Uber Eats Strategic Management Report: Analysis of Key Factors

This report provides a comprehensive strategic analysis of Uber Eats, a prominent player in the food delivery industry. It begins with an overview of the company's profile, including its founding, headquarters, and global presence. The main body delves into a detailed industry analysis using Porter's Five Forces, assessing factors like internal rivalry, the threat of substitutes, supplier power, customer power, and the threat of new entrants. The report also employs PESTLE analysis to examine the political, economic, social, technological, legal, and environmental factors impacting Uber Eats' operations. Furthermore, it assesses the company's resources and capabilities, including strategic assets and competencies, and utilizes VRIO analysis to evaluate its competitive advantages. Challenges faced by the company, such as building customer trust, are also discussed. The report concludes with a summary of findings and references.

STRATEGIC
MANAGEMENT
(ASSESSMENT 2)
Table of Contents

INTRODUCTION .....................................................................................................................................3
MAIN BODY............................................................................................................................................3
Company profile................................................................................................................................3
Industry Analysis................................................................................................................................4
Business environment analysis..........................................................................................................5
Resource and capabilities..................................................................................................................5
VRIO Analysis...................................................................................................................................12
CONCLUSION.......................................................................................................................................13
REFERENCES.........................................................................................................................................13

INTRODUCTION
Strategic management is defined as forming strategies and based on the formation
proper implementation is done of strategies. This report is based on case study of Uber Eat
Company. Henceforth, report will emphasis over the business enviornment analysis.
Resources and capability assessment of company will also demonstrate in this project.
MAIN BODY
Company profile
Uber Eat Company will be discussed. Uber Eat Company was established in the year
2014 by the founders Travis Kalanick and Garrett Camp. Headquarter of the company is
located in San Fransisco, California, United States. Currently company serving its services to
approximately 45 countries across the globe. Food industry utilises the concept of Porter Five
Forces which demonstrate all key points that can influence the competition in market. There
are different elements like power of stakeholders mentioned in this model. Based on the
power reflect under this model of each and every stakeholder company get an eye over
formation of strategic direction. Along with the Porter Five forces Uber Eat Company also
take support of PESTLE Analysis to design strategies against business operations
channelised. PESTLE project different business environment elements that impact over the
business operations. The role of Porter Five Forces and PESTLE Analysis is directly under
formulation of strategic option. VRIO Analysis is another crucial tool that can be used to
understand how effective the organisation is performing against the business operations. This
tool assesses all such areas about which company could bring a unique image in the market in
front of the target customers in the market. This also supports the organisation to form the
best level of strategies and policies to achieve the business objectives of company.
Industry Analysis
Porter five forces comprises with various forces that influence operations and decision
making of the organisation. This competitive analysis model comprises with different forces
create impact over the strartegic direction of business entity.
Internal rivalry (High): Food industry contain huge demand and growth posibility. This
lead to massive internal rivalry between brands. Stakeholders always like to invets in the
sector contain huge demand of products in respective market. Internal rivalry is agressive
which further lead to company to follow strategies like competitive pricing and other such

practices. Company get competition from other entities like Just Eat and many other. Internal
rivalry could lead to agressive level of market competition between brands.
Threat of substitute product (High): Substitute product threat is always high. This force is
high as today the entire business environment become so volatile in nature. In such a situation
substitute product contain a huge threat in market. Substitute product denoted as the one that
can replace the use of existing product offer by business entity. This force is high due to
innovation and technological development in market.
Power of suppliers (Medium): This force is high. Uber Eat Company is a big brand that
could boost the sales of many restaurant and hotels. The dependency of other business
entities is more on Uber Eat Company than the dependency of ssuppliers over the company.
This force is medium due to the involvement of Uber Eat Company and its suppliers in
business functionsd.
Power of customer (High): Customers are the sole entity associated with the business
organsiation. All strategies company formed are based on potential customers. Customers
contain huge involvement in both growth and sustainability of business which improve the
significance of this force.
Power of new entrant (Low): New entrant are denoted as the new business venture
associated with the market. This force is low as in the current situation of COVID
stakeholders scare to invest in business. This force is low due to the low posibility of new
entrants and business ventures to enter in the market.
The abiove mentioned forces demonstare the involvement of different stakeholders in
the business operations entertain by business entity. Company need to analysis this forces to
form stratgeies in the business.
Business environment analysis
Business environment analysis comprises both external and internal factor associated
with the entity. In order to understand the implication of different external enviornmment
factor PESTLE Analysis is conducted.
PESTLE Analysis
This model involve factors like political, economical, social, technological, legal and
environment. All these are different external business environment factors influence business
operations of organisation.

