Identifying Key Marketing Strategies for Uber's Competitive Edge in UK

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This report examines Uber's marketing strategies in the UK, focusing on the identification of contemporary issues and the application of key marketing strategies to achieve a competitive edge. The report begins with an introduction that outlines the aim, objectives, and research questions, followed by a literature review that explores the importance of marketing and the challenges faced by online transport network companies. The research methodology section details the type of investigation, research design, data collection methods, and sampling techniques used. The subsequent chapters present data analysis, findings, conclusions, and recommendations. The study identifies the core marketing strategies that can be used to address the current issues faced by Uber in the UK, such as intense competition and changing regulations, and it provides valuable suggestions for maintaining consistent business growth within the international market. The report also provides a questionnaire in the appendix.
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Contemporary Issues in
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TABLE OF CONTENTS
chapter 1:INTRODUCTION...........................................................................................................3
Aim and objectives......................................................................................................................4
Research question........................................................................................................................4
Rationale of the study..................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
Introduction .................................................................................................................................5
Importance of marketing .............................................................................................................5
Contemporary issues faced by online transport network companies in UK ...............................6
Key marketing strategies which can be used ..............................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
Type of investigation...................................................................................................................7
Research design...........................................................................................................................8
Research approach.......................................................................................................................8
Data collection method ...............................................................................................................9
Sampling......................................................................................................................................9
Data analysis..............................................................................................................................10
CHAPTER 4: DATA ANALYSIS................................................................................................10
CHAPTER 5: CONCLUSION AND RECOMMEDATIONS......................................................20
Recommendations .....................................................................................................................21
References......................................................................................................................................22
APPENDIX1 : QUESTIONNAIRE..............................................................................................24
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CHAPTER 1:INTRODUCTION
Title-To identify the key marketing strategies through which competitive edge can be gained. A
case study of UBER
Growth and development of business is determined with the help of current performance.
It facilitates corporation to cope up with changing scenario because good current performance
indicated how future performance will be. Contemporary issues are generally focused by
management in order to take right action and solve the potential problems. It is necessary for
long run growth of the business as by using appropriate strategies any kind of issues can be
resolved (How Uber conquered London, 2016). However, corporation must have skilled
personnel who can cope up with changing scenario (Grant, 2016). Here, transport company like
Uber need to focus upon creativity and innovation which can done with the help of resolving all
current issues. It enables management to cope up with changing scenario and retain customers by
delivering good quality of services. This aspect directly bring changes in organizational
performance and create competitive edge at international marketplace. Here, it becomes
necessary to focus upon potential issues of organization and use appropriate marketing strategies
so as to ensure long run growht with increased rate of return (DeSantis and et. al., 2011).
The current investigation is based upon UBER which is online transportation network
company. The operation of business is done with the help of Uber mobile app which generally
allow buyers to use their smartphone and easily access good quality of services. Uber is
operating worldwide with revenue of US dollar 1.5 billion according to 2015. The total number
of workforce in corporation are 6700. There are several operation issues faced by transport
company because of changing rules and regulations as well as preferences of buyers (Van Bree,
Verbong and Kramer, 2010). However, the current investigation focuses upon contemporary
issue such as international competition which is affecting overall performance of the business to
a great extent. For example of China, Uber is forced to enter into competition with care sharing
apps which are generally dominated through Alibaba Group holding Ltd and other related
corporations. This strategy affect organizational performance because customers are already
getting advantages from locals. On the other hand, there are many other factors which affect
profitability and rate of return of the business.
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Aim and objectives
Aim-To identify the key marketing strategies through which competitive edge can be gained. A
case study of UBER
Objectives
The objectives of study are based upon aim which are segregated into several parts. It is
done for the purpose of completion of entire study in an effectual manner. Here, at first
contemporary issues which is being faced by Uber will be identified and then key marketplace
strategies are analyzed. At last, researcher target to maintain consistent growth of business in
international market. These are stated as follows-
To identify contemporary issue which is being faced by UBER
To analyze key marketing strategies which can be used to resolve contemporary issue in
UBER
To provide valuable suggestions for maintaining consistent growth of business in
international market
Research question
Research questions are framed as per the research objectives so that scholar can prepare
the guidelines accordingly. The research questions on key marketing strategies to create
competitive edge in the marketplace are listed as follows-
What contemporary issue is being faced by UBER?
