Uber Technologies Inc.: A Detailed Business Strategy Report Analysis

This report provides a detailed analysis of Uber's business strategy, examining various frameworks to understand its market position and strategic choices. The analysis begins with a macro-environmental assessment using PESTLE, evaluating political, economic, social, technological, legal, and environmental factors. It then delves into internal assessments using VRIO, assessing the value, rarity, imitability, and organization of Uber's resources. The McKinsey 7's model is applied to evaluate the company's organizational effectiveness, followed by an examination of Porter's five forces to understand competitive dynamics. The report also includes an overview of Porter's generic strategies, Bowman's theory, and Ansoff matrix to assess strategic options. Finally, the report concludes with a strategic plan, outlining Uber's mission, objectives, and implementation strategies. This comprehensive analysis provides valuable insights into Uber's strategic approach and its ability to navigate the complexities of the transportation industry.

Unit 32: Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY .................................................................................................................................................3
Macro analysis -PESTLE...........................................................................................................................3
VRIO........................................................................................................................................................4
McKinsey 7's ..........................................................................................................................................5
Porter's five forces..................................................................................................................................6
Balance scorecard...................................................................................................................................7
Porter's generic model...........................................................................................................................7
Bowman's theory....................................................................................................................................8
Ansoff matrix..........................................................................................................................................8
Strategic plan .........................................................................................................................................9
CONCLUSION.............................................................................................................................................10

INTRODUCTION
`Business strategy can be defined as making plans for achieving goals and objectives. It
can be refer to as identifying factors that can affect a company's growth. Plans are made with the
objectives to use resources efficiently, give directions properly to the workers, utilize
opportunities, achieving targets of the company. Uber technology inc. is a public company which
was founded in 2009 by Greer Camp and Travis kalanice. It provides various products such as
mobile app, website and services like providing food delivery, package delivery, courier freight
transport, vehicle for hire (Bai, Cordeiro and Sarkis, 2020).
In the present report, macro analysis in which PESTLE is described and stakeholder
analysis is done. VRIO, bench marking, coat benefit and value chain analysis is discussed.
Further, porter's five forces ,generic model strategy, hybrid strategy, Bowman's theory, Ansoff
matrix is described. A strategic plan is prepared in which mission and objectives, how to control,
implement is described.
MAIN BODY
Macro analysis -PESTLE
It can be defined as the factors that helps company in determining about makret and
competitors strategy. It will help organization in making strategy that will help company in
accomplishing targets. The macro environment factors are risky and it is not controllable but
managers try to solve this problem. It is a framework that is used to determine factors and take
measures to make changes in plans for the smooth working of organization (Bentley-Goode,
Newton and Thompson, 2017).
Political factor - It can be defined as the factors in which rules and regulations are made
by the government. These factors are decided by government such as, tax policy, trade
restrictions, tariffs, bureaucracy, trade barriers, labor law, environmental law, political stability.
Government changes tax policies and trade barriers that can affect the organization. Uber
company is providing services to the customers (Cubas‐Díaz and Martinez Sedano, 2018). In
different countries the tax rate is different so companies face problems and they have to pay
taxes according to the rate. If company want to import or export goods or services then trade
barriers will affect working of the company.
Economic factor- These factors involves economic growth, exchange rates, inflation rate
and interest rates. These affect company as if inflation increase then interest rate will be
increased. When company want to take loan then they will get loan at high interest rate. In uber
company they hires drivers and get feedback from customers quickly so that improvements can
be made. If there will be inflation then rate of taxi will also be raised. Managers has to take
necessary steps so that they can make strategies according to that (Farrukh and et.al., 2020).

