Table of Contents
1.0 Analyse Uber’s internal and external environment
1.1External environment analysis.
Porter Five Forces Analysis.
1.2 Internal business environment analysis.
2.0 Identify the top 5 internal and external challenges facing Uber
3.0 Describe how Uber positions itself relative to its competitors.
4.0 Set suitable marketing objectives which will enable Uber to continue their growth in the UK – objectives should be SMART.
5.0 Evaluate Uber’s current marketing mix (4 P’s) and recommend how this could be improved over the next twelve months to achieve the marketing objectives.
Marketing mix evaluation and recommendation for Uber
6.0 Critically evaluate the role of one of the elements from Uber’s Extended Marketing Mix (People, Processes or Physical Evidence)
Evaluate the role of Uber People.
Uber is a mobile “app”, which is developed by Uber Technologies Inc. It started its business in 2011 and has been growing up. Uber is now providing services in more than 66 countries and 507 cities across the globe. In the UK, it is operating in 15 cities including London, Cardiff, Leicester, and Birmingham. More than 30,000 people download this app on their phones every week to order a car for the first time. Uber nowadays estimates about $50bn in revenue and expects to expand its business in wider marketplaces. Therefore, it is thinking to develop an effective marketing plan for the next twelve months.
This report develops a marketing plan for Uber for the next twelve months. First, this report has conducted an analysis of Uber’s internal and external environment. Second, it selects five key challenges faced by Uber. Third, Uber’s position is defined in the competitive market. Forth, the SMART marketing objects for Uber are set out for the next twelve months. Finally, the marketing mix (4Ps) evaluated and the Uber is recommended to improve these marketing
1.0 Analyse Uber’s internal and external environment
1.1External environment analysis
According to Kotler et al. (2014), a business’s external environment can be effectively analyzed using two key models: PESTLE Analysis, and Porter’s Five Forces Model. PESTLE means political, economic, social, technological, legal, and environmental. Porter’s Five Forces are customer bargaining power, supplier bargaining power, competitive rivalry, threats of new entrants, and threats of substitutes. These two tools are used as follows to analyze the external business environment of Uber:
The finding from PESTLE analysis discloses, Uber is now operating in more than 66 countries and 507 cities, where several countries have different rules and regulations. Thus, it faces several forces and legal and regulatory implications from these governments. For example, Uber must provide high taxes to the UK government. In addition, the political instability, political violence in many developing countries impact the Uber business negatively. Secondly, as Uber is operating in the global market, it faces issues related to the global economy. The volatile global economy, fiscal and monetary policies, and varying currency rates in different countries impact the performance of Uber. Thirdly, social changes mainly in increased education level, income level, demographic changes are promoting mainly the young generations to use Smartphone that is increasing the demand for using a mobile app like Uber. Fourthly, technological innovation and internet facilities are providing huge success to Uber.
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Fifthly, several legal issues may impact the business of Uber. Uber may face difficulties in dealing with consumer rights and expectations. Governments may take legal actions against Uber business because of issues raised by customers. For example, the German government bans Uber because proven complaints come from the customers. Finally, several environmental issues impact the business of Uber. In the increasing trend of climate change and global warming, every country expects vehicles and cars with lower emissions of greenhouse gases including CO2. Uber is offering a hybrid car which provides lower carbon and CO2 emission that brings the opportunity of its business. In addition, in bad weather, the demand for the car is increased which provide more revenue and profits.
Porter Five Forces Analysis
Finding from Porter Five Forces analysis discloses Uber faces a number of challenges. First, the supplier bargaining power of Uber is high because Uber does not have its own driver, Uber hires drivers from free-lanced. Second, customer bargaining power is also high because Uber is a mobile app and customers have alternative choices such as Hailo and Gett. Third, Uber faces intensive competitive rivalry because its competitors Gett and Hailo provide low-cost services and the competitors have their own drivers. Threats of substitutes are high because there are many substitutes like trains, black cabs, buses, etc. finally, Uber might face high threats from new entrants because it is easy for the new entrant to enter into a taxi service business. Any new entrants can enter by developing a simple mobile app and hiring drivers from freelance.
1.2 Internal business environment analysis
According to Kotler et al. (2014), a business’s internal environment can be analyzed using the SWOT analysis tool, where SWOT means strengths, weaknesses, opportunities, and threats.
Uber has a number of strengths. It has different alternatives for different customers. For example, for cheaper customers, Uber offers Uber POP and UberX cars and for quality customers, it offers Uber SUV and Uber Black Car. In addition, it has a global brand image and offers an easy, safe, trustworthy, and convenient way of traveling for consumers.
However, Uber has a number of weaknesses. The key weakness is Uber does not offer flat and predictable prices where its competitors do. In addition, Uber does not have its own driver’s and taxi license which may raise legal problems. Then, it does not serve in rural areas, where many of the competitors are doing.
Analyzing the opportunities of Uber, it has an opportunity to improve its services by introducing a fleet of a taxi to turn its revenue into profits. In addition, Uber can hire employees and train and develop them and can arrange taxi licenses, which will improve its customer satisfaction and protect it from legal issues.
However, there are some threats to Uber in the global market. The aggressive existing competitors and potential new entrants are giving a hard time to Uber. In addition, Uber is facing challenges from several competitors in the global market including France, Germany, England, and other countries raising the issue of tax rates, passenger safety, and underlying legislations……………