Docx

KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
BBDM3193 STRATEGIC PLANNING & MANAGEMENT
BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)
UBER TECHNOLOGIES INC
MARKS
NAME STUDENT ID SIGNATURE
AWARDED
Helen Tang Siik Ung 15WBR12211
Tan Zhi Lei 14WBR11602
Wong WengChoon 15WBR11774
YeowKe Shin 15WBR11386
NAME OF LECTURER : Pn. Preeti Mutiara bt Yacob
NAME OF TUTOR : Pn. Preeti Mutiara bt Yacob
DATE OF SUBMISSION : 20 December 2017

PLAGIARISM STATEMENT
We confirm that the submitted work are all our own work and are in our own words.
NO. NAME (IN BLOCK CAPITALS) STUDENT ID NO. SIGNATURE
1. HELEN TANG SIIK UNG 15WBR12211 _________________
2. TAN ZHI LEI 14WBR11602 _________________
3. WONG WENG CHOON 15WBR11774 _________________
4. YEOW KE SHIN 15WBR11386 _________________
Programme : BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)
Tutorial Group :1
Date : 20 DECEMBER 2017

COURSEWORK FEEDBACK FORM FOR WRITTEN REPORT
COURSE CODE/ COURSE TITLE: BBDM 3193 STRATEGIC PLANNING AND MANAGEMENT
NAME OF STUDENT(s): ID No:
1) HELEN TANG SIIK UNG 15WBR12211
2) TAN ZHI LEI 14WBR11602
3) WONG WENG CHOON 15WBR11774
4) YEOW KE SHIN 15WBR11386
PROGRAMME: BACHELOR OF BUSINESS ADMINISTRATION
YEAR OF STUDY: 3 ACADEMIC YEAR: 2017/2018
SEMESTER: 1
GROUP NO: 3
COURSEWORK NO: 1 NATURE OF MARKS ALLOCATED:
COURSEWORK:
Group Assignment /100
COMMENTS :
Student’s Date: Lecturer/Tutor’s Date:

Acknowledgement: Signature:
Note: This form must be submitted together with the assessment grid/grading criteria and
SafeAssign report for the coursework.
Group Assignment Marking Rubric
Mark Total
Area of Assessment Fair
weigh Excellent Good Poor Marks
9-10 6-8 3-5 1-2
1. Background of 10 Comprehensive Reasonable Incomplete Vague

the chosen company Entirely Not always Includes Do not
including the relevant with directly irrelevant address
company’s vision good relevant material question or
and mission. justifications vaguely
address the
question
2. Analysis of three 10 Comprehensive Reasonable Incomplete Vague

(3) years company’s Entirely Not always Includes Do not
performance. relevant with directly irrelevant address
good relevant material question or
justifications vaguely
address the
question
16-20 11-15 6-10 1-5
3. Analysis of the 20 Comprehensive Reasonable Incomplete Vague

company’s Entirely Not always Includes Do not
internationalisation. relevant with directly irrelevant address
good relevant material question or
justifications vaguely
address the
question
4. Analysis of the 20 Comprehensive Reasonable Incomplete Vague

product portfolio Entirely Not always Includes Do not
(What product or relevant with directly irrelevant address
services do the good relevant material question or
company offers? justifications vaguely
The industry they address the
compete in? question
Identification of the
company’s target
customers (Who are
their target
customers?
Demographic
characteristics of
their target
customers?)
Comprehensive Reasonable Incomplete Vague

5. Evaluation of 20 Entirely Not always Includes Do not
THREE (3) key relevant with directly irrelevant address
factors that drive the good relevant material question or
company towards justifications vaguely
international address the
expansion. question
6. Discussion of the 20 Comprehensive Reasonable Incomplete Vague

THREE (3) Entirely Not always Includes Do not
challenges the relevant with directly irrelevant address
company had good relevant material question or
encountered during justifications vaguely
their international address the
expansions. THREE question
(3) other challenges
the company will
potentially face in
the future.
TOTAL /100
Comments
__________________________________________________________________________________
__________________________________________________________________________________
__________________
Name of Tutor : Pn. Preeti Mutiara bt Yacob

Signature of Tutor: : _____________________
Date : _____________________
TOTAL : /50
/50
Table of Contents
1.0 Background and History of Uber……………………………………………………1
2.0 Performance of company….…………………………………………….…………...2
3.0 Uber internationalization process……………………………………..……………..3
3.1 Uber in Brazil .............................................................................................................. 3
3.2 Uber in the United Arab Emirates ............................................................................... 4
3.3 Uber in Malaysia ......................................................................................................... 5
4.0 Products and Services………………………………………………………………..6
5.0 Target Consumer…………………………………………………………………….8
6.0 Factors that Motivates Uber to Expand Internationally……………………………..8
6.1 First mover advantages.............................................................................................. 10
6.2 Trend of Using Online Application ........................................................................... 10
6.3 To Develop the other Market .................................................................................... 10
7.0 Challenges of
Uber………………………………………………………………. …11
7.1 Challenges That Uber Had Encounter ....................................................................... 11
7.2 Challenges that Will Potentially Face by Uber ......................................................... 11
References
Appendix
BBDM 3193 STRATEGIC PLANNING AND MANAGEMENT
1.0 Background and History of Uber

Uber Technologies Inc., formerly known as UberCab, is a global transportation
technology company which founded on March 2009, by Travis Kalanick and Garrett
Camp (Travis 2010). The company is now operating at 633 cities (UBER 2017) with
the Uber smartphone’s application to provide delivery services. Its mission is to
“Make transportation as reliable as running water, everywhere for everyone.”, while
its vision is to have “smarter transportation with fewer cars and greater access.
Transportation that’s safer, cheaper, and more reliable; transportation that creates
more job opportunities and higher incomes for drivers.” (Skrabanek 2017).
1
2.0 Performance of company

Uber service is available around the world. Uber managed to have 40 million rides per month
and has more than 77% of US ride-hailing market. Uber’s success had affected the traditional
taxi usage. Uber has continued its rapid growth in 2014, 2015 and 2016. Uber’s performance
result in strong revenue growth of 300% year on year. The positive performance of Uber is a
direct result of its service that in cities around the world. The most important factors that lead
to the Uber growth is Uber develops own self-driving cars technology. Uber had raised $11.5
billion from 14 rounds of venture capital and equity investors. After the company launched
UberX in 2014, Uber allowed all to join into Uber and ride people using their own car. Uber
has been aggressive in the marketing. It concluded total revenue in 2014 was $2.9 billion.
Next, the revenue increase rapidly to 10 billion in 2015 and Uber managed to double the
annual gross revenue in 2016. This is because Uber’s pickup times have become shorter. The
net revenue growth looks similar with the gross revenue. In 2014, Uber earned $ 0.5 billion.
Uber had tripled its net revenue in 2015 to $1.5 billion and in 2016 the company earned more
than $6.5 billion. This benefits the drivers because they can complete more fares as Uber
grows. Uber has also lost at least $1.2billion in the 2016 (Artyom 2017).
Promotions and price had decrease the cost to $57.3 million in 2014, and $72 million in 2015.
This causes the percentage of bookings increased rapidly from 1.5% in the first quarter of
2015 to 2.4% in the second quarter. Not only that, driver incentives also grew fast. Uber had
$3.63 billion of gross bookings in the first half of 2015 but for second half of 2015, the gross
bookings increased from $1.5 billion to $2.13 billion. Uber's spend largest expense in sales
and marketing, which is $246 million for 2014. The expenses increased to $295 million in the
first half of 2015, and more than doubled just from the first quarter ($98.2 million) to the
second ($196.8 million). R&D expenses also grew to $94.7 million in the first half of 2015
from just $65.9 million in full year 2014 (Carson 2017).
2
3.0 Uber internationalization process

