Uber SWOT Analysis Free Sample

Question: Discuss about the Uber SWOT Analysis and Creative Brief. Answer: Introduction Uber provides its services in more than 470 cities and 70 countries which made its value of US $51 Billion. It has more than 7 million users across the Globe. On one side people find Uber app very easy to use where there are other local government bodies, local taxi driver who are against of Uber thus in my assessment I have mentioned the SWOT analysis and other factors that affect working pattern and other business structure of Uber (Lakshminarayanan, 2016). Uber has been brought from a mobile app that would present the town cars to most highly esteemed start-up in the world. It has volume its mission by offering the rides on demand to reinvent the transport facilities. (Cheney, 2016). Following are the Contextual Factors that affect the business strategies and Structure of Uber in domestic market: License and Safety According to the Delhi Government, all the drivers of Uber must have to undergo though the Police Verification which means the driver should have a clear Good Moral Character certificate. Also the government has also mentioned to setup the call centre or web portal services with minimum of 200 taxi services which involves huge cost for Uber. All the taxis should be connected with the safety button connected with the nearest Police Station with GPS enables services. To set up all these services it involves cost and Manpower for Uber. Environmental Issues Supreme Court of India has issued the order to all the Taxi Companies to run only the CNG taxis instead of diesel or petrol in order to cut down the pollution. Which leads to ban of all the diesel car and it leads to strike of all the drivers because they bought the cars on big loan which they cant pay off and very difficult for them to survive their livelihood (Goitom, 2016). More Working Hour and no Social Security Uber driver has made complained that they are working more than their working hours and also the company has increased the commission charges from them which is very difficult for them to pay the car installments and also drivers are not getting any social protection like insurance, education or retirement policies as well. Thus, due to this reason most of the drivers refuse to buy their own car and decided to work for those who have got their own cars (Aneja, 2016). Cash Payment It was a big step taken by Uber for those people who dont have credit cards or those who dont want to pay off by debit card. Moreover uber engaged in getting more customers from Ola as uber has cut down the prices from 10 Rs per Km to 7 Rs per Km (Chakraborty, 2016). International Market Obstacles- Uber faces the obstacles in International Markets due to less use of credit cards, less penetration of Smart phones and poor infrastructure. For Eg. In India Acc. to RBI only 19.6 million credit cards are in use and only 18% people use the smart phone which leads to huge market loss as Uber uses only credit cards and also people who cant afford smart phones they are not aware of this Uber technology and its services (Dong, et.all, 2014). Following are the Contextual Factors that affect the business strategies and Structure of Uber in International market: Ridesharing Services In 2012 Uber started its Ridesharing services in Australia by providing its Uberblack services which only uses licensed hire cars. This ridesharing transportation services is new to Australian transportation market which helps the Uber to gain more customers and more profit. Ridesharing services has helped the uber customers by motivating by using more services in point- point transport market and also customers have seen the money difference as they chose the ridesharing from other point-to-point transport services (Deloitte, 2016). Rides in Advance With the pace of time and technology Uber has started by providing the facility to its users in USA, that the customers can easily book the cab almost to 30 min with 30 days in advance. Uber notification enables the user to see the if can is on the way and also if there is high price due to surge pricing and also give 5 minutes to the users to chancel the cab without any penalty if they find the prices are high, which helps the uber to gain much more better market than before (Alba, 2016). Competition in International Market Uber is continuously facing the direct completion with the local taxi driver and also with the similar cab companies. Sometimes this competition leads to the violence. For Eg. In Chine Uber is forced to use the car sharing apps which are controlled by the Alibaba Group. Also in 2014 in Paris angry taxi driver attacked the Uber cab which leads the nasty traffic jam of 240 KM. (Dong, et.all, 2014) Exploiting Regularly Gray Areas - Acc to law in California, black cars must be prearranged, where the taxi services can be availed on demand, but Ubers smart mobile application made the process of prearranged process such that it was efficiently on demand by making a difference between black car and taxi (Rayle and Flores, 2016). Following is the SWOT analysis of Uber to show the how it if affected by other competitors and also how uber uses its business structure and strategies to endorse itself. Strength Uber services is completely based on direct client to driver interaction, so the customers dont have to wait for taxies for so long, no safety issues as the drivers of uber have