A Comprehensive Analysis of UBER's Macro-environment and Strategies

This report provides a comprehensive macro-environment analysis of UBER, examining its organizational environment, business model, and competitive structure. The analysis includes Porter's Five Forces to assess threats and opportunities, focusing on new entrants, supplier power, buyer power, rivalry, and substitutes. The report explores UBER's growth strategies, including leveraging holidays, nightlife, and weather conditions. It also discusses UBER's competitive advantages, such as service delivery enhancements and driver training. The report also highlights the competitive structure of UBER in the ride-sharing industry. The report provides an in-depth understanding of UBER's operations and its position in the market.

ame of the Student:

Introduction:

Macro-environment Analysis of UBER:

Organizational Environment:
There exists an essential need for conducting the competitive analysis for the purpose of identifying
the various problems which are faced by the customers and in addition to this the business model along
with the strategies adopted by UBER also needs to be conducted for the purpose of dealing with the
different kind of customers which are faced by the customers (Angrist, Caldwell and Hall 2017). The
increased usage of the smartphones in today’s world assisted by the improved technologies and the
increased value of perception related to the time has been associated with helping in the establishment of
the increased value which has been experienced by UBER so far. Besides this there also exists various
environmental factors as well which is mainly associated with including the different kind of weather
conditions which are in turn responsible for having a huge impact upon the demand and is initially
responsible for the increased price of the entire journey of the customers.

Business Model of UBER:
Once the screening of the vehicles is completed, UBER moves forward towards the recruiting of the drivers who
would be serving them. The reason behind following this recruitment process is for making sure that the car which would be
serving the organization is at all worthy for serving the roads or not (McKenzie and Baéz 2016). Another reason lying
behind the screening of the vehicle before recruiting the driver is that, UBER wants to provide the customers a comfortable
as well as safe ride to the customers while they are riding the cars provided by UBER. UBER is often associated with
providing a smartphone to the drivers once they have been endorsed as a member. This is mainly done for the purpose of
making sure that the drivers are having an access to the applications of the organization in a convenient way as well as in a
more effective way. Besides all this the drivers working for UBER is also provided with an extra facility related to non-
payment of the tax licenses and any other type of taxes which are seen to be paid by the other drivers working for similar
type of service providing organizations such as the Black Cabs (Wyman 2017). All this in turn are associated with helping
the UBER drivers in earning much more than the other cab drivers serving other organizations.
The customers are provided with the facility of tracking and accessing the cars once they have successfully booked a
car by making use of the UBER application from their smart phones. Besides this the application of UBER is also associated
with providing other information to the customers as well such as the approx. fare, the license plate of the car, information
about the driver and many more (Glöss, McGregor and Brown 2016). In addition to all this the customers are also provided
with the facility of viewing the previous reviews about the driver as well along with the ratings which is provided to the
driver and a photo of the driver is also provided after a customer books an UBER successfully. There exists numerous factors
which are responsible for determination of the price for booking and the factors include the distance which is to be covered,
the demand for cars, and the type of car which is being selected for booking and many more. In many cases the price of
booking might vary in accordance to the weather condition. The payments can be made by means of net banking, cash or
cards (Jiang et al. 2018). The online method of payment is considered to be much more secure and once an online payment is
made UBER is then associated with splitting of the receipt with the driver.

Porters Five Force analysis:
This is the tool which is used for the purpose of analyzing the completion which
is faced by a particular business. Amongst these five forces three of the forces are
incorporated by the horizontal competition whereas the other two are incorporated as
the vertical competition. The horizontal competition is associated with including the
“The danger from Substitution by new products or services”, “risks posed because of
the rivals already existing in the market” and “the threats faced by the new entrants.”
The vertical competition is associated with including the “bargaining power of the
supplier” and the “bargaining power of the buyers”.

Threats due to new entrants:
The reassurance which is proved by the new ride-sharing firms is seen to be
lacking and they might be associated with charging more without any kind of
reason for the same amount of distance covered. At the time of establishment
UBER got separated from its prime supporters which took away a sizeable
measure of capital (Sun et al. 2018). The agreement which UBER is having is
associated with including the offerings of software applications without expecting
nothing in return from the customers, who are having the capability of switching to
some other service at zero cost. Because of the reason that the cost which is
needed for the offset is evitable in nature, UBER is entirely susceptible to any type
of rates which are seen to be raising in a subsequent manner and this generally
seen to be followed by the process of infiltration of the industry by UBER in an
easy way.

Bargaining power of the
Suppliers:There exists no such own vehicle in the fleet of UBER. The business model which
UBER is having mainly subjected to the drivers as well as to the partners who are seen
to be responsible for the holding of the rides. For this reason it is possible to state that
the strategy related to outsourcing has been adopted by the organization so as to do the
work and assets to the persons who are seen to be capable of meeting the terms and
conditions of the organization is order to utilize the web based application (Henama and
Sifolo 2017). Additionally the driver substitution is also seen to be very much difficult.
UBER is associated with providing the owners of the vehicle with a specific option
related to choosing of the association or the rivals and this in turn is associated with
leading to the consultation for a superior regards in terms of the expenses made by the
organization. This is responsible for proving the fact that the suppliers are consisting of
a higher ground for having an impact upon the executions of UBER.

Bargaining power of the buyers:
The services which are seen to be provided by UBER might not be required by the
customer’s every time. The services which are provided by the organization is seen to be
required at particular situations or instances and this situations mainly includes those
when a user is in hurry such as when the user is late for office or in situation when a
convenient mean of transport is not available (Zhao et al. 2016). For this reason the
customers are choose from any of the taxi services and besides this the switching which
is required by the customers is also low and the reason behind this is that the customers
need not to pay any kind fee as the registration is entirely free so as to use the
application.

Rivalry with other competitors:
There exists many organizations which are seen to be responsible for the
providing of similar services as that of UBER and along with this it is also observed
that they are having the same business model as well as operations. Additionally the
demands related to the corporation which is existing in the business world of present
day so as to focus upon the customer base in a particular geographical location in
order to cut the cost is seen to be requiring different kind of operations (Chen and
Sheldon 2016). UBER has been capable of establishing a business system along with
a massive investment of capital.

The threats of Substitutes:
Substitute mainly refers to the typical constraints which are focused upon the business
environment such as the opponent who is closest or the potential substitutes of the organization. So
it can be stated that a slight increase in the fare of UBER might be resulting in the grasping of the
customers by the other competitors.

Competitive Structure of UBER:
Competitive advantage generally refers to the resultant of the firm’s value which is initially seen to be
responsible for leading to the creation of the advantages which are gained by the customers and are seen to be
exceeding the costs which are required by the firm while it is being created. There exists two ways of increasing
the utility along with the services which are provided by UBER. The first way is associated with involving the
enhancements in the process of service delivery and this mainly seen to be done by means of reduction in the
time needed for reaching out to the customers whenever there is an need of services which are provided by
UBER (Mutai 2017). Besides this there also exists the need of being reliable by the cab and the driver as well in
order to make sure of the fact that the customers are getting satisfied with the services which are provided by
UBER. There also exists another way of improving the competence of the personnel and this is associated with
including the ensuring of the fact that the services which are being provided by the professional drivers is
satisfactory for the customers and this is to be done by means of providing training to the drivers. The training
provided to the drivers would be helping in making sure that the drivers are providing a personalized customer
service.