Strategic Management Report: Analyzing Uber's Competitive Strategies

This report provides a strategic analysis of Uber, a leading taxi service provider. It begins with an introduction to strategic management and its importance in the business world, followed by a SWOT analysis of Uber. The report then delves into four competitive business strategies employed by Uber, including cost leadership, differentiation, and focused business level strategies. Furthermore, it identifies three significant strategic issues faced by the organization, such as assessing consumer needs, identifying the target market, and allocating resources effectively. The report concludes with recommendations for Uber, focusing on staff management, technological advancements, and gathering consumer feedback. The report emphasizes the complexity of strategic management and the need for an organized approach in developing effective business strategies. References include books, journals, and online sources to support the analysis.

STRATEGIC
MAANGEMENT
PART B
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................4
Four competitive business strategies ...................................................................................................5
Identification of at least three significant strategic issues the organization faces................................7
Recommendations................................................................................................................................9
CONCLUSION ...................................................................................................................................9
REFERENCES...................................................................................................................................10
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INTRODUCTION
Strategic management is defined as procedure which includes planning, analysis and
monitoring of procedures running in the industry. Objectives for business including short term and
long term are formulated for providing directions to the manpower (Ward and Peppard, 2016).
Under this policies, frameworks and action plans are formulated for accomplishing overall targets
for business. Present report is based on UBER which is a leading taxi service provider firm of the
nation. The report describes about four competitive strategies used by enterprise for achieving their
desired targets. In addition to this various strategic issues faced while formulating action plans for
business has been mentioned .
SUMMARY SWOT
(Source – UBER, 2016)
STRENGTHS :- UBER is a known for its high tech taxi services which renders quality experiences
for its business clients. Operations of business are located in more than 200 cities of 54 nations.
Company has large fleet of vehicles and vary little competition is faced by it from rival
transportation service providers.
WEAKNESSES :- business model of the enterprise is less effective and unpredictable due to which
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Illustration 1: UBER

it becomes difficult for achieving required targets. Company hires drivers on a temporary basis due
to which it becomes difficult to train employees in productive manner.
OPPORTUNITY :- UBER has opportunity for expanding the business of the company in diverse
nations of world. Asian countries like India, China and Pakistan offers huge consumer base and
high profitability and revenues can be achieved by firm by expanding the business in these nations.
Advancement in technology and increasing number of internet users offer advantages to targets
consumers that are using smartphones (Flammer, 2013.).
THREATS :- Many new players are entering into taxi business and due to it threats are getting
created for UBER. New taxi regulations formed by country also imposes a challenge for the
enterprise to successfully execute their operations.
Four competitive business strategies
(Source- Kapferer, 2012)
Business level strategies :-Under business level strategies management formulates action plans by
involving data and information gathered from external business environment. Effective business
level strategies developed in effective manner supports in gaining competitive advantage and
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Illustration 2: Level of strategies

sustainable development of business (Cartwright and Cooper, 2012). It is vital that knowledge and
information should be assembled from sources that are authentic and reliable. Management of
UBER can take significant initiatives for developing business level strategies in effective manner.
At initial level it is determined that who are potential consumers of business to whom services will
be offered. Requirements of targeted consumers are also identified by doing proper research and
survey. It supports in designing strategies that will assist in accomplishing desired goals of business.
The main strategies that UBER can use are as described :-
1-Cost leadership strategies :- Under this actions plans are made for offering transportation
services at lower price as compared to competitor firms (Fitzsimmons and Fitzsimmons, 2013) . It
will aid in rendering taxi services to all income group consumers at reasonable price. There is need
to make reductions in overall investment cost so that consumers will be offered taxi services at
lower price rates in market. It will help in gaining big market share by involving large number of
consumers in business. It is required that unnecessary cost for business should be reduced so that
total expenses of business can be reduced.
2-Differentiation strategy :- UBER is a leading service provider firm which offers high tech
taxi services to business clients. New attributes and features can be added in the existing services of
the company for offering better taxi experiences for clients. Consumers can be attracted by offering
better and differentiated taxi services and it will support in enhancing consumer base of the
company. Rapid and new innovation needs to be done in existing model of business so that high
customer services can be offered at premium price to the consumers (David and David, 2016).
3-Focussed business level strategies – In this method specific consumers are targeted for
selling taxi services offered by UBER. More concentration is given on a particular geographical
market area and impelling advertising and promotional strategies are set for attracting consumers.
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(Sources- Ashby, Leat and Hudson-Smith, 2012 )
Corporate level strategies :-These strategies are formed at top level of management and decisions
taken at this level influences the whole organizational structure. Proper initiatives are taken by
management for making improvements in financial performances and managing manpower of the
organization in systematic manner. It is critical that management of UBER should involve staff
members in the decision making process so that appropriate decisions can be taken for business.
Plans that are made under corporate level strategies renders directions and instructions for the staff
members of the business overall operational activities of the business gets affected by it (David,
and David, 2016). Decisions are taken for making Allocation of resources in optimum manner so
that desired functions of UBER can be executed in successful manner. In addition to this decisions
for managing manpower of the organization are also taken at this level and task allocation to the
employees is also done (Ashby, Leat and Hudson-Smith, 2012). Judgements for diversifying
existing services and making modifications in current business procedures are needed to be taken
under the corporate level strategies formed by management of UBER.
Identification of at least three significant strategic issues the organization faces
UBER company deals in taxi services and operated its business across 54 nations. There are many
business issues that are faced by the organization which hampers performance of the enterprise. It is
vital to take significant steps for resolving the issues that are faced be corporation (Kapferer, 2012).
It will support in ensuring growth and profitability of the business in successful manner. There are
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Illustration 3: different type of strategies

