Management and Business Context (MGMT20144) Assessment 1 Name: Nathan Vikram Kumar Panuganti Student ID: 12048158 Lecturer: Dr Michael Burgess Tutor: Dr Michael Burgess Contents Introduction 1 Critical issues on UBER 2 SWOT analysis of UBER 3 Strengths 3 Weaknesses 4 Threats 4 Opportunities 4 Pestle analysis of UBER 5 Political 5 Economic 6 Social 6 Technological 6 Legal 7 Environmental 7 Porter’s five forces analysis 8 Threat of new entrant 8 Supplier bargaining power 9 Bargaining power of buyer 9 Threat of substitute 9 Rivalry with other companies 10 7s of framework for UBER 10 Strategic challenges 12 Conclusion 13 References 14 Introduction A taxicab is one of the ways of transportation in metropolises everywhere the world. The most important challenge that the taxicab industry is now facing the technological invention of ride-sharing applications. UBER function with a smartphone application to match the driver with demanding of consumers rides that will pick them there. The idea has founded the technology of UBER in the year of 2009. They using the technology to give customers what they need and when they need it. The idea of UBER is transporting supply and demanding for the ride and sending services together. UBER proposals and arrangement of ride services. Now UBER is present near 500 cities and near 70 countries around the world. Now UBER service is recognized in various countries. Source: http://www.belfasttelegraph.co.uk/incoming/article34374094.ece/ALTERNATES/h342/Uber_Belfast.jpg Critical issues on UBER The Corporation has a complete Privacy Package and borrowed a knowledgeable Managing Guidance for Privacy to make available the council and legal advice to the organization on privacy matters, Together with directing and managing the Confidentiality Program. The Program is sensibly designed to defend the privacy of Customer Data and address the risks related to the disclosure, use, and collection of Customer Data (Lovells, 2015). The Management Council for Confidentiality goes on with the implementation, enhancement, and design of the Confidentiality Program. The Business has recognized an appropriate quality at the top, with senior management emphasizing confidentiality in infrastructures to employees. The Company frequently measures the Confidentiality Program and is ongoing to advance controls and processes that state to privacy risks. Source: https://image.slidesharecdn.com/ubercasecomp-160108002800/95/uber-case-comp-5-638.jpg?cb=1452212986 SWOT analysis of UBER UBER is an advanced company. They have brilliantly links and technology in transportation business via its application. A SWOT analysis looks like the best decision, in this circumstance. SWOT will help to explore the Strengths, weaknesses, threats, and opportunities of a business. Strengths UBER is a well-recognized brand. It has standard service, great, certified cars, and drivers. The user of UBER black, they enjoy very standard service, they have the limitless fleet of cars, Regular Taxi facility protocols are not valid for UBER, and their drivers are not available for full times. Working cost is low and it depends on the communication of driver to the customer. UBER has no major challenger or competitor. They used without cash payment system. They select highly valued drivers and also they can track. UBER has many other options like how to getting a car quickly and easily (Lakshminarayanan, 2016). Weaknesses The knowledge can be easily copied. Presenting of the same product will not prevent for competition. The connection between drivers and UBER is just doubtful. It absences the actual connection. That’s why loyalty is probably between drivers and UBER is low. Similarly, there is no binding on company and customers (Vaněk, Mikoláš and Žváková, 2012). Vehicles opening cost is very high. But problem is that the earning of the drivers is low. This is the Very Random business model. Threats The drivers are not happy due to the low margins of incomes that can cause bad publicity. They face some problems with local establishments that can causes penalties. Price is reduced due to increasing competition. When the drivers joining and start their career it will depress them. This is the result of losing customer and income of UBER will decline (Lakshminarayanan, 2016). Opportunities Due to more waiting time and high price the customers are not pleased with the traditional cab. Taxi services are problematic and luxurious in some countries where it can eat new and big marketplaces (Composites industry gets SWOT analysis, 2001). Unavailable taxi service in the residential area where the market value gross. The Estimated of Arrival time will reduce with increasing UBER drivers. That’s why everyone like UBER. It will earn more money and it will profitable for drivers. Source: https://image.slidesharecdn.com/ubersbusinessmodelabii-ndohgodwin-151013113933-lva1-app6892/95/ubers-business-model-abiindoh-godwin-10-638.jpg?cb=1444736501 Pestle analysis of UBER Pestle denotes political, economic, social, technological, legal, and environment. Political The present political factors measured for UBER are as follows. These factors control the range to the government could effect on the certain business or the economy (Sekhonyane and Dugard, 2016). The Australian government may include new tax or responsibility due to complete income making structures of organizations might alteration. Tax policies, trade, tariffs, tax policies all are included in Political factors. On fiscal year government may charge and its effects on the environment of business. Government commercial license is required for opening a business. Laws of taxi industry is depended on the political conversation about minimum gross ("PESTEL: Increasing market demand opens", 2015). Economic These issues are bases of a performance on an economy that straight impacts a business and longtime effects (Schweinberger, Knowlton, Widlicki, & Gorelle, 2017). This disposable income high in Australia. Increasing rate of the economy will effect on price and services. Growing incomes in the business sector rising demand for private transport. Economic factors contain interest rates, rates of foreign exchange, inflation rate and economic growth (Cairns and Liston-Heyes, 1996). Social These factors measured the social atmosphere of the market, measurement factors like demographics, cultural trends, and analysis of the population. In cities, Population density is growing. In the urban area, transportation demand is increasing, and that's why people like UBER (Wen et al., 2017). Technological These factors relate to revolutions in technology that might be the affect the processes of the business and the business positively or unfavorably. It denotes to research, automation, growth and technological consciousness that a business process. Automobile productions effort on technologies for an extra maintainable vehicle. UBER use the mobile application and its help them to continue their process as well. Legal This factor denotes both internal sides and external sides. There are particular rules that effect on environment business in a particular country though there are particular though particular procedures that UBER maintain themselves. Legal inquiry takes into explanation both of angles and then conversations out the plans in light of legislations like safety, laws of customers, laws of an employee ("PESTEL: Increasing market demand opens", 2015). Environmental These factors denote all effect or are strong-minded by the nearby environment. Tendency goes towards with maintainable transportation and environment-friendly. Increasing demand for Hybrid and Electrical cars is rising the business of UBER. Source: https://image.slidesharecdn.com/ubergermany-150719205911-lva1-app6891/95/tactical-brand-marketing-plan-uber-munich-germany-14-638.jpg?cb=1437430428 Porter’s five forces analysis Source: https://image.slidesharecdn.com/uberfinalcenturygothicfont-150323091517-conversion-gate01/95/uber-strategy-15-638.jpg?cb=1445286727 Threat of new entrant • Lacks protection from the new firms which might enter this taxi business • UBER had to invest quite a big amount during initiation which the new entrant might do it in lesser amount. • The application provided at free cost to the customers can be switched at will (Schneider, 2015). Supplier bargaining power • Does not own a single vehicle in its fleet. • Depended highly on the partners and the drivers to run the company • The owners of the cars has the freedom to choose between the organization and its rival organization. • Suppliers plays a good role in the company’s performance. Bargaining power of buyer • Regular service is not always required • Can choose between UBER and the other rival companies • The customers are sensitive to price • The buyers has immense power which can limit the revenues. Threat of substitute • The industry of network transportation is a huge umbrella with many member organization • The number of competitors are so huge that UBER is barred from raising the service rates. • A slight increase of rates can lead to loss of customers to rivals • The threat of the substitutes is a huge threat for the company. Rivalry with other companies • Most of the companies operating in this sector are identical in operations and business model. • UBER has well established business network • It has huge number of capital investment. • The competitors are weaker forces in comparison to UBER’s network (Schneider, 2015). 