Social factor - It refers to cultural aspects and health conscious, growth rate, population
rate, age, career attitudes. Companies may make changes in policies and procedures according to
the need of customers. Uber organization provides app on smartphones so that consumers can
easily purchase product. The prices of taxis are or services provided by the company are good as
compare to other transportation services. Noways, customers want new and innovative products
at reasonable price,this helps company in increasing profit by attracting more customers. It helps
in building good image in the market and overall productivity of the company will also be
increased (Firoz Suleman, Rashidirad and Firoz Suleman, 2019).
Customers are the king of market and products should be made according to the choice and
demand of customers to satisfy them and increase sales of the organization. Daily trends or
fashions are changing and needs are also changing according to that, so companies has to make
new products to attract more people and cover a wide area of network.
Technological factor — It refers to factors related to technology like change in machines or new
product is manufactured by using modern techniques or tools. As competition is increasing day
by day so all the organization what to earn more profit and build good image in the market.
Managers are making plans that what new can be done in product to attract more people and
increase sales. Technological factors includes research and development, automation technology
incentive and rate of change in technology. This means that it is a risky factor as there may be
change in technology anytime and managers has to change accordingly to maintain its position in
the market. In Uber company they are doing hard work and try to make good product or deliver
good services to attract customers and increase their sales (Fraser, 2019).
Legal factor — In these factors such as, discrimination law, employment law, health and safety
law. All these laws help in satisfying employees because they feel that if any conflict arise then
there are laws by which a company can solve the problems. This factor affects Uber as it faces
criticisms and bans, organization uses technical laws, copyright laws, health and safety law. Thai
help company in achieving goals and objectives of the organization.
Environmental factor — this factors includes, weather, climate, and change in climate. These
are some factors that are uncontrollable and company has to suffer problem by this but managers
can make plans or strategies so that risk can be reduced.
Stakeholder analysis
Stakeholder analysis refers to process of assessing a system and potential changes that are
required so that targets can be achieved. In this company gives all the relevant information on the
site and then check that stakeholders that are interested. On the site uber company give all the
relevant information which is necessary for stakeholders and according to that they make
investments (Grabher and van Tuijl, 2020) .

VRIO
It is an initial framework that helps in determining competitive potential, value, rarity,
imitability and organization. It is the basic process in which companies make good plans and
strategies to earn more profit and try to attract customers. In this value means that important
items ,rare means that resources or products that are rarely available (Islami and et.al., 2020).
Value
Uber technology
Inc. is providing
good services and
this is the positive
point of the
organization.
Rareness
Products made by the
Uber company are
rarely available and
services provided by
them is good. Other
companies are not
providing services
like this. The
resources are not
available easily and
supplier charges a
high price. It is a risky
for the company as
supplier will not sell
the product.
Imitability
It means that taxis of
Uber company is
easily available and
people do not have to
much. It is easily
accessible and prices
are also less as
compare to other
companies.
Organization
Uber technology
Inc. is one of the
best company in
the world and it
provides good
services to the
customers . The
company is
planning to expand
its business in
international
market and provide
more services to
the customers. It
depends on
organization that
how it increases
profit and sales by
making new
products.
McKinsey 7's
It is a management strategy which helps company in making good plans and strategies by
taking help of 7's given by McKinsey. The model defines that how an organization is performing
and there are various elements that help in identifying various factors which will lead to success
of the company. Managers make plans for accomplishing goals and objectives of the company. It
will help company in making good plans so that targets can be achieved and performance of
employees can be improved. There are generally 7 elements of the model i.e., strategy, structure,
system, staff, style, skills and shared values (Kong and et.al., 2020).
 Strategy- It means to make strategy that can be used by company to generate more profit
by increasing sales and attracting more customers. In this manager make planning

