Comprehensive Business Strategy Report: Uber Eats Analysis

This report provides a comprehensive analysis of Uber Eats' business strategy. It begins with an introduction to the importance of business strategy for growth and sustainability, focusing on Uber Eats as a case study in the food delivery industry. The main body of the report examines the macro environment affecting Uber Eats, utilizing the PESTLE model to analyze political, economic, social, technological, legal, and environmental factors. It also explores the Ansoff matrix, particularly focusing on market penetration strategies. The internal environment is then assessed, highlighting Uber Eats' strengths, weaknesses, opportunities, and threats, and applying the VRIO framework to evaluate its internal capabilities. The report further analyzes the competitive forces using Porter's Five Forces model, providing insights into the competitive landscape. Finally, the report discusses strategic planning within the organization before concluding with a summary of the key findings. References are provided to support the analysis.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Marco environment that affect strategy of business...............................................................3
P2 Internal environment along with organisational capabilities..................................................6
P3 Porter’s Five Force model in order to examine competitive forces.......................................8
P4 Strategic planning of organisation........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The strategy of business is most significant for entity expansion, profitability and
sustainability. It will provide most appropriate approach of strategic that will outline overall
direction in order to fulfil long as well as short term objective (Abbasi and et,al., 2017). In other
words, it refers as entire structural plan that counter business activities with reference of action to
ensure competitive edge in its market segment. The ultimate strategy of business is designed in
terms of focus, cost and differentiated strategy. This will manage highly competitive
environment to develop opportunity and remove weakness. The chosen company in report is
Uber Eats that is well recognise entity deals in food industry. The report highlight some topics
such as Marco environment that affect strategy of business, Internal environment along with
organisational capabilities, Porter’s Five Force model in order to examine competitive forces,
Strategic planning of organisation.
MAIN BODY
P1 Marco environment that affect strategy of business
Environment of Macro is consist of forces mainly external which relates outside the
organisation. This is hard to control by organisation as it consider as external drivers. This is
most essential to examine overall factor that affect performance or profitability of organisation.
The environment of Macro consist 5 component such as legal, economic, political, social and
environmental. The Uber Eats has to face most of the factor that affect its performance along
with business strategy. Uber Eats adopted PESTLE model in order to examine its external forces.
Political- Uber Eats have to tackle several hindrance with reference to political factor
while operating its business expansion (Brozovic, 2020). Uber Eats mainly not execute or
perform any clear instruction regulated by government. They violate various policy or
regulations set by government. This is essential but they fail to carry out. The situation of politics
circumstances is changing very soon as it will affect overall strategy of food sector as
government in which county company operate try to advance the level of food industry. After

getting some stability in political situation still organisation face slowly growth and develop lots
of tension in minds of investor. This will affect net value of company along with its activity.
Union workers also perusing some kind of protest with flow of instability political circumstance.
Economic- Factor of economic consist of interest rate, inflation, deflation, foreign
exchange, saving rate and much more. In this condition, country influence company strategy, as
rate of inflation gets in market place will improve company profits due to lots of investor create
interest in their mind that develop more value in Uber Eats. In market flow of inflation and
money is being circulated as a result most of the people will place order in food industry. But
with fluctuation food industry demand is keep on changing due to shortage of money. This will
influence purchasing habit of consumer while ordering food items (Carney, 2019). This type of
industry always have lots of consumer demand but with affect of foreign exchange , this will
fluctuate currency level and demand of industry as per shortage of money circulation. The
financial position at global level will influence at refine level. This will influence level of profit
in organisation.
Social- As the economic situation gets fluctuate, several problem arise towards
inequality, income in society. Uber Eats has to manage various price management technique
related with income inequality. It will influence organisational profitability that will fluctuate
range of high to low through power while tackle strength or net worth. As per social
circumstances trends in demographic will influence and change through migration of consumer,
Interest of people, population aging (Delgado‐Márquez, 2017). It will leads to cover overall
changing in terms of taste, preference in context of sale in Uber Eats. Consumer habit of
shopping is getting change as they prefer online pattern. It will provide maximum advantage to
organisation in strengthening its value. As a result online category in food item getting purchase
through online. Most of the consumer prefer to buy from social media and mobile network which
ultimate benefit profit of organisation.
Technological- In modern business technology has their own growing competence in
terms of competition. It will aid organisation in developing own strength as well as emergent
opportunity. The advancement in technology enhance process of food items so that it will build
more loyal base of consumer by proper communication. This will enhance overall performance
with upgrading business strategy. The concept of innovation is more creative, at it cover more
benefit within high competition in market of food segment. With growing technology of social

