Critical Appraisal of Uber's Competitive Advantage Strategy SG6001

This report provides a critical appraisal of Uber's strategy, examining its business environment, human resources, and competitive advantages. It analyzes Uber's expansion, promotional strategies, and key success factors, including its services, credibility, and convenience. The report discusses the VRIN framework, internal and external factors influencing the company, and its contribution to local economies and corporate social responsibility. It also highlights the company's challenges and the need for continuous improvement to maintain its competitive edge. The report concludes with an evaluation of Uber's resources and capabilities, including financial, brand name, technological, and human resources within the VRIN framework. The analysis draws on leaked documents and external sources to provide a comprehensive overview of Uber's strategic position and future prospects.

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Competitive Advantage from innovation SG6001
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1CRITICAL APPRAISAL OF THE STRATEGY
Executive Summary
The report gives an overview of Uber Company’s business environment, human
resources, management and others. Recently, the company has expanded its business to many
countries. However, the company highly uses digital media promotional strategies to promote
their activities on the global platform. The industry is highly based on the geographical
factors and therefore, the company has high competition in the market. The company’s key
success factors are its impressive services, credibility, price and convenience. The report also
discusses the VRIN factors of the company, which gives a critical overview of the company’s
strategic factors. Moreover, the internal and external factors are also discussed in brief, which
affects the company’s business environment.
Currently, from leaked documents, it is found that Uber is highly contributing to the
local economies of the country, via fare systems as well as options to the lower income
segments. In addition to this, the company provides the drivers with huge opportunities like
flexible shifts and others. The drivers now can schedule their duty hours and rides, which
proves to be advantageous for Uber itself. Furthermore, with the shared riding scheme, Uber
has managed to mark its contribution to the Corporate Social Responsibility as well. Along
with the introduction of Uber Pool, Uber X and Uber XL, the company has managed to gain
huge appreciation in the market. However, it is found that the company needs to maintain
their current growth and success rate for the competitive advantage in the future.

2CRITICAL APPRAISAL OF THE STRATEGY
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Critical Appraisal of the Strategy...............................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................7

3CRITICAL APPRAISAL OF THE STRATEGY
Introduction
The environment of the Uber Company is quite stable. It motivates and encourages its
employees to set their personal strategies as well as goals. Currently, the company has
brought in huge transformation for the taxi industry. The company has huge opportunities in
the taxi-hire sector and introduced new and innovative products as well as services.
Previously, in large cities, hailing a taxi to go somewhere was much difficult. However, with
the inception of Uber cabs, such issues got eliminated. Nobody has to negotiate with the
driver concerning fare or fumble around to find the right amount of money. Not only Uber
cabs are highly reliable, but also it has managed to win the appreciation of many customers
(Alter 2015).
Discussion
The company has expanded its operations in London, Manchester, Liverpool and
many other countries. On discussing about the company’s business environment, it is found
that Uber promotes interactive sessions among the employees and their managers. This helps
in understanding the issues as well as problems of the employees. They have also managed to
make their promotional requirements specific and clear, in order to make the employees
work, as per the guidelines. Uber Company ensures that their staff members and managers
are well aware of the policy guidelines and norms. Moreover, it promotes safe as well as
secured environment of working for the employees (Biggs 2015). The core vision of the
company is to provide their customers with much convenient services.
The company has adopted several promotional strategies, in order to market their
services. For industrial survival and success factors, the company has introduced various
offers and discounts for its customers. Not only this, Uber has also played a major role in the

4CRITICAL APPRAISAL OF THE STRATEGY
shared economy and collaborative marketplace economy. The corporate social responsibility
logic that is embedded in this shared ride economy is the reduction of car usage as well as its
positive effects on the environment. In addition to this, the company’s management and
human resource strategies are also commendable. It has contributed a lot to the company’s
competitive advantage. Uber has a unique process of recruiting their employees. Not only
they train their employees on a regular basis, but also they impart education on how to cater
to the customers (Botsman and Rogers 2010).
On discussing about the inconsistency between the company’s internal factors, it is
found out that Uber has some problems in the legal aspect. A court case is pending which is
yet to determine whether its drivers are employees or contractors. Moreover, the internal
factors which hamper the growth and progress of the business are; customer services, few
less skilled workers, bossy seniors, ineffective communication between the employers and
management, negative environment and others. The external factors include high competition
as other cab services are also increasing on a daily basis, demands of the suppliers, customer
services and many more (Bosnjak 2017).
These factors have affected the business environment to a huge extent and marred the
company’s brand image. Moreover, the company does not have a clear cost and
differentiation advantage as the revenues rise at times that is the surge pricing strategy. In
addition to this, the company charges fees on cancellation of any trip, toll fees and other per
trip surge charges (Bloomberg 2015). According to leaked information, it is found that such
disadvantageous factors have led to the reduction of efficiency in the services offered.
Therefore, in such a competitive environment, the company needs to adopt more and more
marketing strategies and promotional activities (Beetlestone 2012). Furthermore, Uber
Company needs to keep a track of their target customers’ changing preferences. In addition to

5CRITICAL APPRAISAL OF THE STRATEGY
this, more and more training services must be introduced, so that the employees are able to
serve their customers’ with the best of services.
Critical Appraisal of the Strategy
Resources &
Capabilities
Is it valuable? Is it rare? Is it imitable? Is it Non-
substitutable?
Uber
Company’s
Financial
resources
Yes No Yes Yes
Brand Name Yes No No No
Technological
resources
Yes No Yes No
Consumer’s
human
resources
Yes No Yes No
Figure: VRIN Framework
(Source: Created by Author)
Conclusion
To conclude, the company’s financial resources are valuable as it has made huge
profits since the past few decades. According to the leaked documents, it is found that the
company has made loads of revenue and has managed to gain huge media acclamation.
However, it is not rare as its competitors have also made large profits and few losses. It is

6CRITICAL APPRAISAL OF THE STRATEGY
imitable as Uber Company has the capital as well as capacity to do so. Moreover, the capital
is required for every action and so, it is non substitutable. The company has a valuable brand
name, which is not at all rare, as its competitors too have a valuable and well recognized
brand name. It is not imitable as other company’s cannot use the same brand name. It is
substitutable as consumers can choose other brands too. The technological and human
resources of the company are valuable.

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References
Alter, C. (2015). “UN Women Breaks Off Partnership with Uber”. Available at:
http://time.com/3754537/un-women-breaks-off-partnership-with-uber/. Accessed 20 March
2016.
Beetlestone, I. (2012). “The history of London's black cabs”. Available at:
http://www.theguardian.com/world/2012/dec/09/history-london-black-cabs. Accessed 11
November 2015.
Biggs, J. (2015). "Uber Opening Robotics Research Facility in Pittsburgh To Build Self-
Bosnjak D(2017) "Uber Publicizes Some 2016 Financials, Shows $6.5B In Revenue"
https://www.androidheadlines.com/2017/04/uber-publicizes-some-2016-financials-shows-6-
5b-in-revenue.html accessed 1 Oct 2017
Bloomberg (2015). "Uber Crosses Continents with Istanbul Water-Taxi Service". Available
at: http://www.bloomberg.com/news/articles/2015-06-25/uber-crosses-continents-with-
istanbul-water-taxi-service/. Accessed 12 April 2016.
Botsman, R. and Rogers, R. (2010). What's Mine Is Yours:The Rise of Collaborative
Consumption, New York: Harper Business