regarding what product strategy, pricing strategy and promotion strategy can be used for
the growth of company. The strategy should be different from competitors to gain
competitive advantage.
 Structure - it means that making plans regarding what type of organizational structure
can be used by organization for proper working and performance of employees can be
improved. Uber company is using divisional structure in which different departments are
divided and according to that work is divided. All the employees have to work according
to the Orleans and responsibilities given to them and give their best in achieving goals.
 Systems- it can be defined as system use by organization like, policies and procedures,
rules and regulations which will help in making future decision and help in growth of
company. Managers of Uber company make policies in starting and all have to follow
that (Martínez Hernández, Sánchez‐Medina and Díaz‐Pichardo, 2021).
 Staff - It means that selecting best candidate for the organization. HR department should
select appropriate candidate which has all the necessary skills that are required and
contribute in accomplishing goals and objectives of the organization.
 Style - this means that leadership style which is used by company. In Uber company
autocratic leadership style is applied in which only leaders are having right to speak and
members have to do work accordingly.
 Skills - This means that employees should have necessary skills that are required at the
workplace. In Uber company all the workers are having skills and proper education that
is essential at workplace.
 Shared values - it refers to promoting teamwork in an organization so that employees
will work more effectively. In Uber company most of the task is given in groups to
identify that how an individual can work in team.
Bench marking
It refers to process which helps in determining performance of company and compare it
with other companies. This is done to check that employees are working properly or not, whether
any improvement is required. It can be defined as tool which help in measuring the performance
of employees and make improvements in policies and procedures. The managers of Uber
company make changes in policies to improve growth of the company. Uber company is
providing best services to the customers, and they take necessary steps for the growth of the
company (Maulana, Munawar and Nurjanah, 2019).
Porter's five forces
It is a model that helps companies in identifying competitors in the market and situation
of company. There are five forces that is given by Porter which will help in making strategies for
future growth of the organization.

Competitive rivalry - It means to identify competitors in the market that will help Uber
company to make plans strategies accordingly. There are some potential factors of competitor
are, level of advertising expense, form concentration ratio, sustainable competitive advantage
which will help in earning more profit. All the companies want to earn profit and increase their
sale. To build good reputation in market and increase sales organization should make new and
innovative products to satisfy needs of consumers (Pervan, Curak and Pavic Kramaric, 2018).
Power of suppliers- the bargaining power of suppliers refers to an individual person or
companies that supply raw material to Uber company. Managers should make good relationship
with the suppliers so that they supply material on time. Uber organization maintains good
relationship with all the people and suppliers so that they supply material on time. Some
potential factors are, presence of substitute products in the market, competition.
Power of buyers - This means that how much a person can buy, what is the need of
customers and how much they can spend to purchase a product. It helps organization in
determining buying power of customers. By analyzing this organization will make product
according to the demand of consumers. A manufacturer should identify buying power of
consumers so that goods or services are provided according to that (Pucheta‐Martínez and Bel‐
Oms, 2019).
Threat of substitution – In the market there are lot of close substitutes goods that are
available, so it is difficult for companies to manage and it increases competition. If there are
many organizations who provides similar products then Uber has to make or provide better
services to attract more customers. So, organization should try to make different product and
other companies can not make similar product. Uber company is trying to deliver good services
to customers to earn more profit. If Uber increases it prices then people will switch to other
substitutes goods that are available in market.
Threat of new entry – This means that organization are also affected if any new
company enter into the market. It is an issue for the existing company because if new
organization will come then may be more customers will get attracted towards new product and
pricing strategy used by new entrants will be good as compare to others. Less time and money is
required for a competitor to enter into a new market and be an effective competitor.
All the five forces helps the organization in identifying strategies that are used by
competitors, market analysis, buying behavior of buyers, suppliers power and threats of new
entrants and substitutes. Company can analyze all these elements and make plans or strategies
accordingly. It will help in satisfying customers and attracting more people to buy the product
(Skok and Baker, 2018).
Balance scorecard
Balance-scorecard refers to strategic planning and management that helps organization in
measuring day to day work of employees and make improvements if required. This is a tool