What are different key marketing strategies which can be used to resolve contemporary
issue in UBER?
What are ways for maintaining consistent growth of business in international market?
Rationale of the study
Transport sector is considered as the imperative aspect for growth and development of
particular region or nation. Generally corporations face issue related to intensive competition
from other rivalries by reducing fare and other related facilities. Here, the main barrier related to
competition is entering into international market. However, being Multinational company, Uber
is operating in UK and facing high competition from local transport sector in many ways. The
reason behind conducting current study is to highlight potential aspect or lacking areas of the
business and accordingly take suitable action to recover the same in an effectual manner. Apart
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from this, innovation and creativity is necessary for the growth and development of the transport
company for creating competitive edge. In this regard, current study focuses upon the same for
better performance and increased rate of return of the firm. Moreover, current study is being
conducted for identifying key marketing strategies through which issue related to competition of
Uber in UK can be resolved. Here, researcher focuses upon valid information which are helpful
for extracting valid outcome. Furthermore, other related issues such as changing rules and
regulation also affect the entire performance of Uber. For this purpose appropriate marketing
strategies are explained which in turn business can move ahead with increased rate of return.
CHAPTER 2: LITERATURE REVIEW
Introduction
The chapter of literature review is considered as one of the most important chapter of a
dissertation. the reason behind this is that this section includes the work and studies which has
been carried out by other researcher on the topic under investigation. therefore, it helps in
carrying out more accurate and detailed investigation on a particular topic and obtains more
useful information.
Importance of marketing
As per the view of Bento (2010) marketing can be defined as the process in which
businesses and individuals make use of various tools and techniques to create awareness among
customers and attract them to buy a particular product or service. In the modern era, marketing
has become very important for companies as it helps them to earn adequate sales and profits.
Over the past few years, the competition among online transportation service provider in the
world has become so intense that it is not easier for brands such as Uber to maintain and enhance
its existing market share. At present companies such as Lyft, Uber, Curb, Didi Chuxing etc. are
competing very strongly with each other to become leading player in online transportation
service provider industry. According to Chesbrough (2010)marketing in modern era has become
very important because it provides wide range of benefits to companies. One of the major and
most important among those is of creating awareness among customers. The use of effective
marketing tools and techniques results in developing a strong brand image of companies in the
market and in front of customers. However Rösler and et. al., (2014)has argued that carrying out
marketing is not an easy task for businesses and one needs to invest lots of time and resources
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regarding the same. Marketing is also important because its supports firms to interact with
customers understand their need and develop services according to the same.
Contemporary issues faced by online transport network companies in UK
It can be stated that carrying out business practices and activities in online transportation
industry is not an easy task as along with the increases demand of such services, the competition
has also increased to a great extent. In country such as UK, brands like Uber, Lyft, Didi Chuxing,
Kabbbee, Hailo etc are competing very strongly with each others. Now, the contemporary issue
here is that businesses such as Uber are not be to identify that what kind of strategies and action
plan can be used for getting competitive advantage over other market players. According to
Creutzig and Kammen (2010) the online transportation service providers needs to carry out very
intense market research in order to understand changing need and demand of people in the
market and deliver services according to the same. It can be stated that now customers are
available with wide range of options to choose from and this has created issues for businesses as
they are not able to understand how they can attract more new customers and retain the old ones.
Issues are often faced regarding tool, techniques and strategies of marketing which can be used
by firms to gain advantage over other market players.Pettit, Fiksel and Croxton (2010) Has
explained that because of intense competition, even a slight change in prices, policies and
marketing strategies of one company forces the other brands to make changes in their business
practices. However, has critically evaluated that in order to overcome the issue related to
increasing competition what firms that really do is that they can develop effective marketing
strategies and focus on attaining higher degree of customer satisfaction. Delivering quality of
online transportation service to customers will help businesses to enhance the rate of customer
loyalty and satisfaction. Other than this, it can also support in increasing the sales and profits of a
business enterprise to a great extent.
