Category: Uber

Introduction

The Boeing Company is a global-based organization that models, builds, and sells aircraft, rockets, rotary-wing airplanes, satellites, missiles, and telecommunications devices. Its inception dates back to 1916, when William Boeing established Aero Products Company following his development of a single-engine seaplane, the B&W, with the United States Navy major Conrad Westervelt (Nirino et al., 2021). Over the years, the corporation has undergone a series of strategic development, such as Vertol Companys purchase, then the leading producer of helicopters, which occurred in 1960 (Nirino et al., 2021). In the following years, in the 1970s, the American aircraft behemoth expanded its operations by diversifying into segments such as marine craft, energy production, transit systems, and agriculture (Dong et al., 2020). Today, the consortiums business units are divided into three significant groups: commercial airplanes, space and communications, and military aircraft (Dong et al., 2020). The corporation has developed to become one of the leading aircraft producers in the world, alongside Europes Airbus.

Uber Technologies is an American-based firm that offers a wide range of services such as food and package delivery, freight transportation, and ride-hailing. The establishment of this company occurred in 2009 when it was created as Ubercab by Garrett Camp and Travis Kalanick (Muller, 2020). The latter traded his Red Swoosh venture for approximately $19 million in 2007 (Muller, 2020). The idea for the creation of Uber originated from a simple concept when Camp and his acquaintances spent about eight hundred US dollars hiring a private driver; therefore, he developed an idea to minimize the cost of transportation (Muller, 2020). This paper compares and contrasts the financial information of Boeing and Uber by analyzing their balance sheets and operating margins to gain insight into the differences in their accounting practices.

Boeing Balance Sheet

Table 1 below illustrates the financial information associated with Boeings operations for the year ended 2020. During this financial year, the American aircraft maker recorded about $152.136 billion in total assets, accompanied by nearly $170.211 billion in aggregate liabilities (Nirino et al., 2021). From the information indicated in table 1, the corporations liquidity can be computed to analyze its ease of conversion to cash while using both current and quick ratios.

Table 1. Boeing Balance Sheet for the Year Ended 2020 (Boeing Reports Fourth-Quarter Results, 2021).

Current ratio = (Current assets/current liabilities)

Table 2. Current Ratio of Boeing (Boeing Reports Fourth-Quarter Results, 2021).

In Boeings case, its current ratio as of December 31^st, 2020, was 1.39. This metric suggests that if the corporation was requested to settle all its short-term debt, it could have done so. Generally, the whole S&P 500 has an average current ratio of approximately 1.20, implying that Boeing is in a better financial position than most multinational organizations in its industry (Nirino et al., 2021). As compared to Uber technologies current ratio of 1.44 (December 31^st, 2020), both companies are in an excellent financial position since their current assets are almost twice as many as the liabilities.

Quick ratio = (Current assets  inventory)  current liabilities

Table 3. Quick Ratio of Boeing (Boeing Reports Fourth-Quarter Results, 2021).

A quick ratio shows the number of assets that a company has available to cover its temporary obligations. Therefore, a quick ratio of above 1 indicates that a corporation is in an excellent financial position. However, in the case of Boeing, its quick ratio is 0.46 for the year ended 2020. It suggests that the aircraft maker does not have adequate liquid assets to settle its current liabilities.

Uber Balance Sheet

Table 4 below illustrates Ubers financial information for the year ended 2020. During this time, the American ride-hailing company recorded about $33.252 billion in total assets, accompanied by approximately $20.285 billion in aggregate liabilities (Muller, 2020). Therefore, Ubers quick and current ratio can be calculated to analyze its ability to settle its current debt obligations without relying on external financiers. Thus, the table below shows Ubers balance sheet for 2019 and 2020.

Table 4. Uber Balance Sheet (Uber Announces Results for Fourth Quarter and Full Year 2019, 2020; Uber Announces Results for Fourth Quarter and Full Year 2020, 2021).

Table 5. Current Ratio of Uber (Uber Announces Results for Fourth Quarter and Full Year 2019, 2020; Uber Announces Results for Fourth Quarter and Full Year 2020, 2021).

In Ubers case, its current ratio is computed by dividing the values of the current assets by the figures in the current liabilities section. Its current ratio equals 1.44 and 2.47 for the years 2020 and 2019. These values suggest the American ride-hailing company was in a financial position that allows to it settle its short-term obligations twice as much in 2019 than in 2020.

Operating Margin

A companys profitability is a significant metric that determines if a firm is performing well in its industry. Accountants use operating margin to measure the amount of profit a corporation generates on a unit of sales after settling the variable costs of manufacturing, such as wages and raw materials exclusive of interest or tax (Cokins, 2017). It is computed by dividing the values of operating income by revenue. In Boeings case, its trailing 12 months (TTM) revenue is about $58.16 billion and an operating income of approximately -$12.77 billion as of December 31^st, 2020 (Dong et al., 2020). In contrast, Ubers TTM revenue is about $11.14 billion and an operating income -$4.86 billion (Dong et al., 2020). Table 6 below shows a comparison of Boeing and Ubers operating income for the year ended 2020.

Table 6. Operating Margin.

Different industries have different operating margins based on multiple reasons. As such, most corporations prefer to record an operating margin of about 15% or higher. Managers want to see their organizations operating margin growing because it shows that they are managing their operating costs well and making more profits. Both the American companies above have negative values in their operating margin indicating their inability to control their costs.

Lessons Learnt

Both Boeing and Uber companies are operating in the United States, but they have different approaches. According to both companies liquidity ratios, their financial position can help the two settle their short-term obligations. However, since the companies operate in an oligopolistic market with its dominant competitor, Airbus, the American brand can incorporate several strategies to increase its liquidity ratios, such as managing its receivables and payables, cutting back specific costs, and opting for long-term financing. Moreover, both corporations have a negative operating margin, which indicates that they should consider reducing their costs. It is recommended that both companies should improve their revenue-generating activities such as boosting sales. Additionally, both of them can lower their operational costs, such as opting for alternative sources of raw materials.

Conclusion

This paper has analyzed the financial aspects of Boeing and Uber companies. The former is an American-based aircraft maker headquartered in Chicago, where it models, makes and sells airplanes. Generally, this company offers its target market products in various categories such as military airplanes, space and communications, and commercial aircraft. According to its liquidity ratios, this corporation should consider implementing some strategies of lowering its operational costs to improve its profitability. In contrast, Uber is an American consortium specializing in offering its customers ride-hailing services while also participating in food and package delivery, freight transportation, and several other benefits. The company has recorded a good financial performance, but it needs to improve its liquidity ratios by considering long-term financing also to boost its operating margin.

References

Boeing Reports Fourth-Quarter Results. (2021). Web.

Cokins, G. (2017). Strategic business management: From planning to performance. John Wiley & Sons.

Dong, Y., Skowronski, K., Song, S., Venkataraman, S., & Zou, F. (2020). Supply base innovation and firm financial performance.Journal of Operations Management, 66(78), 768796. Web.

Muller, E. (2020). Delimiting disruption: Why Uber is disruptive, but Airbnb is not.International Journal of Research in Marketing, 37(1), 4355. Web.

Nirino, N., Santoro, G., Miglietta, N., & Quaglia, R. (2021). Corporate controversies and companys financial performance: Exploring the moderating role of ESG practices.Technological Forecasting and Social Change, 162, 120341. Web.

Uber Announces Results for Fourth Quarter and Full Year 2019. (2020). Web.

Uber Announces Results for Fourth Quarter and Full Year 2020. (2021). Web.

Executive Summary

Uber Technologies Inc has come up with a unique business model in the transport sector that enables its users to access rental cars and taxis using mobile applications. This technological invention has enabled it to expand its products to all parts of the United States. As it seeks to expand its operations to the international market, this firm should be ready to overcome global market challenges.

Product Description

Uber Technologies Inc offers unique services in the transport industry. It has come up with a mobile application that allows users to request transport services using their smartphones. According to Mason and Reyes (2015), the business concept developed by Uber is exceptional. Car rental services have been in existence for a very long time. It is one of the oldest industries in the transport sector. People always know where to get a taxi whenever they need it. Some people even have specific phone numbers for taxi drivers so they can easily make a call whenever they need these services. However, Uber noticed that international visitors had problems accessing the taxis. This new app was meant to solve this problem. These visitors, and even the locals, can now locate rental cars that are nearest to them and request for the services in an online platform.

The new feature in this service is that clients do not have to look for the taxis physically, as was the case before. The new app allows them to identify cars that are available for hire and are conveniently located near them. They can also know the car models and the fee needed to hire them. For instance, one may need to hire a Mercedes Benz because of personal reasons. In the traditional model of this industry, this would be a great challenge. However, this firm has made it possible. Uber services satisfied the needs of people who want to rent cars in various parts of the United States. The model was originally designed to meet the needs of travelers who lack information about the right places to get cars they needed. However, the product became very popular among the local Americans, especially because it offers its clients a variety of products.