Since Uber is an international company, it is deciding to expand in different countries such as
United States, China, Singapore, and Malaysia. We will discuss the internationalization
process that had done by UBER in three different countries, which are Brazil, United Arab
Emirates (UAE) and Malaysia through this assignment.
3.1 Uber in Brazil
In the year 2014, Uber decided to expand their business in Rio, the capital of Brazil. Uber is
feeling excited about their expansion in Rio as they are offering a service that emphasizes the
four qualities that fulfill the demand and needs of Brazilians (Janeiro 2014).
Firstly, Uber offers a tranquility driving services for Brazilians. Tranquility means the ability
to hail a ride without any hassle, and allows the passenger to feel comfortable and cool with
arrived the destination (Janeiro 2014). This is because the lifestyle of Brazilian is more
depended on life enjoy, therefore a comfortable riding experience is easier to be accepted by
Brazilians.
Secondly, the expansion of Uber is creating thousands of new job opportunity and contributes
actively to Rio local economy (Janeiro 2014). In the year 2014, Brazil’s economic output fell
by 0.6% from April to June. This showed many of people have a financial problem (BBC
2014). The expansion of Uber in Rio had created new job opportunity as they are wanted to
recruit local Uber driver for their expansion.
Third, Uber is providing a security ride with professional, licensed, reliable driver who is
holding the best interest of Uber’s riders to Brazilians (Janeiro 2014). Although Brazil is one
of the most attractive tourist countries, Brazil has a high road accident rate. Hence, Uber is
providing a security ride for Brazilians and tourist to fulfill their customer’s demand, which a
safety road trip. Moreover, Uber also recruit some English-speaking driver option to Brazil
during the Rio carnival and Olympic Games in the year 2016 for the foreigner (Sawers 2016).
This makes passenger who located in Rio able to choose “UberEnglsh” option when
requesting a ride through Uber app (Sawers 2016). This is convenient for the foreigner who
does not know Portuguese.
Lastly, because of the lifestyle of Brazilians is preferable to have a slower pace of life,
compared with western nations. They are adopting a “que sera sera” attitude, which means
whatever will be, will be in their daily life (Celebratebrazil 2014). This showed that they are
accepting the “flow” of their life with calm and patience. Therefore, Uber decided to provide
a suitable service for them, which is an elegance riding services. Uber is reliance on a modern
3
and convenient purpose that allows the passenger to arrive their destinations with the most
efficiency, class, and style (Janeiro 2014).
The provided services of Uber showed they had done a good environment and culture
research to analyze the environment of Rio before they come out the services.
3.2 Uber in the United Arab Emirates
Besides western country and Asian country, Uber also had expanded their business in United
Arab Emirates (UAE). They are managed to expand in the largest city in UAE, Dubai in
August 2013. In the year 2013, Dubai became the 44th city to join Uber’s network (Hamid
2014).
Uber had provided a low-cost option, UberX to Dubai market as the celebration for their new
expansion in the Middle East. This promotion method provides a good introduction of Uber
to UAE’s citizens. Moreover, there is a minimum fare for UberX low-cost services which set
by Roads and Transport Authority’s (RTA) in Dubai (Hamid 2014). This law is protecting
local taxi companies from enforcing Uber to have 30% surcharge on the minimum fare
(Hamid 2014). For example, UberX low-cost service has a minimum fare of Dh13 (Hamid
2014).
Although government is setting the limitation for UberX, government in Dubai is initiative
encouraging innovation technology to develop in their market. This makes Uber have a
“utopian market” for their development. Therefore, Uber got a rapid growing in Dubai
market. According to the comparison that done by a researcher who called Mike Priest, Uber
is the best among local taxi and Careem blow Dubai Taxi because Uber manages to maintain
its base cost per km lower than other competitors across all categories (Priest 2017). Hence,
Uber is attractive public in Dubai, compared with other competitors.
In the year 2016, there are 3000 of drivers in the UAE. This showed the rapid grow of Uber
within only three years. Additionally, Uber also provide a scoring system, which allows
riders to rate Uber drivers and vice versa (Bell 2016). This system allows the relationship
between passengers and drivers.
According to our research, there are 50% of all Uber passengers are tourists. Uber found that
most of the tourists are more preferring to use Uber driving services, compared to local taxi
services. With the success in on-demand transportation service, Uber is planning to further
expand their technology apps into lifestyle aspects.
4
3.3 Uber in Malaysia

Kuala Lumpur is the sixth Asian city that Uber decided to enter in October 2013. Based
on the launcher for Uber, Alan Jiang said, each new place is like a puzzle, Uber have to
employ local teams for Uber development in Malaysia (Millward 2013). This is because
Uber was developed “local startup” culture in every market they entry, local talent
employed supported by international team to run the business (Goh 2014). The purpose
that they use local startup is one of the parts of customization process that Uber done
for every market, they are finding the right people for their team (Goh 2014).
Uber had made a plan for 2014 include growing business in all markets and they are decided
to bring in more car choices for consumers (Goh 2014). Moreover, Uber is excited to add
Kuala Lumpur to its portfolio and bring “a unique value proposition” to the city’s list (Goh
2014). Same with China, the services that currently provided by Uber to Malaysian is
UberBlack, which also is Uber’s main premium offering. In addition, Uber also plan to
provide other services, UberX, which is a lower cost “ride-share” service after the UberBlack
achieved a great result in Malaysia.
Uber also plans to increase the payment options because of the growing business in Malaysia.
In previous, the services process of Uber is cashless, the customer can pay the bill by using a
credit card or debit card under their registered account (Goh 2014). Uber emphasizes that
they are providing a high quality, reliable and safe rides with a modest price premium to the
customer.
Last but not least, Uber was decided to announce UberMandarin, a new option in the ride-
hailing app that allows Chinese to book a Mandarin-speaking driver for Chinese tourists
(Tegos 2017). This is because Uber realize the number of Chinese tourists is increasing,
Malaysia’s Ministry of Tourism and Culture expects are estimated 3 million visitors from
China this year, 4 million in the year 2018 and 8 million on 2020 (Tegos 2017). Therefore,
Uber decided to develop the Mandarin-speaking driver for the future market.
5
4.0 Products and Services

