Analyzing Uber's Marketing Strategies and Environmental Factors Report

This report provides a comprehensive analysis of Uber's marketing fundamentals, examining its internal and external environment through PESTLE and Porter's Five Forces models. It delves into the political, economic, social, technological, environmental, and legal factors impacting Uber, as well as the competitive landscape. The report identifies challenges such as government regulations, labor issues, and competition from rivals like Ola. It also explores Uber's marketing strategies, including its competitive positioning, brand image, and the use of technology. The report concludes by discussing how Uber sets marketing objectives, trains employees, and navigates its market position to maximize profit and market share. The analysis highlights the importance of adapting to customer needs, addressing legal and ethical concerns, and maintaining a strong brand presence.

Marketing Fundamentals
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Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 2.................................................................................................................................................3
2.1....................................................................................................................................................3
1.......................................................................................................................................................3
2.......................................................................................................................................................4
3.......................................................................................................................................................5
4.......................................................................................................................................................5
5.......................................................................................................................................................5
6.......................................................................................................................................................6
7.......................................................................................................................................................7
CONCLUSION ...................................................................................................................................7
REFERENCES.....................................................................................................................................8
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INTRODUCTION
Marketing fundamental is the function wherein company analyses the budget and current
position in the market. In this report, organization focuses on the internal and external environment
which affects the activities at the work place. Under this report, there are various aspects of the
marketing fundamental will be studied in the context Uber. The present report covers, company
faces many challenges due to some reason and manager adopts the marketing mix for promoting the
products and services in the market. Company focuses on the extended marketing mix under which
manager effectively uses these factor. There are various ways for attaining the marketing objectives
and increasing the market share as well.
TASK 2
2.1
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Manager of the Uber requires to analyses of the internal and external environment under
which includes the PESTLE and Porter five force models. It helps manager to identify the current
position in the market and they produces the products and services accordingly that are explained
below:
 Political factor- The government regulates the some policies which includes the tax polices
etc wherein company follows the tax policy (Lusch and Vargo, 2014). Employees of the
Uber pays the amount of the tax which helps government to develop the economy. In this
way, if the government increasing the tax which directly impacts on the activities of the
organization and purchasing power of the customers. Company increases the products prices
and customer not able to easily purchases the goods and services is provided by the firm.
The factors which affect to Uber are such as various governmental rules and regulations,
antitrust laws, trade and tariffs, corruption etc. It can impacts on the firm in negative way
because higher the tariffs and taxes lead to increase costs of services as well as price.
Further, higher price reduce attraction towards firm in order to consuming services provided
by it.
 Economical factor- In this factor includes the GDP, interest rate, inflation and recession
under which if the changes in all these factor is directly affected the business activities
(Strauss, 2016). In this way, good economy condition in the market under which
organization easily provides the products and services to their customers and consumer
easily purchases the goods which is given by the firm. Economic factors which impact on
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the firm are such as inflation rate, recession exchange rate, employment etc. Respective
factors are lead to fluctuate overall business in terms of negative as well as positive. In the
situation of inflation prices increases and value of money decreases which hamper sales and
revenue of the Uber enterprise.
 Social factor- Organization requires to produces the products and services as per the
customers’ needs and preferences. In this way, it includes the values, assumption, beliefs,
physical as well as living status, location of the customers towards the products. Further,
another factors such as standard of living, economic status, level of income etc. are impact
on the firm in positive as well as negative manner. Company focuses on the welfare of the
society under which they provides the job opportunity to their individual which helps
manager to easily manage their work and attain the goals and objectives. By social factor
test and preferences are often changes of customers by which the company has to make
change in process of providing services. Along with this it has to use vehicles as per the
requirements of users which lead to hamper smooth functioning of business such as Uber.
 Technological factor- Company adopts the advance technology which helps employees to
easily deliver the goods and services to their customers on time and attain the satisfaction
level of the customers. As per this, company increases the market share and maintains the
overall productivity as well (Burnett, 2015). In today's market technology is consistently
updating and come up with new version which leads to increase productivity of the Uber.
