Uber's Business Strategy: Macro and Micro Environment Analysis Report

This report provides a comprehensive analysis of Uber's business strategy, examining its operations within the macro and micro environments. The analysis includes the application of the PESTLE framework to assess political, economic, social, technological, legal, and environmental factors impacting Uber's business. The report further delves into Uber's internal environment using SWOT and VRIO analyses to evaluate its strengths, weaknesses, opportunities, threats, and valuable resources. Porter's Five Forces model is employed to assess competitive forces and identify strategies to enhance competitive edge and market position. The report culminates in a strategic business plan, incorporating strategic priorities and objectives, along with the application of the Ansoff matrix to identify growth strategies. The report highlights key challenges and opportunities for Uber, offering insights into its strategic management and future direction.

Business Strategy

Contents
INTRODUCTION...........................................................................................................................................4
MAIN BODY .................................................................................................................................................4
TASK 1 .........................................................................................................................................................4
P1 Appropriate framework for analysing the impact of macro environment ob organisation................4
M1: Critical analysis of macro environment for strategic management decision....................................6
TASK 2 ........................................................................................................................................................6
P2 Internal environment analyses...........................................................................................................6
M2: Critical evaluation of internal environment and organizational capabilities....................................9
TASK 3........................................................................................................................................................10
P3 Usage of Porter Five forces model for the evaluation of competitive forces in the market ............10
M3 Strategies to improve competitive edge and market position ........................................................11
TASK 4........................................................................................................................................................11
P4 Strategic business planning...............................................................................................................11
M4 : Strategic management plan that includes strategic priorities and objective.................................13
CONCLUSION ............................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Strategies for Business can be characterized as set of exercises which must be use by
association connection to accomplishing its business targets. This is valuable for association in
accomplishing its business objective by characterizing the objectives and way to accomplish
these objectives. The significant parts of business procedure in association is to oversee assets
and improving working of firm to accomplish business goals. Corresponding to current
undertaking, an examination is done on Uber, which is a British worldwide organization for
transportation hiring, food delivery and couriers. It works its business in around 69 countries.
Under this report, their conversation about inward and outer elements which are affecting
association and are significant corresponding to dynamic cycle. There is likewise conversation
about Porters five power model which will help association in distinguishing proof of upper hand
in market. In end, there is utilization of Ansoff framework alongside key administration intends
to accomplish business targets.
MAIN BODY
TASK 1
P1 Appropriate framework for analysing the impact of macro environment ob organisation
Today, business climate comprises different external components which can affect on
execution and dynamic capacity of association. This is on the grounds that its dynamic in nature
which incorporates different unpredictable and inflexible errands, that gangs difficulties on firms
identified with react towards changing government arrangements, monetary variances and some
more. For this reason, so as to react towards such factors and run business economically, it is
basic for firms to embrace idea of outer climate checking. In setting of Uber, the board in
association is utilizing PESTLE investigation. This is a system which can be use by association
according to filtering the outer variables which are affecting on execution of firm in current and
future time (Ajagbe, and et al., 2016). It incorporates examining of various elements to grow
better systems promotion talked about beneath:
Political: It incorporate those elements which are identified with world of politics of region
where association is working. According to UBER , it is working at worldwide level where its is
basic for association to figure fitting system. The major political variables which sway UBER
emerge because of BREXIT, open market polices of government and some more. UBER is
working in worldwide market in different countries where there is political dependability. This
accommodating to association in making polices as indicated by it. BREXIT is that political
factor which affecting UBER the most. This is on the grounds that because of this, Britain
government is zeroing in on facilitating polices to business. This will expand rivalry to UBER on
account of simple business polices. This will likewise affect on transportation industry of
association since it needs to chage its polices and utilize more cost powerful strategy in firm.