Uber offers the free Uber smartphone app, which is Uber and Uber-Driver that connect drive-
partner and rides. The riders can request for a trip, and it will automatically send to a nearest
Uber driver through Uber’s application. The application will inform riders the name, license
plate, photo, rating, and a temporary substitute number for the driver; then alerting the driver
to the location. There are also text message and mobile website alternatives to using the app.
After that the driver will be driving his or her own personal cars to pick up the riders to
requested destination. The application will figure out the navigational route for the driver and
calculates the distance and fare automatically. Besides, Uber apps also provides credit card
payment which allow riders transfers the payment to the driver without saying a word or even
grab the wallet. uberestimate.com
Uber started international expansion of market in 2011. There are many services that
provided like UberX, UberXL, UberPOOL, UberBLACK and UberSUV, and UberEATS.
Uber announced with UberX in July 2012 which is the most basic private car service for daily
rides, and it is Uber lowest-cost option. Uber X is affordable, and is generally much cheaper
than a taxi. UberX vehicles hold a maximum of 4 passengers and vehicles must be from the
year 2001 or newer. Uber X cars are typically regular sedans like the Toyota Prius, Honda
city and etc. while for UberXL, it is the solution to the issue of large passenger groups who
want the most affordable ride for 5 to 7 passengers as UberXL has larger capacity. It costs
higher than UberX, but it ends up being very low cost and cheap when split the cost with
group. While for the UberBLACK and UberSUV, which is a high-end, professional livery
service that only accepts late-model luxury SUVs. In some markets, there are two levels
within the Black Car service: Uber Black is a luxury sedan that only holding four passengers
and if available Uber SUV is a luxury SUV that seats 5 or more. The vehicle and drivers’
standards are higher for Uber Black. Black Car driver will have commercial registration and
insurance, and their vehicle required to be late-model, high-end luxury sedan or SUV that has
a leather interior. Moreover, UberPOOL is the cheapest Uber, which allows riders to share
their ride with the other. Then, Uber will tell the driver to drop off passengers with the most
efficient route. It is great, cheap if the riders do not mind sharing the fare with strangers. Uber
is expanding its services quickly. One of it is UberEATS. It is food delivery service provides
by Uber, and claimed as “fastest restaurant delivery service” by Uber. In 2014, Uber
launched UberEATS, offering food delivery services and upgraded it in 2015 by increased
the number of restaurant available (alvia 2017).
6
Recently, Uber launched their new product which Uber Visa credit card. It is available
nationwide beginning November 2, 2017. Uber Visa is a no-annual-fee credit card designed
specifically with riders in mind. With the Uber Visa Card, riders can earn rewards for all their
purchases and those rewards can be redeemable for things like booking next trip, taking an
Uber to work, or even shopping online. Riders can redeem the rewards for Uber credits such
as use on both rides and UberEATS, cash back, and a wide variety of gift cards (Uber 2017).
7
5.0 Target Consumer

Target consumer is the person you have determined as most likely to consume your products
(Entrepreneur 2017). A company must target its customers well using different types of
information according to which markets can be divided in different countries. Target
customers can identify by geographical segmentation, demographic segmentation,
psychographic segmentation and behavioristic segmentation (Belcher 2017).
The target consumers of Uber are psychographic segmentation. Psychographic segmentation
is dividing market based on consumer personality traits, values, attitudes, interests and
lifestyles. Uber had provides different car services to target their consumer. For example, the
needs of lifestyle of professional or high standard people are different; they want themselves
treated as VIP. They are willing to pay more to ride the luxury car such as UberBLACK,
UberLUX and UberSUV with high-end and professional livery service. The car driver will
have commercial registration and insurance, and with late model, high-end luxury sedan or
SUV and leather interior. Psychographic Segmentation will have an impact to Uber because it
allows Uber to develop and market their products better.
Uber also target its customers based on geographical segmentation, which is divides the
consumers based of the units of geography, like location, languages and so on. It is important
because Uber needs target for customers who are ready and willing to use its services (Ward
2017). For example, Uber launched UberSKI in Utah. It is a service which allows riders to
request a car which equipped by truck bed or ski rack. This is good news for those who is
tired of crowded ski shuttled and cramped parking lots (alvia 2017).
Uber also segment their target customer by their behavior, which refer to their purchasing
nature, loyalty to the brand, level of usage and so on. For example, Uber encourage its users
to collect points and redeem for gift, like a free ride Also, Uber promote itself by using
promote code for free ride or half price of the ride. Also, Uber has launched their own Visa
Card, a no-annual fee credit card. With this card, users can earn rewards for their purchases
and stack up even faster for things like grabbing dinner with a friend, booking your next trip,
taking an Uber to work, or even shopping online. Besides, customer can redeem the rewards
for Uber credits that you can use on both rides and UberEATS, cash back, and a wide variety
of gift cards. Those offers are aimed at ensuring the product becomes the credit card
customers use for recurring payments and helping to establish loyalty (Surane 2017).
Lastly, Uber segment its consumer by demographic, as it is important to identify target
markets and get information of those demographic segments. Uber can segment its target
according to age, race, religion and so on. By doing so, Uber can target its consumers more
8
accurately. With this type of segmentation, an organization can categorize the consumers
based on their needs. For example, most of the age of Uber users is between 15 to 70 years
old as parents who busying for their work have no time to pick up their children at school,
will request Uber to send them home. Besides, the people who had retired they are willing to
become Uber driver because it can earn extra money and pass the time. Additionally, Uber
provides the different services such as UberX and UberPOOL that target the low-middle
income customer like working adult or student. It can be seen in Kuala Lumpur, the city with
high living cost drive the people to use UberX and UberPOOL to save the cost of
transportation. Uber provide variety car services to target their consumer. For example,
UberXL target those people who own the family size from 4-6 people and a group of people.
Hence, the fare can be saving through dividing or sharing with others.
9
6.0 Factors that Motivates Uber to Expand Internationally
6.1 First mover advantages

It is not the right strategy for Uber to focus on short-term profit, but Uber should focus on the
market itself first. Since Uber is a company in share economy, or double-sided market places.
As a result, it is important for them to speed up their liquidity in the other markets (Bercovici
2014). Ride-sharing was still not famous in 2011 but now,Uber has become very popular in
many transportation markets. A quote from Girouard, speed is a defining characteristic - if
not the defining characteristic – of the leader in virtually every industry you look at,” (Inc.
2016). Of course, there will be some population who do not like Uber because of some of the
issues the company brings, like the public relations and its tactics to enter the market.
Although these problems arise, but we cannot deny that Uber still done a great job on its
services provided. This step-on-toes way made Uber reliable in consumers mind. The New
York Times (2014) even named this phenomena as Uber Angst.
Trend of Using Online Application
Smartphones have become more and more popular in the world. Since the uses of smartphone
has become popular, Uber tried to catch up with this trend and launch its application in
United States in 2014, as most people from developed country owes a smartphone. When
Uber seems its results is successful in US, it tried to expand to developing countries (Suslo
2016). Therefore, consumers have one more option to travel from one point to another beside
using the other public transport like buses and taxis. Also, the public transport system of
some countries has a lot of room to improve, like the buses and taxis are usually not arriving
on time. Therefore, by using Uber, consumers can save a lot of time instead of calling and
waiting for public transport for hours.
6.3 To Develop the other Market
Since the market of ride-sharing is growing around the world, many markets and non-market
forces wish to enter into play rapidly. As a result, Uber grabbed the chance and uses its speed
in innovation, to add new services on it, in order to develop the other markets beside riding
service (Lipton 2015). In fact, Uber has partnership with Spotify, Starwood and so on, and
also launched the other services like UberEATS, UberFRESH and other services.
10
7.0 Challenges of Uber