many strategic issues that are faced by management of the UBER and they are as described-
Assessing needs of consumer :- it is assertive for identifying needs of the clients in a consumer
oriented business. It will support in rendering effective taxi services as per the needs and
requirements of clients. Preferences of consumers changes from time to time and due to that need
arises for making changes in existing services provided by business (Seuring, 2013). Moreover it is
a complex and challenging task for exactly knowing needs of buyers and data and information
collecting procedure is also tough and complicated and hence it is challenging task for identifying
requirements and needs of clients of business. When strategies are formed it is required that action
plans should focuses on satisfying needs of consumers.
Identifying potential target market :- operations of UBER have been spread in large consumer
market across 54 countries . It is a complicated task for doing segmentation of market and assessing
potential consumer base of business (Cartwright and Cooper, 2012). Positioning and targeting
strategies of corporation are formed by identifying potential consumer base for the business. Other
than this segmentation needs to be done on the basis of sex, age, and income level of consumers.
Allocation of resources :- while strategy formulation process there is need to make plans for
allocating resources of the organization. Financial funds of the enterprise needs to be divided on
different operational activities of business. Other than this human resource also needs to be given
specific tasks and responsibility (Berman and Evans, 2013). It is a complex task and sometimes
difficulties are faced for making allocation of different resources of the organization in successful
mode. In addition to this there is need for doing research and survey for collecting external and
internal data and information
for making effective strategies.
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Recommendations
UBER company can make use of effective strategies for managing staff members of the
organization. Action plans can be formulated at two different levels that includes corporate and
business level strategy.
Management should take initiatives for developing a culture where people are passionate for
learning (Kapferer, 2012).
New attributes and features can be added in the existing taxi services so that clients should be
provided with better taxi experiences. Use of advanced technology can be taken and new
innovations can be made in GPS tracking systems, smartphone map. Regular feedbacks can be
taken from clients who avail taxi services of UBER for making improvements in existing business
model.
Strategy for ride sharing services is a unique concept and it supports in rendering reasonable prices
taxi services to customers (Hill, Jones, and Schilling, 2014). New features can be added in this
concept and attractive advertising and promotional strategies can be formed for informing consumer
about this initiative of UBER.
Assistance from external survey agency can be taken for assembling necessary data and knowledge
which is required for formulating strategies for business.
CONCLUSION
Summing up the present report it has been concluded that strategic management is complex
process and organized approach is required for making strategies for business. UBER company can
adopt cost leadership strategy for rendering superior quality taxi facilities at reasonable price to the
consumers. In addition to this differentiation strategy can be used for making improvements in
existing attributes and features in taxi services of the enterprise.
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REFERENCES
Books and Journals
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain
management and sustainability literature. Supply Chain Management: An International
Journal. 17(5). pp.497-516.
Berman, B.R. and Evans, J.R., 2013. Retail management: a strategic approach. Pearson Higher Ed.
Cartwright, S. and Cooper, C.L., 2012. Managing Mergers Acquisitions and Strategic Alliances.
Routledge.
David, F. and David, F. R., 2016. Strategic Management: A Competitive Advantage Approach,
Concepts and Cases.
Fitzsimmons, J. and Fitzsimmons, M., 2013. Service management: Operations, strategy,
information technology. McGraw-Hill Higher Education.
Flammer, C., 2013. Corporate social responsibility and shareholder reaction: The environmental
awareness of investors. Academy of Management Journal. 56(3). pp.758-781.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Kapferer, J. N., 2012. The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management.
Decision support systems. 54(4). pp.1513-1520.
Ward, J. and Peppard, J., 2016. The Strategic Management of Information Systems: Building a
Digital Strategy. John Wiley & Sons.
Online
UBER. 2016. [Online]. Available through: < https://www.uber.com/en-IN/>. [Accessed on 20th
November 2016].
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