisation by use of appropriate
frameworks.
The internal environment is important component of a business entity which is presenting
various factors of organization. In this environment consist of various factors that direct and
indirect impact on the business decision making. There are mention about Uber internal
environment such as:
Value chain analysis: Uber value chain analysis is a strategic analytical tool that
supports to recognise different sources of value and competitive benefits for the worldwide
transportation technology organisation (Demirel and Kesidou, 2019).
Uber primary activities
 Inbound logistics: There are mainly consisting of receiving and storing raw materials.
Value addition in Uber inbound logistics related to interest based nature of business
activity and the business model. It is limited to mainly hardware and office equipment
require to sustain the organisation.
 Uber Operation: It is conducting their business activities 760 cities at global level. The
operations of the company extremely refined and customer based thanks to application
that connected with advanced functions as well as capabilities. Thus, it can be said that
Uber application is important source of Uber operations. There are following services
are:
 Outbound logistics: In the value chain analysis it is related with the warehousing as well
as organization of items. This logistics do not fully apply on the service sector because of
inseparability of delivery and uptake of services. The company conduct business about
760 cities at global level and based on the internet so its business model is most important
source of value for the global taxi technology based entity (Hidayati, Firdaus and Sanim,
2019).
 Marketing and sales: Fir the marketing company use social medial marketing and also
use word of mouth marketing in order to communicate with its marketing message for
target of customers. Additionally, Uber also uses print and media advertising, events and
experiences of its marketing strategy. Easy payment method is beneficial part of business
and charges automatically charges from credit cared registered in app.
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 Service: High level of customer service is most important part of competitive advantage.
Along with good customer service related with the Uber business model in which riders
rate of drivers as per the experience from scale 1 to 5. Driver also gain incentive because
of clean car and provide good services.
Support activities
 Firm infrastructure: The infrastructure of firm presents as a scope of different activities
like quality management, financing, planning and many others. The good structure
supports Uber to select the value of the whole value chain and control the activities to
stay in competitive market (Holotiuk and Beimborn, 2017).
 Human resource management: Good HR management supports business to cut off
competitive pressure based on motivation, commitment and skills of its workforce. The
organisation can achieve their goals through determining hiring and training cost.
 Technology development: It is important activity for Uber in which items classified into
product as well as process for the technological development. Such as, software
automation, product design.
 Procurement: It is used by Uber carefully in which focus on different procurement
activities to pick up the inbound, operational as well as outbound value chain.
VRIO analysis of Uber: This analysis of Uber will look at every internal resources one
by one in order to analysing of sustained competitive advantage. In the Uber determine each
stage for these resources could be enhanced a higher competitive advantage.
RESOURCES VALUE RARE INIMMITABLE ORGANISED
Financial
resources
Yes No No No
Employees Yes Yes No No
Distribution
Network
Yes Yes Yes No
Patents Yes Yes Yes Yes
 Valuable: There are including those resources which are valuable for business and
support in generation of profitability. Financial resources of Uber are highly valuable that
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helps in investment into external opportunities that arise. Employees are valuable
resources of enterprise who are trained and leads to more productive results of the entity.
Along with, distribution network is valuable because it supports reaching out more and
more customers and assure about larger revenues. Patents are valuable resource because
it allows a business to sale it their products to grab competitive advantage (Horowitz,
2019).
 Rare: These types of resources are rare which is not easily access by the business in
effective manner. Employees of the Uber is rare because they are highly trained and
skilled and assure about them, they are not leave firm. The patents of Uber is rare because
it is not easily used by any business and help to achieve in competitive advantage. Along
with, distribution network is rare in which needed lot of investment as well as time to
come up with effective distribution.
 Inimitable: There are consisting of those resources which are not copied by any
organisation easily that called as Inimitable. The distribution network of Uber is costly to
imitate by competitors because Uber invest lot of amount in this resource. Moreover, The
patents are typical to intimate because of legally not allowed to use by any firm and not
permission to be developed same in costly manner (Hsieh and Wu, 2019).
 Organised: These are most important resources which is strength of the company and do
not applied by the any other business for their inner analysis. On the basis of these
sources company achieve competitive advantage in positive manner. The patents of the
company is organised because its is used by only Uber and assuring about the products
are available at its outlets.
As per the VRIO analysis it is determined that financial resources as well as distribution
network supports to achieve competitive advantage. Other sources like patents used for longer
time sustainability in the market.
TASK3
P3 Use Porter's Five Forces model for evaluate competitive forces of market segment.
Porters Five Forces model analysis and identifies five competitive forces that industry to
determine its weaknesses, strengths and provide framework for working its operations. They can
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be applied to any segment to know the level of competition in market. To enhance long term
profitability of company (LESTARI and et.al., 2020).
Competitor in the Industry: This first force of Porter Model helps to determine number
of competition and their ability to shut down a company. This competition can only be survived
by offering better deal or lower prices of products. Degree of competition for Uber is high. It is
operated in many countries and faces major competition. Many local and global riders such as
Lyft and Juno in US, Malaysia's Grab and Dubai Careem made it difficult for Uber to survive.
Potential new entrants: Power of company is harm by new entrants. New entrants with
less money and time become effective competitor. Potential new entrants for Uber is low. This
market requires high capital and entry level itself. Uber is facing lot of legal issues in several
areas which make new entrants cautious.