7.1 Challenges That Uber Had Encounter
There are some challenges that Uber had encountered in several countries that it’s operate.
Firstly, competitors. There is own taxi service in each country, also, some of the countries
like China has its own Uber-like company, which is Didi that caused Uber lost its business in
China (Carew 2016); and also Grab in Malaysia (Parnell 2016). Therefore, Uber will face a
tight competition in each country with the same target customers that it has with its
competitors. Although it has first mover advantages, but its competitors many compete it
with the other ways like in term of price.
Besides, social issues also faced by Uber. The privacy and safety problem of both passengers
and drivers has not been solved yet by Uber, especially in developing countries like Brazil
and Malaysia. Although Uber has done a great job promoting itself during Olympic in Rio,
but the acceptance level of Brazilian to this application is still low, the reason is similar as in
Malaysia, which is the fear of public about the occurrence of crime. Uber wish to solve the
traffic congestion problem in most of countries, as a result it comes out with UberPOOL.
People may meet the other stranger when they are travelling from one destination to another,
apart from the driver. It may increase the probability of criminal cases to happen. There are
several cases which are popular in both Malaysia and Brazil, like the murder problems of
drivers in Brazil (USA TODAY 2017) and the Uber drivers was beaten by taxi driver since
the taxi drivers think that they are grabbing their job opportunities (Coconuts KL 2014).
These cases have caused serious injury for victims, both physically and mentally.
Also, Uber has not been legally verified yet in most countries. Although it does, not all of
the institutions in the particular country accept Uber, and there are even some countries
banned Uber (Rhodes 2017). Like in Malaysia, although Uber has been verified by
government institutions as a legal company and can conduct its business legally in Malaysia,
but not all of the institutions accept Uber. There are always some institutions who protest
about the company and some of it even conducted riot activities (Jamie 2016). It will cause
big losses for Uber in both monetary and company’s reputation.
7.2 Challenges that Will Potentially Face by Uber
Since Uber is changing its business style from mainly focus on taxi service to a
multinational technology company, which focus on technological products and services.
There will be some challenges for Uber to change its business as Uber has been well-known
as a taxi service company and its reputation is not that good. Also, by changing the business
11
style, Uber will bring itself to a high competitive market with other well-known competitors,
like Google Inc.
The fast innovation in the technology has brought many changes in this industry. Nowadays,
there are many concepts of self-driving cars in the industry and have been done by some of
the companies like Honda and Toyota. Since the changing trend of public perception on If
Uber have successfully changed itself to a technology company, then, Uber will need a lot of
funds to fund all of its innovation. In fact, this technology is already there, but not matured
yet and has caused a lot of problems, like the accuracy of the GPS and the ethics problem,
which public may conduct some illegal actions while they are inside the car. The safety of
passenger is still a considerable issue for this technology now.
Also, the legal issues should be considered by Uber too. Since Uber has created many issues
in many countries. Although Uber can maintain its stability in each country, but the company
should concern on this issue to enable the company to maintain its current business and ease
them in expanding their business in the other countries. Also, the company should find out
why there are some countries which banned Uber. the reason is simply because it may be
banned by the other countries which granted it to operate in their areas earlier, may be caused
by the changes in politic. As a result, Uber should try to solve those issues earlier in order to
avoid these problems happen in the future.
12
References
Alvia 2017, How much do Uber drivers make in 2017?, viewed 16 December 2017,
<http://www.alvia.com/>.
BBC 2014, Brazil's economy falls into recession, latest figures show, viewed 21 November
2017, <http://www.bbc.com/news/business-28982555>.
Belcher L 2017, Target Market vs. Target Customer, viewed 16 December 2017,
<smallbusiness.chron.com/target-market-vs-target-customer-20674.html>.
Bell J 2016, Uber’s rise in the UAE ‘We are good. But we could be great’, viewed 31
November 2017, <https://www.thenational.ae/arts-culture/uber-s-rise-in-the-uae-we-are-
good-but-we-could-be-great-1.162287>.
Bercovici J 2014, The Bear Case For Uber (Yes, There Is One), viewed 8 December 2017,
<https://www.forbes.com/sites/jeffbercovici/2014/07/28/the-bear-case-for-
uber/#667fe2702a79>.
Carew R 2016, Uber Sells China Operations to Didi Chuxing, viewed 12 December 2017,
<https://www.wsj.com/articles/china-s-didi-chuxing-to-acquire-rival-uber-s-chinese-
operations-1470024403>.
Carson B 2017, Uber booked $20 billion in rides in 2016, but it’s still losing billions, viewed
15 December 2017, < http://www.businessinsider.my/uber-2016-financial-numbers-revenue-
losses-2017-4/?r=US&IR=T>.
Celebratebrazil 2014, Brazilian Culture and Lifestyle Guide, viewed 30 November 2017,
<http://www.celebratebrazil.com/lifestyles-culture-in-brazil.html>.
Coconuts KL 2014, A taxi driver beat me up in front of KLCC and nobody helped, viewed 12
December 2017, <https://coconuts.co/kl/news/taxi-driver-beat-me-front-klcc-and-nobody-
helped/>.
Dogtiev A 2017, Uber Revenue and Usage Statistics 2017, viewed 16 December 2017,
<http://www.businessofapps.com/data/uber-statistics/>.
Entrepreneur 2017, Target Market, viewed 17 December 2017,
<www.entreprenuer.com/encyclopedia/target-market>.
Goh G 2014, Uber starts its engines in Kuala Lumpur, viewed 2 December 2017,
<https://www.digitalnewsasia.com/sizzle-fizzle/uber-starts-its-engines-in-kuala-lumpur>.
Hamid T 2014, Uber eyes Middle East expansion after successful first year in UAE, viewed 1
December 2017, <https://www.thenational.ae/business/uber-eyes-middle-east-expansion-
after-successful-first-year-in-uae-1.240284>.
Holson LM 2014, To Delete or Not to Delete: That’s the Uber Question, viewed 15
December 2017, <https://www.nytimes.com/2014/11/23/fashion/uber-delete-emil-michael-
scandal.html?_r=1>.
Inc 2016, The 30 Best Pieces of Advice for Entrepreneurs from 2015, viewed 6 December
2017, <https://www.inc.com/the-30-best-pieces-of-advice-for-entrepreneurs-in-2015.html>.
Jamie 2016, We Taxi Drivers Used to Earn Over RM200 a Day, Now We Barely Make RM50,
viewed 13 December 2017, <http://www.worldofbuzz.com/taxi-drivers-used-earn-rm200-
day-now-barely-rm50-day/>.
Janeiro Rd 2014, Uber Has Officially Landed in the Marvelous City!, viewed 20 November
2017, <https://www.uber.com/pt-BR/blog/rio-de-janeiro/uber-has-officially-landed-in-the-
marvelous-city/>.
Lipton J 2015, Uber talks growth, competition, and it's future, viewed 13 December 2017,
<https://www.cnbc.com/2015/11/25/uber-talks-growth-competition-and-its-future.html>.
Millward S 2013, Uber hits yet another Asian city, launches today in Kuala Lumpur, viewed
2 December 2017, <https://www.techinasia.com/uber-launches-kuala-lumpur-malaysia>.
Parnell B-A 2016, Eight Uber Competitors Reinventing Taxi Apps, 8 December 2017,
<http://www.businessofapps.com/eight-uber-competitors-reinventing-taxi-apps/>.
Priest M 2017, Uber vs Careem vs Dubai Taxi – which one is cheapest?, viewed 1 December
2017, <http://whatson.ae/dubai/2017/05/uber-vs-careem-vs-dubai-taxi-one-cheapest/>.
Rhodes A 2017, UBER: WHICH COUNTRIES HAVE BANNED THE CONTROVERSIAL
TAXI APP, viewed 30 November 2017, <http://www.independent.co.uk/travel/news-and-
advice/uber-ban-countries-where-world-taxi-app-europe-taxi-us-states-china-asia-legal-
a7707436.html>.
Sawers P 2016, Uber expands English-speaking driver option to Brazil ahead of Rio carnival
and Olympic Games, viewed 29 November 2017, <https://venturebeat.com/2016/02/01/uber-
expands-uberenglish-option-to-brazil-ahead-of-rio-carnival-and-olympic-games/>.
Skrabanek B 2017, Difference Between Vision and Mission Statements, viewed 5 December
2017, <https://www.clearvoice.com/blog/difference-between-mission-vision-statement-
examples/>.
Surae J 2017, Uber Chooses Barclays and Visa for Its No-Fee, Co-Brand Credit Card,
viewed 16 December 2017, <https://www.bloomberg.com/news/articles/2017-10-25/uber-
hails-barclays-visa-for-its-no-fee-co-brand-credit-card>.
Suslo E 2016, 6 Key Success Factors Behind Uber Growth, viewed 1 December 2017,
<https://taxistartup.com/blog/6-key-success-factors-behind-uber-growth/>.
Tegos M 2017, Brief: Uber goes after China’s tourists with option for Chinese-speaking
driver, <https://www.techinasia.com/brief-uber-malaysia-ubermandarin>.
Travis 2010, Uber’s Founding, viewed 1 December 2017,
<https://www.uber.com/newsroom/ubers-founding/>.
UBER 2017, RIDE, viewed 5 December 2017,<https://www.uber.com/en-MY/cities/>.
USA TODAY 2017, Uber has a murder problem in Brazil, viewed 9 December 2017,
<https://www.usatoday.com/videos/tech/2017/02/15/uber-has-murder-problem-
brazil/97900984/>.
Ward S 2017, Target Marketing, viewed 17 December 2017, <www.thebalance.com/target-
marketing-2948355>.
Appendix
Chart 1: The net revenue growth of Uber within 3 years (Uber Statistics report 2017).
Chart 2: The net revenue of Uber in year 2014, 2015 and 2016 which are 0.5 billion, 1.5 billion and
6.5 billion (Uber Statistics report 2017).
Chart 3: The number of people using Uber, local taxi and car rental.
MARKS
AWARDED
YeowKe Shin 15WBR11386

