MGMT1101: Research and Analysis Paper - Uber Case Study

This report presents a comprehensive analysis of Uber, examining its customer base, mission, vision, and core values. It delves into Uber's corporate and business-level strategies, providing insights into its growth and operational approaches. A SWOT analysis is conducted to evaluate Uber's strengths, weaknesses, opportunities, and threats, offering a well-rounded perspective on its market position and competitive landscape. The report emphasizes Uber's platform, cost leadership, and the challenges it faces, such as competition and employee retention. The analysis is based on research and is designed to demonstrate an understanding of management concepts, strategic planning, and leadership within a real-world business context. References are included to support the analysis.

3/1/2020
Running Head: MANAGEMENT 0
RESEARCH AND ANALYSIS
PAPER

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Contents
Summary of UBER....................................................................................................................2
Customer Base...........................................................................................................................2
Mission and Core Values...........................................................................................................3
Vision.........................................................................................................................................3
Corporate Level Strategies.........................................................................................................4
Business Level Strategies...........................................................................................................4
SWOT Analysis.........................................................................................................................5
References..................................................................................................................................8

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Summary of UBER
Uber is one of the global app-powered on-demand car service providers came into the
market in 2009 with introduction of the application for both Ios and Android. With growing
day by day, the company presently have its operations in more than 63 countries and 700
cities globally, however, Uber has not actually made it in to all the States of Canada. As of
2018, there are more than 22,000 people employed at Uber through which the company has
completed 10 billion trips worldwide (uber.com. (2018). In 2019, Uber technologies
generated nearly 14 billon U.S. dollars making Uber as one of the biggest players in the
industry (statista.com, 2020). The main themes that will be included in the study relate to
Uber customer group analysis, vision, mission and core values, Uber strategies on corporate
and business level and internal environment of Uber considering SWOT tool. Ultimately, it
will benefit all in recognising various internal aspects of Uber helps in achieving competitive
edge in the industry.
Customer Base
In every city in the world, transportation requires to be reliable similar to running
water as everyone. When Uber started its operations, the key targeted customer segment is
the wealthy young individuals, however, with time, it’s expanded. Now, the customer base
for the Uber includes people who do not own a car and seeks a cost-efficient cab at their
doorstep. Uber vehicles are available for all its customers, however, a rider must be at least
18 years of age to form an Uber account. From Uber Taxis to Uber X to Uber SUV, the
company has maintained a large number of customers’ choice. Professionals also served by
Uber as they can use their vehicle for the work. Other than this, the company also offering

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special services like Uber for Senior Citizen and Kids. It was also found as per the data, the
30 to 40 per cent of the total rides were contributed by senior citizens.
Mission and Core Values
Uber mission statement states that – “Transportation as reliable as running water,
everywhere for everyone” (Gasca, 2019). It implies three key components as enhancement of
lives, above expectations and everywhere for everyone. Uber uphold the right use of
technology promoting both individual and societal booming like change people lives with
global citizenship programs, support for cities and so on. Uber also go above the expectations
while keeping transport as the key objectives. For example, Uber runs and operates distinct
car rides considering “Uber Health” helping customer groups to attain healthcare they
needed. Lastly, Uber is the company who offers great diversification as well as customer –
personalised services and this makes its existence felt as international scale.
Considering Uber core values and culture, the company build internationally and live
locally with linking their world-wide operations to greatly connect with states, drivers, riders
and society they offer their services. Uber is customer obsessed and this also makes the
company do interim sacrifices to gain life-long loyalty (uber.com, 2017). The company do
the right things and celebrate differences with promoting diverse ways and opinions coming
together and developed. Uber values ideas over hierarchy as the company believes that from
any place, ideas can bear and ultimately, this would lead Uber to improve with taking a
significant concept to actions.
Vision
Uber vision statement is – “We ignite opportunities by setting the world in motion”
(uber.com, 2020). Uber offers its customer various opportunities including convenience and

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effectively manage and set the rides of its employee linked with many benefits. Taking a
further example, Uber enables its customer to manage and use a team application as it will
help them to sense cost less rides. In relation with setting the world in motion, reliability is
the symbol that Uber recognised itself with. Particularly, where the company have its roots,
there is no such destination (until impacted by other factors) beyond the reach of the firm and
simply customers can book and enjoy the trips at economic rates.
Corporate Level Strategies
Uber exploits growth as its corporate level strategy and this helps the company to
expand in various markets across and in the growth strategy, Uber uses a product
development strategy together with improving the service quality and application platform
that links both drivers and riders. With improved capability of its platform, riders will be
allowed more conveniences and choices (Wallsten, 2015), however, the company has low
level of diversification and most of its part of the income comes on one business unit.
However, this is not a big concern for the company as currently, Uber signifies its position as
early growth stage in the business life cycle. In addition, Uber has much capital in hand and
this helps the company to expand rapidly in different markets even saturated and essentially
block out rivals without worrying about getting themselves into liquidness crux. Hence, it can
be said that Uber is scaling with a growth hack and this makes them stand out with a
successful business model.
Business Level Strategies
The business level strategy of Uber offers a simple way for managing its
transportation service through the use of its application platform. User convenience is
considerably emphasized by the business strategy of the company to service large numbers of