Key marketing strategies which can be used
According to Jensen and et. al., (2010). marketing is a very effective and potential tool
which can be used and implemented by firms to gain competitive advantage over other market
players and attract customers. Over the past few years, there has been wide range of development
carried out in the field of marketing and these developments have increases sales and profits of
companies to a great extent. Earlier there was a time when companies uses to lay emphasis on
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tools such as newspaper, television and radio advertisement. Along with this, promotional events
were also conducted with an objective to create awareness among people in the market regarding
the products and services delivered. In the last few years internet has emerged as one of the
biggest and most potential tool which is used by firms to carry out their promotion and
marketing. Techniques such as social media, online, email etc. are providing wide range of
benefits associated with marketing to companies operating in online transportation industry.
Brands such as Uber, Lyft, Didi Chuxing, Kabbbee etc. can make use of social media such as
Facebook and Twitter to interact with their customers at regular basis and understand their
changing demand. Apart from this, the use of social media marketing strategies can help
companies in online transportation industry to encourage reviews and feedback from customers.
Cusumano (2015)Has explained that on the basis of feedbacks and reviews gathered effective
strategies can be developed for creating sense of satisfaction among customers. Other than this,
emails can be used by the above mentioned companies to inform customers about any kind of
changes in existing services, introducing of new services, discounts and offer. The rationale
behind making use of email marketing is that it is a very cost effective method and it also results
in reaching wide range of people within a very short time period. Survey’s and research can be
also conducted by companies with the use of email as a marketing tool. It can be stated that
instead of focusing upon a single marketing tool or technique, Uber, Lyft, Didi Chuxing,
Kabbbee etc can make use of integrated marketing strategy. This means in order to deal with the
contemporary issues faced, companies use a mix of both new and traditional sources of
marketing.
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is the important part of study which consists of different tools and
techniques which facilitates to collect valid information and draw valid outcome out of the same.
These methods and techniques consists of research design, type of investigation and data
collection methods and data analysis methods. These are explained as follows-
Type of investigation
The research investigation is of types; qualitative and quantitative where the selection of
one is based on nature of study. Quantitative study is used under which impact of one variable is
required to assessed on other. It demands use of statistical tools and other related methods which
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in turn fruitful outcome can be extracted (Silverman, 2016). Furthermore, qualitative type of
investigation is used for the purpose of in-depth analysis of collected information. In this regard,
current investigation uses qualitative type of investigation whereby large amount of sources of
information are approached in order to collect valid information. Apart from this, qualitative type
of investigation make it possible to effectively analyze the collected information in the direction
of aim and objectives of the study. Therefore, qualitative type of investigation has been used to
find contemporary issue and strategies to overcome the same on right time.
Research design
Research design refers the the process of presenting the collected data in an effectual
manner. There are different research design such as descriptive, exploratory and explanatory.
However, use of the suitable research design is based upon overall requirement of the study.
Here, descriptive research design is generally used in qualitative type of investigation where
design describe the characteristics of selected population (Taylor, Bogdan and DeVault, 2015).
On the other hand, exploratory research design tend to focus upon discover of something new
whereas exploratory is applied where problem has not been clearly defined yet. However,
descriptive research design is used in current study on identification of key marketing strategies
on gaining competitive edge. Here, selected research design make it possible to present the study
in proper manner through whereby reader can effectively reach at the conclusion. It facilitates
scholar to access appropriate sources of information and accordingly reach at the aim of the
study (Smith, 2015).
Research approach
Research approach is the set pattern for collection of information and understanding the
issue of research. There basically two types of research approaches used such as inductive and
deductive. Here, inductive approach is generally used in qualitative type of investigation where
scholar start with collection of general information. The pattern of going general to specific
proves to be effective for better understanding of research issues and accordingly extract valid
outcome (O'Reilly and Parker, 2012). On the other hand, deductive approach starts with specific
information and them general investigation is done in order to produce theory or some
assumption. In the current study, inductive approach has been used under which at first general
information related to contemporary issue of Uber is collected and then specification is done.
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This aspect develops better understanding related to selection of key marketing strategies so as to
gain competitive edge in the marketplace. Therefore, inductive approach has been selected
whereby research can meet all its research aim and objectives effectively (Hanna, 2012).
Data collection method
Data collection is considered as the most important of entire study under which both
primary and secondary data are covered. Here, primary data are those which are collected at first
hand in order to meet some specific research objective. On the other hand, secondary data are
those which are already available and research access the same in accordance with need of study.