7s of framework for UBER • Early adopter movement - Word of mouth marketing has been key for Uber's marketing system. The way the relationship at initially made it was by methods for looking out Silicon Valley movers and shakers and vivifying them to advocate for the brand. While diverse geeks are continually inspecting for new things and affiliations that change their ways of life, Uber also masterminded in on them by supporting events, giving first-time riders a free trial, and getting a hyper-close to framework that improvements shape with each new city the association enters (Wierenga, 2002). • Referrals: Early adopters have since could experience Uber's referral program to give associates free rides, while snatching credits themselves. This give money get money program gave youths a more strong inspiration to endeavor the affiliation. It's been immensely beneficial both for Uber and for certain super-fans, one of whom earned over $30,000 in referral credits. Drivers furthermore get referral moving strengths, along these lines making acquiring on both the customer and brief ace sides speedier and less inquiring. • Reviews: One enormous differentiator among Uber and standard taxis is that the transportation disruptor has rating structures for both drivers and voyagers. Drivers are apparently more induced by their examinations, since pioneers can't without an impressive measure of an expand find where they stand. In any case, the structure moves trust in Uber and better lead on the parts of both driver and voyager. • Stunts: Every time Uber dispatches another astonishing offer, get-togethers of millennials around the world cheer. Every so often the affiliation passes on little felines to working environments and specific conditions it grants travelers to ride with complimented entertainers like Diplo or Matt and Kim. These empowering amaze and delight technique work to please continuing customers, pass on positive buzz, and give Uber an unrivaled time and particularly sorted out picture, which is something it routinely needs strikingly with its enemy Lyft. • Affiliations: Uber has executed particular relationship to offer both first-time and holding on customers to take a ride. Certain Capital One charge card holders can get lessened rides, Starwood Hotels Preferred Guest people can secure cabin groups for each Uber trip they take, and Spotify customers can interface their profile to their Uber record to play their music while they ride. • A Loyalty Program: Not distinctive clients know it, yet Uber's marketing structure has joined an unwavering quality program for at any rate around two years now. Uber VIP is prohibitive to the all-inclusive community who are truly unflinching customers who have expected control 50 Uber rides. It seems like the central unmistakable favored perspective of the program is that VIPs have excellent access to the most befuddling assessed drivers. • An Omni-Channel Approach: The most fundamental piece of Uber's marketing thinking and its thing itself is its constant, multi-channel nature. In a dumbfounding Growth Hackers post, Sean Ellis, Everette Taylor, and Dylan la Com watch that "Uber set out to rethink the entire taxi thankfulness to make it persisting and magnificent paying little regard to what you look like at it. They didn't settle one a player in the structure, they dealt with the whole experience from adaptable hailing, obvious parts, better automobiles, to no tips and driver examinations (Wierenga, 2002). Strategic challenges UBER delivers the best way in dealing transportation. UBER developed an app which helps link drivers to riders. By using this app user’s decrease the pressure involved with getting good, retrieve revenue on stockpiling receipts is the concern on dependable drivers. Uber delivers its services in many areas internationally. All user can check sensibly through records of driving beside criminal records. The vehicles are verified through several steps previously they are accepted and join the team of UBER. All information recorded like price/kilometer, distance etc. with help of their application. UBER expressions some problems with his policy. Challenging on the minimum price can make unhappy to the drivers but it suitable fee for customers. In truth though, drivers can’t receive any income from customers (Schweinberger, Knowlton, Widlicki, & Gorelle, 2017).   Conclusion The taxi manufacturing’s revolution has not been existent in present year in advance technology. Perhaps Taxi Corporation offered medallions thought that the organization will remain forever in the competition or protection. The multi-medallion proprietors were too eventful viewing medallion values skyrocket to notification periods were varying. The taxi production became satisfied and the advance using of ride apps took the business storm. UBER’S huge success has presented that there is the underprovided market. Rather a revolution that has complete for-hire transport more effective. It does so by improving some of the invalid principles with taxis that speak to some of the instruction distresses sharing of a ride. Both ride-sharing and taxi made an argument that the providing transportation is unfair to them. In the end, the suggestion would agree on both units cohabit and their shared benefits would deliver a more effective for-hire market of transport.   References Azevedo, F., & Maciejewski, M. (2015). SOCIAL, ECONOMIC AND LEGAL CONSEQUENCES OF UBER AND SIMILAR TRANSPORTATION NETWORK COMPANIES (TNCs). DG IPOL Policy Department B - Structural And Cohesion Policies. 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