The factor impacts on the firm in positive manner always. Technology always helps to make
more effective and attractive goods and services. Hence, its implications on Uber are such as
it enhances satisfaction level of users but on the other side higher the technology lead to
charge high cost which affects profitability situation.
 Environmental factor- Uber provides the taxi facility to their customers under which they
harm in environment. In this way, company requires to uses the bio fuel which helps to
maintain the work environment at the work place and maintains the relation with the
customers. The factors are such as climate, amount of sunlight, temperature, pH of water
soil etc. Due to economic factors the company affects and users fluctuate. For example: in
summer or winter season people always like to prefer cab due to which customers of the
firm get increase and revenue as well.
 Legal factor- Company requires to follows the rules and regulatory frameworks which
helps to reducing the unfair practice at the work place and employees behave in ideal
manner. It considers factors are such as rules and regulations, laws and legislations of the
trade, taxation policies, export import policies etc. Its implication on Uber are such as
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company must follow rules and regulations by which users feel more safe. Ultimately
overall consumers increases and helps to increase revenue.
Porter five forces
 New entrants- The entry of the company is the low because organization is the technology
field and organization faces various issues so they new firm not able to take the risk in this
industry. It affects to the firm in negative manner because there are various competitors are
entered in the same market with similar products. Due to which Uber has to make various
competitive strategies.
 Threat of the substitutions- Uber company have the strong competitors like ola etc under
which the treat of the substitutions is the moderate (Seyedhosseini, Fahimi and Badkoobehi,
2015). As per the factor there are substitute products and services impact to the firm. Uber's
substitute products and services are offers by the ola cab, meru cab etc. To give response to
these factors the firm has to use various strategies and reduce prices as well.
 Threat of the suppliers- The threat of the suppliers is the moderate because various
company provides the this type of the services. Here buyers cannot make excuses and
reduce the prices of products after making bargaining. In this case the companies have right
to bargain and charge prices according to their suitability.
 Threat of the buyers- The buyers purchasing power is high because consumer prepare the
taxi under which if the company not able to provides the best services to them (PORTER'S 5
FORCES OF COMPETITION ANALYSIS ,2015 ). In this situation, consumer shifted on
other brand which provides the best services at the reasonable price. Here the buyers have
right to make excuses and they have bargaining power for buying goods and services.
 Threat of the rivalry- There are various competitors of the company so that the rivalry is
the high under which organization requires to provide the best services to their customers.
As per the factor the Uber Company have to face its existing competitor and this affects up
to greater extent to the firm's profitability.
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There are various internal and external challenges which is faced by the Uber wherein
government has banned in the various cities in the country. Accordingly, organization not able to
expand their business and decline the sales turn over and decreases the overall productivity as well.
On the other hand, organization not able to appoints the black taxi driver and several strikes faced
by the company (Huang and Sarigöllü, 2014). In this way, the Uber faces the legal issues which is
the taken by the UK government under which they fails into provides the minimum wages to their
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employees. Accordingly, workers decreases the motivation level towards the services and job so
that they not able to deliver the best services to their customers. Company decreases the overall
productivity and declining the sales turn over. Apart from this, organization faces the the various
law suits under which driver raping the passenger. It negatively affects the image of the
organization and passenger are dissatisfied his services is provided by the employees of the firm.
The minimum wages are settled out by the government and authority body which lead to impact to
the firm in negative manner. Cost of the products and services offered by the Uber are higher but
they have to take charges according to the rules and regulations which lead to decrease level of
profit of the company. Further, there are various issues such as rude behaviour of the drivers with
passengers etc. which lead to decrease number of consumers. Along with this different types of
terms and conditions settled out by the regulatory body are affected to the respective business as
well as consumers. Labour union and their strike is also one of the major issue by which customers
think that respective company is not giving fare wages to drivers due to which they are on strike.
Further, consumers not relies on the Uber by which they switch to its rivalry firm due to this users
and revenue affected in negative manner.