media company develop its unique and creative brand in food industry. It aids company in
building or empower loyal brand in front of large base of consumer. It will develop great
opportunity for Uber Eats as it enhance chance of updating sale and revenue.
Legal- This factor consist of overall protection in terms of law such as intellectual
property, employment, consumer protection etc. Uber Eats aims to describe no discrimination
among theor staff members. They execute health and safety standard to protect the interest of its
employee that is regulated by law of government (Foss, 2018). When these laws will not follow
up then organisation strategy and performance will gets affected automatically. Where as
protection law of consumer will leads to conduct or facilitate optimum level of privacy as well as
security level of consumer. Organisation have to ensure higher standardisation with higher price
and quality that will not gets influence in context of legal norms as a results this may influence
overall long period of sustainability related with business progress.
Environmental- This is one of significant components which leads to cover most of
potential audience of organisation. Uber Eats aims towards renewable terms of technology
towards methodology that strengthen overall long period of sustainability. This will provide
more power towards consumer satisfaction along with high premium interest of investor. The
advance value of brand aids in renewable technology (Handrito, 2021). The aim of company is to
follow up zero management waste by adopting recycling. This will conduct innovation concept
in segment food, here most of the attention is garb by potential consumer along with improvised
activity of business. Uber Eats adopted environment friendly product range and process that is
essential to maximise overall loyal base of consumer. It will leads to cover higher amount of
priority so organisation will not affect actual standard and norms related with environment. This
will automatically update brand name in front of mass potential audience.
Another model is suitable in terms of macro environment of Uber Eats which is known as
Ansoff matrix in order to analyse external factors. It will aids in expansion of business in terms
of decision making and term as effective too. This will leads to covers overall market
penetration, product and market development along with differentiation. Out of these only
market penetration is most suitable of Uber Eats.
Market penetration- It is one of the great strategy that aims towards proper potential
development in current range of product as well as in current marketplace. It will uplift overall
improvement in its capacity production, This will facilitates optimum level of accomplish

optimum level of demand of potential consumer. But this will require heavy investment so that it
will penetrate overall market. It will focus higher level of distribution channel so that
organisation can deliver its range of product in specified time. It will reflect proper supply chain
that is developed by them in more effective manner (Hussain, 2019). It will cover lower
competition level towards pricing range so that it will reduce optimum level of operational cost.
This is the main reason why its act as most successful compete with its higher competition in
market place by capturing higher market.
P2 Internal environment along with organisational capabilities
As per internal environment organisation leads to covers more efforts in entity itself which
terms as more controllable (Liu and et.al., 2019). It will enhance overall weakness, strength,
threat and opportunity. When company strengthen its internal environment then it will improve
chance of its higher capability towards direction to fulfil objective of company. In reference of
Uber Eats, their internal environment has its major affect upon profit and business strategy.
Strength-The Uber Eats is recognised brand that carry premium public image to
strengthen organisation. Renewable resources act as more strength in terms of company which
promote higher level of performance as compare to its competitors. Here the organisation policy
along with structure with suitable guidance in order to deliver food items to untapped potential
consumer.
Weakness- Ultimate weakness of organisation is its financial position because their
investor consist of lower interest in order to raise finance source which reflect upon business
activity while their operational functional business process.
Opportunity- They regularly focus upon ultimate facility towards innovative strategy. It
will introduce higher quality range of product so that they can easily fulfil optimum level of
satisfy potential consumer demand. This will ensure most superior way of generating
opportunity. It will promote higher competitive benefit as compare to it competitor.
Threat- Fresh talent entering in this industry is term as threat of company and develop
more tension and stress. This is leading threat as this food industry is such growing one as a
result most fresh organisation is entering and utilisation of most of the resources will generate
situation of scarcity in the market place.