Political factor: Political factor involve policies of government and also the sustainability of
the political party. UK Hold a very positive and strong political culkture that could motivate
the Uber Eat Company to grow in respective market.
Economic factor: Per capita inciome and controlled inflation support the buying capacity of
customers in market. Economic factor in UK is very strong that empower the company to
acjheive massive growth opportunities in respective market.
Social factor: People in UK like to order food from restaurants and food chains. This allow
the company to sustain an efffective flow of business operations in market.
Technological factor: The technological development in UK has supported the Uber Eat
Comnpany to sustain an effective flow in operations of business entity. Technological
devel;opent and advancement has palyed a role of backbone in overall strategic growth of
company.
Environment factor: This factor motivated company to involve in different social
responsibility such as environment protection, plantation and such related initiatives.
Legal factor: Uber Eat Company try to cope up with all legal regulations. The laws and
regulations motivate the company to sustain an effective flow of operations in respective
market.
Resource and capabilities
Resource management is another huge challenge Uber Eat Company is facing at this
point in time. Resource management is about to manage the company’s resources in such
manner that it can generate the best level of outcomes against the utilisation process. In case
of new organisations like Uber Eat Company where resources are limited in number even if
the company is associated with the big brand still the resources are limitation for the
organisation. This is the big challenge for new organisations to manage all its limited
resources in the best way possible (Fauziah and Mulyana, 2018). Resources involve financial
resources and human resources. Financial resources are the biggest limitations the new
organisation face in against to the business it has undertaken. Managing the human resources
or further denoted as employees of company is another crucial challenge organisation face in
against to the business operations t has undertaken. Resource management is a professional
and strategic approach to conduct the management.
Sustainable competitive advantages are defined as all such strategic choices available with
the company that can sustain the competitive advantages for the organisation for long time
frame.
Strategic assets

A strategic asset is denoted as the strategies company use to deliver the competitive
advantages for the longer time. Strategic assets of company are that customers get to book its
order by staying at home. Within the specific time frame company deliver its product to its
customers. This is a key strategic asset company sustained that deliver the competitive
advantages to the organisation (Khairina, 2017). Uber Eat Company is a subsidiary of the
Uber Company so the organisation contain the high brand value which is another sustainable
strategic advantage associated with the company in against to the business operations
undertaken. Strategic asset allow the company to boost its growth rate in the limited spam of
time. High goodwill and brand value are the two key strategic choices that will deliver the
best level of growth opportunities in favour of the organisation. This has allowed company to
gain the highlight in such a sort spam of time. Strategic asset will deliver the competitive
advantages to the organisation and also gain attention in such a short span of time in such a
competitive market.
Competences
Uber Eat Company is a subsidiary organisation associated with the Uber Company.
Due to the effective and attractive brand value contains by the Uber Company this
organisation carry the huge changes to grow in the market. High brand value of the company
make the organisation to deliver the best level of growth opportunities in the market. Service
of company is also a key aspect that worked in favour of the organisation. This business
model is all about delivering the order to customers to their door steps by buying them from
the good restaurants and food chain networks (Köseoglu and et.al., 2020). The whole idea is
unique and make the business able to establish a unique brand image which allow company
to achieve the best level of growth opportunities in the market.
Capabilities
Uber Eat Company carries the capability of delivering the best level of services at all
its business locations. Organisation contain high brand value as it is a subsidiary company of
Uber which allow company to hold high brand value which support the organisation in
achieving the objectives of the business. Currently company is serving its services at
approximately 45 locations at international level which give a huge potential to the
organisation in order to achieve its all different business objectives. Capabilities is the
positive aspect about the business that allow company to have a huge strength against the
business operations undertaken (Lee and et.al., 2019). Uber Eat Company has formed