The product is suitable for people of different ages, gender, social status, or any other demographical groups. However, the most appropriate market segment for this product is the youths and young adults. The largest groups of people who use smartphones are youths and young adults, hence they were chosen as the appropriate target market. In terms of sales revenue and population, the target market is very large, especially if the firm expands its operations to the international market. Geographically, the target customers are found all over the country. The main advantage of this market segment is its psychographic and behavioral patterns when making purchasing decisions. Most of them are impulse buyers.

External Analysis

The macro-analysis of the services industry can be done by looking at factors such as the economy of the country that defines the purchasing power of the clients, emerging trends in the industry, among others. The United States has enjoyed economic stability since the end of 2008/2009 economic recession. This means that the purchasing power of the target audience is relatively high. The new trends where many people prefer hiring cars may also be considered favorable to this firm (Hall, 2006). The improved security is also very critical for the progress of this firm. The micro-analysis of the industry can be conducted using Porters Five Forces Model.

Bargaining power of suppliers

The bargaining power of suppliers is a major factor that may affect ability of this firm to achieve success. When suppliers have a stronger bargaining power, then they can set unfavorable terms for this firm. Uber relies on car hire companies as its main suppliers. It has developed a close relationship with these car hire companies to ensure that its clients needs are met. This close relationship with suppliers has enabled it to dictate most of the terms of trade between it and the companies offering the cars.

Bargaining power of the customers

According to Doole and Lowe (2008), bargaining power of the customers is another major factor that may affect competitiveness of a firm in the market. If the clients have a stronger bargaining power, then they can always ensure that they dictate terms of trade that is only favorable to them. Uber has not faced this challenge in the market. It has developed an effective business model where consumers have everything they need but little power to dictate the price. A client can get any car he wants through this app at the desired location, but their choices come with unique prices. It means that the bargaining power remains with the firm.

Threat of new entrants

The threat of new entrants may affect a firms ability to excel in the market. For Uber, this threat is real. Its business model is unique and it came at the right time. That is why the firm has been very successful since it came to the market. At the time the firm launched its services, there were no firms offering the same products in the market. However, new entrants have come to the market posing serious challenge to this firm. The biggest problem that this firm faces is that its business model is so easy to emulate. Firms have emulated the model in various parts of the world. This has eliminated the uniqueness of the business model. This firm is relying on the strength of its brand to manage the threat posed by new entrants.

Threat of substitutes

According to Gondek (2011), many firms are currently faced with the threat of substitute in various industries. The closer the substitutes are to the services of a given company, the greater the risk of stiff market competition. The service offered by Uber can be substituted by the traditional taxi services that many people are used to all over the world. Instead of using the app, one can easily walk down the street and pick a taxi without any stress. The threat of substitute is greater among the elderly who may not understand how to use the app. Moreover, they do not trust services offered in the online platforms. Targeting this market segment may offer this product prospect of growth in the market.

Industrys level of competitive rivalry

Frisman (2014) says that the level of industrys competitive rivalry is another factor of concern that a firm must consider when analyzing the market. Uber has identified a unique market niche within the transport sector. Instead of using the traditional models that people have been using in the past, it has come up with a new model that uses modern technology. However, the easy with which other market rivals can enter this niche has increased the level of competition in the market. In various parts of the world, businesspeople are now emulating the business model that was developed by Uber. Even in the United States, this firm faces stiff market competition from firms such as Lyft and Sidecar. The major strength of these two firms is that they have relatively large fleet of cars. However, their brand name is weaker than that of Uber.

Internal Analysis

Uber is currently expanding to other countries outside the United States. Conducting an internal analysis of the firm will make it possible to understand its ability to achieve success in the global market. Of interest will be the strengths and weaknesses of the brand and services it offers. The strength of this brand lies in its originality. According to Hill (2015), many Americans prefer brands considered to be original. They tend to believe that imitations cannot offer the same value and experience as the original products. This means that compared to other brands that have recently come to the market, Uber has a huge base of loyal customers who believe in its products. The brand is also known in the international markets. It means that international travelers who come to the United States on a tour or for any reason are likely to use this product.

The main weakness of the brand is that it is almost impossible to create unique experience for its clients that differ from that of competitors. The business model itself was unique, but once it has been imitated, it becomes almost impossible to come up with additional services that the firm can offer its clients. It may force the firm to become more innovative and find alternative means of delivering superior value or additional services to its clients. Another major weakness of this brand is its inability to attract the elderly. According to Grunewalder (2008), the number of elderly people in the United States is on the rise, and any successful firm should not ignore this segment. This brand should be redefined, including the services it offers, to enable it become more attractive to the elderly.

Marketing Mix Recommendations

Uber is very successful because of the business model it developed in the transport sector. Analysis of its marketing mix clearly shows that it is performing well in terms of the product and pricing elements. The product, although widely imitated, offers unique services to its customers. The popularity of this brand is a confirmation that its products meet the market expectations. The pricing has not been a major issue of concern based on the business model of this firm (Ferrell & Hartline, 2014). The place element is excellent because its products are always available to the clients at the places where they are needed. Clients do not have to travel far to have access to the services offered by the firm. The firm has performed fairly well in terms of promoting its brand and products in the international market. Uber has been very active in social media marketing as it seeks to promote its popularity among the target group. It has specifically been using Facebook, YouTube and Twitter to reach out to its clients. The management should consider the following marketing mix recommendations.

• Youths love trendy products. For this reason, the management of this firm should position the product as the latest fashion.
• The firm should rely on both social and mass media in its promotional campaigns to reach out to a larger audience.
• Promotional campaigns should emphasize on the superiority of the firms brand. It should emphasize on the originality of the business concept and the need for the clients to stick to this brand.
• The firm should reinvent its product to offer additional value to the clients. This will make it to be seen as a unique brand in the market.

References

Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. London: Cengage Learning.

Ferrell, O. C., & Hartline, M. D. (2014). Marketing strategy. Mason: South-Western Cengage Learning.

Frisman, P. (2014). Ubers on-demand car service. Hoboken: John Wiley & Sons Publishers.

Gondek, C. (2011). The product Ford Fiesta: A Marketing Analysis  Part I & Part II. Munchen: GRIN Verlag GmbH.

Grunewalder, A. (2008). Analysis of Nokias Corporate, business, and marketing strategies. Munchen: GRIN Verlag GmbH.

Hall, L. D. (2006). Brands and their companies: Consumer products and their manufacturers with addresses and phone numbers. Farmington Hills: Thomson Gale.

Hill, S. (2015). Raw deal: How the Uber economy and runaway capitalism are screwing American workers. New York: St. Martins Press.

Mason, H., & Reyes, M. I. (2015). Trend-driven innovation. Hoboken: John Wiley & Sons Publishers.

Background

Uber is a successful company in the field of ride-hailing, having businesses on a worldwide scale. It has recently expanded to include food delivery services, which are particularly lucrative during the pandemic. However, despite the strong positions, Uber experiences a number of issues, including incidents with drivers, and faces tough competition from Lyft and the traditional taxi business. One of the potential solutions is introducing a new niche service that would further separate the company from the competitors. This paper will use a SWOT analysis to identify Ubers internal and external factors and determine the best course of action.

SWOT Analysis

Strengths

The first focal point will be the companys strong aspects. They include worldwide brand recognition, pricing, market domination, the safety policy, the communication approach, and service satisfaction, and each of them will be discussed in detail below:

• Worldwide brand recognition. Uber operates in about 70 countries and covers more than 10,000 cities, with the US and Brazil being the top two clients (Uber, n.d.a). Additionally, it has managed to become synonymous with ridesharing even in such countries as the UK, where taxis are traditionally strong (Skok & Baker, 2018). Although the company had to partially abandon the Asian market at one point, its name remains recognizable, and the demand exists for Uber to reenter some regions (Anwar, 2018).
• Pricing. Uber is renowned for its low prices for customers, which are the result of decreased regulations imposed on drivers (Gabel, 2016). On the other hand, the policy of surge pricing during periods of high demand, when certain multiplies increase the fee, benefits the latter (Jiao, 2018).
• Market domination. As far as the US, Ubers biggest market, is concerned, it has a 68% share in rideshare, while the rest is occupied by Lyft (Yeo, 2021, para. 1). The company also dominates in the largest metropolitan areas, with the lowest percentage being 55 in Phoenix (Yeo, 2021, para. 4).
• The safety policy. Uber values riders and drivers safety, which is particularly evident during the COVID-19 pandemic when sanitizing protocols are being vigorously implemented (Uber, n.d.b). Furthermore, guidelines exist regarding a drivers background, emergency help, privacy, and cleanness (Uber, n.d.b).
• The communication approach. The digital nature makes Uber transparent through the rating system and real-time monitoring, enhancing the service and identifying inappropriately-behaving drivers (Liu et al., 2021). Difficult customers are also tracked, and more experienced operators can be assigned to them (Liu et al., 2021). Overall, the constant feedback ensures that both complaints and appreciative messages are heard, and the latter may boost a drivers morale.
• Service satisfaction. Customers appear to be generally satisfied with Uber, with the rating remaining above 4 (Siagian, 2020). Drivers also expressed a relatively high rate of satisfaction in 2018, compared to Lyft, although the situation could have changed (Shokoohyar, 2018).

