Business Capstone Project: Uber's Market and Growth Strategies

This business capstone project analyzes Uber Technologies Inc., examining its organizational environment, business model, and competitive landscape. The project utilizes Porter's Five Forces to assess threats and opportunities, including new entrants, suppliers, buyers, and rivals. It explores Uber's growth strategies, considering factors like holidays, restaurants, and weather, while also addressing barriers to growth and proposing solutions at business, corporate, and international levels. The project concludes with recommendations for real-world problem-solving and highlights limitations related to infrastructural requirements. The analysis covers various aspects of Uber's operations, from its inception to its competitive positioning in the market.

Running head: BUSINESS CAPSTONE PROJECT
Business Capstone Project
[Name of the Student]
[Name of the University]
[Author note]

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Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................4
Macro-Environment of UBER:..............................................................................................4
Organisational environment:..............................................................................................4
Business model:.................................................................................................................4
Porters Five Force Analysis:..................................................................................................5
Threats Related to the New Entrants:.................................................................................5
Bargaining Power of Suppliers:.........................................................................................6
Bargaining Power of Buyers:.............................................................................................6
Rivalry with Other Competitors:........................................................................................6
The Threats of Substitutes:.................................................................................................7
Competitive Structure of UBER:...........................................................................................7
Growth strategy of UBER:.....................................................................................................7
Holidays and Occasions:....................................................................................................8
Restaurants and Nightlife:..................................................................................................8
Weather:.............................................................................................................................8
Barriers in the growth of UBER and Strategies to Overcome the Barriers:..........................9
Strategy at business level:..................................................................................................9
Strategy at Corporate Level:..............................................................................................9
Strategy at International Level:..........................................................................................9
Recommendations:...............................................................................................................10

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Genuine Solutions for the Problems of Real World:.......................................................10
Being an Early Adopter:...................................................................................................10
Limitation of Infrastructural Requirements:....................................................................10
Conclusion:..............................................................................................................................10
References:...............................................................................................................................12

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Introduction:
UBER Technologies Inc. was established in the year of 2009 on March 8th and it has
its headquarters is located in the San Francisco, California, United States. This company
operates in almost 633 cities. It is a global taxi technology that is associated with providing of
travelling solutions by the process of matching the passengers with the drivers. The drivers
associated with this company own their own cars or they rent a car so as to drive with UBER
(Alley 2016). The drivers need to have a smartphone for the purpose of using the UBER
application along with the customers also requires a smartphone or access to mobile website.
The primary goal of UBER is “Trasportation as reliable as running water, everywhere, for
anyone”. According to the statement of UBER, their main contribution is on providing a
reliable along with a prompt accessible benefit to all the customers of UBER. It is likely to be
expanding its business all around the country associated with the conveying of its business
administration to different urban areas. This would be helping the riders and drivers utilize
their service at a maximum level (Bilton 2012). Due to the presence of various driving factors
the popularity of UBER is developing at a higher rate and this might include the
administration which is more advantageous than any of the customary taxicab organisation
which is regarding the ability to serve the riders (Wallsten 2015). For instance, it also
provides an option to the shoppers which is not available in the conventional corporate
management model which is provided by any of the other organisation. This report mainly
consists of the analysis of the industry UBER along with analysis of the competitive market
of UBER. The report also discusses about the various barriers along with discussing about the
various strategies that can be adopted by UBER for the purpose of overcoming all these
barriers.

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Discussion:
Macro-Environment of UBER:
Organisational environment:
There is an essential need of undertaking a competitive analysis so as to identify the
problems of the customer along with the business model’s and the strategies adopted by
UBER for the purpose of dealing with the problems of the customers (Rogers 2015). With
increase in the use of smartphones by the young generation along with the improved
technologies and the increased value of perception of time has helped in establishing the
increased value that UBER has experiences so far. There are several environmental factors
and this mainly includes the unfavourable weather condition, which effects the demand and
initially leads to the increase in price of the journey.
Business model:
The recruiting of the driver takes place in UBER only after the screening of the
vehicles are completed. This is done so s to make sure that the vehicles are worthy for the
road. This is also one so as to make sure that the customers are comfortable and safe when
they are using the vehicle. The drivers are sometimes also provided with an iPhone once they
are endorsed by the members (Christensen Raynor and McDonald 2015). This is done so as
to make sure that the drivers have access to the organisation’s application conveniently and in
a more effective way. The drivers of UBER are provided with an extra facility of not paying
tax licenses and other type taxes that are payed by the black cab drivers. This ultimately helps
the UBER drivers in earning more than any other cab drivers.
The tracking and accessing of the cars can be easily done by the customers once they
have the application of UBER is installed in their smartphones. The customers are also able
to get other information’s as well and this might include the details of the license plane of the