As in terms of internal environment lots of capability of Uber Eats examine actual need to
deliver more value and benefit to update capacity and eliminate weakness and threat in highly
competitive environment. The model of VRIO is effective tool to examine internal capability of
organisation.
Valuable- Optimum level of financial resources act as highly valuable because it deliver
updated funds to eliminate external threat along with more higher level of contribution to support
external opportunity to strengthen internal capability. Domestic food segment is more valuable
that consider differentiation feature (Malerba, 2020). It will ensure more satisfaction of consumer
that support company while competing with competitor. Employee of company is more valuable
due to reason that deals directly with consumer so proper training is require. Training will
enhance knowledge and skill level so that it will provide maximum value to consumer. It will
also refers as strategy o retention to attached employee with company forever. Cost structure of
company is not that much valuable because of its ineffective production methodology.
Department of research is not valuable as organisation do not invest on it. The organisation
adopted aspect of innovation but this is not enough to maintain competitive edge, they need to be
aim towards improvisation.
Rare- Patents of Uber Eats are termed as highly rare, due to reason of hard to copy by
reference of its competitors. That is why organisation is holding strong position in marketplace
because of its patents. Overall channel of distribution is also term as highly rare from competitor
that will accomplish gap in distribution channel(Pan and et.al., 2020). It will promote their
effective channel to boost competitive edge. Domestic food not terms as rare because its
competitors copy it. That is why organisation need to improvised its business strategy. Finance
resource are rare of this company as other food company does not consist of strong base of
finance. Employee act as rare resources due to company invest amount for its appropriate
training of employee. Workforce will aims to deliver valuable goods and services to enhance
brand name of company.
Imitable-Financial resources is termed as more expensive of Uber Eats while comparing
its financial base of competitors. Newly company in this industry has sufficient amount of
finance. Here Uber use these funds to strengthen its position in market for long period of time.
Domestic food are hardly expensive so it is possible to imitable by other company. similarly
employee also not expensive so it is easy for its competitors to hire best employee through higher

package of salary. But the patents of Uber Eats can not imitable by other company due to its
expensiveness. Another reason behind this as imitable patent are not valid in terms of legal and
very costlier one. Channel of distribution is hard to imitable because for this more amount of
funds in needed by its competitors.
Organisation-Uber Eats resource of finance is valuable, that leads to reflect imposed act
of strategic decision. It will conclude suitable manner of organisation leads to conclude more
explore opportunity in order to reduce the amount of threat. It will conduct proper sustainable
benefit as compare to high competition (Rosenberg, 2017). Patent of organisation is not properly
utilise with higher extreme before it gets expire. It should be appropriately utilise in terms of
acquiring more profit to balance competitive edge. Channel of distribution by organisation
facilitate suitable system of delivery to enhance company capacity to full fill all demands of
potential consumer. This will ultimately help company to maintain long term sustainability with
reference to goods and services.
VRIO model analyse that Uber Eats distribution and financial resource is terms as
competitive benefit. Where as patents terms as unused part within organisation. Employee as
well as domestic food are temporarily competitive. Resarch along with cost structure termed as
competitive disadvantage.
P3 Porter’s Five Force model in order to examine competitive forces
Porter’s five forces model: This type of model is utilise by Uber Eats because it will reflect
company competitiveness to determine its strength while competing with its competitors.
Threats of new entrants: The fresh entrants in this situation are very imposed to
overcoming challenges and remove threat of current market. Here Uber Eats is more in position
of profitable that will reflect upon minimum terms of barrier in order to attract fresh company in
industry. Uber Eats has considered as still face high threat from new entrant as most of the
competition has been faced (Ruck, 2019). In industry of food segment, It will reflect upon threat
in terms of imposing appropriate framework so that they can settle within organisation. The
switching cost in terms consumer to update brand at the higher level in order to maintain loyal
brand. Some sort of restriction with reference of distributors by appropriate fulfilment in terms of
large investment that will discourage upto new entrants. This ensure Uber Eats will leads to
enhance more profit in order capture entire potential

Threats of substitute products and services The optimum level of several substitute in
terms of product and services in order to build overall environment to enhance competitive along
with challenge of Uber Eats. The particular organisation has to deliver more optimum quality of
food segment to target several restaurants along with hotel industry. Availability in terms of
substitute goods and services that will reflect upon fulfilling requirement of market. Threat of
substitute are highly switchable as they cost at more high rate with reference to product and
threat will act as comparatively low (Seroka‐Stolka, 2020). Optimum quality and services is
deliver by its competitors is low. Their quality services influence the competitive level to update
productivity. The Uber Eats will manage its substitute by upgrading higher and better quality at
very most affordable price as comparing to remain competitive in long period and decrease threat
as well.
Rivalry among existing firms: Rivalry in current market act as most effective factor
which influence organisation that determine more stronger position in market while competing.
This will determine higher number within competitors which deliver optimum product and
services in the industry. Uber Eats face toughest competition by upgrading limit with higher
potential development at higher effectiveness (St-Hilaire, 2019). Here competitors focus on
higher aggressive range of pricing with optimum market targeting strategy to capture higher
market share. Several competitors of Uber deals in delivery of food that affect their market share.
Several factors such as consumer switching, industry growth etc act a barrier of fresh company
and control sustainable competitive edge benefits.
Bargaining power of buyers: Bargaining power in terms of buyer will refers as highly
pressure to exerted within consumer in organisation to update higher quality within product and
services with affordable price. Strong power of bargaining will influence profitability among
Uber Eats that update competition in terms of industry. Where weak position in terms of buyers
will develop more opportunity in its food industry. Here the bargaining power of its consumer is
high as availability of similar products. This will raise switching cost as consumer are very price
sensitivity that acknowledge optimum market range and trends
Bargaining power of suppliers: Here supplier bargaining power is more exerted with
number of supplier in order to decease number of availability in terms of availability during its
suppliers along with increase in price. The bargaining power is that much dependable in supplier
within industry. Here the power of supplier update scope of competition along with growth of