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riders effectively and efficiently. It is evident that Uber is emphasizing on cost leadership
strategy where broad user convenience come for a little cost for the company and appreciates
to its integrated application platform with assimilated capabilities and features. The cost
advantage is attained by the company on the basis of ride hailing giant whose nature is simply
internet based. Hence, it can also be said that operating at low costs via innovation is
positioned at the core of Uber business strategy. In addition, it helps the company to gain first
mover advantage in the ride hailing industry with the purpose of enhancing business
operations at marketplace as a part of their strategy.
SWOT Analysis
Strengths – The key strength of the company is their strong and easy to use platform, vast
fleets of vehicles and economical fare with timely services. Uber strong application uses GPS
to track the location both rider and driver and it makes the riding experience better and more
preferable by the users. Uber also has a considerable larger size of its fleet in comparison to
its competitors such as Lyft. Nearly 78, 022 Uber vehicles were available to New Yorkers in
2019 in comparison with 50, 099 Lyft vehicles (Iqbal, 2019). From its commencement, Uber
is highly focusing on price optimization for vehicle fares and it helps in providing better cost
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and value to the riders. Furthermore, timely pickup and drop approach helps the company to
gain loyalty and confidence among users making Uber as the preferred service provider.
Weakness – The considerable weakness of the company includes negative image on work
ethics, dependence on technology and substantial losses. In terms of work ethics, the
company is plagued by a long list of scandals like the company paid hackers $100,000 for
covering up a cyber-attack that leaked personal information of 57 million people (Newcomer,
2017). Similarly, the company also have a weakness in terms of technological dependence
and this may create various issues for the company during the government protest or strike in
any state or city by the people with breaking down of internet facility. The company is also
facing big losses irrespective of increase in revenue as with growing competition, it is
mandatory for the company to giver offers to the customers and bonuses to the drivers
developing extra cost for the company. In 2016, investment has only resulted in company net
losses to exceed $2.75 billion.
Opportunities – Uber have opportunities presented in driverless technology areas,
logistics and utilizing complete digitalization. Driverless technology helps Uber to make its
brand as a key differentiator in the industry while attaining higher popularity in the respective
countries. Many big companies such as Google, BMW, Toyota and GM are already investing
a lot of money into this area. In relation with logistics, Uber can also launch its own packers
and movers for the convenience of public as they do not have any such resources shortage.
Lastly, with investing more into digitalization, Uber can move into the un-tap market such as
Denmark and China and therefore, raise its overall customer base and travel.
Threats – Uber threats can be seen in terms of increasing competition, lawsuits and
employee retention. Due to constant losses, the company is not able to retain its employees

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like in 2019, Uber laid off 435 workers in its product and engineering teams (Conger, 2019).
It will give a competitive benefit to its rivals. Different lawsuits also hampering its brand
image as nearly 300,000 drivers of the company filed lawsuits against the company
considering their minimum wage policy. At last, Competitions from Lyft and other
transportation services and negatively affected Uber.

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References
Conger, K. (2019). Uber Lays Off Hundreds More Workers as It Struggles to Make Money.
Retrieved from https://www.nytimes.com/2019/09/10/technology/uber-layoffs.html
Gasca, P. (2019). One Lesson Uber Teaches Us About Leadership and Vision. Retrieved from
https://www.inc.com/peter-gasca/one-important-lesson-uber-can-teach-you-about-
exec.html
Iqbal, M. (2019). Uber Revenue and Usage Statistics (2019). Retrieved from
https://www.businessofapps.com/data/uber-statistics/
Newcomer, E. (2017). Uber Paid Hackers to Delete Stolen Data on 57 Million People.
Retrieved from https://www.bloomberg.com/news/articles/2017-11-21/uber-
concealed-cyberattack-that-exposed-57-million-people-s-data
statista.com. (2020). lobal net revenue of Uber from 2013 to 2019. Retrieved from
https://www.statista.com/statistics/550635/uber-global-net-revenue/
uber.com. (2017). Uber’s new cultural norms. Retrieved from
https://www.uber.com/newsroom/ubers-new-cultural-norms/
uber.com. (2018). Company info. Retrieved from
https://www.uber.com/en-CA/newsroom/company-info/
uber.com. (2020). About us. Retrieved from https://www.uber.com/in/en/about/
Wallsten, S. (2015). The competitive effects of the sharing economy: how is Uber changing
taxis. Technology Policy Institute, 22(1), 1-21.