Business Strategy Report: Uber Eats' Competitive Analysis

This report provides a comprehensive analysis of Uber Eats' business strategy. It begins with an introduction outlining Uber Eats' mission, vision, and objectives, followed by an examination of the macro-environment using the PESTEL framework, assessing the impact of political, economic, social, technological, environmental, and legal factors. The report then delves into the internal environment and capabilities of Uber Eats. It also analyzes Porter's Five Forces to identify competitive forces. Finally, it applies various theories, concepts, and models to interpret and devise strategic planning for Uber Eats, including the Ansoff matrix and strategic management plan, with tangible strategic priorities and objectives. The conclusion summarizes key findings and strategic recommendations.

Business Strategy

sTable of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Impact and influence of the macro environment upon mentioned organisation and its
strategies......................................................................................................................................1
M1 Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................5
Task 2...............................................................................................................................................5
P2 Analysis of internal environment and capabilities.................................................................5
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation.................................................................................................................................8
Task 3 ..............................................................................................................................................8
P3 Analyse Porter’s Five Forces model and identify competitive forces for an organisation....8
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes..............................................................................................................................11
Task 4.............................................................................................................................................11
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.............................................................................................................11
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................13
D1 Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions.............14
CONCLUSION..............................................................................................................................14
References:.....................................................................................................................................15

INTRODUCTION
Business strategies are those plans and actions which helps in achieving goals of an
organisation. It is essential in implementing day to day operations effectively (Lozano, 2018).
Making proper business strategies help companies to lead the market by using appropriate
strategies while competing with their competitors. Success of business is also depend on
strategies of business because manager plan those strategies only which help the company to
become at the top in the list of companies dealing in a same industry. Uber Eats is an American
company which deals in delivering food online to their customers. This company was founded in
2014 by Garrett Camp and Travis Kalanick. It is headquartered in San Francisco, California, UK.
The following report covers framework analysis of impact and influence of macro environment,
analysis of internal environment and capabilities, analysis of porter's five forces model to
evaluate competitive forces and application of theories, concepts and models for interpreting and
devise strategic planning for organisation.
Task 1
P1 Impact and influence of the macro environment upon mentioned organisation and its
strategies
Mission, vision and objective of Uber Eats are explained below-
Mission- To deliver healthy foods items to their customers with best services of fast delivery and
proper packaging and also help to many restaurants to reach customers by delivering their foods
with Uber Eats services.
Vision- To become most reputed company in delivering best services in food deliveries and to
expand worldwide.
Objectives- Their main objective is to provide best online food delivery platform which work as
the link between many restaurants and their customers by providing their delivery services to
customers and gain reputation with their fast delivery services.
Business strategy are those plans and actions which consist to provide major result to
company(Arshad and Arshad, 2018). It helps in handling operational activities very efficiently
which further helps to make a good profit for organisation. In context of Uber Eats, their
strategies for business during Covid 19 pandemic changes. They deliver food with proper and
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hygienic packaging with online payment option which helps to gain trust of customers toward
their services.
Macro environment are those external environment factors of business which is having direct
impact upon business operations. PESTEL is a model which is used to analyse macro
environment and their impact upon any company. PESTEL analysis of Uber Eats are determined
below-
Political factors- This factor covers tax policy, trade restrictions, political stability and
many more(Carlier and et. Al, 2019). In context of UK, their political situation is stable and there
is restriction for political parties to interfere in any organisational matter for their personal
benefit. Hence, there is no political parties disturbance. There is no trade restrictions for UK
based companies which help them to grow faster. On the other hand their corporate tax is high as
compared to other countries. They are charging 19-20 % corporate tax.
Political factor of UK impact upon Uber Eats during Covid-19 in such a way that after this
pandemic occur UK increases restrictions on their trade policy. Some new policies is made
during this pandemic for keeping food healthy and infection free. Due to this Uber Eats has to
change their packaging system to make it more proper and hygienic to follow the UK policy.
Economical factors- This are those factors which shows the economic conditions of a
country. It cover unemployment condition, inflation rate, GDP, exchange rate and many others.
In context of UK, their GDP is high as they are developed country. Their inflation rate is 0.7%
which is beneficial for corporate world top perform business.
During Covid-19 pandemic, economic factor of UK is affected more than other factors. Their
unemployment rate raise suddenly and reached at 5.2% which is greatest unemployment rate of
UK as compared to last few years. It impacts upon Uber Eats business strategies. More
unemployment rate means less workers and employees is available for the company. Hence, to
save the company from the problem of lack of manpower they adopt beneficial strategies to
attain their employees as providing them benefit of their extra wages in extra working hours.