3
In order to Uber position in the market and in front of the competitors under which
organization provides the various services to their customers (Liu, Chen and Balachander, 2016). In
this context, company adopts the advance technology which helps employees to deliver the best
services to them on time to time. Manager of the organization able to meet the demand of the
customers and attain the goals and objectives of the firm. It affects performance of the organization
because client and passenger are satisfied his services is provided by the employees. As per this,
company increases the market share in same industry and maximizing the profit of the firm. On the
other hand, corporation provides the training and development to their employees which helps to
enhancing their performance and improving their knowledge. It helps workers to provide the best
services and easily attain the goals and objective of the firm as well (Porter's 5 Forces of
Competition Analysis, 2015). It helps company to maintain the brand image in the market or in front
of the customers which will increase the profit. Moreover, organization follows the rules and
regulatory frameworks which manager to maintain the work environment and reducing the unfair
practices. It also helps employees to behave in ideal manner and perform in well under which
manager easily maintains the day to day work and develops the good relation with the customers. It
positively affects performance of the corporation because employees deliver the best services to
their customers which creates the satisfaction towards the services (Mintz and Currim, 2013).
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Accordingly, company increases the overall productivity and maximizing the profit margin.
Competitive position is a process where the business makes the effective position in the market and
attracts to more number of consumers. The company has various rivalry firms such as ola, meru etc.
To compete them the Uber make it’s positioning with help of low cost where it offers services art
very low prices. It offers services at very low prices. It helps to attract more number of consumers
as well as increase profitability, from this the company is make effective position in the market. The
company such as Uber can create brand positioning by providing differentiate services to its
customers compare to rivalry firms. In recently the organisation provides better services at lower
costs in comparison to its various competitors which lead create better image in eyes of consumers.
Such these ways respective cab company can make its brand positioning in the market.
4
In order to set the objective of the company under which set the marketing objectives.
Manager of the Uber set the organization wherein employees works for attaining the goals and
objectives as well. In this way, corporation increases the sales by the 25% and gain the market share
by 15 %. Moreover, management of the Uber fulfils the marketing objective till the end of year
which helps employees easily attain the goals and objectives of the market (Bryman, 2008).
Organization provides the training and development to their employees for accomplishing the
marketing objectives. It affects performance of the company because workers easily attain the
objectives of the marketing which helps to increasing the overall productivity of the firm. Apart
from this, employees of the company effectively communicate with the customers which develops
the good relation with the customers as well.
Apart from this, the following are the marketing objective of Uber that are mentioned below:
 To enlarge consumer base by 10% till the end of next year
 To maximize revenues of the firm by 25% by the end of 2017
 To maximize market share of the Uber by 15% through gaining customer traffic via
marketing
 To enhance net corporate yield by 12% per annum on total revenues
 To increase marketing expenditures to 7.5% of the total income for creating an excellent
marketing plan
5
In order to evaluate the marketing mix of the Uber under which they easily promotes
products and services is the market and attain the goals and objectives of the firm that are explained
below:
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 Product- Company focuses on the product which is provided to the customers under which
they provides the wide range of the option and services to them (Crouch and Housden,
2012). In this way, company provides the various services at the reasonable process which
helps buyers to attract towards the services. The strength is it delivers top-quality and
excellent cab services and Uber Pool. Moreover, services are delivered in few minutes, thus,
customers do not have to wait for a longer duration. However, some times, drivers may be
far away from the consumer’s location, in such case, they may face problems and
difficulties. It can be recommended that respective cab company needs to provide very
differentiate and unique services to the consumers which helps to enhance level of
customers as well as profit.
 Price- The Uber company adopts the automatically pricing strategy under which includes
the high demand in the market and low supply. In this way, they provide the various offers
and services and they charge as per the demand which helps customers to attract towards the
offer. It helps company to increasing the number of customers and maximizing the profit. Its
affordable pricing policy and free rides for the new users drive success to the business,
however, at the time of heavy demand, it charges higher prices to gain maximum yield
which is a drawback. Further, Uber needs to allow its users to consumer various cab services
by offering different skims as well as discounts rather than cutting costs.
