CRIN6009 - Creativity and Innovation: UBER's Strategy and Analysis

This report examines the importance of innovation strategies, focusing on UBER Inc. and its application of the innovation strategy matrix. It uses STEEPLE and SWOT analyses to understand the necessity of innovation for UBER. The report evaluates different innovation strategies, including breakthrough, sustaining, basic research, and disruptive innovation, recommending that UBER utilize a breakthrough innovation strategy. It also discusses the complexities of innovation and offers recommendations to mitigate threats and weaknesses, drawing examples from companies like Hailo and Ingogo that failed to innovate effectively. The analysis concludes that while UBER is performing well, the innovation strategy matrix can further enhance its business innovation and sustainability in the target market.

RUNNING HEAD: Creativity and Innovation
CREATIVITY AND INNOVATION – CRIN6009
ADETOKUNBO OYELADE - 40976

Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................2
Innovation Strategy Matrix..............................................................................................................2
Importance of Innovation................................................................................................................5
UBER's innovative strategy.............................................................................................................6
Complexities of Innovation.............................................................................................................9
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................11

Executive Summary
Innovation is the key that helps a business to grow in the target market. Companies nowadays are
incomplete without the use of innovative strategies within their process. The below mentioned
report examines the importance of innovation strategies through innovation matrix. It also
evaluates the need of UBER to apply innovation strategy in the business. STEEPLE and SWOT
analysis of the company are used in the report to understand the need and importance of
innovation. The latter part of the report explained complexities of innovation and
recommendations to eliminate threat and weakness as well. The company UBER should make
use of breakthrough innovation strategy. With the analysis of the whole paper, it was evaluated
that UBER Inc. is working well in the target market however, the innovation strategy matrix can
help them innovate their business in the right way. So, looking at the environmental and industry
analysis, it is evaluated that the breakthrough innovation will successfully help them to innovate
and sustain their activities in the target market.

Introduction
UBER Inc. is a peer-to-peer ridesharing, taxicab, food service delivery and transportation
network organization that is headquartered in California. The company is a private organization
that was found in the year 2009 by Travis Kalanick and Garrett Camp. The company earned
revenue of $37 billion in the previous year of 2017 (Associated Press 2018). Further, the purpose
of this report is to provide a brief introduction about the innovation operations initiated by the
company UBER Inc. The report talks about the innovation strategy used by the company with an
aim to initiate innovation in the activities of the business. It also explains different types of
innovation strategies for the business along with innovation strategy matrix. Further, the report
examines the example of different industries that have not used innovation in their business
activities with the explanation of the UBER’s choice innovation strategy with various
frameworks. The latter part of the report provides recommendations for the continued success of
the company.
Innovation is the basic requirement of the business process that helps them to operate its
activities properly and become competitive in the target market. The company UBER Inc. is
successfully using the innovation strategies in their business to gain success in the target market.
Innovation is one of the best ways with the help of which an organization can initiate reputable
identification of their image in the target market (Goetsch, and Davis 2014). Innovation also
increases the satisfaction level of the customers that subsequently increases the satisfaction level
of the company as well. Further, the use of innovation strategy by the company UBER Inc. is
discussed below:
Innovation Strategy Matrix
Albert Einstein stated the quote that, if he had 20 days to solve a particular problem, then he
would spend 19 days in defining it. Definition of the problem is very similar for the
identification of the result in the same way innovation is a problem because it remains undefined
for the organizations. It should be noted, there are different types of innovations present in the

environment that requires different approaches for its application as well. Deficiency of proper
application of correct innovation is the problem due to which companies fail in implementing
innovation at workplace (Rothaermel 2015). The innovation matrix tool successfully illustrates
the different types of innovation strategies that a business initiate with an aim to implement
innovation in their business. The matrix explains different types of innovation strategies that a
business can use in their business. The below mentioned are four innovation strategies that can
be used by the company UBER Inc. in order to adopt innovation operations in their business
(Browning 2016).
Source: (Satell, 2016)
Further, it should be noted that innovation is a diverse activity that introduce brainstorming ideas
to the company with the help of which they can increase their success in the competitive market.
Further, four different types of innovation strategies mentioned in innovation matrix are
discussed:
 Breakthrough Innovation: Thomas Kuhm stated this innovation as ‘revolutionary
science’ as this process includes a shift in the paradigm. Under the case of breakthrough