1. YEOW KE SHIN 15WBR11386 _________________
Tutorial Group :1

1) YEOW KE SHIN 15WBR11386
SEMESTER: 1
GROUP NO: 3
COURSEWORK:
Individual Assignment /100
COMMENTS :

Individual Assignment Marking Rubric
Area of Assessment Mark

weigh Excellent Good Fair Poor Total Marks
31-40 21-30 11-20 1-10
Outstanding Fair Reasonable Poor

Structure and 40 Clear Clear Lacks No clear structure
clarity of Precision
discussion Outstanding and Good and clear Lack of precision Reasonable
clear discussion with discussion with in discussion Incomplete
relevant and precise some relevant without
original thought original thought originality Not precise and no
originality
Coverage of Comprehensive Broad Reasonable Incomplete

question 40 Entirely relevant Relevant with Not always Includes irrelevant
Relevance of with good good justification directly relevant material
question justifications
vaguely address the
question
9-10 6-8 3-5 1-2
Coverage Wide coverage Solid coverage Some coverage Inadequate

appropriate reading 10 evidence of wider Good grasp of essential reading coverage/ reading
Extent of wider reading essential items Some Confused
reading Ideas from sources Good understanding, exposition with
Understanding carefully and understanding but incomplete inaccuracies
content of reading accurately explained with accurate and unclear
,in context and exposition explanations fails to grasp
achieve synthesis context
Correct Very few, no Limited or no Occasional Numerous

referencing/ 10 grammar, grammar, grammar, grammar,
Documentation punctuation and punctuation and punctuation and punctuation and
/grammatical errors spelling errors; spelling errors; spelling errors; spelling errors;
Limited or no Limited or no Limited or no Few poorly
composed sentences composed composed composed
or paragraphs; Well sentences or sentences or sentences or
structure and smooth paragraphs; Well paragraphs; Easy paragraphs, but do
flow between major structure and to read and not detract from
points or paragraphs smooth flow understand reading or
Proper citation of between major Some improper understanding
relevant sources; points or citation of Little citation of
proper referencing paragraphs; relevant sources relevant sources,
and citation formats Proper citation of No proper citation
(Harvard style) relevant sources; of relevant sources;
proper
referencing and
citation format.
TOTAL /100
Comments:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________
Signature of Tutor : _____________________
Date : _____________________
YEOW KE SHIN (15WBR11386)
Porter’s Five Forces is helping Uber to identify their attractiveness and potential
profitability in the industry sector. Since Uber as an international company, identify the
competitiveness of the Uber in external environment is very important for their
internalization process while they decided to expand to foreign market. This is because they
can adjust their strategic depends on the differential of the environment, this process will
make their internalization process becomes more mature. There are five aspects in Porter’s
Five Forces model to analyse the environment of Uber, which included entry barriers,
supplier power, buyer power, substitute availability and competitive rivalry (MindTools
Content Team 2016).
Firstly, barriers of entry to the market became one of the forces in Porter model to
identify the competitiveness of the environment (MindTools Content Team 2016). In 2017,
there are many new entries to enter the market in different country such as Didi in China and
GrabCar in Malaysia.
Although there are many new entry in the market, the market entry barrier of Uber is
high as car-riding services are required highly professional technology support. This type of
business operation are mainly is a concept that provide a platform for those who are holding a
driving license to have an extra job opportunity to earn benefit (Adamkasi 2017). Although
the concept is easy to be copied by other new entry, it is required a lot of operation cost to
continue the business (Allan 2017). According to research, Uber are spending a lot in the cost
of build this business such as build an application apps for smartphone user and set up a team
to manage the apps. Hence, the entry barrier for this market is high and it is difficult for new
entry to enter the market.
According to the theory of Porter’s Five Forces, the difficult the competitor to entry
the marketplace, the lower the risk of Uber as their market share might being divided. The
position of Uber in the industry is stable even the more the competitor to entry the market.
This is because Uber is successfully to adjust their business promotion depends on the local
preferences. For example, Uber was added English- Speaking driver option in the apps that
operated in Brazil during the Brazil Olympic session (Sawers 2016). This is because they are
providing the convenient for foreign participant to communicate with the Uber driver with
international languages, English. It adjustment of Uber showed their business strategic is
mature compared with other competitors.
Secondly, supplier power also determined the competitiveness of the Uber in the
market. Since Uber does not create any vehicles that operating under their name, “Uber”. The
main component for their business, which is vehicles, is depends on its supplier. Therefore
the availability of driver is one of the suppliers for Uber. The bargaining power of driver to
Uber is high as their performances are affected to the reputation of Uber directly. For
example, if Uber driver perform an unsatisfied services to customer, it will affected the
perception of the customer to Uber driver. The reputation of Uber will be destroyed.
Moreover, oil and gas supplier is another major supplier for Uber (Allan 2017). The
price of petrol is controlling the profit of Uber. For example, if the petrol price is rising,
lesser Uber driver are willing to provide services as Uber are providing a cheaper driving
services to customer. The driver might unable to cover their cost as the petrol fees is rising
but the services charges they gained is maintain constant. It will affect the morale of Uber
driver instead to affect their performance. Hence, oil and gas supplier and driver are the
supplier who own bargaining power to affect performance of Uber.
Third, buyer power also determines the competitiveness of Uber in the market. The
customers of Uber are very sensitive with the price variation (Allan 2017). They are more
prefer to choose lower price to have the similar services compared with loyal to a specify
company. Since the market included a lot of direct competitor with Uber such as GrabCar,
Didi and Curb, it brings more choices for customer to choose (Allan 2017). Customer will
compare the basis price range between those similar company such as Uber and Didi and they
are freely to change their preferences in choose another company with low shifting cost
(Allan 2017).
As the economics of the market becoming worse, the unemployment rate of public is
increasing. This statistics might affect the buyer decision of buyer as they are more prefer to
compare the basis price and choose those company that offer cheaper price even the services
may not fully satisfy compare with Uber. For example, most of the Malaysians prefer to
choose GrabCar as it provides cheaper price compare with Uber during normal hour.
Fourth, the threats of substitute of Uber are one of the weak forces that affect the
competitiveness of Uber based on the Porter’s Five Forces model. The major substitute of
Uber is local taxi which providing similar services to fulfill same demands of customer,
which is travel from one location to another location. However, the influence of local taxi is
weak for Uber as they are providing higher price services compared with Uber.
The other substitute of Uber is public transport such as LRT and MRT, it brings
bigger power to Uber compared with local taxi influences. This is because most of customers
are more prefer to transport with the public transportation during peak hour as it is cheaper
and solve the parking fees problem of driver. However, Uber still the first choice for public as
they can transport to anywhere that public transport cannot reach. Therefore, the power of
substitute to Uber is weak.
Fifth, the competition degree in the market is high as there is more competitors in the
market compared with previous years. As instances, Curb and DidiChuxing in China is one of
the competitors that harm the position of Uber in one of the foreign market of Uber, which is
China. In China, Uber is being merged with DidiChuxing in $35 billion deal in 2016
(Weinberger 2016). It showed that Uber is lacking of competitiveness survive in China
market.
In US, Uber also faces competition with Lyft, which providing similar business model
with Uber. Moreover, Uber also faces the fierce competition with other direct competitor in
different countries directly (Adamkasi 2017). Most of them are compete in the market on
different aspects included customer services, price, convenience, comfort and reliability
(Adamkasi 2017). Therefore the competition degree in the market is very high for Uber. Uber
have to provide innovative services to differentiate with other competitor and persuade
customer to choose their services.
In conclusion, Uber has facing high supplier bargaining power, buyer bargaining
power and high competition degree in the industry. For substitute availability, Uber is
successfully to maintain their strengths with its substitute competitor. The barrier of entry in
the industry is high as it required high technology technic requirement.
References
Adamkasi 2017, Porter's Five Forces Model of Uber viewed 17 December 2017,
<http://www.porteranalysis.com/porters-five-forces-model-of-uber/>.
Allan 2017, Porter’s Five Forces Analysis on Uber, viewed 17 December 2017,
<http://www.expertwritinghelp.com/blog/2017/07/28/porters-five-forces-analysis-uber/>.
MindTools Content team 2016, Porter's Five Forces, viewed 17 December 2017,
<https://www.mindtools.com/pages/article/newTMC_08.htm>.
Sawers P 2016, Uber expands English-speaking driver option to Brazil ahead of Rio carnival
and Olympic Games, viewed 17 December 2017, <https://venturebeat.com/2016/02/01/uber-
expands-uberenglish-option-to-brazil-ahead-of-rio-carnival-and-olympic-games/>.
Weinberger M 2016, Uber to merge with Chinese rival Didi in $35 billion deal, viewed 17
December 2017, <http://www.businessinsider.my/uber-china-merges-with-didi-chuxing-
2016-7/?r=US&IR=T>.
MARKS
AWARDED
Helen Tang Siik Ung 15WBR12211