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car or the name of the driver and more. Along with this there is also presence of viewing the
previous reviews about the driver or ratings given to the driver. Besides all this the photo of
the driver is also provided to the customers (Cramer and Krueger 2016). The price for
booking a car depends on various factors and this factors mainly includes the distance to be
travelled, demand of the cars and the type of car that is being booked. In cases of bad weather
conditions, the price might be high and the customer might need to pay a higher fee. The
mode of payment might be cash or card. The card generally means the credit card that the
customer uses for the purpose of signing in. It is considered that this online payment system
is much more secure and safe (Alley 2016). Once the payment is done by the customer
UBER splits the receipt with the driver. The original margin for transaction used to be around
20% between the driver and UBER but this was later decreased to 25% due to huge
competition in the market.
Porters Five Force Analysis:
Porter’s five force analysis mainly refers to the tool that is used for the purpose of
analysing the competition present in a business. Three forces are incorporated by Porter’s five
forces from the horizontal competition and this mainly includes “the danger of substitute
products or services”, “the risks due to the rivals existing in the market”, and “the threats of
new entrants” (Nistal and Regidor 2016). The two forces from vertical competition includes
“the bargaining energy of the suppliers” and “haggling energy of the customers”.
Threats Related to the New Entrants:
There is a lack of reassurance from any of the new ride-sharing firms which can
charge less unreasonably for the same distance covered. During its establishment UBER, the
prime supporters got separated with a sizeable measure of capital. The agreement of Uber
includes the offering of their application software for nothing in return to the customers who
are having the will it is possible to switch the service at zero cost (Bond 2014). Due to the

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fact that cost needed for the offset is evitable so UBER is not insusceptible to any type of
rates that are rising subsequently which is followed by the making the process of infiltration
of the industry by different industry much easier.
Bargaining Power of Suppliers:
The fleet of UBER has no vehicle as such. The business model of this organisation is
mainly subjected to the drivers and the partners who are responsible for holding their rides.
So it ca be stated that an outsourcing strategy is adopted by UBER for the purpose of doing
its work and assets to the person who are able to meet the terms and conditions so as to use
the lady web application (Westerbeek et al. 2016). The substitution of the specific driver is
also very much difficult. UBER also provides the vehicle owners with an option of choosing
between the association and the rivals which would be initially leading to the consultation for
a superior regard in regards to the expenses of the organisation. This proves that the suppliers
are having a higher ground so as to affect the executions of UBER.
Bargaining Power of Buyers:
The services provided by UBER might not be required by the Customer all the time.
The services are only required at particular instances and these might situations when an
individual is late for work or some other situation when a convenient and affordable mean of
transport is not available (Cohen et al. 2016). So it becomes for the customers to choose from
any of the taxi services. The switching required by the customers is also low as the customers
doesn’t have to pay type of registration free while using the application.
Rivalry with Other Competitors:
There are also several companies which are associated with the providing of same
type of services as well as it is having the same business models and operations. Besides the
demand of corporations by the present day business for the purpose of focusing on the

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customer base which is present inside a given geological location so as to cut the cost
required for various operation (Posen 2015). A business system has been established by
UBER along with a massive capital investment.
The Threats of Substitutes:
The typical constraints in a focused business environment is known as a substitute. For
example, the closest opponent and a potential substitute for the UBER are the taxi services
(Salnikov et al. 2015). It can be stated that with sight increase in the fare of UBER can result
in grasping of the customers by other competitors.
Competitive Structure of UBER:
The resultant of a firm’s value is the competitive advantage, and this initially leads to
the creation of an advantage for the customers which generally exceeds the cost required by
the firm while creating it. There are two ways of increasing the utility and service of UBER.
The first way mainly involves the enhancement of the service delivery which can be done by
reducing the time in reaching out to the customer when the service of UBER is needed
(Enoch 2015). There is a need of being reliable by the cab as well as the driver so as to make
sure that the customers are satisfied with the service that is being provided. Another way by
which the competence of the personnel can be improved is by ensuring that the services are
provided by the professional divers so the need of training the driver increases so as to ensure
that the drivers provide a personalized customer service.
Growth strategy of UBER:
There are certain circumstances that has been utilised by UBER for the purpose of
developing a good way and this circumstances have been alluded by Kalanick as
“Accelerants”. These accelerants are generally associated with the demonstration of real as
well as transitory requirement for the administration of UBER (Rauch and Schleicher 2015).