innovation the problem is defined by the organization however, the paths of innovation
for the organization is unknown or not clear. The breakthrough innovation is the type of
innovation that takes a bold move for the organization (Biemans 2018). It should be
noted that this type of innovation is the actual change for the betterment that an
organization can initiate in their business as it involves taking revolutionary technology
in their process. Breakthrough innovation changes the products and services offered by
the company in such a way that the company leapfrogs the position in the target market.
Companies like UBER require this type of innovation strategies to meet their targets in
the external market (Appendices 2). Under this type of strategy, the business introduces
innovative strategies in the process that other competitors will take years to welcome
(Chenhall, and Moers 2015).
 Sustaining Innovation: sustaining innovation refers to the process of innovation under
which the organization aims to improve the innovation strategy of the business with an
aim to aid and assist the next generation in their business process. This type of innovation
helps the business to attain sustaining competitive advantage in the target market. Under
this type of innovation, the organization goes on developing the current product by
developing generations until the products reaches the end of its life cycle (Daft 2015).
Large-scale organizations are good in providing sustaining innovation because the
resources, process of business and cultures are set up in such a way that enables
sustainability of the position of the company in the target market. Typical sustainable
innovation includes feature additions; cost reduction, product line expansion etc. It can be
said that this type of innovation strategy is just opposite to the breakthrough innovation
strategy because under this type of strategy the business process aims to creating limited
innovation that can increases the sustainability activities of the company where as
breakthrough innovation is the process of creating innovation that is new and big for
competitors to perform (Ding, Guo, and Guo 2018).
 Basic Research: Basic research refers to the type of innovation under which the
management performs the research function and because of that research, they find out
the best possible outcome to act upon. The main idea behind this type of innovation is
how things work with the use of such innovation at workplace (Cedergren, Norstrom, and
Wall 2017). The aspect of basic research innovation is not even regarded as innovation in

some fields but it takes a major role in initiating innovative activities at workplace. Basic
research provides huge dividend at workplace in long run approach as it already
researches the upcoming innovations in the field and present them in front of the board
due to which an organization initiates innovative strategies at workplace (Goffin, and
Mitchell 2016).
 Disruptive Innovation: The concept of disruptive innovation was introduced by Clayton
Christensen in his book The Innovator’s Dilemma. Under this type of approach the leader
of the organization initiates new approaches along with products and services of the
company. The process of disruption need not to be hi-tech and efficient innovation,
instead a disruptive innovation is the type of innovation that simplifies the user
experience and increases the productivity of the organization. The three most important
qualities of the process of disruptive innovation is that the business establish new
products and services in the target market, another one is that the business begins their
activities as a substandard product that cannot be seen as a threat for the market leaders
(Edelman 2015). And lastly, adopters are the non-consumers who were unable to access
such products and services earlier due to cost or accessibility. An innovation strategy
becomes disruptive when the adoption of the strategy is widespread and it improves the
quality. The major aim of this strategy is to start from the very beginning by not
disturbing the large market shareholders in the market but slowly placing the image in
such a way that these companies also get threatened with the activities of the
organization. This type of strategy was adopted by Toyota to replace GM, and by Airbnb
as well (Kompalla, Geldmacher, Just, and Lange 2017).
Importance of Innovation
In the current business environment has become one of the major aspects that helps them to
succeed in the target market. Innovation is no more an option for companies; instead, it is the
sole choice available with companies to grow. It should be noted that businesses in the traditional
brick and mortar economy are becoming exposed to the digital age and the prognosis of the event
is not great. Digitalization brings a path for future growth, with the help of innovation even the
old fashion business can breathe and survive in the market (Harding, Kandlikar, and Gulati,