Power of Suppliers: Suppliers can increase the cost of input. Fewer suppliers indicates
dependency of more companies on them which will increase the cost of input and they will
make other advantages. Suppliers are at dominant place as many retail companies by raw
material from them. This threat for Uber is medium. Bargaining power of suppliers is restricted
because group of suppliers is not much. High fluctuation in price of oil and gases brings
unpredictability as well as uncertainty in market (Matzembacher and Meira, 2019).
Power of Customers: Negotiation power of customers make it difficult for the company
to make profit. If a company has independent, smaller and many customers it charge higher price
and make more profit. It is mainly affected how much customers a company has, how it will
spend in finding new ones or market for outputs. Threat from power of customers is high.
Customer have more choice due to increase in number of participants in market. This provide
customers low switching cost advantage. Increase in the use of private cars also created difficulty
for Uber to expand.
Threat of Substitutes: Use of substitute product and services act as a replacement of
company's product and its reputation. Businesses that are not selling substitute goods have
chances to increase the prices of product. On the other hand these goods increase chance of
loosing there customer which affect company's brand. For Uber threat of substitutes in medium
considering traditional transportation industry (taxies, private cars, public transportation,etc.).
Uber provides lower cost efficiency and user friendly design of service quality. But customer
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might shift to some similar companies because of higher sensitivity of price (Puspitasari and Jie,
2020).
TASK4
P4 Apply various theories, models and concepts and interpret and devise strategic planning for
company
Porters generic model are useful in understanding the potential niche through which they
could gain competitive advantages in industry. In the company Uber, this strategy will help in
applying to products, services across the industry. Following are the strategy in this model are as
follows-
 Cost Leadership- This strategy consist of attempting to gain market share by restricting
the cost conscious customers and aim to become lowest- cost producers. For the Uber, If
this strategy is applies than it will help in maintaining the cost budget and increases the
level of profit. This will help in providing tough competition to other companies.
 Differentiation- This strategy led organization to make products more attractive than any
other industry and take competitive advantages. These organization target large market to
differentiate on wider scale than cost led firm. If Uber, has introduced this strategy that
will help in achieving the image in the market and increase in the product quality
(Raghutla and Chittedi, 2020).
 Focus- This strategy include two types Cost focus and Differentiate Focus. In Cost focus
company will develop lower cost advantages with small market segment. In Focus
differentiate refers to the organization that will look to develop the product differentiate
and using smaller number of market segment. If Uber will apply this than it able to grab
the common niche marketing strategy and will increase the overall objectives of company
and leads to attain other innovation in business.
From the above strategies if Uber uses Cost focus strategy in its management than will
help in achieving the lower cost advantages and lead to average market leading in the industry.
Ansoff matrix: Ansoff matrix is also called as product/ Market expansion grid and useful
tools to analyse the plan for future growth in future (Schell and et.al, 2020). For the company
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Uber this techniques will help in promoting its business and that leads to certain development in
overall activities and functions. Following are the strategies-
 Market Penetration- In this firm uses its product in new product in existing market and
aims in increasing its share in market ans use this penetration strategy and this leads to
increasing in the promotion and distribution efforts and decreasing prices to grab the
attention of costumer. In the company Uber, this strategy will help in cater the same
market as it require to put promotion and distribution efforts.
 Product Development- This concern with strategy that concern with firm developing a
new product to cater existing market. This needs lots of research and development and
lead to expansion of market. For Uber, this strategy will help in building new market
segment and needs proper development,
 Market Development- This refers to the strategy that uses the firm enters to new market
with existing products and that leads to expanding into new market into geographical
regions, costumer segments etc. In this strategy Uber, will include the catering new
customer segment and entering to new market lie they are introducing driverless in new
western country.
 Diversification- This firm refers to new market with new product and it consider as
riskiest strategy as it need both market and product development. This offer the greatest
potential to promote revenue and entirely new stream for the country. In the Uber, this
strategy will require lots of money and efforts in research and will lead to new heights of
success in business (SVapa and Vapa-Tankosić, 2019).
From the above techniques this is recommended that company can use Market
Development strategy as in this they could come up with the new technology of Driverless in the
western countries. This will help in achieving the all objectives of company and leads to attain
many competitive advantages.
Management plan concern with achieving the best way to accomplish the task and goals
and leads to achieve many success for the organization. Following plan of Uber are as follows-
Particulars Details
Mission It believes in providing the opportunities to
everyone through comfort and that helps the
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people to live better life.
Vision It focuses on delivering all transportation
facility to every person in the world. To
increase the level of their technology and
development (Yuan and et.al., 2020).
Core Values  To build the living standards of people
globally by providing best services.
 To reduce the differences between
people through increasing their comfort
level.
Strategy to be adopted  To reduce the cost of their fare by
giving best services to their costumers.
 To minimise the time of delivery of
their overall activities and increase the
efficiency.
Budget
Goals and objectives  To offer convenient services to their
costumer and inexpensive.
 To improve overall experience of their
costumers in better way.
 To come up with new technology to
increase the market share.
Marketing Strategy  To use effective platform to attract
them with lower services.
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