In the current study on identification of key marketing strategies to gain competitive edge for
Uber, both primary and secondary data are collected (Ritchie and et. al., 2013). However,
secondary data are collected from different sources like journals, books and online articles.
Along with that, other available information of company is also accessed for the purpose of
collection of valid information. Furthermore, primary information has also been collected by
using suitable method. Though, there are number of methods used for collection of primary data
such as questionnaire, interview, observation and others. In the present study, questionnaire
method has been used where researcher can effectively meet the research objectives.
Questionnaire consists of both open and close ended questions in the light of research aim and
objectives (Tracy, 2010).
Sampling
Sampling is also the important part of research methodology under which specification
related to population selected for the study is given. However, two types of sampling methods
are used such as probabilistic and non-probabilistic where the former one gives equal chance to
all objectives to get selected in the study (Lewis, 2015). On the other hand, non-probabilistic
sampling is generally used where research has specific focus and select the population on the
basis of convenience. In this regard, different types of sampling methods are used such as quota,
judgment, snowball and stratified as well as simple random sampling. Along with that purposive
sampling is also used under non-probabilistic sampling design. Here, non-probabilistic sampling;
purposive sampling has been applied in the current study whereby appropriate information will
be collected. Further, population is entire targeted public or source who will provide the
information. Owing to this, all managers of Uber are population from which 10 will be selected
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in accordance with purposive sampling (Peräkylä, 2011). Thus, selected method of sampling
make it possible to collect large amount of information and use the same in order to derive valid
outcome.
Data analysis
Data analysis is considered as the most important part of research methodology as well as
entire study. It is because here collected information is interpreted and analyzed in the light of
research aim and objectives. There are two types of research analysis techniques are used such as
qualitative and quantitative but as the current investigation is based upon qualitative type of
investigation hence the same kind of data analysis techniques is selected. It consists of thematic
analysis under which themes are prepared and supported by frequency table and graph along
with detail discussion (Olesen, 2011). It aids to meet research objectives effectively as reader get
clear description of collected information. On the other hand, quantitative techniques consists of
statistical tools like correlation, regression and annova test. This is is generally applied to assess
the impact on one variable on other so as to meet research aim and objectives. Therefore, for
current investigation on identification of key marketing strategies to get competitive edge in
Uber, thematic analysis has been used so as to present the outcome of study is very clear manner.
CHAPTER 4: DATA ANALYSIS
Data analysis is considered as the most important part of the study under which collected
information is analyzed in the light of research aim and objectives. However, all tables and
graphs are presented as per the stated objectives.
Theme 1: UK competitors are more powerful than Uber
Yes 50%
No 20%
Can't say 30%
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According to the collected information, it has been found that 50% respondents said that
competitors in UK are more powerful than Uber because of their local existence and faith in
customers. On the other hand, 20% participants said they are not more powerful whereas
remaining participants do not have any idea about the same. It reflects that respondents Uber can
effective accomplish the set targets by changing its marketing strategies. Owing to this,
management need to focus upon the same in order to deliver good quality of services to large
number of buyers. This is because majority of participants stated that UK competitors are more
powerful.
Theme 2: Agree that lack of innovation and creativity in Uber is affecting its competitive
edge
Strongly agree 60%
Agree 20%
Neutral 0%
Disagree 10%
Strongly disagree 10%
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50%
20%
30%
Yes
No
Can't say
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According to the collected information, it has been found that 60% respondents agree that
lack of innovation and creativity are affecting business performance and its competitive edge.
Further, 20% participants do agree with the same where 10% do not agree upon it. They stated
that company has innovation and creativity in its operation which tend to create its competitive
edge in the marketplace. Furthermore, 10% participants disagree with the same and stated that
lack of innovation generally has negative impact on competitive edge of the business because
after some time span customers will stop purchasing the products and services from the same. In
addition to this, remaining 10% respondents strongly disagree with lack of innovation and
creativity affect organizational performance.
Theme 3: All marketing strategy can be effective to increase customers
Reduced price 30%
Convenient options 10%
Extra facilities 30%
All of the above 30%
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60% 20%
10%
10%
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
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