Analyzing Uber's Disruptive Innovation in Business Management

This report delves into the innovative practices of Uber, examining its transformative impact on the transportation industry. It begins by evaluating Uber's innovative approach, highlighting the use of technology and online platforms to revolutionize the way customers access transportation services. The report identifies the main drivers that encouraged Uber to innovate, such as technological advancements, increased market competition, and changing consumer preferences. It then critically evaluates the factors that both enabled and hindered Uber's progress, including investment needs, regulatory issues, and market dynamics. Finally, the report assesses the extent to which Uber represents a disruptive innovation in its industry, analyzing its impact on both the existing market and the creation of new markets. The analysis covers the competitive landscape, the role of technology, and the implications for business management.

CRITICAL ISSUES IN
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSESSMENT 1.............................................................................................................................1
1..............................................................................................................................................1
2 .............................................................................................................................................2
3 .............................................................................................................................................3
4 .............................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Modern business environment is comprised of various elements which affects the
survival of an organisation. Among this, innovation is also a main element that helps a business
venture for existence in market. Innovation helps business entities in increasing the level of
performance along with gaining competitive advantage. Hence, nowadays every company has
started using this tool as a main business activity to make more profits and gain large part of
market share (Alvesson and Willmott, 2012). In present report, Uber is take as a base so that the
approach of innovation in industries can be understood. Uber is an American transportation
company that use to manage and operate its customers online. This company has brought a
revolution in transportation service market as it provides fastest service by taking orders online
and availing the ride in few minutes to customers. So the report will cover innovation aspect of
organisation and its application for achieving competitive advantage in market is discussed.
ASSESSMENT 1
1 Evaluate and discuss the nature of innovating that are brought through UBER
Uber has a very wide market where it has to face a tough competition along with
maintenance of profits and customers (Hislop, 2013). Innovation is a tool that helped mentioned
company to survive ion this competition. Firm came out with an innovative idea of employing
modern technology in transportation services so that customers can make use of techniques in a
most comfortable way. The company launched a online app through which consumers can place
their order for cabs and taxis to move from one place to another. The management of this
technique is done in very sophisticated way that has made a spark in this industry. This proves
that how internet and mobile can be used in a best way. This innovation has come out as a result
of a correct market study in which need of customers have been placed at top position (Weiss,
2014). Through the research, mentioned firm became able to identify the choice and need of
customer in transportation market and it used this opportunity by making this service. Customers
need three things to enjoy the facility of said business which are internet, a compatible
smartphone and the Uber app. The app can be downloaded easily by customer through their app
store in smartphones. From the app an individual can feed his/her preference of pick up and drop
location. This shows the availability of various forms of taxi that are available for the same route
like sedan, SUV, swift etc. It depends on customers that which ride is needed by him/her
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according to their comfort (Scullion and Collings, 2011). The aforesaid firm identified about the
market need of transportation service and grabbed the opportunity by making a initiative in this
industry. The new concept is very successful in meeting the needs of customers along with
making available taxis hired by them.
Company focussed its strategy on the most utilised thing in modern world which is
internet and smartphones. It made its app compatible on different operating systems of apple i.e.
ios and android along with windows. This made its availability on all smartphones so that more
number of customers can be attracted (Trkman, 2010). Some of the innovative ideas that helped
the quoted firm in enhancing its performance level are enlisted below:
 The said business entity use to book the taxi on demand of customers free of cost. The
charges are taken on later after giving complete services. It abolished the traditional
system of charging advance cost in the name of booking charges.
 The cited business also created many employment opportunities for drivers by making
contracts with them. They are provided with a smartphone so that they can be informed
for bookings.
 The referred enterprise has made a facility through which taxi can be booked for instant
need as well as for later ride as well (Malhotra and Temponi, 2010). The booking can
also be cancelled by the customer at any moment on just one click through the app.
 The drivers are given smartphones which is used by them to track the kilometres they
have driven to customer's destination. On that basis, client is charged for his/her ride on
certain predetermined rate on total distance covered.
All these innovations made market of this organisation wide and successful with more
profits and large customer satisfaction.
2 Identification and analyses the main drivers which encourage UBER to innovate under its
industry
Among the different drivers that encouraged for innovation in the industry is increasing
pace of technology (Ajmal, Helo and Kekäle, 2010). Due to continuous innovation that came in
technology gave it the idea of innovation. For all these activities, mentioned firm invested huge
amounts so that it can cover the large part of market. The increased competition in market from
Ola, Taxi for sure, Taxi at 99 etc. encouraged to bring some innovations for surviving in
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industry. The company became successful as the economic condition was also sound so cited
business used it as opportunity.
The life cycle of product was also shorter as with increasing pace of time, demands and
needs of customers also use to change (Yeoh and Koronios, 2010). So it becomes necessary for
all companies to make some changes and innovations in their services so that customer's
attention can be drawn towards new work which can offer better service than previous one.
Therefore said entity also get encouragement for making innovation and changes in services.
Apart from this, the increased use of mobiles, smartphones and gadgets with various kinds of
facilities etc. also were main drivers that enhanced the market for quoted organisation. Internet
facility with faster network enhanced the use of different applications which made a market for
Uber as well. Nowadays customers prefer online shopping more than visiting top the outlets and
stores physically (Thun and Hoenig, 2011). So, mentioned firm also targeted those customers
and relieved them from the problems of waiting for taxis and high prices charged by taxi drivers.
The support of government also played a major role in this scenario as very less barriers were
there in the form of licenses. All these factors in combined manner made the way easy for
aforesaid business enterprise and encouraged regularly to make innovations in their services.