Apart from this the company did face various legal issues like the divers did not have the license
for drive, insurance policy of the client is an accident occurs on the fault of diver and etc. The
company did face objection in France in regard to his advertisements and the entrance of
company got banned in some of Asian Countries.
Economic: It incorporates those components that are connected with financial state of a market,
where an organization works its business. These are development pace of economy, business rate
and different other factor which sway straightforwardly on execution of association. According
to late period, where a large portion of the countries are confronting issues identified with
financial log jam, emerge because of tremendous pandemic assault of COVID-19 (Alstete, and
Beutell, 2016). In setting with UBER, as it works retail business in worldwide market, so
limitations in exchanging, development of assets across countries and that's only the tip of the
iceberg, brings about emerging a high monetary misfortune. Comparable to UBER association
utilize those items which are right now sought after. These are sanitizers, PPE packs, face veils.
Social: This incorporates those elements which are identified with capacity of association in the
public arena where it is exchanging. These are social patterns, way of life patterns and different
components in market. Distinguishing proof of this factor is basic for big business in
accomplishing its goals and overseeing capacity in viable way. Corresponding to UBER, to hold
and upgrade base of clients, this firm additionally centers mostly around ID of current patterns
and path inclinations of individuals changes. In current market, there is customary changes in
patterns inside industry in which UBER is exchanging. This affecting contrarily on association.
This is on the grounds that because of changes in patterns, firm needs to confront issue identified
with Dead stock. This additionally sway on income of association since dead stack prompts loss
of cash. For this association can utilize methodology in which it can use to distinguish the
patterns in market by leading statistical surveying. In setting of current time, UBER can utilize
items which are connected patterns began due to Coronavirus. Under this association can utilize
fashioner face veil and different items.
Technological: These are those factor which are identified with association in working with the
technology changes in current business climate. It remembers these progressions for innovation
which are helpful for association in accomplishing business targets. In setting with ongoing
business climate, pattern in retail business has generally moved towards online channels from
disconnected buying (Arieftiara, Utama, and Wardhani, 2017). This is on the grounds that flare-
up of pandemic assault of Covid-19, where clients are wanted to utilize internet buying
applications for purchasing garments and different items or administrations. Be that as it may, it
has affected decidedly on UBER because of its online presence and positive input of its clients
with respect to with conveyance of high caliber of its items, on astonishing value rates.
Legal: This factor incorporates those perspectives which are connected guidelines and guideline
planned by lawful power to keep up moral work rehearses in firm . Corresponding to UBER,
organization is working in different business sectors at worldwide. Subsequently, it is

fundamental for big business to utilize these capacities in viable way, this is additionally
significant to association in dealing with its capacities. Comparable to current circumstance of
UBER there are different principles and guidelines which sway on UBER. It is utilizing
reasonable working practices where it actualizing all guidelines and guidelines in association. A
portion of these are business guideline act, compensation act and some more. This assists
business with wandering sparing lawful liabilities of firm and keeping up generosity in market.
Environmental: This is significant factor for undertaking , this is on the grounds that it helps
association in keeping up great picture in market and accomplishing objectives and targets in
proper way. Moreover, UBER utilizing climate inviting practices. These are zero carbon move in
climate, utilizing sustainable power source in firm in type of sunlight based boards for delivering
power, utilizing Led bulbs and no utilization of plastic in association (Cagnin, 2018). This helps
UBER in meeting the goals of association corresponding to society and climate. This
additionally helps in building sound picture of firm in current time.
It tends to be assessed from the previously mentioned data that there are different
variables which are identified with association and can use to play out its capacity in viable
chief. There are helpful for association to settle on better choice and accomplish its business
destinations in opportune way.
M1: Critical analysis of macro environment for strategic management decision
For the business competitive and generate profit it is required to make analysis of certain
factors that includes both internal and external. All these factors is having impact over strategies
within an organization for minimizing impact over companies. Uber faced political challenges as
Brexit has affected business in terms of technology as conditions mentioned in this impacts
competitive edge existing within market. Brexit has been affecting various kinds of factors
within an organization like Uber. Since Brexit occurred various policies also changed which
impacted functioning of organization both internally and externally. Competitive edge can be
gain by an business organization through its strategies and policies.
TASK 2
P2 Internal environment analyses
As per present business climate, it is basic for firm to examine both inward and outer
climate for accomplishing objectives and targets. In setting of Uber, its business procedures are
generally founded on circumstances that are accessible in retail market, to catch high eye of
clients (Eker and Eker, 2019). For this reason, SWOT and VRIO investigation are applied for
deciding capacities of UBER with distinguishing proof of inner variables that emerge issues in
accomplishing its business targets, as clarified beneath-
SWOT Analysis:

Strength Weakness
 Strong brand picture is prime quality of
UBER. This is on the grounds that
association is offering quality items to
client which help firm in making sound
picture in market.
 One more solid purpose of UBER is
that association has its essence in
worldwide market. This is useful in
overseeing income and expanding
productively of firm.
 Major shortcoming of firm is that it is
subject to UK market. This is on the
grounds that, 70% of absolute offer of
association is depended market of UK.
This effect association contrarily as
monetary stoppage in UK market can
prompts misfortune in income of firm.
 Low level of R&D is additionally
affecting on association. This is on the
grounds that UBER is exchanging
dress business where it is require by
firm to utilize most recent patterns and
items to pull in clients however in
momentum time association isn't
putting resources into R&D which
prompts low exploration about current
patterns and effect on special of item.
Opportunities Threats
• Teaming up with nearby brand is that
factor which is affecting on association
and can be utilized to expand the market
go getter. This is useful for firm in
creating there gracefully chain and
utilizing it to accomplish business
destinations
•Bringing adaptability and
effortlessness in firms working model is
additionally a framework which can be
use by association to accomplish its
•Organisation is putting huge sum
in food area of UK. This is affecting as
a treat to association in light of the fact
that there are huge number of
contenders which are affecting on
execution of association and can affect
on firm, which prompts can decline in
benefit and loss of income (Kong and
et al., 2020).
•Regular changes in garments industry
is likewise affecting as a danger to
association. This effect contrarily to
association due to increment in dead