which helps in determining performance of employees and managers keep record of activities
that is performed by staff members. It also helps in comparing actual performance with the
standards set and take necessary steps to improve the performance. It is a set of measurements to
monitor work done by workers and managers maintain all the information. This helps in
appraising performance of workers who perform well and sometimes punishments are given to
workers who did not perform well (Spicer, Eidelman and Zwick, 2019).
Porter's generic model
This model can also be referred to as different strategies like, cost leadership, differentiation and
focus strategy that will help company in making proper plans. Porter's generic model helps in
determining financial position of the company and profit earned is above or below average.
There are three strategies in this model, cost leadership, differentiation and focus strategy.
 Cost leadership strategy includes, economies of scale, proprietary
technology, access to raw material. The main objective of organization is to
reduce cost of production and try to sell products at low cost. With the help of this
model firms can identify competitors prices and set their price accordingly. If cost
of production is reduced then it will be beneficial for firm to generate more profit.
 Differentiation means to manufacture new product to attract more
customers and produce or manufacture something unique which will help in
increasing sales. Uber company is one of the well-known organization having
good image in the market try to provide better services to customers than
competitors to gain competitive advantage. Firms manufacturing unique products
create good reputation in market and get success (Suoniemi and et.al., 2020).
 Focus strategy means to select a particular group in industry and provide good
services to customers. Managers of the organization should make a team and
conduct a market analysis in which they should include, competitors strategy,
latest trends in the market, choices of consumers. This will help company in
making good plans or strategies to generate more profit.
Bowman's theory
It is a model that explores more options for positioning like, how product should be
positioned to get competitive advantage. There are two dimensions of bowman theory i.e., price
and perceived value. This helps Uber company in identifying various options that are available
for the company. In Uber company managers uses this model to identify particular group of
people who want goods or services that is produced by the company (Wee, 2017).
Ansoff matrix
It is a strategic tool that provides a framework to senior managers, executives, marketers
strategies which will be beneficial for future growth. There are four elements under Ansoff

matrix are, market development, diversification, market penetration and product development. It
provides more opportunities and help in generating more profit.
Market penetration refers to the strategy that is made by the managers to increase sales
by offering existing goods or services in existing market. This strategy is used by firms to
increase sales and market share. Sometimes, when buyer is not purchasing goods or services then
prices are decreased so that customers get attracted and buy the product. It is a technique that is
used by managers to increase overall productivity of company and more customers purchase
product and give good feedback (Yuan and et.al, 2020).
Market development refers to strategy in which firm tries to expand its business by
entering new markets with the existing products. This is accomplished by different customer
segments, foreign markets, new areas or regions.
Product development refers to strategy in which organization makes new products or
services and sale it in existing market. These products may include, investment in research and
development, joint development with ownership of another company.
Diversification can be defined as to grow market share companies make new products
and selling in new market. It may be possible that company want to expand its business by
manufacturing new products.
Strategic plan
Vision “ To earn more profit by providing good
services.”
Mission “ To make transportation easily accessible for
everyone and in every country.”
Objectives The main objective of Uber company is to
provide best services to customers so that they
can not be switch to other products,
comfortable rides at reasonable prices.
Strategies Uber company make plans or strategies that
will be applied for earning more profit and
attracting more customers. Uber company is
using penetration pricing strategy in which
initially prices are kept low as compare to other
industries to attract consumers. Company can
also use competitive pricing strategy to

increase competition in market.
Tactics Uber company is promoting its product
through social networking sites and giving
advertisements in newspapers or websites.
Implementation or control Managers of Uber are measuring performance
of employees by comparing actual
performance with the set standards.
Evaluation Evaluation is necessary because it helps in
identifying what are the mistakes that were
done while making plans earlier. After
evaluation managers provide training to
employees whose performance was not good.
CONCLUSION
From the report it can be concluded that, every company should make strategies for
accomplishing goals and objectives. Without making plans it is not possible to get success
because if there will be no instructions or guidelines then employees will not understand what to
do. In the report macro environment i.e., PESTLE analysis and stakeholder analysis is described.
In internal environment VRIO, Mckinsey’s 7s, bench marking, value chain analysis are
described. Porter's five forces, generic model, Ansoff matrix and Bowman's theory is discussed.
Further, strategic plan is made in which vision, mission, objective, strategies, tactics,
implementation or control and evaluation is described.

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strategy-examples> [Accessed On March 18,2021].