Weaknesses

Despite Ubers strong brand and other advantages, the company is plagued by controversies and questionable decision, some of which will be highlighted below:

• Continuous scandals. Uber tends to be associated with alarming news concerning its drivers or passengers. The recent ones involve a murdered Uber Eats operator and a dispute with a passenger in the UK (Grimsditch, 2021; OKane, 2021). Such reports tarnish the businesss image and make potential customers seek alternatives.
• Dependency on drivers. The companys model makes it highly dependent on its employees, who do not share a common organizational culture, leading to unpredictable situations.
• Dependency on the Internet. Uber being application-based may be inconvenient for areas with an unstable connection or during disruptions, which causes fewer orders and increases potential cancelations.
• Questionable accessibility. Despite the pricing policy, Uber vehicles are rarely seen in low-income and women-dominated communities, and the minority client base is small (Jin et al., 2019).
• Financial losses. In 2020, the company suffered a major decrease in sales due to the pandemic (Yeo, 2021). It may take years for Uber to recover and restore them to the previous level.

Opportunities

The desperate situation did not only lead to negative consequences but introduced several opportunities on which the company can capitalize, and some of its long-term plans are also worth mentioning.

The growth of non-passenger services. Uber Eats met an unexpected success during the pandemic period, and the same is true for Uber Freight, although to a smaller degree (De Silva, 2021). Thus, introducing new services might be beneficial for the company.

Sustainability and unmanned cars. Uber eventually plans to make its vehicles exclusively electric, which will improve the environmental situation and draw the audience who shares the sentiment (Uber, n.d.c). The initiative is likely to be accompanied by automated controls, preventing issues and scandals associated with a drivers personality.

Further investments. Some countries, seeing Ubers success and convenience, may choose to invest in the company, which was the case with Japan (Anwar, 2018). It allows for a smoother establishment of local operations and makes the service feel welcome.

Threats

The competition with Lyft and local organizations endangers Ubers positions, and certain opportunities may be marred by challenges.

Local competitors. The company already had a failed venture in China, and other areas where Uber is barely present or non-existent may also choose to support national services (Anwar, 2018). Countries where taxis have been historically prominent may also be dissatisfied with its increasing share and install certain barriers to protect the established public transit (Skok & Baker, 2018).

The danger of unmanned vehicles. While automated vehicles can remove at least two of the underlined weaknesses, they present questionable accountability in case of accidents. However, by the time of their implementation, the legal ambiguity will probably have been clarified.

Lawsuits. Controversies continue leading to disputes to be settled at court, and they require financial investments, for which the company should be prepared, not to mention reputational losses.

The Suggested New Service

Considering the analysiss results, it would be prudent for the company to expand its services. One of the potential routes is delivering small and middle-sized non-edibles, which will be a natural evolution and an intermediate stage between Eats and Freights. It can also be used to gain traction in countries with Ubers minimal presence or intense competition, and the marketing efforts should be focused on the products safety. Some people might want to order both food and goods such as utensils, so combining the services seems a reasonable development. While not entirely safe from complaints, the driver-consumer mechanics are different, and external factors will be more prominent. Another aspect worth considering is accessibility, which should be more achievable with deliveries if the pricing policy is altered. Altogether, the company can thrive after introducing non-edible delivery and avoiding the existing pitfalls.

References

Anwar, S. T. (2018). Growing global in the sharing economy: Lessons from Uber and Airbnb. Global Business and Organizational Excellence, 37(6), 5968. Web.

De Silva, D. (2021). Why Uber was named a top pick for 2021 by Morgan Stanley. GuruFocus. Web.

Gabel, D. (2016). Uber and the persistence of market power. Journal of Economic Issues, 50(2), 527534. Web.

Grimsditch, L. (2021). Uber driver leaves woman locked out of house at 6am after refusing to return keys. Liverpool Echo. Web.

Jiao, J. (2018). Investigating Uber price surges during a special event in Austin, TX. Research in Transportation Business & Management, 29, 101-107. Web.

Jin, S. T., Kong, H., & Sui, D. Z. (2019). Uber, public transit, and urban transportation equity: A case study in New York City. The Professional Geographer, 71(2), 315-330. Web.

Liu, M., Brynjolfsson, E., & Dowlatabadi, J. (2021). Do digital platforms reduce moral hazard? The case of Uber and taxis. Management Science. Advance online publication. Web.

OKane, C. (2021). Teen girls charged with carjacking and murder in death of UberEats driver in Washington, D.C. CBS News. Web.

Shokoohyar, S. (2018). Ride-sharing platforms from drivers perspective: Evidence from Uber and Lyft drivers. International Journal of Data and Network Science, 2(4), 89-98. Web.

Siagian, V. (2020). Customer expectation and customer satisfaction: Reviewing service quality of Uber. JKBM (JURNAL KONSEP BISNIS DAN MANAJEMEN), 6(2), 209-217. Web.

Skok, W., & Baker, S. (2018). Evaluating the impact of Uber on Londons taxi service: A critical review of the literature. Knowledge and Process Management, 26(1), 3-9. Web.

Uber. (n.d.a). Cities.

Uber. (n.d.b). Safety.

Uber. (n.d.c). Sustainability.

Yeo, L. (2021). Uber vs. Lyft: Whos tops in the battle of U.S. rideshare companies. Second Measure. Web.

Introduction

Uber stands out as a remarkable company that relies on modern technologies to address peoples transportation needs. With its headquarters in San Francisco, this company has managed to command a market share of over 71 percent. It has developed a unique model that allows it to compete in various segments and countries. Its business model is characterized by unique attributes that make it profitable. This presentation gives a detailed analysis of the unique attributes defining Ubers business strategy.

Uber in South Africa

Uber is presently operating actively in South Africa. Interested drivers need to meet the outlined requirements before being permitted to have Uber accounts. These drivers need to follow key guidelines if they are to achieve their goals. Proper marketing initiatives have helped the organization attract more customers and achieve its business goals (Scheepers & Bogie, 2020). Despite some of the recorded challenges, Uber has the potential to continue performing optimally and overcoming competition from taxis in the country.

Ubers International Market

Being the pioneer of ridesharing apps, Uber was able to expand its business operations and invest in different markets. This trend has attracted an increasing number of competitors and challenges. Being a sector facing threats from new entries, Uber should be able to reenergize its efforts and focus on the best strategies to remain profitable. Some of the outstanding challenges include driver concerns, protests over poor working conditions, and rivalry from established taxi industries. A proper strategy would be essential if this company is to continue pursuing its goals.

Factors in Marketing Development: Technological Development

In South Africa and across the globe, Uber is constantly transforming its marketing approaches by embracing the idea of technology. For instance, it has been iterating its app to meet the changing demands of more clients. The company has been focusing on emerging regions and innovations that can meet the demands of more customers, including autonomous vehicles (Scheepers & Bogie, 2020). These measures will maximize its competitiveness and take it closer to its business aims.

Continuation: Trending in the Media

The use of social media is an evidence-based approach that has helped Uber become a trending organization. Followers and contributes present insights that can help improve organizational performance. The companys topmost leaders allow users to share their experiences and present additional insights for improving the implemented organizational model continuously.

Uber is one of the companies that identify key partners or stakeholders and engage them continuously to ensure that timely results are recorded. The top leadership considers their emerging needs and expectations. It prioritizes their needs and makes proper decisions that can ensure that the company remains competitive and sustainable. The company has adopted a superior model of engaging such partners in decision-making and strategy implementation processes (Henama & Sifolo, 2017). These measures have resulted in a superior business model that resonates with the changing demands and expectations of different customers in different regions.

Competitors

Ubers key competitors can be subdivided into these two groups: indirect and direct. The direct ones include firms that offer ridesharing apps in different countries. Taxi drivers relying on the traditional model continue to pose a unique challenge to this company. Companies operating in the wider technology sector are also focusing on autonomous cars to meet the demands of future customers. A reinvention is necessary if Uber is to minimize these challenges and eventually remain profitable in different parts of the world.

Conclusion

Uber is presently one of the leading ridesharing companies in the world today. Its business model has delivered timely outcomes in different parts of the world. The strategy to meet the demands of all stakeholders has helped improve organizational performance. A renewed focus aimed at tackling the challenge of the competition is necessary if Uber is to remain profitable in the future.

References

Henama, U. S., & Sifolo, P. P. S. (2017). Uber: The South Africa experience. African Journal of Hospitality, Tourism and Leisure, 6(2), 1-10. Web.

Pathak, P. (2017). A study on the business model adopted by Uber to disrupt the taxi industry. International Journal of Scientific & Engineering Research, 8(8), 191-206. Web.

Scheepers, C. B., & Bogie, J. (2020). Uber Sub-Saharan Africa: Contextual leadership for sustainable business model innovation during COVID-19. Emerald Emerging Markets Case Studies, 10(3). Web.

Yun, J. J., Zhao, X., Wu, J., Yi, J. C., Park, K., & Jung, W. (2020). Business model, open innovation, and sustainability in the car-sharing industryComparing three economies. Sustainability, 12(5), 1883-1905. Web.

Executive Summary

The marketing mix of Uber in the UAE market is based on the combination of marketing strategies that focus on product, promotion, place, and price. The approach to product is characterized by high quality and a wide variety of services. The price strategy, however, does not involve cost leadership, but the pricing is understandable to the customer. Uber is not currently present across the whole country, limiting its service only to Abu Dhabi and Dubai.

Promotion strategies are based on targeting separate segmented populations utilizing different media channels. Although the overall assessment of Ubers marketing strategy in UAE proves that it has been successful, several recommendations would help to maintain and improve the brands position. It is suggested to sustain the experiential marketing approach along with the development of a discount system and reaching other cities of the country.

Introduction

People in UAE cities are highly dependent on transportation due to the peculiarities of the urban environment, which includes wide highways, extensive metropolitan areas, and limited pedestrian infrastructure. Such cities as Abu Dhabi have complex public transport systems, including metro, tram, bus, and ferry services. Still, the majority of the local and visiting population prefers various methods of car travel such as a private or rented car, taxi, or car-sharing, which are also highly accessible due to low fuel costs. After coming to such an environment in UAE, Uber services quickly became popular successfully competing with a range of other companies.

Such advancements can be explained with a variety of marketing strategies. Baker (2016) defines two main elements of a brands success  the decision where to compete (target market choice) and the design of a corresponding marketing mix. The latter was first proposed by McCarthy and included four essential components (4 Ps): product, promotion, place, and price (Baker, 2016). The success of Uber in the UAE market is determined by effective marketing actions regarding each of the scopes with an emphasis on product quality and variety.

Body of Proposal

Uber Marketing Mix in the UAE

Product

Uber offers a variety of services under a single brand name that is mostly based on connecting customers and drivers via the mobile app. The services include ride-hailing, food delivery, car sharing, and carpooling. These services can be customized according to customers demand (ranging from UberX to UberBLACK) covering the groups of populations with different incomes. UberCHOPPER is a service available in Dubai that offers a helicopter ride over the city.

Uber emphasizes the importance of quality of its services, which is achieved through strict requirements to drivers and their vehicles, a serious approach to training, and customer-friendly policies. Besides offering services of high quality, Uber uses a variety of features that make the product more attractive to customers, such as real-time details, scheduled rides, and split fares. The design of the apps is developed to enhance practicality. Such features as location determination, one-click payment, and real-time map make the app more user-friendly.

Place

Since entering the UAE market, Uber has been providing its services in the two largest cities of the country  Dubai and Abu Dhabi. Although these places offer the largest concentrations of people, including locals and foreigners, the coverage is the aspect in which Uber was losing to its major competitor Careem until the purchase of the latter. Uber is accessible through many channels, with the mobile app being the most popular and widely used.

Moreover, the company offers an application called Uber Lite that functions in the areas with low connectivity or when a customer has a limited storage memory on the phone. As Dubai is the city with a significant amount of foreign tourists and business visitors, Uber focuses on this population group to the maximum extent. That is why Uber has a specific location at Dubai International Airport, where the drivers can park, thus reducing waiting times.

Price

Although some of Uber products are unique, prices for ride-hailing can be compared with the traditional local taxi. Interestingly, taxi services in the UAE generally have lower tariffs, despite being less popular. Several factors allow Uber to put higher prices and still compete successfully in the UAE market. First of all, foreigners are already familiar with the brand, which increases their reliance on it. Secondly, the price for a particular ride is fixed right after the booking, and traffic jams cannot influence it, which is a critical factor both in Dubai and Abu Dhabi. Moreover, while launching in the country, Uber introduced a price penetration strategy, artificially lowering prices to attract new customers. It should be noted that Uber uses the system of surge pricing when tariffs vary according to the demand.

Promotion

Uber promotes its products through various media channels in the UAE. Although traditional media advertising is present in the companys strategy, the majority of it is spread throughout various social media platforms and in-app advertisement targeting more specific audiences. Some percentage of rides are distributed through sales promotions that motivate competitors customers to switch to Uber. Another feature of Uber promotion is the use of branded cars, which increases brand recognition and awareness.

Uber Marketing Strategies in the UAE

Marketing strategy is a crucial aspect of business success in the free market, which can be described as a game plan for winning customers. Wensley (2016) summarizes the concept of marketing strategy as the set of actions designed to recognize and achieve an economic advantage that endures (p. 75). The approach of a particular business is reflected in the marketing mix of a brand, and the emphasis on its specific components.

The three strategies

The theory about the three marketing strategies categorizes the approaches businesses use to achieve a competitive advantage. Wesley (2016) presents Porters classification of strategies that include cost leadership, focus leadership, and differentiation leadership. Interestingly, Porter assumed that only one of the three approaches could be used by one company, but modern scholars argue the possibility of utilizing hybrid strategies (Wensley, 2016). Cost leadership implies providing the services at lower prices than the competitors do and thus, winning the advantage. Differentiation is based on the development of a complex system of products and services that aim at reaching maximum coverage. On the contrary, the focus strategy emphasizes the importance of accessing niche customers.

The case of Uber in UAE, as well as in the global market, cannot be described by the focus strategy, as the company strives to maximize coverage. Contrariwise, the variety of products, features, and price ranges proves that the company bases its marketing strategy on the principle of differentiation. Uber combines this strategy with cost leadership in many countries where traditional taxi services are more expensive, but the UAE market is an exception.

STP in marketing strategy

Another approach to marketing theory suggests that segmentation, targeting, and positioning (so-called STP) are the key elements of competition. According to Schlegelmilch (2018), segmentation of the market is the initial step of the strategy that implies the division of a population into narrowly targeted groups based on their geography, income, age, or lifestyle. Segmentation is an essential part of the differentiation strategy for Uber as it helps to develop various features to target different groups of consumers.

This approach is also used in the promotion process as these customer groups are accessed via different channels. The positioning of Uber in UAE creates a defined image of a brand that meets the various needs of customers. The key strengths identified by the company are variability, comfort, and mobility.

Experiential marketing strategy

The discussed above theories explain the main approaches to winning consumers in the market, but retaining existing customers helps to save costs on promotion. Experiential marketing, according to Zhang and Xu (2018), is a successful business model where experience is everything and innovators& are sparing no effort to make customer experience as a company long-term competitive advantage (p. 888).

Such an approach is the key to getting a stable source of profit, so it became a recent trend, especially in a shared economy. The planning is based on the psychology of consumers aimed at pleasing their needs and providing a pleasant personal experience. Such an approach requires continuous research of customers shifting preferences, which became possible with modern technologies that gather the various types of data on consumer behavior.

Such a strategy emphasizes product as the most essential of four Ps. Place, price, and promotion help to attract the customers, but products and services that provide pleasant experience make them stay. To retain customers, Uber has developed a service that is comfortable, easy, and understandable in use. Moreover, the company controls the quality of the services provided by the drivers by strict selection standards and complex training. Another feature that has become popular in a shared economy is online feedback that establishes contact with customers, helps to learn about their preferences, and motivates drivers to keep the proper level of service quality.

Assessment and Recommendations for Uber Marketing Mix in the UAE

In general, the marketing strategy of Uber in the UAE market relies on providing a wide variety of services for people from different income groups. Despite higher prices than offered by traditional taxis, people tend to choose Uber for its user-friendly features and high quality. As a representative of a shared economy, Uber focuses on the experiential marketing strategy that helps to keep customers. Morgan, Whitler, Feng, and Chari (2018) emphasize the role of customer centricity and engagement as a key trend in modern marketing (p. 4). That is why the recommendations for Uber include focusing on this approach.

Product

Product variety and quality is the most developed aspect of Uber marketing strategy that can be explained by the emphasis on consumer experience. The range of products in Abu Dhabi and Dubai includes such services as UberCHOPPER or UberOne, which are rare in many other places. The key recommendation for the brand is to continue to study consumers demand in order to introduce new services on time. The most effective approach to such research is the use of digital technologies that help to collect and analyze data on consumer behaviors and preferences on various platforms, such as Google search or social media.

Place

The coverage of Uber services in UAE is limited to Abu Dhabi and Dubai, although such large cities as Al Ain or Ajman have a significant demand for such services. It should be mentioned that in those cities where Uber operates, the accessibility to the services is its considerable competitive advantage. The need for rides is generally satisfied with short waiting times and the specific Uber spots like the one at Dubai International Airport. It is recommended to add more locations across the country to increase coverage and brand awareness. However, with the latest purchase of its competitor Careem, it may be unlikely that Uber will reach those markets.

Price

Although Uber used a price penetration strategy to enter the UAE market, cost leadership is not fundamental to the companys marketing strategy. Uber uses a variety of payment methods, including cash, which is popular in this region, to give the customers maximum flexibility. The services also offer the opportunity to split the fare or provide tips to the driver. Although there is the VIP status that is assigned to loyal customers who take ten or more rides a month, not everyone knows about it. Promotion focused on the benefits and discounts available in this status would motivate people to take more trips to reach it.

Promotion

The promotion strategy of Uber is based on modern trends such as digital marketing technologies, search engine optimization, and blogging. It is recommended to continue working with influencers who create content that targets their audience. In addition to experiential strategy, customers can be attracted to make return purchases through sales promotions, notifications with updates, and news. The emphasis on cooperation with large businesses that would use Uber for their commercial purposes would provide a stable and loyal customer group.

Summary and Conclusion

Unlike in many countries, Uber faced significant competition after entering the UAE market. However, the companys marketing strategy oriented on product quality and variety proved to be successful and gave a competitive advantage. Experiential marketing helps to retain loyal customers along with acquiring the new ones. Differentiation strategy and proper market segmentation allow Uber to compete with companies that offer lower prices. When assisted with digital marketing techniques and social media presence, Uber maximizes its reach to customers in the UAE.

References

Baker, M. J. (2016). The marketing mix. In M. J. Baker & S. Hart (Eds.), The marketing book (pp. 247-259). London, UK: Routledge.

Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2018). Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), 4-29. Web.

Schlegelmilch, B. B. (2018). Global marketing strategy An executive digest. Cham, Switzerland: Springer International Publishing.

Wensley, R. (2016). The basics of marketing strategy. In M. J. Baker & S. Hart (Eds.), The marketing book (pp. 75-107). London, UK: Routledge.

Zhang, H., & Xu, J. (2018). Research on design strategy of experience marketing in shared economy. 2018 IEEE International Conference on Applied System Invention (ICASI), 888-891. Web.

Introduction

Over the decades, Uber emerged as one of the controversial corporate entities that prominently influence the effect of corporate social responsibility (CSR). Despite its leading position in the transport and logistic industry globally, researchers argue that there is a poor performance record on efficacy levels based on CSR activities (van Eck & Nemusimbori, 2018). In a study, Dudovskiy (2021) indicates that the lack of CSR initiatives led to the loss of the companys operating license in London. As a result, the managerial team developed dynamic approaches promoting sustainability across the multidimensional spectrum. The incorporation of sustainable CSR projects is attributed to the institutions alteration of the organizational culture, public perception, and relation with the contractors. Since Uber has a few inefficiencies regarding its CSR, specific practices can help improve the organizations performance in this sphere.

Main body

To begin with, one should clarify what CSR specifically denotes. This term represents a management approach stipulating that organizations incorporate social and environmental values into their operations (Stobierski, 2021). For example, businesses are concerned with eco-efficiency, pollution reduction, philanthropic activities, and fair relationships with stakeholders. Companies should follow these requirements because they are believed to have sufficient resources to improve the quality of life for the community.

Now, it is reasonable to identify specific examples that can demonstrate that Uber has problems regarding its CSR. Even though Uber (n.d.) has a special page on its official website to highlight its CSR practices, an analysis of third-party sources proves the opposite. The organization is one of the international companies with a significant percentage of employees across different countries. The workers primarily rely on the Internet for marketability hence the promptness to adhere to an aggressive sales culture. Despite acquiring a competitive market position, Uber faces a prominent challenge concerning developing a dysfunctional organizational culture (Jeon, Lee & Jeong, 2020). Poor networking among the counterparts compromises the quality of service rendered. As a result, it is crucial to assess the abound efficiency scale of Ubers working environment indicators relative to the laborers welfare. This information demonstrates that the business fails to meet its CSR regarding its employees.

Uber primarily sells the transportation service to the population at a price determined by timeliness during the travel. At the companys onset, the aggressive sales approach was an efficient strategy to intensify the optimal customer service portfolio. However, Lyft, as one of the competitors, poses a significant threat to Uber due to the dynamism in the delivery process. While Uber prioritizes enterprise profitability, Lyft focuses on establishing a teamwork-oriented corporate culture. Lyfts strategy renders an optimal mark to the customer satisfaction index than Uber due to the high-quality consumer service experience. In 2017, an Uber employee confessed to sexual harassment while working while the administration indicated a concern for the rise in the number of laborers suicides around New York City (Jeon et al., 2020). The distinct issues contribute to bad press for the firm based on the intensified flow of information locally and internationally.

Particular economic aspects have also highlighted the CSR issues of Uber. The researchers indicate that Uber insisted that it operates as a technology organization while the drivers are independent contractors (van Eck & Nemusimbori, 2018). However, Barbara Berwick contested the relationship establishing that she operated as an Uber employee. In this case, it is crucial for the company to reimburse the costs incurred during operations. In a different approach, Uber faces another hurdle that involves the employment taxation rate. Currently, the company incurs minimal employment taxation costs, while the legal clause enhances the business profitability margin at the expense of workers well-being. Thus, the Uber business model is an evolutionary scale concerning the importance of adjusting regulations based on employee-employer relationships.

Since the essay has located a few examples demonstrating that Uber is not behaving as it should, it is reasonable to find an explanation of these processes. Some organizations engage in poor CSR practices because this approach requires more economic resources. Thus, businesses want to retain more profits, which makes them save money on promoting social, environmental, or other values. Other companies face CSR issues because they do not understand the importance of engaging in this behavior. These organizations fail to comprehend that environmental or philanthropic activities can improve the brand image that, in turn, can promote sales and revenues. Often, it is impossible to identify a single factor that leads to CSR problems, which denotes that a combination of various phenomena leads to this negative state of affairs. That is why it is possible to suggest that Uber suffers from the stipulated issues because of economic motifs and insufficient understanding of how effective CSR practices are.

The information above demonstrates that it is necessary to take specific steps to improve Ubers CSR. Firstly, it is possible to make business processes more transparent for all stakeholders (Lu et al., 2019). This decision will prove that Uber is sure that it relies on credible and reliable practices. Secondly, economic investments can be an effective intervention because specific awards, subsidies, and training programs can promote CSR values (Lu et al., 2019). For example, Uber can invest in specific initiatives and programs to improve living conditions in the community. Thirdly, the organization can use its informative resources to promote some environmental, philanthropic, and other social values among its stakeholders (Lu et al., 2019). Finally, Uber managers can do research to find a company that is famous for its effective CSR strategy. This information denotes that the given organization can borrow an effective approach to achieve positive outcomes.

Conclusion

In conclusion, the essay has demonstrated that Uber has experienced many issues in its corporate social responsibility sphere. Examples include a dysfunctional organizational culture, improper employee behaviors toward clients, and maximizing the companys profits at the expense of workers well-being. Numerous factors can explain why these practices exist, which denotes that no single problem leads to corporate social responsibility issues. That is why it is possible to rely on different activities to solve the problem. Suitable interventions include making business practices transparent, relying on economic incentives, advertising appropriate values among stakeholders, and utilizing an existing strategy that has proven its effectiveness. Uber can utilize them to improve its performance in the corporate social responsibility area.

References

Dudovskiy, J. (2021, July 22). Uber CSR overview. Business Research Methodology.

Jeon, M. M., Lee, S., & Jeong, M. (2020). Perceived corporate social responsibility and customers behaviors in the ridesharing service industry. International Journal of Hospitality Management, 84, 1-10.

Lu, J., Ren, L., Lin, W., He, Y., & Streimikis, J. (2019). Policies to promote corporate social responsibility (CSR) and assessment of CSR impacts. Business Administration and Management, 22(1), 82-98.