business destinations, under this
capacity association can utilize Morden
instruments and strategies to
accomplish its business goals.
stock.
VRIO Model:
Resources Valuable Rarity Inimitable Organized What is the
result?
Worldwide
presence
Worldwide
presence
- - - Competitive
Disadvantage
Items which
the company
offers
Items Items - - Partially
competitive
Innovation in
technology
Innovation Innovation Innovation - Competitive
advantage on
temporary basis
Personnel Personnel Personnel Personnel Personnel Competitive
advantage
This is system which is utilized by association to quantify its business esteem regarding
significant assets, extraordinariness and then some. Comparable to UBER, estimation of its retail
tasks can be resolved through VRIO investigation in following manner -
Valuable: It incorporate those assets which are significant to association and can be use
to accomplish serious edge over contender. This is useful to association in dealing with its
capacity by deciding this asset. According to UBER, these elements are examined underneath:
•Global presence: This is important asset to association since it helps firm in filing its
destinations be selling items and administrations at worldwide level. This additionally guarantees
worldwide development to firm in accomplishing its goals (Leonidou, and et al., 2017).

•Products: This is important to association since it encourages in pulling in customers to
association in market where its is exchanging. This is on the grounds that UBER is offering
excellent items in market.
•Employees: Employee of association are likewise significant resource for association this is on
the grounds that they help firm in performing different errand and accomplishing the target by
keeping up gainfulness and profitability.
•Technology: This additionally goes about as a significant capacity to association. Under this
organization is utilizing high performing guidelines to manage its innovation. This makes it
important to UBER on the grounds that it gives serious edge to association (Marx, 2016).
Rarity: These can be characterizing as those assets which are uncommon in market and
are fundamentals for association to accomplish business destinations. Comparable to UBER it is
there are three sort of assets which are uncommon in nature and go about as a halfway upper
hand to association. These are talked about underneath:
•Products: Products of UBER are uncommon comparable to association this is on the grounds
that association is utilizing significant asset in building up these.
•Employees: Employees are likewise going about as an uncommon asset to big business since it
is utilizing successful preparing and improvement projects to support aptitudes of workers.
•Technology: In connection to innovation association is utilizing exceptionally successful
instruments and execution frameworks which empower association accomplish its business
targets (Moseley, 2017). This likewise utilizes significant level of venture and can be go about as
extraordinariness in market.
Inimitable: In this capacity those asset are incorporated which can not be use by
contender of association. In setting of UBER, there are two assets which are incomparable and
are talked about beneath:
•Employees: Employees of association are Inimitable asset this is on the grounds that
association is utilizing height level of preparing and advancement which make representative
stick to their individual work. It is additionally utilizing more significant salary and oversees
work in powerful way to support representative inspiration.
•Technology: Organization is high squired workers to spare information of representatives and
oversee work in firm. This will affect on firm and will prompts accomplishing business
destinations.
Organised: It incorporates those variables which must be sorted out by firm. Comparable to
accomplishing its objectives and goals (Revathi and Aithal, 2018).

•Employees: With the assistance of its profoundly productive, talented and capable workers,
UBER can lead its worldwide activities in a powerful way and guarantee its maintainability in
market for quite a while.
Porter's value chain model for uber
The Porter's Value chain model for uber is as follows:
Primary Activities of Uber
Inbound logistics: The uber company is majorly a big taxi business organisation. The
major logistics which the company focuses are the smart phones and a good access to internet.
All the divers needs to connect with the internet to take the request for ride. Apart from this the
company needs only Hardware along with some equipments for office for sustainability of
business.
Uber operations: The company operates through a good internet connection and smart
phones where the drivers get the request for ride where they accept it, take the passengers from
pick up point and drop them to their destination. All the operations are majorly done with the use
of smart phones only.
Uber outbound logistics: The concept for outbound logistics does not apply at Uber as
the company done its operations through online only.
Marketing and sales: Major advertisement of the company is performed through digital
marketing, social media marketing and word of mouth. Along with it the company uses print
media, sales promotions and promotions through events strategy for advertisements.
Service: The company focuses upon customer orientation services which provides better
services and experience to customers.
Support activities
Firm infrastructure: As the company operates through online only there is not
infrastructure could apply in it.
Human resources: The drivers which the company called them partners are considered as
part of human resources because they are the people who provides the income to company.
Technological development: The company uses the advance technology in its operations
as there whole work is perform through the use of online services.
Procurements: As the company is a service based industry, this head does not apply to it.