1. HELEN TANG SIIK UNG 15WBR12211 _________________
Tutorial Group :1

1) HELEN TANG SIIK UNG 15WBR12211
SEMESTER: 1
GROUP NO: 3
COURSEWORK:
COMMENTS :


31-40 21-30 11-20 1-10

originality

vaguely address the
question
9-10 6-8 3-5 1-2


proper
referencing and
citation format.
TOTAL /100
Comments:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________
Date : ____________________
HELEN TANG SIIK UNG (15WBR12211)
Strengths
Uber is a famous brand in more over 50 countries. It is expected has a good growing trend in
new markets with coming of age technology. It attracts investors due to the business success
and high profit of company. The ability of Uber to offer low prices to customers compared to
traditional taxi services is one of the strengths. It has handled the problem of dissatisfaction
of customer to traditional taxi services because customers need to pay higher prices and wait
for a long time. Then, Uber is access to unlimited number of vehicles to fulfill the demand of
customer.. Low operation costs make it becomes easier to add more cities. Uber has no full-
time employees. Thus, there are no responsibilities and obligations toward employees.
Moreover, the transactions are user friendly, safe and trustworthy. The customers can call for
Uber no matter where their location is and know how much they will pay. They also can track
the route of their ride and make a cashless payment with their credit card. These activities can
be conveniently engaged in immediately from their smart phone and save the time. It has also
focused on managing rating system to maintain trust between the brand and its customer.
Uber not only benefit to customers but also to drivers. The time is flexible and driver can
choose to be a part- time employee to earn more income. Drivers also can reject the clients
that unwanted. Besides, Uber has a little competition such as Lyft and Grab. Uber practice
dynamic pricing strategy to compete with the competitor. With this strategy, drivers can earn
more money. (Hitesh Bhasin, 2017)
Weaknesses
The major weakness of Uber is low barriers of entry. Uber will face multiple competitions
such as from India and Meru. The drivers and customer will use different applications while
looking cabs. For example, “Grab Car”. The customers will switch to the other app to prevent
any delay when they look for one app on the same time. Next, Uber is highly relying on
manpower. If the drivers misbehave to the customer, they will cause the bad image for the
company. Customer need to have own smart phone and download the app because Uber is an
internet based services. It is heavily dependent on internet connectivity. So, Uber face
challenging in some countries where internet is slow or poor. Uber’s customers are mostly
referring to young generation because the elderly generations are less learned in technology
and they more prefer the regular taxi services especially in Asian countries. On the other hand,
the drivers do not earn so much as the cost of operating vehicle is high. Not only is that,
governments and drivers always dissatisfied with Uber causes the company charges a low
price. (Scott Ashe, 2015)
Opportunities
Traditional taxi companies give the opportunity for Uber to expand geographically into new
cities and countries. Uber should find new markets in other countries such as China and India
when there is over population and they are tired of paying expensive prices to taxi. With the
rapid enlargement of online service, the customers are willing to choose the online
application now. Growing of internet has proved highly profitable for Uber. In addition, Uber
can provide special transport services to those that are in emergency. For example,
ambulances or emergency vehicles. Next, increasing the number of driver can reduce the
arrival time. It can let the driver makes more profit. The driver also can provide a good
service in a short time and cheap price to the customer. Next, poor public transport of certain
country also gives the opportunity for Uber to enlarge their business. The customer has to
wait for a long time of using public transport. Therefore, Uber can supply more comfortable
of transporting service to the customer. Uber might attract more investors through increasing
the valuation in the future. (CayenneApps, 2017)
Threats
The threat that will face by Uber is the emergence of new competition. “Grab Car” and “Lyft”
is the biggest competitor of Uber that will cause more difficulties to customers and drivers for
Uber. Competition among Uber with others company will lower the prices. This allows for
some cheap rides or even free. Customers can choose the ride by comparing the price with
other transport company. In addition, the presence of other public transport such as LRT and
MRT offer similar services. The price of fuel also will affect the operations of Uber. High
fluctuation of the fuel price might bring risks to transportation industry. Therefore, it will
decrease the revenues. Furthermore, the transportation company is relying on the driver. The
driver is given freedom to choose between the company and its rivals. Most importantly,
drivers need to have own vehicles. Drivers are not satisfied because Uber does not have a
high-profit margin to the driver although drivers get a high number of customers. As a result,
the driver will join other company. Next is a regulatory limitation. Uber was banning from
operating by some legal regulations in countries like Germany.
Reference
CayenneApps2017, The SWOT Analysis For Uber, viewed 16 December 2017,
<https://blog.cayenneapps.com/2015/02/09/the-swot-analysis-for-uber/>.
Hitesh Bhasin 2017, Swot Analysis Of Uber, viewed 16 December 2017,
<https://www.marketing91.com/swot-analysis-uber/>.
Scott Ashe 2015, What are Uber Weaknesses, viewed 16 December 2017,
<https://www.quora.com/What-are-Ubers-weaknesses>.
MARKS
AWARDED
Tan Zhi Lei 14WBR11602