Stobierski, T. (2021, April 8). Types of corporate social responsibility to be aware of. Harvard Business School.

Uber. (n.d.). 2021 ESG report. Retrieved July 25, 2022.

Van Eck, S., & Nemusimbori, N. E. (2018). Uber drivers: Sad to say, but not employees of Uber SA. THRHR, 81, 473-483.

Introduction

Nowadays, the taxi industry has been considerably improved and varied. There are many interesting options on how to satisfy customers, offer appropriate services, and gain a number of financial and organizational benefits. Though there may be certain challenges and mistakes in a decision-making process, taxi companies try to solve the problems in a short period of time and make sure employees and customers are satisfied with the conditions offered.

Uber is one of the well-known taxi companies around the whole globe. Its services can be offered in a number of the American cities, as well as in the European cities such as Rome, Minsk, Lisbon, Turin, etc. Uber is the company that offers a good work for drivers and high-quality services for passengers.

However, like any developing or developed company, Uber can be under a threat of some financial instabilities or organizational challenges. The current paper aims at analyzing Ubers current and potential future business issues, the factors that define the success of the company or may challenge it in different countries. In fact, the analysis of the Ubers financial perspectives is a good chance to understand different aspects of the international market and define the most appropriate solutions.

Current Business Issues

Uber is a young company. It was founded in 2009 by the Americans, Travis Kalanick and Garrett Camp (About Uber, 2015). However, during the last five years, the company has survived a number of conflicts, discussions, and evaluations. The current business issues are based on the experience gained from 2009 till today.

Being introduced as a private taxi company, Uber expanded its services from a city to a city. In 2012, Uber became an international company and offered its services for the citizens of Paris. Nowadays, Uber is available to people in 58 countries of different continents. The citizens of more than 300 cities worldwide are able to use the Ubers services any time they need.

The company is valued at about $50 billion (Higson, 2015). These indicators may tell a lot about the current situation of the company and make some predictions about its possible development. On the one hand, it is evident that customers are satisfied with the possibilities to have more convenient as the companys founders can open new departments in different parts of the world.

On the other hand, the information that can be found online proves that Uber faces a lot of challenges with other international and local taxi companies (Cheok, 2015). For example, French and Russian representatives admitted that Uber could not offer its services to the citizens without appropriate licenses.

In Germany, Belgium, and Spain, Uber has to solve many legal problems (Cheok, 2015). The Taiwan government identified the services of Uber as illegal. In fact, the current business affairs of the company under consideration are not as good and satisfactory as they are expected.

As a sprawling logistics company, Uber has already achieved a lot in the taxi industry (McAlone, 2015). Despite numerous misunderstandings and the necessity to prove its appropriateness and correctness, Uber has survived. Its current situation has good prospects. Its founders admit the justification of the attempts made during the last six years. Now, they enjoy and use the benefits Uber offers.

Potential Future Business Issues

Sometimes, it is hard to realize what to expect from such companies like Uber that have been developed within a short period of time and become successful at the international level. The evaluation of its potential future business issues is unpredictable. Still, it is possible to offer several ideas.

For example, one of its co-founders, Kalanick believes that Uber has all chances to spread its services in the way it can be more effective to be the Ubers passenger than to own a car (Shontell, 2015). In fact, the prospects described by the owners of the company and the abilities help to realize that the future of the company can be successful.

It is possible to provide people with taxi services for affordable prices around the whole world. Even the point that some people want to travel without drivers does not create a problem for the company. Kalanick thinks about the possibility to provide people with taxi services without chauffeurs (Shontell, 2015).

It is expected that people learn more about Uber and want to have such services available in their towns. It is possible for the company to think about the possibility to offer its services in small towns. The access to the Internet is possible in villages nowadays. That is why it should not cause a problem for a person to register and become a passenger of Uber within a short period of time. Still, the business issues that can be developed in the nearest future are connected with the possibility to have more countries and towns being involved.

It is also possible to have more benefits due to the possibility to offer diverse services of various qualities. Passengers with various incomes can use Uber. Another potential issue is the cooperation with huge international companies. The question of comfortable and appropriate transportation rises in a number of companies. Business people want to be sure in the services they order. That is why Uber can offer taxi for people as well as cargo transportation around the whole world.

Factors for Ubers Success in International Markets

The concepts of international marketing help to understand what skills should be developed, clarify what knowledge is necessary to work effectively, and make the decisions that can define the success of companies under analysis (Doole & Lowe, 2008). The factors that account for a success of the company in international markets can be defined on the basis of the companys strengths and opportunities. In other words, a part of the SWOT analysis of Uber should be done.

The main Ubers strength is its recognized brand. Many people from different countries have already known about the services offered by the company. They are eager to use them. Such recognition is the most crucial factor for future success. The possibility to create and follow the standards of service is another powerful aspect of international marketing.

Besides, there are not many competitors in the taxi industry on the international level. There are such organizations as Sidecar, Lyft, or Haxi that can compete with Uber. Still, its low-price policy is the strength that can hardly be overcome.

The list of benefits and opportunities for the company can be continued by its high investment ratings. People of different countries are eager to invest in the development of the company and earn benefits within a short period of time. As soon as financial support is clarified, it is possible to talk about the development of the services.

There are many old and young people, who want to know that even transportation services are credible when they try to get to a hospital, bank, or store. Uber has all chances to meet the needs and expectations of different people using its international popularity and credibility. A specially developed app help to find the necessary services within a short period and with few efforts spent.

Challenges to Expand Business in Other Countries

The challenges that can be dangerous for Uber while developing business in other countries can be identified with the help of another part of the SWOT analysis where weakness and threats can be clarified. For example, some cities and towns can discover that the company has faced a number of legal challenges. Some counties even call the company illegal. That is why the challenges of the past can become the challenges of the future.

At the same time, it is possible to admit the fact that the company has already solved many similar questions, and the success of the company is the best evidence of the quality of services offered. Besides, it is also necessary to underline the role of competitors in the taxi industry. It is not very difficult to create a company with the same services and challenge Uber. However, such factor as the companys brand and reputation should help to cope with this challenge.

Finally, the business model of the company is not as perfect as it should be. Drivers work independently using the base offered by Uber. Not many drivers can have a high salary. Even the ethical aspects of the cooperation between Uber and its drivers are not clear. Drivers dissatisfaction is the threat that should be considered by the company and solved in a short period. Ubers managers should not put the gained reputation in the first place. They have to pay more attention to the internal problems and concerns of the drivers.

As soon as Uber starts improving the internal challenges, the external challenges that can be identified while expanding business in various countries can be solved.

Conclusion

In general, the example offered by Uber can be used by many developing companies. Nowadays, it is not a difficult task to create an organization and introduce some new, unusual services. However, it is always challenging to gain a good reputation, prove the quality of the services, and create appropriate working conditions.

Uber is the company with a complicated history. Still, its founders had made something that was impossible: they survived sabotages, strikes, and discontents of the governments of different countries around the whole world. The necessity to provide people with good services at affordable prices is urgent nowadays. Not all people are able to use the quality they want. Uber opens new perspectives and possibilities.

However, its attempts to cooperate with big cities only are not enough to become one of the best. It is necessary to make more improvements and encourage changes. Drivers are eager to work at different places. Uber can provide drivers with jobs and citizens with transportation services. The factors for success and challenges discussed in the current paper show that Uber as all chances to succeed in international marketing. The only thing that the company has to do is to continue developing and thinking about its employees.

References

About Uber. (2015). Uber. Web.

Cheok, D. (2015). The current state of Ubers global challenges, mapped. Bloomberg Business. Web.

Doole, I. & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. London, UK: Cengage Learning EMEA.

Higson, C. (2015). The value of Uber. Forbes. Web.

McAlone, N. (2015). Heres how Uber got its start and grew to become the most valuable startup in the world. Business Insider. Web.

Shontell, A. (2015). Uber CEO explains his companys highly ambitious goal to end car ownership in the world. Business Insider. Web.

Chapter 9 Case Review

The problem addressed in the case study was the organizations adoption of a new SAP system. Versum continues using its IT infrastructure after being split from its parent firm (Laudon, 2021). However, the holding company quickly demanded that Versum converts to an autonomous IT structure within 18 to 24 months, which was a substantial hurdle, so management elected to continue with SAP software. As this was an organization-wide overhaul, the greatest obstacle was making the IT specialists learn a new digital scheme, which could not be accomplished quickly. Consequently, they chose to construct their new system using SAP S/4 HANA.

Versums decision to use SAP S/4 HANA was prudent. SAHA, the new SAP ERP system, was built by Versum Materials on a private cloud maintained by a web host inside its own data center (Laudon, 2021). This saved the company substantial money and managerial effort up front. The companys installing SAP S/4 HANA enabled it to simplify processes, save expenditures, and use real-time data. The business may now function independently as a specialist in materials.