Social factors- It include factors such as buying behaviour and attitude of customers of a
particular area, standard of living of population, wealth and religion and many more(Wahyuni,
Fahada and Atmaja, 2019). In context of UK, the population has high standard of living which
means they are ready to pay high prices for good quality of goods and services. They buy on
regular basis whether there is need to buy or not for particular merchandise. Population of UK is
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involved more in strikes and conflicts on the topic or religion, skin colour, discrimination and
etc.
In context of Uber Eats, their business strategies is impacted by Covid 19 pandemic because this
pandemic cause reduction in online food orders as people believe less for junk foods. To handle
this issue mentioned company change their strategy and allow more healthy foods at cheaper
price in their menu than junk foods to gain trust of customers that healthy foods help them to
increase their immunity in Pandemic era.
Technological factors- It consist of mode of technology which is used by the
organisation. In context of UK, they have modern and advanced technology which is better to
manufacture goods and helps in delivering services. Uber Eats is in benefit by technological
factor because new features in online delivery like time track and product track is available
which help the customers to order their liked food and track time for their ordered food.
Covid 19 pandemic impacts upon technological factor too. The rate of adopting new and updated
technology by UK population reduced in this pandemic. Due to this, Uber Eats lack behind in
introducing new features for their online applications.
Environmental factors- It consist of pollution control, whether and climate, temperature
of a particular country(Chuang, 2019). In context of UK, their whether and climatic conditions
are favourable to attract people to work in UK. They are also having moderate temperature but
one factor is disadvantageous in environmental factors of macro environment and that is their
pollution control. The population of UK face problems by air pollution in UK which cause
almost 8% deaths every year due to inhalation of air pollutants.
Covid 19 pandemic provide positive impact upon environmental factor of UK. Due to this
pandemic whole world has to face lock down including UK. Due to lock down, there is reduction
in air pollution because less vehicles is shown on roads. Hence, environmental factor is
beneficial from covid 19. Uber Eats can take advantage of this factor by having business in clean
and pollution free environment.
Legal factors- It covers all legal laws made within a country to make more discipline
surroundings(Pramanik, Maiti and Maiti, 2018). In UK, their legal laws are made perfectly for
maintaining a proper discipline and to avoid negative misconduct by citizens. Their employment
laws and health and safety laws are made for the benefit of employees like no company can
differentiate in payment structure of their employees who is working on similar positions.
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In context of Uber Eats, Covid 19 results in making few more laws and modifying existing laws.
Due to this pandemic, unemployment rate increases and few laws were modified to provide
better employment opportunities for their citizens. This help the mentioned company to have the
advantage of more employment with proper discipline at workplace.
Ansoff matrix is a model in business environment to analyse and plan the business
strategies according to nature of business and the external factors of business. The ansoff matrix
of Uber Eats are explained below-
Market development- This is the strategy which consist of having business in new market
with existing product(Bagdasarov, Olson-Buchanan and MacDougall, 2019). In context of Uber
Eats, they are expanding their market buy entering new countries with their existing services.
This means this is the strategy where the mentioned company is already getting profit. It is
suggested for the company to expand more by understanding their culture and social behaviour
and to know their most liked food items to eat. This help them to deal with those restaurants only
who provide traditional food for their population. There is a vast variety of scope to grow with
this strategy.
Product development- This is the strategy where company grow with new product in
existing market. In context of Uber Eats, they are suggested to opt new service within UK to deal
in more services like if Uber Eats provide another branch of itself which provide only vast
variety of drinks with providing them voucher cards in case of large orders. This strategy will be
beneficial for them to grow in UK with new service. This strategy will be opted by company but
it might not provide a appropriate growth of business for Uber Eats.
Market penetration- This is the strategy which consist of focusing on growth of company
within a same country and with same product (Sheng and et. al., 2019). This strategy is used to
compete with competitors in home country by adopting new ideas and plans for performing
business activities. In context of Uber Eats, their marketing penetration strategy is made to
compete with their like Zomato, Grubhub and etc. in this strategy company is require to gain
more customers. Company is already aware of environmental factor in this strategy because they
are seeing growth in their own country so this help them to take proper and fast decision with
less investment as compared to grow business in another countries.
Diversification- It is the growth strategy which consist that new product should be launch
in new market for growth. This strategy is considered as most risky strategy in most of the
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businesses. In context of Uber Eats, they always launch their new product in their home country
which is UK. They have not planned yet to introduce their new product in another country. There
is no scope for Uber Eats to grow with this strategy.
M1 Critically analyse the macro environment to determine and inform strategic management
decisions
From the above information it is critically evaluated that analysis of macro environment
is important for a business to identify that which factors impacts positive upon them and which
factors impacts negatively(Stašák and Schmidt, 2019). In context of Uber Eats, their Legal
factors and environmental factors of PESTEL analysis impacts positively upon them after Covid
19 Pandemic. Whereas, political, economical, social and technological factors of PESTEL have
negative impact upon representative company. Therefore, they are required to make strong
strategies in these factors(PEST) to survive and grow. Whereas market development is the
strategy which help them to grow internationally with high speed. Uber Eats is required to
analyse internal factors of those countries where they plan to grow.
Task 2
P2 Analysis of internal environment and capabilities
Internal environment is consist with those factors which occurs within a comapny or the
issues which is created within the business due to company's inefficient performance and
planning. It covers relationship status between management team and employees, organisational
structure, human resource management and many others(Grabara and Siswanti, 2019). These are
the factors which directly results on employees performance and also impact upon operational
functions of any business. There are few models which is used to analyse internal environment of
a company and some of the model which is used by Uber Eats to analyse their organisational
environment are explained below-
VRIO is a strategic framework which is used to analyse how effectively a organisation manage
their resources to handle internal environment perfectly. It helps to compete in market by
comparing resources of their company with resources of another company to identify the
uniqueness of factors. VRIO analysis of Uber Eats are explained below-
Resources Valuable Rare Imitate Organised
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Brand image Yes No No No
Distribution
channel
Yes Yes No No
Services Yes Yes Yes No
Human resources Yes Yes Yes Yes
On the basis of above table VRIO analysis of Uber Eats are explained below-
Valuable- Brand image- It consist of reputation of company in minds of customers(Saldanha,
2019). Uber Eats has a very strong and valuable brand image. Their customer have a trust
on company and order food with hearing their name which shows that their brand image
values a lot. Distribution channel- It is the way or mode of distribution opted by company. Uber Eats
opted transport facility like delivering foods by bikes. It is valuable for them because the
main factor which is required to ficus in delivering food is time. Hence, to order food on
time a transport facility like bike is valuable. Services- They provide best services to their customers by providing them timely
delivery of their ordered food. This resources is valuable for the company because this is
the main resource which consist company growth. Human resource- It consist of managing manpower within an organisation. In context of
Uber Eats, their human resources is valuable because they manage their employees
properly that helps the company to perform better operational activities and contribute in
company's growth.
Rare- Distribution channel- It is rare for the company because different organisations opt
different distribution channel. Services- A basic characteristics of services is that it is heterogeneous which means
services are not same in any context. Hence, the service provide by Uber Eats is not same
as service provide by any other company. There, it is rare.
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 Human resource- A company's skilled manpower is different from other company's
skilled manpower(Bhattacharya, 2018). Hence, human resource of Uber Eats is rare
because no other company have common skilled employees.
Imitate- Services- In competitive world competitors made substitute goods and services to grow in
market. Companies make substitute of those goods and services which is in the stage of
growth. Hence, Uber Eats is famous for their timely deliveries of services and other
companies copy their strategies of services. Hence, services of Uber Eats have imitate
nature. Human resource- They are the resources which other company need to hire from a
successful company to attain their skill in their own company. Hence, human resource
has the characteristic of imitate.
Organised- Human resource- It is organised within an organisation. In context of Uber Eats, their
manpower is organised in such a way that required skilled employees work at required
place.
Resource based view- It is the framework which is used by companies to make those
strategies which help them to achieve competitive advantage(Uyar, 2019). This model tells that
instead of focusing on competitive factors a company must focus on increasing potential of their
existing resources. A company can compete in competitive market by their own resources by
increasing the capability and efficiency of their resources.
This model further states that there are two types of resources. First is tangible assets and second
is intangible assets. Both the resources in context of this model is further explained below-
Tangible assets- This are those goods which can be seen and touched easily. This assets
have physical presence in the market. This are those resources which can be easily purchased in
the market by a company to give competitive advantage. In context of Uber Eats, they can
purchase land, property, machinery and etc. easily which is matched with their competitors assets
to provide equal competition in market.
Intangible assets- This are those assets which cannot be seen and touched. These assets
exist but there is no physical proof of this assets. This assets can not be purchased from market.
Examples of this assets are goodwill, trademark and etc. This resources help Uber Eats by their
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features(Savitri, 2018). Uber Eats can create their image and trademark as no other competitor
can buy or purchase this from market. Every company has different reputations in market which
can be not same in any case.
The framework of 'resource-based view' also consist of assumptions of same model. This
assumptions are explained below-
Immobile- It means resources are unable to move freely from one company to another
company in any way. This is advantageous that competitors is not able to copy resources for
short period of time. Intangible assets are more immobile than tangible assets.
Heterogeneous- It cover the fact that skills and capabilities of workers are different in
different organisations. In case the companies have same skilled employees with same
capabilities then there would be no competition in market. Companies have different skills and
talents so they make strategies according to their capabilities to stand in competitive market.
Resource-based view assumes that there are different skills and resources at organisations.
