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SG6001-Review Of The Strategic Situation Of Uber Technologies INC

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  • Course Code: SG6001
  • University: University Of East London
  • Country: United Kingdom


Produce a review of the strategic situation of Uber technologies Inc., based on the provided material " Transformation of the taxi service industry: The Uber case study". 




The environment of the Uber Company is quite stable. It motivates and encourages its employees to set their personal strategies as well as goals. Currently, the company has brought in huge transformation for the taxi industry. The company has huge opportunities in the taxi-hire sector and introduced new and innovative products as well as services. Previously, in large cities, hailing a taxi to go somewhere was much difficult. However, with the inception of Uber cabs, such issues got eliminated. Nobody has to negotiate with the driver concerning fare or fumble around to find the right amount of money. Not only Uber cabs are highly reliable, but also it has managed to win the appreciation of many customers (Alter 2015).


The company has expanded its operations in London, Manchester, Liverpool and many other countries. On discussing about the company’s business environment, it is found that Uber promotes interactive sessions among the employees and their managers. This helps in understanding the issues as well as problems of the employees. They have also managed to make their promotional requirements specific and clear, in order to make the employees work, as per the guidelines. Uber Company ensures that their staff members and managers are well aware of the policy guidelines and norms. Moreover, it promotes safe as well as secured environment of working for the employees (Biggs 2015). The core vision of the company is to provide their customers with much convenient services.

The company has adopted several promotional strategies, in order to market their services. For industrial survival and success factors, the company has introduced various offers and discounts for its customers. Not only this, Uber has also played a major role in the shared economy and collaborative marketplace economy. The corporate social responsibility logic that is embedded in this shared ride economy is the reduction of car usage as well as its positive effects on the environment. In addition to this, the company’s management and human resource strategies are also commendable. It has contributed a lot to the company’s competitive advantage. Uber has a unique process of recruiting their employees. Not only they train their employees on a regular basis, but also they impart education on how to cater to the customers (Botsman and Rogers 2010).

On discussing about the inconsistency between the company’s internal factors, it is found out that Uber has some problems in the legal aspect. A court case is pending which is yet to determine whether its drivers are employees or contractors. Moreover, the internal factors which hamper the growth and progress of the business are; customer services, few less skilled workers, bossy seniors, ineffective communication between the employers and management, negative environment and others. The external factors include high competition as other cab services are also increasing on a daily basis, demands of the suppliers, customer services and many more (Bosnjak 2017). 


These factors have affected the business environment to a huge extent and marred the company’s brand image. Moreover, the company does not have a clear cost and differentiation advantage as the revenues rise at times that is the surge pricing strategy. In addition to this, the company charges fees on cancellation of any trip, toll fees and other per trip surge charges (Bloomberg 2015). According to leaked information, it is found that such disadvantageous factors have led to the reduction of efficiency in the services offered. Therefore, in such a competitive environment, the company needs to adopt more and more marketing strategies and promotional activities (Beetlestone 2012). Furthermore, Uber Company needs to keep a track of their target customers’ changing preferences. In addition to this, more and more training services must be introduced, so that the employees are able to serve their customers’ with the best of services.

Critical Appraisal of the Strategy

Resources & Capabilities

Is it valuable?

Is it rare?

Is it imitable?

Is it Non-substitutable?

Uber Company’s Financial resources





Brand Name





Technological resources





Consumer’s human resources





Figure: VRIN Framework

(Source: Created by Author)


To conclude, the company’s financial resources are valuable as it has made huge profits since the past few decades. According to the leaked documents, it is found that the company has made loads of revenue and has managed to gain huge media acclamation. However, it is not rare as its competitors have also made large profits and few losses. It is imitable as Uber Company has the capital as well as capacity to do so. Moreover, the capital is required for every action and so, it is non substitutable. The company has a valuable brand name, which is not at all rare, as its competitors too have a valuable and well recognized brand name. It is not imitable as other company’s cannot use the same brand name. It is substitutable as consumers can choose other brands too. The technological and human resources of the company are valuable. 



Alter, C. (2015). “UN Women Breaks Off Partnership with Uber”. Available at: Accessed 20 March 2016.

Beetlestone, I. (2012). “The history of London's black cabs”. Available at: Accessed 11 November 2015.

Biggs, J. (2015). "Uber Opening Robotics Research Facility in Pittsburgh To Build Self- Bosnjak D(2017) "Uber Publicizes Some 2016 Financials, Shows $6.5B In Revenue" accessed 1 Oct 2017

Bloomberg (2015). "Uber Crosses Continents with Istanbul Water-Taxi Service". Available at: Accessed 12 April 2016.

Botsman, R. and Rogers, R. (2010). What's Mine Is Yours:The Rise of Collaborative Consumption, New York: Harper Business

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