2016). Technology is just one aspect of business; it is more like a tool that is used by the
business process to innovate. Innovation is the best way to solve the problems faced by the
companies along with competition. In the current era, it is evaluated that the organizations using
the innovative services in their business grows and sustain a dignified position in the market as
well. However, the company that do not adopt the aspect innovation somehow fail to survive in
the tough and competitive market just like the company Hailo and Ingogo (Wanetick 2015).
Talking about the company Hailo, the organization was formed in the year 2011 by three
entrepreneurs and three taxi drivers. In the initial days the company was running well in the
target market, even it was expanding with a great speed. Hailo capture the streets of London
along with Japan, Ireland, Spain, Canada and US. So, overall the company was working properly
the market but with its entrance in the market of US, the company failed to innovate (Berkowski
2014). In US the company attempted the same strategy that they used in other market. However,
the company failed to acknowledge that US taxi management market is diversified in nature. In
response to which the organization raised heavy amount from the market in the form of venture
capital and failed to build a strong relationship with the taxi drivers of US. Thus, it should be
noted that as the company failed to innovate their business process in the expanding market due
to which they failed and got merged with some other organization (Pisano 2015).
Talking about the company Ingogo, it should be noted that the company has fixed fare services
that reduces the interest of the taxi drivers from the organization. In order to avoid confusion, the
company adopted this method that initiated rigidity in the activities of the organization. Also, the
organization is based in a small part of Australia and does not aim to expand its services as well.
Resulting to which, the company failed to perform well and grow appropriately in the target
market. So, these are the two examples of the company that failed due to not adopting innovation
in their process (Urbinati, et. al., 2018).
Lastly, talking about another example of MyTaxi Company, the company faced difficulty to
operate its business due to technical glitch present with them. The technical problem present with
the company after the merger with Hailo made it difficult for the customers to book rides through
mobile app. Resulting in which, the customers started getting frustrated with the services of

company and started switching with other organization as well. MyTaxi spent €5 million on
promotion of their brand, still faced difficulty in recovering (McMahon 2017). This shows that it
is important for the organization to adopt innovative technology but it is more important for them
to use them effectively according to the activities of the organization.
UBER's innovative strategy
UBER Inc. is already known as an organization that is famous for its innovating actions in the
target market. The company has already set high standard so now need to use innovative
technology for their business that is next generation innovation for other organization. UBER
Inc. should make use of the breakthrough innovation strategy in order to innovate the business
and maintain sustainability in the target market (Christensen, Raynor, and McDonald 2015).
With the help of breakthrough innovation business strategy the company can easily expand their
scope of business in diversified market and grow. The basic requirement of the innovative
strategy implemented at workplace is to either grow and expand or sustain the activities of the
business. Therefore, the breakthrough innovation strategy will successfully fulfill the growth and
expansion requirements of UBER. Further, the below mentioned STEEPLE analysis successfully
evaluates the choice of innovation strategy of the business:
Social: UBER Inc. is a privately owned organization that was originated in the year 2009; the
company serves its services in the worldwide market and has more than 12000 employees
working with them. So, it can be said that the socio-cultural environment of the company is
diverse. The customers of the company also enjoy its easy accessible platform. The company is
also available on social media website and provides opinion towards certain things as well. So, it
can be said the social environment of the company is health and adoptable to change as well
(Goffin, and Mitchell 2016).
Technological: Most of the work of the organization is initiated by the use of technology in their
business. So, technology plays the biggest role in helping the organization to build strong
customer base and enhancing services as well. The customers also make appointment through
application and websites and the company intimates the driver through app only. So, it should be

