Answer the following questions about the external and internal environment of Ub
ID: 389534 • Letter: A
Question
Answer the following questions about the external and internal environment of Uber and be certain to incorporate concepts discussed in the text while also incorporating external sources. 1) Is Uber a technology company or a transportation company? How does your classification affect each of the five forces of industry competition? 2) In Chapter 2, an important concept within an External Environmental Analysis consists of scanning the external environment for changes and trends. What change or trend do you foresee in Uber's future that could affect its competitiveness (positively or negatively)? What do you think its competitors might do? Why? 3) Chapter 3 discusses four criteria of sustainable competitive advantage. With respect to each criterion, do you think Uber can achieve or maintain sustainable competitive advantage? 4) How does Uber create value for customers in a manner that is superior to traditional taxi companies?
Explanation / Answer
Answer 1:
Uber is a transportation company that uses the latest technology to manage the travel / transportatio business. Our classification affect each of the five forces of industry competition as below
Threat of new entry/competitor: This classification states that the Uber is a competitor in the taxi transportation business and it competes in the global market for the taxi transportation business in which they are extending taxi service to people across the globe. So UBER creates the competition in the global market for the taxi business with the existing tasi service providers.
Threat of substitutor: The UBER is a kind os substitute entry in the market as it impatced many small small taxi business or single taxi owner or small taxi owner business across the globe. The UBER entry is amajor threat like substitues as it uses the online technology in the taxi service business, which has cretaed it like a substitutor.
Bargaining Power of customers: With the entry of UBER taxi business, it has provided platform for the custoemers to bargain with the taxi service providers as the UBER cost is lower compared to other taxi services.
Bargaining Power of suppliers: With the UBER taxi business, the service providers are getting good business opportunities, so that have created price reduction pressure on their exsiting taxi businesses
Industry Rivalry: The UBER taxi business impacted the industry rivalry as well in the market.