1. TAN ZHI LEI 14WBR11602 _________________
Tutorial Group :1

1) TAN ZHI LEI 14WBR11602
SEMESTER: 1
GROUP NO: 3
COURSEWORK:
COMMENTS :


31-40 21-30 11-20 1-10

originality

vaguely address the
question
9-10 6-8 3-5 1-2


proper
referencing and
citation format.
TOTAL /100
Comments:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________
Date : _____________________
TAN ZHI LEI (14WBR11602)
d) Analyze the Generic Strategies (differentiation, low-cost leadership or focus

strategies) adopted by chosen company.
Low cost leadership
The generic strategy use by Uber is low-cost leadership. Compared to traditional taxi, instead
of using the network effect to increase the number of drivers and riders, Uber does not
employ full time driver or riders. Whoever owns a vehicle, they can choose to become full
time or part time driver of Uber. Instead of earning extra money, Uber also help to reduce the
cost of infrastructure and maintenance. This can be win-win strategies benefits for both
drivers and riders because it enables Uber to charge lower costs without lead to any financial
loss. Also, the drivers can make more extra money and riders pay with the cheap and
reasonable price with extra convenience at the same time. The low cost leadership has made
Uber become more popular in the metropolitan areas. It effectively maintains the popularity
of Uber services because everyone wants to save money due to high-living cost nowadays.
Moreover, Uber has been able to generate higher popularity and a better brand image through
increasing the convenience of the services. (Abhijeet Pratap 2017)
Differentiation based of technology
Technology based differentiation is a major source of competitive advantage for the Uber.
Uber's massive investments in mobile application development reflect potential commitments
to continued growth and competitive performance. Uber app that connects both riders and
drivers, allows them to pay for services and evaluate on their travel. Before Uber launched, it
is difficult to book a taxi especially during the peak hours such as time to work and raining.
Also, people have to pay higher for their ride during the peak hour and it takes long time to
wait for a taxi. But now, a ride can be book within a few minutes with just a touch of the
button then the nearest Uber will response. The Uber apps own a navigation of the route, this
enable drivers use the faster route to reach the requested places and sometime avoiding the
fees of toll. This is very convenience for both drivers and riders. The convenience and
adopted of technology adds quality to the service and therefore it becomes a source of
competitive advantage for the business. (Abhijeet Pratap 2017)
Differentiation based on product and services
Product differentiation is one of the sources of competitive advantage for Uber. Uber provide
variety of services type such as UberX, UberXL, UberBlack, UberEATS to meet different
needs of consumer compare to taxi. Uber is disrupting the market for taxi and transportation
and changing the face of taxi services. They remake and reestablish in entirely new way
through altering and car ownership and transportation. Uber services such as UberPOOL is
leading ridesharing services to most of the country. It helps riders to save the fare of ride by
sharing with others, it become cheaper. Also, UberXL that can hold maximum of 6 people
can provide the services to large quantity or large group of people with reasonable prices.
Uber is providing choice to riders on preferred vehicle for transport in terms of comfort
ranging from UberX to UberBlack which provide luxury and professional transportation
services to those who never had the experience in luxury car. Additionally, tackling a
common transport problem by using technology like app based cab booking, credit card and
online wallet payment services compare to taxi. Uber also provide the Visa credit card with
no annual fee. The card can earn the rewards of the entire customer purchased and those
rewards stack up even faster for things like booking next trips or shopping online. Consumer
can redeem their rewards for Uber credits that can use on both rides and UberEATS, cash
back, and a variety of gift cards. (Uber 2017) Consumer can choose which services to they
want to use to meet their needs and expectation compare to taxi. The business has aggressive
growth potential, as investors are racing to them to get a piece of the pie. (Eugene Suslo 2016)
Focus group based on customer
When come to the focus group, as we know, customer is the most important sources to the
business. Uber target their customer based on the consumer segmentation. Uber focus on
customer who does not own a vehicle. The reason that most of consumer willing to use Uber
is because some of the public transport do not send them to the exactly places they request
but Uber does. And compare to taxi, the price are more reasonable and affordable. They are
able to reach the requested door-step exactly with cheaper price. Besides, the petrol cost and
maintenance fees can be saved. The petrol and maintenance is one of the expensive things for
the customer who is always travels far or up and down every day. Moreover, consumer do not
have to waste the time looking for parking lot and pay for the parking fees when they are
going to work and shopping in the peak area such as Bukit Bintang, Kuala Lumpur. Also,
heavy jam can be avoided and consumer does not need to worry about their beloved car get
scratch or accident.
References
Abhijeet Pratap 2017, A discussion of Porter’s Generic and Intensive Strategies used by Uber,
viewed 15 December 2017, < https://www.cheshnotes.com/2017/11/uber-generic-intensive-
strategies/>.
Uber 2017, Introducing the Uber Visa Card, viewed 15 December 2017,
<https://www.uber.com/en-MY/newsroom/uber-visa-card/>.
Eugene Suslo 2016, 6 Key Success Factors Behind Uber Growth, viewed 15 December 2017,
< https://taxistartup.com/blog/6-key-success-factors-behind-uber-growth/>.
MARKS
AWARDED
Wong Weng Choon 15WBR11774

1. WONG WENG CHOON 15WBR11774 _________________
Tutorial Group :1

1) WONG WENG CHOON 15WBR11774
SEMESTER: 1
GROUP NO: 3
COURSEWORK:
COMMENTS :