M2: Critical evaluation of internal environment and organizational capabilities
Such important analysis of internal factors with capabilities identified in an organization.
SWOT analysis that has to be availed by Uber as appropriate resources is there along with
technology and staff. Procedure of production followed by Uber is unique which minimizes
threats. SWOT analysis has been helping Uber in making sure that all factors affecting an
organization internally should be tackled in proper manner with more efficiency and for this
purpose only there strength, weaknesses, threats and opportunities is being identified.
Organizations require to make sure that capabilities has been enhanced of Uber and its
employees.
TASK 3
P3 Usage of Porter Five forces model for the evaluation of competitive forces in the market
PORTERS FIVE FORCES MODEL
Porter’s five forces model is an instrument which has been figured to look at the degree of
rivalry in an industry. It incorporates the five pivotal segments which are fundamental to analyse
by the advertiser before entering in any industry and permit them to make promoting
methodologies as needs be to continue in the serious commercial centre (Rogmans, and Abaza,
2019).
Barriers in entrance: This power screens the current degree of rivalry in the current commercial
center. In the event that the opposition is high in the business, at that point it is simple for the
clients to switch between the brands, where organizations need to invest broad advertising and
special amounts of energy to hold them. In spite of the fact that UBER is the market chief in the
UK yet it needs to confront a ton of rivalry from its contentions which make it fundamental for
the UBER to make great advertising methodologies and give rewarding special proposals to pull
in the consumers. As there is low degree of entrance and exit present into the industry the threat
for increase in competition gets increase to the company. This creates the burden upon the
shoulders upon the Uber to perform better and come up with different strategy.
Bargaining power of purchasers: Consumers are the most significant partner for each business
element. On the off chance that the clients. Number is less, rivalry is high and purchasers can
undoubtedly switch then the haggling intensity of buyers will be high. In the difference bartering
force will be less if the quantity of purchasers is high and there is low rivalry in the commercial
center. UBER has a decent client base however there are different contentions who are giving
broad rivalry to the organization and a decision to purchasers to switch between the brands
which is improving haggling intensity of purchasers. Currently there are few major companies
which are running into the market with the same concept, the bargaining power of customers are
quite low as there are few choices available to customers.

Bargaining power of suppliers: This power examine bartering intensity of providers who give
crude materials, apparatuses and other fundamental assets to create the completion merchandise
and has capacity to expand the cost of basics they are conveying which may influence
productivity of the organization. UBER has numerous providers which diminish their haggling
power and permits the organization to get the vital assets at a sensible value which drives it
towards a decent benefit margin. With respect to Uber company, the suppliers can be the uber
drivers. The company business solely depends upon drivers. Therefore the bargaining power of
suppliers are quite high in the business.
Dangers of substitute items and administrations: This power analyze the presence of items
and administration which are indistinguishable from the organization's contribution and permit
the customers to switch. Accessibility of more substitute items increment the intensity in the
market and decrease down the open door for association to acquire benefit. UBER is confronting
a great deal of dangers of substitute as there are different market monsters like Walmart and
other little departmental stores which are giving different substitute of the items and
administrations, being offered by the organization in generally less cost (Yasa and et al., 2020).
There is a high degree of threat present in substituting the service as there are few more options
available to the customers.
Dangers of new contestants: Less section hindrances, rules and guidelines to go into an industry
permits the new firms who offer rivalry to the current firms by offering items and
administrations in generally less cost and embracing distinctive commercial strategies to draw in
the expected buyers. There is less danger for UBER of confronting rivalry with new participants
as market is gained by not many store goliaths and it is hard for another organization to go into
the market until they give great quality items on a serious cost. The concept for online taxi is in
trend in market therefore their can be the chance for increase in competition for the company.
From the above present model, it has been observed that as the entry and exit in this
industry is easy there could be more chance of increase in the number of competition which
would lead in increase in bargaining power of buyers along with competition level. To sustain in
the business the Uber needs to come up with new and different strategy so that it can gain
competitive advantage in the market.
M3 Strategies to improve competitive edge and market position
Strategies helping an organization over gaining competitive edge can be done through
efficient planing. For this Poter's five force can be used by new entries to sustain. Different
strategies used by Uber for gaining competitive advantage in market that are first one in
marketplace, leadership establishment, product should be authentic and quality is required to be
maintained. Further these strategies has been helping in developing certain advantages that has
made an organization like Uber to attain competitive edge in market. These strategies has been
creating positive impact over an organization.