noted that the technology plays a major significance in helping the company to grow and expand.
The employees feel all time ready to adopt new technology and satisfy the customers as well
(Wieland, Hartmann, and Vargo 2017).
Economic: Industry in that UBER operates its business is sharing economy that means that the
economy is based on sharing the intellectual and physical resources worldwide. Since the
industry is new and best in the market to it provides advantage to the organization to grow and
effectively earn revenue as well. Apart from it, there is great scope of innovation in the company
to address the market as well (Grant 2016).
Environmental: The environment factors that are related to the services provided by the UBER
Inc. have negative impact on the society resulting to which the activities of the company are
regarded as questionable aspect in the market. The activities of the company increase the traffic
congestion and fuel usage as well. Before the initiation of the activities of UBER, people used
the taxi services but not that much; introduction of UBER has increased the rate of people, using
taxi services to travel that subsequently increases the pollution level as well. Resulting to which,
it should be noted that sustainability of the environment has become concern for the government
of countries worldwide (Schneider 2017).
Political: Talking about the political factors, it should be noted that the company has faced many
political controversies from its initial developmental stage until now. The company faced most of
the problems due to unclear governmental regulations, so the company focuses on adopting the
strategies that helps them to attain the innovation in their business by complying with all the
necessary requirements as well. With the help of type of innovation, the company can
successfully introduce new ideas in their business without attracting penalty for the management
(Fleischmann, Daniel, and Welters 2017).
Legal: Like the political factor, the company has not performed well in this factor of the
STEEPLE analysis as well. The organization faces difficulty in managing the legal requirement
of the employees and the organization. The company needs to introduce new policies in such a

way that increase the satisfaction level of the employees and earn attention of the customers as
well.
Ethical: The Company is not in a good position in terms of ethical analysis as well. However,
UBER successfully comply with their corporate social responsibilities. The organization also
aims to satisfy the employees (drivers) of the company but somehow they fail to implement that
in the activities as well. It is the requirement of the company to innovate the business functions
in such a way that it meets the business requirements and satisfy the ethical obligation of the
company present in the environment (Parker, and Van Alstyne 2017).
Apart from STEEPLE, the SWOT analysis of the company also helps in understanding the need
of the organization to make use of the innovation strategy to grow. As SWOT is internal as well
as external analysis, so it provides viewpoint of both the aspects present in the market.
(Source: http://www.kantarfutures.com/the-uber-all-economy-a-challenge-to-traditional-
business-models/)
Strength: There are numerous strengths of the company in the target market; however, the most
important strength that helps UBER to win the customers is the adaptive nature of the brand
(Appendices 3). The management of the company lays emphasis on the customer satisfaction
aspect in response to which they initiate activities that help them to sustain the business in target

market. The company also makes use of innovation to repeatedly grow and increase the brand
portfolio of the company (Sarooghi, Libaers, and Burkemper 2015).
Weakness: The biggest weakness of the company is its controversial issues present in the
environment. UBER is stuck with such controversies that somehow devalue the name of the
company in the market. Further, dependency of the organization on the resource is also weakness
of the company.
Opportunities: Increase in disposable income of the employees along with increasing internet
penetration provides opportunity to the company to grow and capture the extensible market share
in the target market. Internet penetration gives opportunity to the market to grow and adopt
innovative technologies in the market as well (Yoshida, Sendjaya, Hirst, and Cooper, 2014).
Threats: unclear government regulations and the drivers’ dissatisfaction are the two major
threats for the company that can reduce or restrain their growth in the target market.
Apart from the above-mentioned two frameworks, the industry analysis of the company UBER
also states that the company has moderate level of risk in the society. It acts as an advantage for
the company to make use of the innovation and creativity strategies and business model to earn
success in the target market (Appendices 1).
Complexities of Innovation
Innovation is not the cup of tea for every organization to implement successfully. It takes lot of
hard work from the part of employees and the dedication of the management to conduct the
innovation in an organization. Every business should understand their scope of business to
implement the adequate type of innovation strategies using the resources in a way to earn
reputation in the target market. Further, the complexities that UBER might face while
implementing innovation in their business culture are discussed below: