A Comprehensive Analysis of Uber's Business Strategy and Environment

This report provides a comprehensive analysis of Uber's business operations, focusing on its internal and external environments. It begins by examining the macro environment using PESTLE analysis, identifying political, economic, social, technological, legal, and environmental factors impacting Uber's global operations, with specific attention to the UK market and the impacts of Brexit and COVID-19. The report then delves into Uber's internal environment, utilizing SWOT and VRIO analyses to assess its strengths, weaknesses, opportunities, and threats, as well as the value, rarity, imitability, and organization of its resources. Finally, the report applies Porter's Five Forces model to evaluate the competitive landscape of the transportation and food delivery industries in which Uber operates, providing insights into the industry's attractiveness and Uber's competitive position. The report aims to evaluate Uber’s strategic positioning, challenges, and opportunities within the market.

UNIT 32

INTRODUCTION
Business is a separate legal entity that used specific idea. To run the business successfully
it is essential to use those strategies which are helpful to maintain the each and every operations
of the business. To accomplish the business objective is the most preferable things for the owner
that help to gain high market growth. For this study, Uber , which is operating business in British
and providing transportation services to their customers instead of this it provide food for the
convenience of their customers. It mainly operating business in almost 69 nations . The main
purpose of this report is to discuss about the internal and external environmental factors. This
report also conduct five force model .Moreover , this report also use Ansoff model to achive the
business objectives.
MAIN BODY
TASK 1
P1 Impact of Macro Environment
To identify the impact of macro environment it is essential to use PESTLE analysis that
help to determine the external factor of the business and also analyse the impact of outside
factors and identify that which factor affect the most to the Uber company. The description o0f
these external environmental factors are given below-
Political Factors – This factor consider the rules, regulation, policies and procedures that can
give the direct impact on the business operations. Political factors related to the government
issues that can affect the over all business activities of the company. In context of Uber, it affect
the most because Uber is a global company and sometime it is difficult for the company to deal
with the every country government (Astrachanand et al., 2019).Sue to uncertainty of covid and
Brexit, company faced many critical situations and the market of the company become low.
Economical Factors – In this factor, economic growth, trade regulation, influence of economy ,
inflation and recession rate, salary, wages are considered. Uber is doing their business
internationally so it is quite difficult for the company to maintain the economical situation in
every country. Uber usually set price according to the countries growth whether it is developing
country or developed countries.
Social Factors – This factor depend on the age, gender, culture, religion , taste , preferences and
buying habits of the customers. This factor direct affect the purchasing power of the customers

so that it is essential to focus on this factor. In context of Uber (Bigelowand Barney, 2020).The
requirement of the people can be depend upon their comfort zone and due to uncertainty of the
Brexit, Uber experienced many losses so it is necessary for the company to prepare the effective
market strategies to cover the losses and adopt those strategies which are helpful to attract most
employees.
Technological - This is in light of the fact that erupt of epidemic onslaught of Covid-19, where
consumers are needed to utilize web buying applications for buying articles of clothing and
various things or organizations. In any case, it has influenced emphatically on UBER due to its
online beingness and affirmative contribution of its consumers as for with movement of
advanced type of its things, on bewildering esteem charges.
Legal - This factor fuses those points of view which are associated rules and rule arranged by
legitimate ability to keep up good work practices in firm. Comparing to UBER, association is
working in various business areas at around the world. Therefore, it is basic for huge business to
use these limits in suitable way, this is also important to relationship in carry off its abilities.
Practically identical to current condition of UBER there are various standards and rules which
influence on UBER. It is using sensible employed exercises where it completing all regulation
and rules in affiliation. A bit of these is business rule enactment, remuneration enactment and
some more. This assist concern with meandering redeeming legitimate possession of company
and keeping up liberality in marketplace.
Environment - This is critical cause for undertaking, this is because it aid relationship in
compliance up extraordinary image in marketplace and achieving goals and focuses in
appropriate manner. Additionally, UBER using situation welcoming pattern. These are 0 carbon
move in environment, exploitation reasonable force source in company in kind of daylight-based
sheets for conveying power, using Light-emitting diode bulbs and no usage of moldable in
affiliation (Browne and et al., 2018). This aides UBER in gathering the objectives of affiliation
relating to social group and situation. This also assist in structure dependable representation of
company in actual instance.
It will in general be evaluated from the recently referenced content that there are different causes
which are accompanying to affiliation and can utilize to play out its ability in reasonable boss.
There are helpful for relationship to sort amended judgement and accomplish its concern
objections in lucky mode.

Critically analyse the Macro Environment
For the business serious and produce benefit it is needed to make examination of specific
factors that incorporates both inward and outer. Every one of these components is having sway
over procedures inside an association for limiting effect over organizations. Uber confronted
political difficulties as Brexit has influenced business as far as innovation as conditions
referenced in this effect serious edge existing inside market. Brexit has been influencing different
sorts of variables inside an association like Uber. Since Brexit happened different strategies
additionally changed which affected working of association both inside and remotely. Serious
edge can be acquiring by a business association through its systems and strategies
(Drobyazkoand et al., 2019).
TASK 2
P2 Analyses of internal environment
Accordant to introduce concern situation, it is fundamental for company to look at both
interior and extrinsic environment for accomplishing scores and targets. In setting of Uber, its
concern methodology is for the most part established on conditions that are open in wholesale
marketplace, to catch advanced care of customers. Thus, SWOT and VRIO examination are
practical for choosing limits of UBER with recognizing evidence of inward cause that originate
issues in accomplishing its concern focuses, as explained underneath:
SWOT Analysis:
Strength Weakness
 Powerful brand picture is first nature of
UBER. This is because affiliation is offer
choice things to consumer which aid
company in devising good image in
marketplace (Goode and Negoro, 2018).
 One more strong motivation behind
UBER is that affiliation has its
quintessence in overall marketplace. This
is accommodating in administering pay
 Leading defect of company is that it
is capable to UK marketplace. This is
on the evidence that, 70% of dead
offer of organization is counted
marketplace of UK. This consequence
organisation perversely as pecuniary
check in UK marketplace can
punctual bad luck in financial gain of
company.
 Depressed level of R&D is in addition

and extending gainfully of company. touching on organization. This is on
the evidence that UBER is
conversation formal concern where it
is necessitate by company to use
almost new form and point to force in
customer however in impulse instance
organization isn't putting rootage into
R&D which punctual low search
about actual form and consequence
on particular of point.
Opportunities Threats
 Collaborating with close by brand is that
factor which is influencing on affiliation and can
be used to extend the market hard worker. This is
helpful for firm in making there nimbly affix and
using it to achieve business objections
•Bringing versatility and ease in firms
working model is moreover a structure which can
be use by relationship to achieve its business
objections, under this limit affiliation can use
Morden instruments and procedures to achieve
its business objectives.
•Organization is placing colossal whole
in food zone of UK. This is influencing as a
treat to relationship considering the way that
there are gigantic number of competitors
which are influencing on execution of
affiliation and can influence on firm, which
prompts can decrease in advantage and loss
of pay.
•Regular changes in articles of clothing
industry are moreover influencing as a peril
to affiliation. This impact conversely to
relationship because of augmentation in dead
stock.
VRIO Model:
Resources Valuable Rarity Inimitable Organized Remark
Global
presence
yes - - - Not competitive
Products yes yes - - Half competitive

creation
Technology Yes Yes Yes - Competitive
Employees Yes Yes Yes Yes Competitive
This is framework which is used by relationship to measure its business regard with respect to
huge resources, uncommonness to say the least. Similar to UBER, assessment of its wholesale
undertakings can be settled through VRIO examination in after way -
Valuable: It fuse those resources which are important to affiliation and can be used to achieve
genuine border over competitor. This is valuable to relationship in managing its ability by
choosing this resource. As per UBER, these components are inspected under:
•Planetary beingness: This is significant assets for relationship since it assist company in
documenting its objections be merchandising things and organizations at overall level. This also
ensures overall improvement to company in accomplishing its targets (Khan, Daddi, and Iraldo,
2020).
•Products: This is critical to relationship since it energizes in pulling in customer to relationship
in marketplace where it is commerce. This is because UBER is offer phenomenal things in
marketplace.
•Employees: Worker of affiliation are in like manner critical asset for affiliation this is in light of
the fact that they assist company in acting diverse undertaking and accomplishing the goals by
keeping up benefit and productiveness.
•Technology: This furthermore goes probably as a critical ability to affiliation. Below this
association is exploitation advanced acting rules to deal with its development. This makes it
critical to UBER because it gives genuine border to affiliation.
Rareness: These can be portraying as those beginning which are phenomenal in marketplace and
are basics for relationship to accomplish concern objections. Practically identical to UBER it is
there are three kind of root age which are unprecedented in quality and go probably as a mostly
high ground to affiliation. These are discussed under:
 Products: Merchandise of UBER are extraordinary similar to affiliation this is because
affiliation is exploitation critical assets in development of these.

 Employees: Worker are similarly going probably as a remarkable assets for large
business since it is using fruitful getting ready and improvement undertakings to help aptitudes of
laborers.
 Technology: In association with advancement affiliation is using extraordinarily effective
instruments and execution systems which engage affiliation achieve its business target. This in
like manner uses huge degree of wander and can be go about as uncommonness in marketplace.
Inimitable: In this limit those assets is fused which cannot be utilization by rival of affiliation. In
setting of UBER, there are two root age which are exceptional and are obdurate underneath:
Employees: Worker of affiliation are Inimitable assets this is because affiliation is exploitation
tallness level of getting ready and progression which form delegate adhere to their individual
work. It is moreover exploitation more huge compensation and administers work in ground-
breaking approach to help agent motives (Lahtinen, Kuusela and Yrjölä, 2018).
Technology: Organization is advanced attendant labourers to prevention information of
delegates and administer work in company. This will influence on company and will prompts
accomplishing concern objections.
Organised: It consolidates those causes which should be figured out by company. Practically
identical to accomplishing its destinations and goals.
Employees: With the aid of its significantly gainful, capable and fit specialists, UBER
can lead its overall exercises in an amazing manner and assurance its viability in market for a
long time.
Evaluation of internal environment
Such significant investigation of inside components with abilities distinguished in an
association. SWOT examination that must be benefited by Uber as suitable assets is there
alongside innovation and staff. System of creation followed by Uber is interesting which limits
dangers. SWOT investigation has been helping Uber in ensuring that all variables influencing an
association inside ought to be handled in legitimate way with more productivity and for this
reason just their strength, shortcomings, dangers and openings is being recognized. Associations
need to ensure that capacities have been upgraded of Uber and its workers.

TASK 3
Poter’s five force model
The model is used to examine the nature and feature of industry the company is working
in. By analysing the features or characteristics a company can form the strategies and operational
activities accordingly. The type of products or services offered by the company also gets
influenced through the analysis of Porter’s 5 force model:
Degree of entrance: The degree of entrance refers to the level of barrier are present in an
industry. When there are fewer barriers for entrance and exit in an industry, there the level of
completion is very high. But in an industry where the degree of barrier to enter in an industry is
very high, there the level of competition is very low. As in the case with convince industry, there
is no barrier as such. So the uber has to face a lot if competition from other companies. These
companies creates a extra burden upon the shoulders of uber as they need to work more harder to
gain the customers and also to beat the competition which is being throw by these competitors.
Danger of new participants: Being an extravagance vehicle organization, they are having high
overall revenue and they have high danger of disappointment. The organization is concocting
new innovation and they are attempting to update their vehicles with cutting edge mechanical
advancements.so this force is including low effect inside this industry. This industry requires
gigantic cash to be contributed and they needed to follow such countless rules which are
identified with specialized help and different viewpoints. So, Uber isn't having a lot of effect of
new passages in their business.
Danger of substitute: When there is large number of organisation available in the industry then
the danger for substitute automatically gets increased for the company. There will be various
companies which will sell the same product with the same feature in a less price. This will cause
the damage for the company as its products or service offered can get copied by any other
company resulting losing of customers. To reduce this loss, the company like Uber has to come
up with various new innovation and creation with the services they offer. This will help them in
gaining a competitive advantage in the market.
Bargaining force of providers: In the case with Uber Company, the bargaining power of the
providers is quite low. Here the providers can be the drivers who get associated with the
company for their business. As in the market there are ample of drivers available to the company
they can switch to any other driver who is ready is work with them according to the wish and

agreement of company. Therefore, in this case the Uber Company exercise more power than the
suppliers.
Bargaining power of customers: Here the negotiation powerfulness of the consumers refers to
the degree at which customer can influence the operations and pricing of a company. In the case
of Uber, the customers exercise the high bargaining power as they have other options of services
also to avail. So therefore to retain their customers they have to work according to the customers.
From the above conversation it very well may be inferred that Uber is having high market of
their item and their clients. For limiting their market danger they are needed to rethink their
vehicles in order to hold their piece of the overall industry and meet degree of consumer loyalty.
To get high serious edge they are keeping their vehicles with unmistakable character so because
of which enormous client get pulled in. For achieving particular serious edge and piece of the pie
Uber is needed to zero in on constant improving their item by which immense client can be
caught by them and they can upgrade their client base. It tends to be said that client are the core
of the organization so they are needed to centre in noticeable way.
TASK 4
Theories for strategic planning
Porter's generic strategies
The procedure is utilized by the organization to recognize the various ways by which they could
achieve their objectives and destinations inside the ideal way. There are distinctive sort of system
that are applied by the Uber that are as characterized underneath as
Cost leadership: It is the technique through which organization could focus on the clients in a
most straightforward way. According to this technique Uber offers various items and
administrations of the clients with the moderate and the sensible costs. Concerning this system
organization forestall the limits and the proposals to their obligated clients to acquire the interest
and fascination of enormous number of clients. With the assistance of this methodology
organization could upgrade their deals and benefit by acquiring the higher bit of leeway of the
opposition.
Cost leadership: It is the technique through which organization could focus on the clients in a
most straightforward way. According to this technique Uber offers various items and
administrations of the clients with the moderate and the sensible costs. Concerning this system

organization forestall the limits and the proposals to their obligated clients to acquire the interest
and fascination of enormous number of clients. With the assistance of this methodology
organization could upgrade their deals and benefit by acquiring the higher bit of leeway of the
opposition.
Differentiation: It is the system wherein Uber will give the new items and administrations to
their clients and attempt to separate their items when contrasted with level opponents and the
contenders. Consequently, in this Uber will actuates the ceaseless advancement and
improvement inside their items by which the interest of the clients will get increments.
Focus: The focus of Uber Company is upon the whole globe. They form the strategies in such a
manner that all classes or segments of people give satisfied with the ride. They put focus upon
both differentiation and low cost while deciding about their products and services offered to the
customers.
Bowman's strategic clock
This strategy or model helps an organisation in analysing its factors or resources that will
help them in differentiating from the competitors. There are various factors involved in it, these
are as follows:
Low cost and low worth added: The services which are provided by the company are very low
in cost but the value it provides to the customers is more than the prices paid by the customers.
•Low cost: The offers or the price set by the company is at very low price so that they can gain
competitive advantage through offering low prices to their customers.
•Hybrid: The Company focuses upon both differentiation and low cost as they aim to target all
kinds of customers so that they can increase their customer base.
•Differentiation: The Company gives various offers and different deals to the customers so that
they can differentiate themselves from other companies.
•Focused separation: As Uber Company operates at a global level, they also segments their
market according to the need and suitability so that they can give effective experience to the
customers separately.
•Risky high edges: The organisation is ready to face all the risk or the entire dynamic situation
they would be facing as they have all the resources which has the ability to surmount that risk.

•Monopoly evaluating: In monopoly evaluation, the company will examine the degree of
monopoly they have set in the market. Here monopoly refers in the terms of price offered by the
company to their customers.
•Loss of pieces of the overall industry: It is the condition wherein organization face the
misfortune in the serious market that has decreases its piece of the overall industry and market
esteem as well.
In this manner Uber utilizes the new and innovatory technique by which they could incite the
progressions and the development according to the mechanical advnace4ment that has been
produced on the lookout. Also, by this give the most novel and better items and administrations
to the clients that help to keep up the piece of the pie.
Strategic management plan
The strategic planning incorporates the various exercises that are suggested inside the
organization to acquire the high portion of benefit and more preferred position from the
opposition. The essential administration plan of Uber is as characterized underneath as:
Vision: Make the services of Company in such a manner that can deliver more comfortable and
luxury rides to the customers.
Mission: The mission of Uber is to expand their business at the areas or the regions where they
have not established yet.
Strategies: The Company, Uber, has made the plan to focus more on customers by providing
them the services which will make their experience more smooth and effective. They have tried
to bring advancements in their technology also.
Objectives: The objective of the company is to increase their sales by 7 % and then also expand
their business by 10%
Tactics: The Company has planned to achieve the target through increase in their marketing and
promotional activities. With the help of these more customers will get to know about the service
and offers that the company has to offer to them which results into the increase in their sales.
Product
The products which under company have to
offer to their customers may include
Uberauto, Uberbike, Ubermini and micro cars
and Uber premium cars.
Price The price which the company will offer to the
customer will be very reasonable and low as

compared with the other competitors.
Place The Uber will provide their services through
digital platform where the clients or the
customers will book their cabs and the driver
will automatically would reach to the
customer destination.
Promotion Majority of promotions will get performed
through the use of digital platform. The
promotion will get performed by the use of
social media marketing where the company
would get an opportunity to directly contact
with the customers or followers.
Implementation: In this Uberexecute the planned arrangement inside the organization and deal
with the assets by playing out the sufficient spending plan. They additionally utilize the key
presentation marker to ad lib the exhibition if the organization as from the future deals.
Evaluation: In this Uberwill assess the various methodologies and have a go at dealing with the
arrangement and actualizing the progressions according to the necessity.
CONCLUSION
It has been closed from the above report that by embracing the various systems
organization could attempt to improve their deals and benefit. In that organization should
proceed as PESTLE, partner's examination, SWOT and notwithstanding this VRIO examination
will likewise be directed that shows the assets and the capacities of the business. Finally,
Bowman methodology, watchman's nonexclusive system will be utilized to actualize the
essential arranging inside the business.
It has been closed from the above report that by embracing the various systems
organization could attempt to improve their deals and benefit. In that organization should
proceed as PESTLE, partner's examination, SWOT and notwithstanding this VRIO examination
will likewise be directed that shows the assets and the capacities of the business. Finally,
Bowman methodology, watchman's

REFERENCES
Books and Journals

REFERENCES
Books and Journals