strategic alliances with all the top food chain which make the organisation more capable of
delivering the best level of food products to all its customers within the stipulated time frame.
The strategic alliance of company has created a different place for the organisation in the
respective market which has made the organisation more capable of performing the
operations in the market.
Community
Uber Eat Company is associated with delivering the best level of food products at
different locations across the globe. Company carry a community of suppliers, employees,
loyal customers and different other stakeholders which support the organization in
performing the operations in the best way possible. This community company hold has
allowed the organisation successfully delivering the best level of operations at the best price
possible. Reasonable price structure of company is another crucial factor that supports the
organisation to achieve the best level of operations in market.
Uber Eat Company is a new aged business organisation. Young organisations always
needed to face more challenge as compare to established business organisation as they
understand the business environment and various impacts stakeholders of company make in
the normal business functions. Challenge that are becomes part of the organisation can be
projected in the following points.
Challenge of building customers trust
This is the biggest challenge Uber Eat Company is facing at this point in time where
company is trying to establish trust between customers and the organisation about the
products of company. Uber Eat Company has been engaged in delivering food products and
items at different locations across the globe. Direct from the restaurant and hotels customers
get to deliver the food at home. The business model of the company seek immense trust
factor of the potential customers only than the organisation will get to achieve the business
success. Building trust is a key challenge company is facing and in such a context
organisation runs various marketing and branding campaign that can deliver such trust factor
of company and customers (Al Shobaki and et.al., 2017). Customer trust is the indicator that
denotes that denote that customers of company do not feel any kind of hesitation before
ordering any food products from the Uber Eat Company. In case of food products customers
are deeply concerned about the quality of food product as to whether the organisation will be

capable of serving the best quality of food products or not. They are more concerned about
the quality and nutrition these food products will serve to the customers. This is the biggest
challenge for the company to make the customers realise that all products and food items
company is delivering are best in quality and ensure all quality standards. The business model
of the Uber Eat Company is that in this business customers get to deliver its food products
made in the favourite restaurant and best food chain networks at a local level. Its important
for the company to ensure that the restaurant company is contacting for the delivery process
ensure the best level of cooking techniques and maintain the taste customers are looking for
in against to getting the services delivered from the Uber Eat Company.
Training and development of employee challenge
Employee development is another key challenge associated with the new organisation
that is looking for establishing the business operations in market. This is the key challenge
such organisation face in company. In this due to limitation in company’s resources
company’s face challenge of conducting proper training and employee development
opportunity. Training seeks company’s financial resources which are already limited in
number so the organisation do not get to channelizes precise employee training and
development campaign. Employee training allows the human resources of company to
enhance and improve the work efficiency and potential capability. They to learn new skills
along with polishing the existing skills and knowledge which support them further in
achieving the best level of services and product quality in market (Hussin, Jamaludin and Yu,
2017). Employee training requires a precise development campaign where company need to
hire those professionals and conduct training program. All these needed huge resources of
company which are already limited in number. Due to the limitation in resources company do
not get to deliver the best level of employee training program that further restricts the
potential capabilities of such employees part of the Uber Eat Company. This is a key
challenge associated with the company that requires dealing by the company in order to boost
the growth opportunities for the organisation.
The above mentioned challenges are the key challenges associated with the company.
All these challenges allow the organization to restrict in achieving the best level of
operational efficiency.
Current opportunity company face

Following are the current opportunities company is facing at this point in time.
Business expansion opportunity
This is a big opportunity associated with the Uber Eat Company. As even if the
organisation is new in the sector but the name Uber is old. Company already contain a strong
brand image which allows the organisation to make a good image in between its customers.
Business expansion opportunity allows company to improve its business locations. Currently
Uber Eat Company is delivering its services at approximately 45 locations which require
expanding further in this strategy. Business expansion will allow the Uber Eat Company to
take competitive advantages in the market. In this opportunity company get to deliver its
services more number of potential customers available in the market across the globe. This
will also enhance the existing brand value of company in market (Jono and Sulton, 2018).
Expansion is a key technique that allows company to boost its growth rate in market. This
opportunity will allow company to boost its existing growth rate of company in market. This
is a new organisation irrespective of the well established brand image company face issues in
expanding its services. Business expansion opportunity will allow company to serve the
services to more number of potential customers based in different business locations.
Financial management strategy
Financial management is another crucial strategy available with the company. As the
Uber Eta Company is a new organisation which also indicate that company contain limited
amount of resources. Its important to channelizes effective financial management services.
This strategy will allow company to make the best level of utilisation of company’s financial
resources that are limited in numbers. As the organisation contain the limitation in its
financial resource availability so to utilise the financial resources of organisation in the best
way possible play the most significant role in order to achieve the best level of growth
opportunity for company.
Employee training and development opportunity
In today business situation skilled human resources are the key need of the company.
Every company seek skilful employees that can deal with any of the worst situation company
face. Conducting training of employees with the support of specific employee training
program will make the campaign more successful for the organisation. In the training
program professionals will provide a guidance about the skill development of the employees

