ASSIGNMENT QUESTIONS Uber 1. How srung are the competitive forces in te support
ID: 425889 • Letter: A
Question
ASSIGNMENT QUESTIONS Uber 1. How srung are the competitive forces in te support your answer mork tplace? Do s ive-forces analysis to uber 2. What forces are driving change in the (movie rental) industry and are h corspetitive intensity driving forces likely to be favorable or unfaverable in term of their effecis o future industry profitability? Netlso Byolur Nethlix or Blockbuster? Why? (OMIT THIS ONE) strategic group map of this industry look like? Which company is best-positioned- ne a company's success in the (noivie a ntal) industry in the next 3-5 years? s) strategy? Which of the five generic competitive strategies discussed in Chapter 5 most 4. What key façtors will determine in the 5. What is (vete.' oscly fit the competitive approach that (Netflix) is taking? What type of competitive advantage is Netflix trying to achieve? 6. What does a SWOT analysis of Qi) reveal about the overall attractiveness of What is your appraisal of Ces) operating and financial performance based on the data in case t positives and negatives do you see ia Netflix's performance? e the financial i.l oi Chapter 4 as a guide ia doing the calculations needed to arrive at a analysis-based Exhibit: 2,3, and 4? What un your assess nent of Netflix's recent financial performance. 8. What soes a swWOT s.alysis of iiater)reveal bout the overall ttactiveness of its situation? 9. What is your appraisal of (Blockbuster's) performance as shown in case Exhibit 52 What pluses and needed to arrive at an analysis-based answer to your essessment of (Blockbuster's) recent performance. 10. How does (Noes) competitive strength compare against that of (Blockbuster?) Do n weighted minuses do you see? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing the calculations counpetitive strength assessment using the methodology presented in Table 4.4 of Chapter 4 to support your answer Does (Nestlix) have a sustainable competitive advantage over Blockbuster? Why or why not? 11. What 2-3 top priority issues does (Nllix) management need to address? What 2-3 top priority issues does Blockbuster management need to address? 12. What recommendations would you make to (Nex) CEO Reed Hastings? At a minimum, your recomme.dations should cover what to do about each of the top priority issues identified in question 11. 13. What recommendations would you make to (Bleckbuster CEO lames Keyes)? At a minimum, your recommendations should cover whnt to do about each of the top priority issues identified in question 11Explanation / Answer
Ride sharing business is on the rise as evident by the emergence of Uber, Lyft, DiDi, Ola etc. However we need to bear in mind that the porter five forces analysis is usually applicable to established industries. Ride sharing businesses are still at an infant stage and none of these companies are actually making net profit. Having said that, we cannot ignore the possibility of this industry becoming a major transportation player in the future.
Answer 1
If we apply the Porter’s five forces analysis in Uber we have to consider the following
Overall, the ride sharing market is extremely competitive for its illusion of low barrier to entry and commoditized product (everybody needs transportation). This also gives the customers the edge with higher bargaining power and reduces the profit margins of the companies. However, the only way Uber will be able to keep going is through economies of scale (small profit margin per unit but large customer base).
Answer 2
In order to determine the driving forces, we need to identify the driving forces that made ride sharing industry a popular success story and next determine the trends of these factors. The factors that have impacted the industry so far are
Overall the outlook for the ride sharing industry looks positive. The demands are increasing on a regular basis. Most likely this will continue until a completely different way of transportation arrives or is invented.