gone through the police verification. It offers the great transportation services at low prices in comparison to other local taxi drivers. It also enables the cashless payment facility to the customers. Customers can directly see the can status via mobile app rather than hopping on road to wait for taxies Weakness Sometimes Uber driver also made complaints that the company ask them to work for more than the normal working hours and sometimes company charge more commission from the drivers which leads them to less livelihood of the drivers and also the less loyalty between the uber driver and the company. Other transport companies also making the replica of the Uber app in order to come in the emerging transport market (Seagel, 2016). Opportunity Uber has made its business as a brand by fulfilling the on-demand car facility which provides the better user facility (Kalb, 2014). Now a days more and more people are working from home instead of going to office thus they order the food from the place in order to save time, in this way Uber rush helps them to deliver the parcel in less time (Rudolphtechteam, 2016). The large business expansion of Uber services provides its services to large population in rural areas so that the people in rural areas also dont have to wait for long time (Hausman, 2013). Threat Uber has been facing high opposition from the local taxi driver, local companies also by the companies (Kalb, 2014). Other car pooling mobile apps brings lots of tough competition to uber as the other quick rent services providing companies like IGO and Zipcar have huge potential to them (Hausman, 2013). Uber drivers are not happy because they have less profit margin thus they are not ready to work with Uber and also due to some government policies in Germany, the Government has banned Uber to operate its services in their Country. (Frue, at all, 2015). Recommendation To all its first user Uber always gives the discounts and free coupons like free rides, cash back offers and many other offers but in order to retain in the market and to get new customer uber should give the discount offers though out the year to retain more customers and to beat the competitors. Conclusion Uber is the most fast growing and leading brand in the world. The SWOT analysis of the Uber is incredible. Whereas Uber gives lots of its services all over the world on other hand its weakness makes the companies to suffer from lots of problem in their operation. Hopefully the company takes the wise decision in order to run its operations wisely in order to grow in future. Bibliography Alba,D. (2016, September 06).Uber is now letting Passengers Schedule Rides in Advance.The Wire. Retrieved April 13, 2017 fromhttps://www.wired.com/2016/06/uber-now-letting-passengers-schedule-rides-advance/ Aneja, U. (2016, December 02).Social Protection in the Age of Uber, The Wire. Retrieved April 13, 2017 fromhttps://thewire.in/83881/social-protection-uber-employment/ Chakraborty, S. (2016, July 08).Uber Vs Ola: The Battle fo dominance in India's Taxi Market. livemint.Retrieved April 13, 2017 fromhttps://www.livemint.com/Companies/okLbTyf5OtqKnO1roYBAeP/Uber-vs-Ola-the-battle-for-dominance-in-Indias-cab-market.html Cheney,C.(2016, August 05).What is Driving Uber's global Impact ?. Retrieved April 13, 2017 fromhttps://www.devex.com/news/what-is-driving-uber-s-global-impact-88419. Deloitte. (2016).Economic effects of ridesharing in Australia.Retrieved April 13, 2017 fromhttps://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte-au-economic-effects-ridesharing-australia-010216.pdf Dong, J., Filipovic, C., Leis, J., Petersen, E., Shrikhande, A. and Sudarshan, R. (2014, April).Uber: Driving Change in Transportation. Retrieved April 13, 2017 fromhttps://fletcher.tufts.edu/~/media/Fletcher/MIB/pdfs/B236%20Student%20Case%20Studies/Uber%202014.pdf Frue, K., Bush, T., Kaplan, T. and Makos, J. (2015, March 11).SWOT Analysis for Uber. Retrieved April 13, 2017 fromhttps://pestleanalysis.com/swot-analysis-for-uber/ Goitom, H. (2016, July 11).India's Regulatory Approach to Uber.Retrieved April 13, 2017 fromhttps://blogs.loc.gov/law/2016/07/indias-regulatory-approach-to-uber/ Uber Website, https://www.uber.com/cities?gclid=CKi6vcuexb0CFcyhOgodXCoAxg. Hausman, A. (2013, April 3).Uber: Imagine the Possiblities.Retrieved April 13, 2017 fromhttps://capitalistcreations.com/uber-a-great-startup-business-but-can-it-survive/ Kalb, I. (2014, August 31).How a Company can Ensure that It's Chasing the right market. Retrieved April 13, 2017 fromhttps://www.businessinsider.com/are-you-chasing-after-the-wrong-market-2014-8?IR=T Lakshminarayanan, V. (2016, June 23).Where lifestyle meets Logistics.Retrieved April 13, 2017 fromhttps://s3.amazonaws.com/coursera-uploads/peer-review/gmsPUNGEEeSHqyIAC1AQBw/ca1fbc66e90a0d117ae766438fbe21a4/Uber-Swot-Analysis-and-Recommendations-2016.pdf Rayle, L and Flores, O. (2016, April 16).The 3 Factors behind Uber and Lyft's regulatory in California.Retrieved April 13, 2017 from https://techcrunch.com/2016/04/17/the-3-factors-behind-uber-and-lyfts-regulatory-win-in-california/ Rudolphtechteam. (2016, December, 04).SWOT Analysis for Uber Rush.Retrieved April 13, 2017 fromhttps://rudolphtechteam.wordpress.com/2016/12/04/swot-analysis-for-uber-rush/ Seagle, H. (2016, May 16).Uber SWOT analysis and creative brief. Retrieved April 13, 2017 fromhttps://medium.com/@harrison_seagle/uber-swot-analysis-and-creative-brief-16c8aa752c92