During the implementation of the new system, Versum encountered various obstacles, particularly when converting data from the previous system (Laudon, 2021). The previous SAP ERP system had a different data structure than the latest SAP S/4HANA structure, which featured a new stratified Business Partner complex. Three rounds of data cleaning were required for Versum to collect enough accurate billing, address, and contact information. The business could now streamline its operations, control expenses, and use real-time information. The firm was now prepared to operate as a separate entity focusing on specialty materials.

Chapter 10 Case Review

An SAP system could add a competitive edge if Uber adopts it. Integration through an Uber Freight API, prompt and current pricing data can be tapped into, as well as the freight capacity in the national network. As a result, the freight tendering process would be changed to an intelligent process, creating opportunities for innovation from shippers.

Ubers competitive advantage in terms of competitive forces derives from its scale and network effects. As Uber expands, it becomes increasingly difficult for new competitors to enter the market. Ubers clientele is price and quality concerned. Price-conscious consumers want the best pricing across aggregator platforms, while quality-conscious clients want reliability, quick availability, and consistency. Cab drivers connect with service seekers through the platform for a part of the rides earnings. Around the world, these drivers negotiating potential is escalating as they unionize to establish consensus and pressure the organization to change the course of action. Uber confronts competition from companies with similar business strategies and sizes in each area. These players have created a network of riders, most of whom work for various organizations (Rosenblatt et al., 2017). In terms of the value chain, Ubers competitive advantage derives from its technological platform. Uber has an efficient technology platform that enables it to connect riders and drivers efficiently, which gives them an advantage over others.

Ubers business model is driven by technology. Uber has developed a successful business model by leveraging information technology to connect drivers and passengers and establish a ride-sharing marketplace. Uber has also developed an effective method for pricing rides and passenger safety thanks to advances in information technology. Only information technology makes this level of convenience and automation possible.

It is a positive disruptive force in the transportation industry because it connects passengers and drivers more efficiently than traditional methods, such as calling a taxi company, which can be less convenient (Schneider, 2017). It has provided a more convenient, affordable, and adaptable alternative to traditional taxis. Uber has also been disruptive in the regulatory environment, as the company has faced significant resistance from local and national governments regarding its business practices.

There are a variety of reasons why Uber is a viable business. First, it has adopted a dynamic pricing strategy based on the demand-supply economic principle. As demand increases, so does the price. This becomes advantageous for the business and the drivers. Second, Uber possesses a significant competitive advantage. It is difficult for competitors to duplicate the companys technological platform. Lastly, it has a large customer base and is accessible worldwide in many cities.

Chapter 11 Case Review

The viability of Uber is assured at the moment, but future trends will determine whether it would need t to restructure its strategy to remain relevant to customers. Uber Eats launched its automated vehicle technology in delivering food in the United States in September of 2022. Uber is expected to continue integrating automated cars in other sectors of their business to remain in business; however, drivers would have to lose their jobs. Despite improved overall efficiency, safety, and convenience, automated vehicle technology presents ethical and social issues that people would have to contend with.

Advantages

Due to 360-degree vision, networked cars, and continual contact, disaster will be drastically minimized. Although accidents will not be eliminated, they will be far less frequent than those caused by manual human driving (Abraham &Rabin, 2019). Since the vehicle will be automated and will need little human input to operate, even those with visual or auditory impairments will be able to get one. Their speed is expected to be slower in large cities, but their traffic performance will improve. Vehicle-to-vehicle (inter-vehicle) communication is a tool that can be used to coordinate platooning and prevent collisions. Vehicle-to-road management systems can deliver current local information on accessibility and traffic.

Disadvantages

The first issue is that, due to being constantly linked to the whole environment, data protection might become a cyber issue. Infrastructure for autonomous vehicles depends on 5G cellular service, which is still costly and may take an undefined timeline to implement (Yoo &Managi, 2021). Although significant work has been done in decreasing the cost of creating their tools, these reductions are insufficient to make them a financially feasible option for the typical household. People have been struggling with solving ethical dilemmas that come up while driving. These dilemmas cannot have any real solution even when self-driving cars are widely adopted.

Automated cars are set to make decisions as programmed by algorithms, which removes the possibility of being flexible depending on the situation. It would be preferred that accidents should occur naturally but not because algorithmic decisions predetermined it. Nonetheless, human error is expected to be more frequent than in automated systems. In another instance where the only options are ramming into a pedestrian or saving ones life, there is no valid answer in this scenario. Self-driving cars still cannot offer a solution to such challenging instances.

Yes, I would invest in the development and marketing of autonomous vehicles because they have the potential to transform the automotive industry. Automated vehicles have the potential to significantly decrease accidents and traffic congestion while simultaneously improving fuel economy. In addition, autonomous vehicles might deliver significant environmental advantages by decreasing emissions.

Chapter 12 Case Review

Among the core systems in self-driving cars are automated systems and algorithms, which significantly eliminate human error. The algorithms are programmed to estimate viewpoints and proximate cars blind spots to generate a map mimicking a birds eye view of the nearby environment. The generated map aids in detecting obstacles and in understanding how other automobiles move to accurately execute predetermined decisions without causing accidents. Machines learning algorithms allow automated systems to learn and apply these data in real time.

Using algorithms and automated systems for decision-making presents various issues. These systems are often opaque, making it difficult to comprehend how they make judgments. This might result in a lack of responsibility in the event of an error. In addition, these systems may be biased due to their training data or the algorithms design. This may result in the making of discriminating judgments. The systems may be fragile, meaning they might abruptly fail when presented with new information or circumstances (Cobbe, 2021). Some of these systems may be pretty sophisticated, making debugging them challenging.

Several distinct elements have contributed to the algorithms decision-making difficulty. The firm did not effectively supervise the development and release of the algorithm. (Binns, 20022) The second organizational problem is that the corporation lacked a clear plan or strategy for using the algorithm after it was created. Lastly, the technology may be obsolete or poorly matched to the job at hand, increasing the likelihood that the findings may be erroneous or prejudiced.

There is no proper response to this question; the answer depends on the context in which it is posed. Suppose, for instance, that automated systems are employed to make financial judgments. In such a scenario, there is a more significant chance of mistakes and misuse than when automated algorithms choose what website material to show. Before introducing automated decision-making systems, weighing their advantages and disadvantages is necessary.

References

Abraham, K. S., & Rabin, R. L. (2019). Automated vehicles and manufacturer responsibility for accidents. Virginia Law Review, 105(1). Web.

Binns, R. (2022). Human Judgment in algorithmic loops: Individual justice and automated decisionmaking. Regulation & Governance, 16(1). Web.

Cobbe, J., Lee, M. S. A., & Singh, J. (2021). Reviewable automated decision-making: A framework for accountable algorithmic systems. In Proceedings of the 2021 ACM Conference on Fairness, Accountability, and Transparency. Web.

Laudon, K. C., & Laudon, J. P. (2021). Management Information Systems (17th ed.). Pearson Education (US). Web.

Rosenblatt, A., Levy, K. E., Barocas, S., & Hwang, T. (2017). Discriminating tastes Ubers customer ratings as vehicles for workplace discrimination. Policy & Internet, 9(3). Web.

Schneider, H. (2017). Creative destruction and the sharing economy: Uber as disruptive innovation. Edward Elgar Publishing. Web.

Yoo, S., & Managi, S. (2021). To fully automate or not? Investigating demands and willingness to pay for autonomous vehicles based on automation levels. IATSS Research, 45(4). Web.

In my Module 2 innovation proposal, I wrote about Uber diversifying its application to allow scheduled pickups. Despite the implications regarding its potential success proving to be accurate, more thorough research uncovered that this idea was not new to the market (Kieu et al., 2020). Moreover, Uber itself has already adopted the scheduled pickup service provision (Srinivas et al., 2021). Consequently, there is a need for a new innovation proposal not covered in my previous brief.

Currently, several pieces of research have drawn my attention to the issue of traffic congestion and possible solutions for it. According to Afrin and Yodo (2020), traffic congestion is most commonly referred to as the state of traffic flow when the travel demand exceeds road capacity (p. 1). This issue belongs among other increasing concerns about energy consumption, greenhouse gas emissions, and road safety in the framework of so-called sustainable mobility (Li et al., 2021). As one of its facets, car-sharing practices have the most significant potential to address the mentioned problems. Shared car ownership reduces the overall number of cars involved in the traffic, implying less congestion and consequent air pollution (Li et al., 2021). In addition, the adoption of electric vehicles can further aid in sustainable car-sharing efforts.

