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Uber Strategic Management Practices

Uber – Riding With the Sharing Economy

Executive Summary

Uber is a local transportation and focused on the principles of the sharing economy so thatUber Strategic Management Practices company could be strengthened in the market, however, consumers viewed Uber as the private transportation because it is the catalyst if the using technology in the taxi industry. There are also several competitors of Uber in the market, thus, Mr. Kalanick’s focuses on the sharing cheaper assets at the larger scale with the customers so that there could be availability of care anytime for the customers, there are companies in the industry who are battling with each other and focuses on the city regulators. Sharing economy services providing the benefits to the customers because Uber is the “most loved and hated the player” in the speed of the service. Uber is charged with the criminal investigation through secret software because there were the issues with the high-profile of sexual harassment, the company was also charged with operating illegally and other issues with the transportation regulators. Therefore for the substantial growth in the market, the suggestions could be given to Uber so that effective strategic planning positions can provide the benefits to the company. Uber need to focus on the strategic practices so that there could maintain the position in the emerging market.

Strategic Focus

Uber need to maintain the position in the market through differentiation and effective strategies in the market, in order to stand out in the industry, from the crowd. Uber need to revise the social media campaign so that there could be 100% increase in profit through sharing economy and customer satisfaction should be there in order to ensure the brand image.

Environmental Scan

Opportunities to Create Value
Strategic Area: Opportunities to Create Value: Challenges to Create Value:


Distribution Strategy

Uber need to expand the cars in the larger and other smaller cities and the objectives need to be set for 1 or 2 years.

There is need to ease the entire Uber system example, the Uber app needs to focus on various platforms example, Windows etc.

There can be issues in smaller cities as drivers can be less in number, or people may be unaware of using the application.

If drivers wait time can be increased regarding various other apps because new applications will require time to learn.


Decision Sciences

Product Strategy


For the decision science, Uber should focus on the user-friendly app, as there should be the increase in efficiency and the number of cars.

The application that is designed need to provide the consistent services example, high valued and the high-quality services every time.

There can be challenges as customers may not understand the new application and they may call another taxi if drivers are late.

There could be issues in the services as when there is high traffic in a city.



In order to increase the customer’s level satisfaction, Uber need to focus on the pricing tactics so that there could be consistent services through sharing economy services.

The prices need to set exact so that transactions could be confirmed or same when customers reach.

Drivers of Uber can go in losses if the prices are not set exactly or efficiently, thus the rate of transportation also depends on the various locations.

However, there could be changing in the price of petrol or gas or there could be issues with the trip mileage overall rates may not be always satisfactory.





For the positioning Uber want to be at number 1 position, so that there could be overall better experience in the market and benefits could be maximum.

Uber need to provide the better personable experiences to the customers so that the feedback and overall position can be enhanced in a market.

There could be issues in customer’s experiences as customers sometimes do not guide or mention the exact locations.

Customers if face any problem, they can create the bad reputation of the company on the social media.


Marketing Communication

For the effective marketing strategies, the customers need to be given the much higher value than the common cab company.

The quality and services need to be best on demand or efficient as compared to the other car services application in the industry.

Higher value and challenges can be there when provided to the customers if there are the services for the business-people and the millennial example, a specific group can be the target.

The marketing team needs to present at the social media or telephone calls, so that customers could be satisfied if they face the issues. However, there could 24/7 presence issues.

Industry Dynamics

The framework of Porter’s Five Forces model analysis of Uber in industry

Threat of New Entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitute Products/Services

Rivalry Among Existing Firms

Environmental Scan Summary

Uber is the well-recognized brand in the market, as the company has the high standard of service; through the environmental scanning, it is known that the company has the competitors in the market, as the biggest competitor is Lyft. Through the analysis of the case study Uber is focused on creating the sharing economy services so that there could be better advantages for the company, as the there is loyalty in Uber services and the company is earning low-profit margins because the bad name created in the market, there are issues like fraud and scandals that exploits the opportunities example, sharing economy services through UberX in the market. Uber need to focus on the best and satisfied customer’s service. There are maximum players in the market and the customers could use another application if the results are not satisfactory for the consumers. Moreover, Uber can make the services much better because there are low treats of entrants in the market, as good image and good brand name is required, the company need to have the maximum resources in order to start the business like Uber, however, the bargaining power and the revelry among the industry is high.


            Uber for the maximum advantages need to focus on the market situations and the effective customer services, so that customer could get the trust on the brand. There could be various recommendations to the order regarding focused on the sharing economy service.


Focus on the specific target group, as higher values can be created, when provided to the customers if there are the services for the business-people and the millennial. In this way, customers feel special, these two groups are important in any city because they value services given to them and they have the awareness.

Benefits and Anticipated Results

If there is customer satisfaction in these two groups, then a company could get the better reputation and goodwill in the market and there could be maximum customers through giving free friends rides.

Action Steps
Action Steps Who When Outcome
1. Uber should focus on the goal and try to reach them, there could be new offers example, free rides after few rides. R&D By June 1st
2. Uber can do the partnership with the supply companies so that there could be better production for the preferred cities. Strategic Planning Department By July 1st
3. Uber need to launch the new social media campaign so that there could be brand awareness and customers get information of the new rides. Marketing Department By August 1st

There are issues in setting or showing the prices to the customers when they desire for the ride, as the prices need to set exact so that transactions could be confirmed or same when customers reach the designation.

Benefits and Anticipated Results

When the customers know that the company is loyal to them, as they charged the economic prices what they have shown to us, there can be benefits to Uber services.

Action Steps
Action Steps Who When Outcome
4. Uber can unveil the new applications or the sharing economy plans, as they can mention cities names or the prominent places, where there will be cheap fares. Strategic Planning Department By September


5. By displaying banners Uber can heavily promote the app for UberX or other sharing economy services. Thus, there is need of the active social media platform. Marketing Department By October


6. Uber can highlight the UberX and share economy services through social media campaigns and there should be referred a friend program. Strategic Planning Department By November 1st


June 1st (introduction) –July 1st (Need to set strategies) – August 1st (marketing targets of the marketing department) – September 1st (refining and better influence on strategies) – October 1st (Marketing campaigns and analysis) – November 1st (Strategies for friend programs).

Conclusion / Closing Comments

Uber need to strengthen its position in the market through the development of the sharing economy services and providing the benefits to the customers by substantial growth in the market. Effective actions steps and differentiation strategies need to be focused.

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