31-40 21-30 11-20 1-10

originality

vaguely address the
question
9-10 6-8 3-5 1-2


proper
referencing and
citation format.
TOTAL /100
Comments:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________
Date : _____________________
WONG WENG CHOON (15WBR11774)
Uber has reach for more than 45 countries. By just using a simple application, the rider and
the passenger can be connected. Uber has acquired high level of commercial success since
2009. It is a way to earn for driver, but it is also a good idea for those who are not able to get
a cab. Therefore, PESTEL analysis used to analyze different forces that affect the business of
Uber around the world. PESTEL analysis is a concept in marketing principles to track the
environment that a company is operating in, or planning to launch a new product or service
(Pestel Analysis 2017). Therefore, PESTEL is important to Uber to analyses the external
environment for each country.
For political aspect, internationally political debates have been raises by Uber. The
issue raise is because there are several governments who concern on the sharing economy as
well as its regulations. Each coin has two sides. Uber has its advantages, also have their
disadvantages. Uber has brought the disruptive effect over traditional taxi services. As a
result, many authorities who are concerned in this issue wish to bring in new laws for Uber
(Frue 2017).
Uber are being charged in United States as the authorities has ruled that Uber must
treats all of its driver as its employees but not as their contractors. Uber has also face this
problem at Brazil because the entrance of Uber has affected many of the local taxi industry,
the permits given by the Government is limited. For Malaysia, Uber has been legalized in the
country. On the other hand, the enforcement about minimum wages has been an issue in
political discussion too. To date, there are still conflicts on Uber’s driver, whether they are
employees of Uber or they are self-employed in many countries.
In economic aspect, the performance Uber has been affected by the global economic,
especially during recession. Uber is actually operating itself in share economy industry (Frue
2017). It is based on sharing resources physically. In fact, share economic has created many
job opportunities to local population, especially for those who owns a car. Also, Uber has
brought other benefits for each country too. For example, Uber has successfully reduced the
costs of getting a cab in each country. In addition, the traditional taxi service has been forced
to reduce their rates in order to sustain in the market.
Furthermore, since Uber has a unique competitive advantage as well as first mover
advantage in almost all the market in the world, it has become the focus of the traditional cab
service. Even though during the recession of the economy, Uber still able to lead the market
in all the countries by its competitive advantage. The reason is because public is looking for
goods and services with lower price and better quality, especially during economic recession.
In fact, it does not affect much on Uber in economic aspect. While facing highly competition,
Uber provides its convenience and affordable services in all the countries, and therefore it has
a rapid growth rate. But since Uber is having an unfair competition against taxis in many
countries, it has been banned or forced to restrict its services.
In term of social, Uber wants to manage itself to become an acceptable and
respectable image because of the mutual advantages between social and the company (Frue
2017). Uber has gained its popularity and fast acceptance in social based on the price its offer,
as well as the quality of the services provided. Uber growth rapidly and easily because of the
popularity gained, but it does not mean Uber is not facing any argument in the countries it
operates. Uber is having arguments in term of competition, the issue of human resources, and
even the drivers’ background.
Moving to the main point, although there are many social issues rise by Uber, but it is
undeniable that Uber provides customer an easy to access platform to call for a cab. As
simple as select the destination and pick up time, by using its application!
In technology aspect, since it is the vital aspect in this century, Uber has successfully
grabbed the market in ride sharing because of the advanced and excellent technology (Frue
2017). It provides Uber a smooth access as well as great experience for all its users. Also,
Uber has combined some special features into the application, like geolocation, push
notification, as well as payment gateways in its application to provide its users extraordinary
experience. It is an important application for Uber as users will not be able to contact each
other if the system goes down. Therefore, Uber has to ensure that its software’s reliability. In
fact, many drivers are using their cellular data to connect to the application, and cellular data
has been deemed as the most important factor to Uber.
Uber provides only a platform to connect the drivers and the passengers. It sounds
simple but in fact, this differentiation would not be possible without excellent technology.
Without waiting for a long time, Uber provides its users faster and easier way to call for a cab
within few minutes, and therefore, many of the passengers prefer Uber rather than call for a
cab. It shows that technology is an important factor to grow Uber. Uber also uses technology
in marketing purposes. For instance, social media has been used by both Uber and its users to
promote the application itself. Users will share their experience of using Uber through social
media and in fact, Uber encourages them to do so.
In environmental aspect, since sustainability has become more and more important,
therefore many businesses start to concern on sharing services, so does Uber (Frue 2017).
Uber has launched UberPOOL which allows users to get a car pool with another passenger,
and it able to reduce the amount of car on the road, and reduce the emission of carbon
monoxide in the air. Also, Uber Green, a pilot project which is already started by Uber will
allow passengers to request a green ride. All of these projects will increase the customers
satisfaction about Uber as Uber is concerning on the environment that they are living in.
On the other hand, since public are more concern about the environment, they started
to question that will Uber make the traffic congestion and the usage of fuel increase? Before
this question can be answered, people may still use Uber instead of public transport because
of the convenience Uber brings to them.
Lastly, in term of legal, it is an important challenge for businesses to comply
themselves with the rules and regulations set by local government. A huge amount of fines
may incur for businesses if they are unable to fulfill the requirements (Frue 2017). In fact,
Uber has brought an issue too many legal authorities, which are still identifying whether the
laws for traditional services are able to apply to Uber or not. Like whether Uber should treat
the Uber driver as employees or contractor.
Not only that issue, Uber also faces many condemnations, bans as well as attempted
bans in many countries. Therefore, the company should follow all the laws, rules and
regulations like labor and employee safety laws, usage laws and so on to avoid further dispute
in the near future.
References
Frue, K. 2017, PESTLE Analysis of Uber, viewed 17 December 2017,

<http://pestleanalysis.com/pestle-analysis-uber/?1496300120319=1>.
Pestel Analysis 2017 What is PESTLE Analysis? A Tool for Business Analysis, viewed 15
December 2017, <http://pestleanalysis.com/what-is-pestle-analysis/>.

Docx

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Docx

Încărcat de

Drepturi de autor:

Formate disponibile

KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

BBDM3193 STRATEGIC PLANNING & MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)

UBER TECHNOLOGIES INC

Tan Zhi Lei 14WBR11602

Wong WengChoon 15WBR11774

YeowKe Shin 15WBR11386

NAME OF LECTURER : Pn. Preeti Mutiara bt Yacob

NAME OF TUTOR : Pn. Preeti Mutiara bt Yacob

DATE OF SUBMISSION : 20 December 2017

NO. NAME (IN BLOCK CAPITALS) STUDENT ID NO. SIGNATURE

1. HELEN TANG SIIK UNG 15WBR12211 _________________

2. TAN ZHI LEI 14WBR11602 _________________

3. WONG WENG CHOON 15WBR11774 _________________

4. YEOW KE SHIN 15WBR11386 _________________

Programme : BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)

Date : 20 DECEMBER 2017

COURSEWORK FEEDBACK FORM FOR WRITTEN REPORT

Student’s Date: Lecturer/Tutor’s Date:

9-10 6-8 3-5 1-2

1. Background of 10 Comprehensive Reasonable Incomplete Vague

2. Analysis of three 10 Comprehensive Reasonable Incomplete Vague

3. Analysis of the 20 Comprehensive Reasonable Incomplete Vague

4. Analysis of the 20 Comprehensive Reasonable Incomplete Vague

Comprehensive Reasonable Incomplete Vague

6. Discussion of the 20 Comprehensive Reasonable Incomplete Vague

Name of Tutor : Pn. Preeti Mutiara bt Yacob

1.0 Background and History of Uber

2.0 Performance of company

3.0 Uber internationalization process

3.3 Uber in Malaysia

4.0 Products and Services

5.0 Target Consumer

6.0 Factors that Motivates Uber to Expand Internationally

6.1 First mover advantages

7.0 Challenges of Uber

BBDM3193 STRATEGIC PLANNING & MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)

UBER TECHNOLOGIES INC

NAME OF LECTURER : Pn. Preeti Mutiara bt Yacob

NAME OF TUTOR : Pn. Preeti Mutiara bt Yacob

DATE OF SUBMISSION : 20 December 2017

NO. NAME (IN BLOCK CAPITALS) STUDENT ID NO. SIGNATURE

1. YEOW KE SHIN 15WBR11386 _________________

Programme : BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)

Date : 20 DECEMBER 2017

COURSEWORK FEEDBACK FORM FOR WRITTEN REPORT

Student’s Date: Lecturer/Tutor’s Date:

Area of Assessment Mark

31-40 21-30 11-20 1-10

Outstanding Fair Reasonable Poor

Coverage of Comprehensive Broad Reasonable Incomplete

Coverage Wide coverage Solid coverage Some coverage Inadequate

Correct Very few, no Limited or no Occasional Numerous

Name of Tutor : Pn. Preeti Mutiara bt Yacob

Signature of Tutor : _____________________

BBDM3193 STRATEGIC PLANNING & MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)

UBER TECHNOLOGIES INC

NAME OF LECTURER : Pn. Preeti Mutiara bt Yacob

NAME OF TUTOR : Pn. Preeti Mutiara bt Yacob

DATE OF SUBMISSION : 20 December 2017