and human resources associated with the organisation. New skills will taught to students
along with polishing the existing skills employee hold (Keter, Maiyo and Kiainge, 2018).
Skill will allow the employees of company to deliver more productive employment
experience in favour of the organisation. Employee development practices also involve
channelizing services such as talent management, performance management of employees
and different other facilities. All these services would support the company to achieve the
best level of work efficiency in favour of the organisation.
The above mentioned challenges and opportunities are the key challenge that restricts
the company taking competitive advantages and opportunities that will deliver the best level
of business outcomes in favour of the organisation.
Ethical concern to inform strategies
Following are the ethical concerns arise while informing strategy formulation and
implementation.
Information leakage: This is the key ethical issue arises while information is granted in
respect to strategy formulation and implementation. Many times while strategies are informed
information that is confidential get leak (NJOKI, 2017). This completely spoils the strategy
that is formed by the company in order to enhance the business potential at the global level.
Information is a key tool that channelizes in such a circumstances. Leakage of information
makes the strategy complex and challenging for the company to deliver new strategy that can
allow the organisation to take competitive advantages in the associated dealing market.
Innovation challenge: This is another key challenge associated with the informing strategies.
Bring innovation is a key area of development strategies formation has been associated with
in current circumstances. Innovation is all about implementing something new that can
provide better growth opportunities to the organisation. This will further improve the
business potential of the organisation. Bringing new innovation strategy is a key ethical
challenge associated with informing strategies to other stakeholders involved in such strategic
formulation. This will expand the growth and development of the business in market. Target
market for Uber Eat Company is restricted to the 45 countries so this is a bigger challenge
company has been associated with ir order to conduct the business operations.
Taking safety measures against the strategy formed: This is another key challenge that is
associated with information about the strategic formulation. Taking suitable safety measures

that can ensure best level of security about the strategy has formed. This is important to build
a specific team of selected people so that there is not any risk arises of the leakage of
company’s strategy.
Data protection: Data protection is a bigger challenge associated with the organisation. To
protect the necessary data and information is a key challenge associated with while
information about the strategic formulation is done. Data is the fundamental; that ensure that
weather the strategy formed is effective in favour of the organisation or it is not keen with the
latest trends and business practices. This is a key challenge associated with the company
which informing the formulation of company’s strategies.
The above mentioned challenges associated with the company while information
related to formulation of company’s strategies.
GAP Analysis:
GAP Analysis is a framework that is used to monitor and measure the success of
company’s business in the associated market. In this analysis comparison is drawn between
the current company’s position with the future or desired outcomes of the business. This
framework allow company to comparatively analysis the growth of the organisation as to
whether the strategies could deliver the desired level of outcomes against the strategies
formed and business practices implemented by organisation (Stretton, 2018). In this
technique figures are analysed and evaluated about the sales of the company and other such
figures that denote the performance of organisation in a respective financial year. This is a
tool that makes recommendations of organisation on the basis of the expected outcomes and
actual outcomes. If the organisation could effectively achieve the outcomes that are expected
than no such modification will be implemented and in case the gap is monitored in between
the expected outcomes and actual outcomes that strategic evaluation will be done by
company.
Strategy evaluation
Strategic evaluation is another tool that is used by company. In this tool strategies
company has formed to achieve the business objectives are evaluated and analysed. On the
basis of the expectations of organisation these strategies are analysed and evaluate. In this
technique all existing strategies are analysed on the basis of certain parameter and standards
and based on the evaluation certain changes are also implemented in the strategies of

company to derive more effective results in favour of the organisation. All strategies of
company are analysed in this technique.
SWOT Analysis
SWOT Analysis is another internal analysis tool that are used by the Uber Eat
Company. In this strategic assessment internal parameter of company are evaluated that are
denoted as strengths, weakness, opportunity and threat of company (Yuan and et.al., 2020).
Application of this tool provide different strengths, weakness, opportunity and threats
organisation is associated with in the normal business circumstances. This tool evaluates the
company’s potential for achieving all different objectives of business.
The above mentioned tools can be used to monitor the success of company on the
basis of the internal and external business environment organisation is associated with in
against to the business operations.
VRIO Analysis
VRIO Analysis is a strategic framework that is used by business entity to analysis the
internal capabilities of business entity. This model highligt all internal aspects associated with
the busines entity that made the organsiatin more capable taking competitive advantage in the
respectie target market. This model comprises with aspects like value, rare, imitable,
imitability and organisation.
Resources/
capabilities
V R I O Implicatio
ns
Brand image YES YES YES YES Competitiv
e
advantage
Cost effectiveness Yes Yes No Yes Competitiv
e advantae
and
expanding
market
share
Financial Resources Yes Yes Yes Yes Improve
capability
of
organisatio
n