3 Critically evaluating the various factors that are mainly consider hindered and enabled Uber
Enabling factors
The factors that acted as an encouragement for business to make innovations are very
wide (Ting and et.al., 2011). First of all continuous progress in technology sector helped the
mentioned firm to a great extent because of which company became successful in establishing its
business in more easier way. The investment done in this sector helped in making innovations
which created more convenient ways to make bookings and make use of the services. Further,
employment for various people who are less educated, also generated by the establishment of
said firm. This brought a progress in economic condition of country as well. The cited
organisation identified its target correctly which helped firm in accomplishing its objective in the
world market (Tarique and Schuler, 2010). Clients feel it very comfortable to book their ride
whenever they need it on just one click. The price charged by company is also fare and quite
reasonable that made it more popular among customers. So it eliminated the earlier rule of taxi
drivers who used to charge high rates from customers.
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Technology and hindering adopters
On other side, various factors acted as a barrier in the progress of company. For cited
business, it needs a large amount of investments along with advance facilities of technologies.
So, to arrange finance for all these work become difficult for mentioned venture (Scherer and
Palazzo, 2011). Besides this, any violation of law and acts done by drivers are risky as it directly
deteriorate goodwill of entire company. Apart from this, tax is another issue that hampers the
process of innovation in enterprise. The drivers use to violate rules of taxes due to which
company use to suffer and it can also face major fine or other action in future if mentioned
organisation do not keep control on such practice.
4 Evaluate the extent to that UBER is a disrupting innovation in its industry
Concept of disruptive innovation is all about development of new market and existing
one with the motive to disrupt along with the value networking (Tamberino, 2015). Generally
every type of activity associated with innovation is not considered to be innovative but it can be
revolutionary also. In case of Uber organization is indulged into practices of delivering taxi
services with the help of mobile applications and internet tools. Firm was established in the year
2009 and at present company is positively influenced due to strong financial growth such as
higher profitability. Organization is efficiently transforming taxi business in the market of United
States.
The ranges of innovative activities being carried out by Uber are regarded to be
disruptive as business has only established its activities in two markets (Hislop, 2013). Low end
footholds are being present as incumbents try to provide and demanding target market with
unique products and services. The main source of attraction is unique service range of service
which is being offered to target market. No such services are offered to customers in the entire
market. In case new market footholds disrupter develop a market where none existed. It is quite
critical to highlight that business enterprise identified low end opportunity and this states that
taxi provider has overshot the actual requirement of material number of target market by
developing cabs which are considered to be plentiful (Scullion and Collings, 2011). The unique
concept of Uber was mainly launched in the market of San Francisco and the target market of
business was in habit of hiring rides. By focusing on the financial and the strategic attainment
company like Uber can make plans for accomplishment of desired goals and objectives.
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Moreover, organization focuses on series of steps where innovative practices are
undertaken and decisions are being taken whether to enter into new market or not for grabbing
market opportunities. Apart from this, main stress is also on sustaining innovation where the
concept of this type of activity is different from those of disruptive one (Malhotra and Temponi,
2010). With the help of this Uber can easily deliver large number of services to the target market
as per their expectations. Therefore, with the help of this it has been clearly identified that
strategy employed by business is not associated with disruptive one. Generally disruptive
innovations are not considered to be breakthrough technologies that support in better
development of goods but they are considered to be innovation that allows in making products
and services more accessible and affordable. Uber has disrupted the entire industry by offering
services to the target market that are cheaper and easier (Yeoh and Koronios, 2010). Along with
this booking taxi is convenient for customers where payment easily takes place with the help of
application and is cheaper too. Uber is a kind of application that has quickly become disruptive
force in the taxi industry. The main competitors of business along with government is highly
unsatisfied with Uber where they claim that services of business are unregulated. But the overall
concept being built by company is not considered to be disruptive.
CONCLUSION
The entire study being carried out has supported in knowing about the innovative practices of
Uber. Further, the concept to serve market was totally new where taxi services can be easily
obtained with the help of application. Further, large numbers of factors are present which
provided support to business while indulging into innovative practices such as rise in
technological advancement, strong purchasing power of customers, change in taste and attitude
etc. Therefore, it supported Uber in expanding its services where large numbers of customers are
served as per their actual need and requirement in the market. ON the other hand, some factors
were present which hindered Uber from operating in the market and it involves competition,
legal barriers etc. All such issues were tackled by business through presence of effective
strategies and provided base in accomplishing all the desired goals.
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REFERENCES
Journals and Books
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University Press.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management,30(1). pp. 28-37.
Scherer, A.G. and Palazzo, G., 2011. The new political role of business in a globalized world: A
review of a new perspective on CSR and its implications for the firm, governance, and
democracy. Journal of management studies. 48(4). pp. 899-931.
Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Tarique, I. and Schuler, R.S., 2010. Global talent management: Literature review, integrative
framework, and suggestions for further research. Journal of world business. 45(2). pp. 122-
133.
Thun, J.H. and Hoenig, D., 2011. An empirical analysis of supply chain risk management in the
German automotive industry. International Journal of Production Economics. 131(1). pp.
242-249.
Ting, S.L. and et.al., 2011. Critical elements and lessons learnt from the implementation of an
RFID-enabled healthcare management system in a medical organization. Journal of
medical systems. 35(4). pp. 657-669.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp. 125-134.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Yeoh, W. and Koronios, A., 2010. Critical success factors for business intelligence systems.
Journal of computer information systems. 50(3). pp. 23-32.
Online
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Tamberino, R., 2015. Uber: A Winning Strategy. [Online]. Available through:
<https://rctom.hbs.org/author/rubytamberino/>. [Accessed on 11th November 2016].
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