Uber Eats. Organisation deals in food product range in terms of product differentiation so that it
will develop their own market demand and low power of supplier bargaining.
The application of porter five force model ensure proper identification within organisation in
order to ensure competitive factor with effect of these policy to ensure proper range of good
amount of facility that aid in decision making with respect of Uber Eats to update the level of
efficiency.
P4 Strategic planning of organisation
Uber Eats adopted porter’s generic strategy for enhancing strategic planning to uplift
company performance and profit. This will ensure optimum level of competitive environment
and focus upon improving its quality services. This will ensure proper guidance in formulation of
strategic priority level to fulfil ultimate goal.
Cost leadership-Uber Eats mainly attached with effect to reduce overall cost so that they
can deliver good quality of product range and services to ultimate consumer. It will facilitate
more higher revenue of organisation by creation of more effective situation of financial to reflect
upon competitive market (Vukić and et.al., 2020). More profits will be invest in several kinds
of business operation by Uber Eats with help of cost leadership strategy. It will mange funds and
level of business as they focus to reinvest some funds to lowering more cost of delivery while
comparing to other competitors. This will turn out most sustainable situation that push most
effective strategy of cost leadership to raise level of profit. Divisible profit will reduce most of
the share of cost within optimum strategy.
Differentiation- Uber Eats goal in terms of differentiation range of food while competing
with competitors. Here optimum level of strategy will conduct more unique type of product
range to ensure maximum potential consumer range that will strengthen position in highly
competitive environment. This will adopted strategy of differentiation strategy through optimum
level of maturity to deliver foods. Past experience will conduct of innovation aspect need to be
involved in feedback of consumer (Zubeltzu‐Jaka, 2018). Organisation must aims to develop
effective research in terms of fulfilment of market demand. This will be improve overall market
capability to enter in current an future market. This will enhance chance of profit with
improvised factor in exclusive market in order to contribute more innovation concept to update
objective with mass audience through creation of sale. This will target more potential base of
consumer that focus upon value.

Cost focus-This strategy aims towards some sort of niche market with higher amount of
mass consumer. It will conduct suitable expertise within food industry to accomplish needs of
potential consumer. Where as cost will refers as more flow of expertise within consumer base.
This will reflect aggressive cost that involve food items upon niche market. Most of the
component counter greater niche market that focus upon reasonable strategy food items. It focus
upon strategy of company by providing more qualitative goods which cost only niche market that
aid company to become most leading option with expertise leadership upon niche market. It will
ensure reduction in the competition level in similar industry. They will leads to tie up with other
company so they can easily maintain its creditability to sustain higher level of competition. This
will strengthen optimum level of consumer by building up higher terms of loyalty which reflect
upon updating brand fame and develop higher trust in the scenario of public.
Differentiation focus-This type of strategy involve two kind of aspect one is focus and
second one is differentiation. Uber Eats will reflect upon innovation part along with
differentiation towards food items in market of niche. The proper implementation with outlook
of organisation conduct to address overall component that highly deal with niche component
market towards niche marketplace. The proper strategy of niche is to invest in respective market.
It will advantage by generation of cross selling options towards concept niche market. It will
explore more generation options within category of product innovation. It will enhance premium
range of product innovation concept by improving its loyal base of potential consumer that
reflect some sort of product and services.
CONCLUSION
From the above report it has been concluded that strategy of business act as significant
method that fulfil real purpose of company in effective manner. Appropriate estimation of
business environment with both internal and external create most effective structure of business
to improve positive factor and reduce negativity. Porter model aid company to address its
competitive environment and deeply understand its market sentiments to improve profit and
business strategy.

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