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This mainly includes the following restaurants and nightlife, holidays and occasions, weather
and sports.
Holidays and Occasions:
There are several special events which provides with a chance of grandstand for the
UBER’s model and the organisation is able to convey a very good service which would be
creating new buzz for the administration (Wirtz and Tang 2016). Various occasions create
new unusual request and weight so as to get new clients who would be taking their first ride,
along with driving the spikes in the new riders associated with aggregating of the rides.
Restaurants and Nightlife:
There is a regular need of making a game plan regularly followed by backpedal to
homes after any kind of gathering. So UBER has rushed for comprehending all this and has
offered its administration at meaningful nightlife focus in the city (Sun and Edara 2015).
Individuals who are associated with the profits of the administration has turned to be very
much enthusiast for the company and has done informal publicizing so as to spread the word.
Weather:
UBER is having an outpouring estimated innovation which has ultimately resulted in
rolling out of a vast majority for the improvements in the climate. At times when it is raining
heavily and someone is struck then he might need a taxi. This situation gives rises to the need
of UBER which is the best and the main accessible decision for that individual at that point of
time. This procedure was likely to be a prompted feedback for the UBER which amid the
tropical storm named Sandy when the cost was expanded (Geradin 2015). In any type of case
when all things are considered along with the concept of business will be business and the
trust regarding the matter is that UBER is having an incomplete obvious regarding the value
surge innovation.

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Barriers in the growth of UBER and Strategies to Overcome the Barriers:
Strategy at business level:
Head path in overseeing the transportation has been provided by UBER. An
application was developed by UBER for the purpose of providing the drivers with a provision
along with this the application also helps the clients in decreasing their anxiety required for
the purpose of discovering the great and reliable drivers who does not need to fuss about any
kind of stockpiling receipts so as to recover the income (Bashir Yousaf and Verma 2016). In
a deliberate way all the clients are checked by making use of the driving records and any kind
criminal records. Besides all this the drivers are also tried by making use of many strides
before they are acknowledged with the joining in UBER.
Strategy at Corporate Level:
UBER mainly utilizes a technique of item advancement at the corporate level. UBER
has used the ebb tide and flow advertisement for the purpose of upgrading the nature of its
administration and this is done by enhancement of the application stage which initially leads
to the encouragement of the association amongst various stipulations and drivers. By the
expanded abilities of the application, the divers would be acquiring the business along with
which the shoppers would be provided with a more option and accommodation (Hall and
Krueger 2015). There is presence of low level expansion with more than 95% of the income
generally originated from one special unit which is mainly associating the riders to drivers.
Strategy at International Level:
After the establishment of the company in California it advanced to Europe which
was then followed by expanding through Australia. The strategy adopted by UBER is slow
but is sure for the advancement in the new international market. After the success of the

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investments made previously UBER proceeds towards venturing in the other localities (Brazil
and Kirk 2016). One of the example of slow but sure strategy is the expansion to Europe and
then to Canada after the success in California is an illustration of the strategy used by the
management.
Recommendations:
Genuine Solutions for the Problems of Real World:
The main aim of every business that exists is for the purpose of serving the
requirements of the clients. Most of the business makes use of the similar restricted
arrangement of plans for actions which are once in a while is enough for the purpose of
tackling all kinds of distinctive difficulties for the purpose of comforting the clients.
Organisations lie UBER which provide an exceptional administration and provides better
offers are likely to develop at a greater rate.
Being an Early Adopter:
Being a participant in the market is one of the vital issue. UBER being the first ride-
sharing organisation has enables the cutting of a huge share in the market. Various rivals of
UBER like Lyft and SideCar were confronted but still UBER is much more grounded brand
as it is the first business to showcase in the riding market.
Limitation of Infrastructural Requirements:
When an organisation starts up it unavoidably confronts higher cost during the
process of development. When all the things are considered then it can be seen that there are
numerous ways in which the business can limit their expenses and this can be done by
diminishing the foundation set up. The main reason that lies behind the development of
UBER at a rapid rate is due to the fact that it does not have the same overhead cost like that
of the customary taxi services.

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Conclusion:
The report helps in concluding that UBER is one of the largest cab or taxi providing
service in the whole world. UBER has an application that greatly helps the customers as well
as the drivers. The company is aimed at providing a service which is fully efficient and helps
a customer’s a lot in daily transport. The report firstly analyse the macro-environment that
UBER is having. This section of the report includes the organisational environment of UBER
and the business model of UBER. Then the competitive structure of UBER has also been
discussed in brief. By making use of the Porter five-point analysis the competitive market of
UBER as well as the major threats have also been discussed in this report. The final report
discusses about the strategy that has been adopted by UBER for the purpose of growth. The
report consists of a brief discussion about the various barriers faced by UBER along with the
various strategies to overcome those barriers. So it becomes increasing important to make the
security measures readily available so as escape the various problems.