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation
From the above information it is critically evaluated that VRIO and Resource-based view
are the framework which is used to identify internal environment of an organisation(Anderson,
2019). This models helps to know that how their resources help them to grow in market. Both
framework has their strengths and weaknesses. Strength of VRIO is that it helps to identify that
which resource is most beneficial for them and which is least so that Uber Eats can invest more
on those resources who results in profit maximization for company. On the other hand VRIO has
weakness that it consume lot of time to analyse each resource that how much they are valued in
organisation. Whereas Resource-based view has strength that they identify those resources of an
organisation which can be purchased easily from market. This help the Uber Eat to purchase
same type of machines and equipments which is used by successful business. On the other hand,
there is a weakness of this framework and that is another company can also copy tangible
resources of Uber Eats.
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Task 3
P3 Analyse Porter’s Five Forces model and identify competitive forces for an organisation
Porter's five forces is a model which is used to analyse presence of competition in market
and how the factors of competition impacts upon a business and their workings(Tien, 2019).
Porter's 5 forces of Uber Eats are explained below-
Threat of new entry- This factor of porter 5 forces describe that how and in what ways
the new entered company can impact the business. It also determine that what challenges and
threats will created by these new companies on existing companies. In context of Uber Eats, they
get impacted when new companies enter their market. Due to new entrance of new companies
customers have more alternatives to chose their most liked service and most of the time
customers prefer those online food delivery services which is cheaper than others. They also
consider quality and taste. In Covid-19 pandemics, whole industry of online food delivery get
impacted because very few customer are preferring food from restaurants at this time. To tackle
the issue it is suggested to Uber Eats that they must deal with those restaurants which prepare
their food by proper hygienic way and also due to pandemic they are required to offer healthy
foods more than junk foods and at a reasonable prices with coupons and discounts on large
orders. This strategy will help them to overcome the problems created by new entrance of
companies.
Buyers power- It incudes number of customers and their behaviour toward a specific
company (Yi, Park and Kim, 2019). Customers of Uber Eats are loyal and they are satisfied with
their services like fast delivery of food items. It suggested to Uber eats to adopt new and
modified strategies like dealing in new type of food products and targeting new segment of
customers. In case they promote more than it increase in awareness of customers about their
services and attracted customers will try their service. It suggested for the company to adopt
some new and innovative ideas like delivering foods with the help of drone in Covid 19 situation
help to promote contactless delivery which help to create a good customer value for Uber Eats.
This strategy further help the company to attain more customers.
Supplier power- It includes number of suppliers and their loyalty toward the company. In
context of Uber Eats, their suppliers are restaurants who prepare food for customers and hand
over the food item to Uber employees. Their suppliers are loyal and provide good quality of
dishes to them. In situation of Covid 19, restaurants are available to sell their dishes at lower cost
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which is beneficial for representative company to grab the opportunity and earn more(Nikabadi
and Hakaki, 2019). It is suggested to attain suppliers loyalty, company is required to make good
relationship with restaurants by providing them appropriate rate of their prepared foods. This can
also be done by communicating properly with restaurants and conveying them about all those
facilities which a restaurants will get by Uber Eats which is better than other online delivery
companies.
Threat of Substitutes- The products which is having same features and characteristics of
another product are called its substitute. Availability of substitute goods also provide a threat to
existing companies because they made same products or tries to provide same services to
customers at lower prices(Liu and Kao, 2018). In context of Uber Eats, they have many
substitute competitors in market and the availability of substitute goods impact negative upon
Uber Etas as their customers may switch to those companies which provide same foods and
services as Uber Eats is providing in lower prices. In Covid 19 pandemic, more substitutes are
create to grab the attention of customers by providing same services and food items. It is
suggested to mentioned company that they can handle the issues of availability of substitutes by
providing better services to customers like free home deliveries on loyal customers birthdays.
This help company to gain loyal customers which do not switch to other companies. It is also
suggested that at time basis they are required to change their strategies so their substitutes will
face problem in identifying their strategies. It is also suggested that company must advertise to
show that how their food and services is better than their substitutes,
Comparative Rivalry – It shows the total number of competitors which provide tough
competition to existing company. This factor also tells that which strategies is followed by
competitors provide tough completion in market (Cao and et. al., 2019). In context of Uber Eats,
the online delivery of foods industry grow at high rate with increase in number of competitors
like Zomato, Gatedoor and etc. Uber competitors always change their strategies and adopt new
services like coupons on online payment ant many others. This type of strategies of their
competitors directly impact negative upon Uber Eats. In Covid 19 situation, when the whole
industry of online food delivery have to face issues, on that time each company in the industry
invest more to apply best strategies to attain customers trust on providing healthy food items. To
overcome with this obstacle it is suggested that mentioned company must invest more to build
good relationship with their customers and make them believe that Uber Eats provide best
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