 Place- Company focuses on the available of the products at the store under which they are
available at the application. Consumer download the application which is provided by the
company at the App store, play store and google etc (Gök and Hacioglu, 2010). Its online
operations through mobile apps provides greater level of convenience to the consumers,
however, network issues may caused difficulties and problems. According to the place it
already uses internet as well as it has mobile application. Along with this it should use
offline process as well because in some countries ageing people unable to use the services.
 Promotion- Company adopts the strong promotional techniques under which they
advertises in the newspaper, banner advertising and social media etc. It helps customer to
easily see the services and purchases it which helps company to increasing the visibility of
the products and maintains the overall productivity. It makes use of above-the-line
campaign, social media and innovative and creative promotional campaign so as to gather
higher number of customers. While, on the other hand, Uber incurred heavy expenditures on
its marketing operations. It can be suggested that company should promote its services on
social media as well as at the place where rush is higher.
 Recommendation – Company requires to provide the training and development to their
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employees which helps workers to enhancing their performance and improving the
knowledge which is required at the work place. Accordingly they are able to attain the goals
and objectives of the company as well as marketing objectives (Harrison and Reilly, 2011).
Moreover, effective and innovative marketing practices, discounting offers can greatly assist
Uber to generate more customer traffic. Apart from this, excellent quality services at a
reasonable prices for all the users is also considered as the best initiative to gain lager traffic
and reach goals.
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In order to select the one element of the extended marketing mix like people is the important
part of the Uber. In this way, company provides the services through the driver under which they
render the taxi facility to their passenger. Manager of the organization not able to appoint the taxi
drive under which do not fulfils the demand of the Customers (PORTER'S 5 FORCES OF
COMPETITION ANALYSIS, 2015). It negatively affects performance of the company and declining
the sales margin of the firm. On the other hand, people like drive manage the all activities of the
firm under which they also pay the amount of of the petrol and deliver the best service to their
customers. As per this, they provides the 24*7 facility to their customers which helps consumer
easily travel the one place to another. It positively affects the performance of the organization
because passenger are satisfied his services is provides by the employees which helps corporation to
increases the market share. However, company effectively uses the extended marketing mix and
they are able to fulfils the demand of the customers and attain the goals and objectives of the firm
(Das and Chowdhury, 2012). In order to increase the profitability the company have to make
various effective strategies. It can be recommended to the company that it should use better vehicles
as well as it has to take care that the vehicles should be comfortable for the consumers. By which its
physical evidence will be increase and more number of consumers will be attract. Apart from this it
can be suggested to the firm that it has to use professional drivers as well employees which are able
to provide better services to the consumers or users.
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Covered in PPT
CONCLUSION
Summing up the whole report, it can be concluded that, manager of the company to identify
the current position in the market under which they uses the PESTLE model and porter five force.
There are various internal and external challenges which is used by the Uber and the great position
of the company in the market and in front of the competitors. Company set the market objectives
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and employees are able to attain the goals and objective of the firm. Manager uses the marketing
mix which helps to selecting the price and promote the goods and services via social media and
banner advertising. In this way, company uses the element of the extended marketing mix and
manager improves the working process at the work place.
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REFERENCES
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recovery and quality-based product-mix planning. International Journal of Production
Economics, 135(1). pp.209-221.
Gök, G. and Hacioglu, G., 2010. The organizational roles of marketing and marketing managers.
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Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity,
and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer New York.
Liu, Y., Chen, H. and Balachander, S., 2016. The Effects of a Product's Aesthetic Design on
Demand and Marketing Mix Effectiveness: The Role of Segment Prototypicality and
Brand Consistency. Journal of Marketing.
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directions. Routledge.
Mintz, O. and Currim, I.S., 2013. What drives managerial use of marketing and financial metrics
and does metric use affect performance of marketing-mix activities?. Journal of
Marketing. 77(2). pp.17-40.
Seyedhosseini, S. M., Fahimi, K. and Badkoobehi, H., 2015. A new methodology to construct
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Strauss, J., 2016. E-marketing. Routledge.
Online
Porter's 5 Forces of Competition Analysis, 2015. [Online] Available resources
<http://bbinn3.wixsite.com/ubercatalyst/5-forces-analysis> [Assessed on 9th December 2016]
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