With this in mind, my innovation proposal for Uber, Inc. would be to join among the first adopters of a sustainable mobility framework. This decision aligns with modern societal trends, which increases its future economic potential. In this context, in order to differentiate from competitors, Uber would have to make decisions not common in the market. According to Hill (2021), countries with totalitarian or authoritarian regimes that foster strong property rights and a market economy, such as China, serve as an appropriate places for innovation and economic growth. Meanwhile, according to Li et al. (2021), strong governmental control can, in many ways, boost the efficiency of car-sharing practices through access to driving and criminal records or personal credit systems. In light of these two notions, Uber can have a second chance in the Chinese transportation market if it attempts to cooperate with governmental institutions on car-sharing in particular and sustainable transportation initiatives as a whole.

References

Afrin, T., & Yodo, N. (2020). A survey of road traffic congestion measures towards a sustainable and resilient transportation system. Sustainability, 12(11), 1-23. Web.

Hill, C. W. L. (2021). International business: Competing in the global marketplace (13^th ed.). McGraw-Hill Education.

Kieu, L. M., Ou, Y., Truong, L. T., & Cai, C. (2020). A class-specific soft voting framework for customer booking prediction in on-demand transport. Transportation Research Part C: Emerging Technologies, 114, 377-390. Web.

Li, M., Zeng, Z., & Wang, Y. (2021). An innovative car sharing technological paradigm towards sustainable mobility. Journal of Cleaner Production, 288, 125626. Web.

Srinivas, R., Ankayarkanni, B., & Krishna, R. S. B. (2021). Uber related data analysis using machine learning. In 2021 5th International Conference on Intelligent Computing and Control Systems (ICICCS) (pp. 1148-1153). IEEE. Web.

Introduction

Despite promoting a favorable image, not all organizations always follow the basics of good behavior. The provided case study (CS) presents the situation of Uber protecting its employees who harassed other individuals working in the corporation. Although Uber made some changes after an independent investigation, the scandal resulted in financial losses and also caused problems for the business in retaining current clients and attracting new ones (della Cava, 2017). This project analyses sexual harassment alongside diversity and legislation in such major companies as Uber.

Diversity

Diversity is a crucial element within any organization and can provide many benefits. In their business case for diversity, Taylor Cox and Stacy Blake propose that businesses may obtain a competitive advantage by embracing diversity (OpenStax, 2021). Accordingly, changes to Ubers leadership team in hiring two senior female executives can be associated with several positive outcomes. First, diversity facilitates cost advantages by reducing potential expenses in lawsuit damages and lowering turnover fees (OpenStax, 2021). Second, diversity can influence resource acquisition by increasing the labor pool and hiring more quality employees represented by women and minorities (OpenStax, 2021). Third, diversity can elevate marketing efforts by gaining broad perspectives concerning consumer preferences and enhancing the organizations reputation, thus attracting new clients (OpenStax, 2021). Consequently, the adoption of diversity practices can help Uber save resources and stand out among other companies.

Furthermore, diversity among leaders, followed by higher acceptance of women and minorities among employees, can help staff members grow and be more efficient. According to Cox and Blakes business case, a culturally diverse work environment enables better interactions between individuals and promotes cognitive and system flexibility (OpenStax, 2021). Moreover, teams from diverse backgrounds generate more innovative ideas and produce a greater number of solutions to problems with a broader range of perspectives (OpenStax, 2021). Therefore, some positive outcomes related to changes to Ubers leadership team in terms of diversity are cost savings, resource acquisition, better marketing, flexibility, more efficient problem-solving, and creativity. Consequently, by realizing the listed benefits, companies like Uber may be more open to embracing diversity modifications among leaders and other employees.

Legislation

When opposing problems at Uber, Susan Fowler was protected under a form of federal legislation known as laws. Fowler (2017) states that at the time of the scandal, there were sexism and discrimination against women at Uber, such as the continuous undermining of Fowlers performance despite the evidence of many accomplishments. Accordingly, federal laws are also called acts, and the ones that apply to the situation are those that prohibit harassment and discrimination due to a persons sex (U.S. Senate, n.d.; OpenStax, 2021). In particular, discriminating against or harassing someone is illegal under Title VII of the Civil Rights Act of 1964 (OpenStax, 2021). Notably, harassment is also forbidden under ADEAD (Age Discrimination in Employment Act) of 1967 and the ADA (Americans with Disabilities Act) of 1990 (OpenStax, 2021). Consequently, Ubers conduct with Fowler is prohibited by anti-discrimination laws based on limiting an individual from filing a report or interfering with a persons performance (U.S. Equal Employment Opportunity Commission, n.d.). Fowler was protected under such federal laws as Title VII of the Civil Rights Act of 1964 for being harassed by a superior and then discriminated against by the employer.

Sexual Harassment

To prevent sexual harassment incidents such as those at Uber from happening in the first place, the company should have implemented strategies concentrating on the employer and employees discouraging such behavior. The first strategy should focus on Ubers upper management and human resources department creating a system that would oppose harassment. The company should regularly conduct assessments and climate surveys for the risk factors associated with the matter (Shaw et al., 2018). Consequently, the corporation should adopt and communicate anti-harassment policies and offer reporting procedures (Shaw et al., 2018). Finally, the business should ensure that individuals committing sexual harassment are promptly and appropriately disciplined (Shaw et al., 2018). The second strategy should aim at enabling employees to discourage harassment by utilizing bystander training. The approach focuses on building a sense of community where everyone is empowered to voice any undesirable incidents (Schulte, 2018). Bystander interventions begin before harassment occurs by normalizing non-threatening, informal conversations about conduct and how coworkers can help each other (Schulte, 2018). Uber should have put in place strategies that would have monitored the possibility of sexual harassment, with employees being encouraged to voice issues.

Furthermore, another strategy that Uber should have considered is diversifying staff members. Cases that center around sexual harassment emerge from workplace discrimination, which occurs when a person is treated unfairly (OpenStax, 2021). Moreover, harassment often happens to women working in male-dominated jobs, similar to the situation presented in the CS (Shaw et al., 2018). Accordingly, to prevent harassment in the first place, Uber should have utilized highly structured interviews to increase the possibility of employing more female specialists (OpenStax, 2021). The approach involves fifteen characteristics, such as job analysis and statistical prediction, and can assist in assuring fairness for all applicants (OpenStax, 2021). Consequently, a strategy that Uber should have put in place to prevent sexual harassment is hiring more women to diversify human assets and discourage workplace discrimination.

Classification of Workers

The new growing gig economy affects diversity and harassment by differentiating in classifying workers as employees and independent contractors (ICs). Gig-economy utilizes short-term, contracted workers for both skilled and unskilled positions and is affiliated with lawsuits brought by individuals seeking employee status (Walton & Brue, 2019). ICs are more likely to become victims of harassment because the group is often not protected by Title VII of the Civil Rights Act of 1964 (Walton & Brue, 2019). As a result, because ICs may not be shielded by legislation that punishes harassment, such persons may experience more discrimination than those legally classified as employees (Walton & Brue, 2019). Consequently, discrimination is interconnected with diversity, and the latter cannot fully prosper in the presence of the former (OpenStax, 2021). Therefore, under the scope of the gig economy, diversity improves when workers are legally classified as employees, whereas harassment increases when people are seen as independent contractors.

Conclusion

To summarize, the analysis in this paper concentrated on diversity, sexual harassment, and legislation based on the example of Uber. Victims of sexual harassment are protected under Title VII of the Civil Rights Act of 1964 and other similar laws. However, many situations require workers to be legally classified as employees to be shielded by legislation. For companies to prevent harassment incidents from happening in the first place, organizations should consider such strategies as bystander training and highly structured interviews. Overall, the findings suggest that harassment can be addressed by diversity and that when teams embrace the latter, businesses can receive such positive outcomes as cost advantages.

References

della Cava, M. (2017). Uber has lost market share to Lyft during crisis. USA Today. Web.

Fowler, S. (2017). Reflecting on one very, very strange year at Uber. Susan Fowler. Web.

OpenStax. (2021). Principles of management. Rice University. Web.

Schulte, B. (2018). To combat harassment, more companies should try bystander training. Harvard Business Review, 31, 1-6.

Shaw, E., Hegewisch, A., & Hess, C. (2018). Sexual harassment and assault at work: Understanding the costs. Institute for Womens Policy Research, 376, 1-12.

U.S. Equal Employment Opportunity Commission. (n.d.). Harassment. EEOC. Web.

U.S. Senate. (n.d.). Laws and regulations. Senate. Web.

Walton, A. L., & Brue, K. L. (2019). Worker classification in the gig economy: Do businesses pass the test? Journal of Human Resources Education, 13(1), 1-22.