Uber: Driving Global Disruption Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Uber Driving Global Disruption Case Study Solution

Uber technologies is a developer of car-hailing smartphone app. The company has become five years old, but its growth and expansion is exemplary for the competitors because its revenues double almost after every six months. It has been operating in 130 major cities of 36 countries worldwide. Since, company has been facing major problems such as slowed growth, declining revenues due to the protest of cab drivers against Uber alleging that it has been playing monopoly by reducing costs and competing unfairly. So, it is recommended that company should maintain the current prices in market of both rural and urban areas, and ensure the safety and security of passengers, provide alternative service options. Meanwhile, major issue is the protest so it is recommended that Uber should hold discussion with those taxi/cab drivers and approach a conclusion that is in the best of interest for both companies. And if it is possible then both should form strategic partnership to increase the approach to customers with affordability, and maximum value creation with cost leadership strategy.

Introduction

Uber Technologies is a developer of car-hailing smartphone app. The company was financed by a mutual fund company Fidelity Investments. It secured around $1.2 billion funds. It was in the year 2014 just five years after its incorporation that company had successfully interrupted the market with its innovative ideas and involved the technology in its business. Uber was valued at $18.2 billion which made it one of the most successful and valuable private companies around the world.The company was almost doubling its revenues after every six months.

The smart technology is the major contributing factor for the success of the company.The company’s disruption is actually its smartphone application that connects the Uber management and Uber driver around the city.As the customer opens the app he hires a ride low priced as compared to other taxi or cab companies have been charging the passengers for decades. Another reason behind its success is passenger’s perception that Uber is extremely fair in charging fare all the time.The success of the company was one reward for innovation into ride industry because it enabled drivers around the city to locate their peers, passengers requesting for drive, and even customers are also able to notice the proximity of driver.

On the other hand, the company has been facing major problems such as the protest of cab drivers against Uber alleging that it has been playing monopoly by reducing costs and competing unfairly with them in the market.

Identification of Internal Strengths and Weaknesses

Internal Strengths

Uber has become one of the most trusted brands around the globe. Uber has become famous for its fabulous drivers, cars, and services and its low price strategy has worked well into the market because Uber brought the highest standard of services by benchmarking in the industry. It has a competitive advantage over the competitors due to its low price strategy, and advantage of being the first mover.

On the other hand, the internal strengths of the company have been contributed by the cashless system in which passenger has an account and has deposited money into his account.Over acquiring the service,the rider would automatically deduct the amount from passenger’s account.This leads to low operation costs, customer loyalty, verified drivers and cars along with standard level of services providing a safe and secure drive.The continuous monitoring of cars through GPS system until the passengers reach their destinations is also an internal strength of the company.

Internal Weaknesses

The idea of Uber Technologies is very innovative and disruptive as it combines the strengths of different people, gathers their resources, and utilizes them effectively to get best return on the assets, and the company gets attractive return. The role of technology is very important. The company’s major strength is technology, and it is also its major weakness because the technology is very dynamic, and it has trends into the market.

To some extent the technology is an internal weakness for the company. The technology used by the company is very simple and could be copied very easily by the competitors without any problem, so it is a major weakness that each competitor has a chance to be competitive. On the other hand, Uber and its drivers are almost away from each other and don’t have frequent communication that might create major problem for the company and open door to competitors to hire the Uber drivers.

Meanwhile, low level of communication has given low level of loyalty which also increases lack of real connection between Uber and its driver. Similarly, the business model of the Uber is unpredictable in the future as it is argued that technology is very dynamic that keeps changing frequently, and privacy concern into its application is also a major internal weakness that company has to take care of customer’s privacy.

Uber Driving Global Disruption Harvard Case Solution & Analysis

External Environment

PEST

Political

There are many factors that affect the company such as the regulatory authorities, government and state departments could have negative effect on the company over their announcements regarding any problem such as limiting the taxis, and number of drivers registered with Uber.It can be determined that there are many complications because, the authorities might also involve the company to further safety measures to harass it, and due to protest around the world, the airline companies, railway stations might not allow Uber drivers for pickup around the premises over the sympathy with other drivers.............................

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