Swot Analysis : Uber Is A Transportation Network Company

1783 WordsMay 4, 20178 Pages
Overview Uber is a transportation network company, providing a smartphone application that connects drivers with people who need a ride (Bloomberg, 2017). Uber now accounts for the biggest market share in the ride-hailing industry, while there is a growing cabal of competitors operating in different regions, including Lyft in the US, Didi Kuaidi in China), Ola in India, and Grab in South-East Asia. Those countries and regions are the immense opportunities for Uber to earn profits and keep competitive edge while Uber has to decide whether to enter these markets due to its existing huge competition. This paper will conduct the external and internal analysis of Uber to point out reasons for entering the new markets, figure out the pros and…show more content…
Threats  Growing competition from both domestic and international markets  Facing legal issues and government regulations problems in developing countries  Low customer loyalty in this industry  Appeal on employee-employer relationship  Big concern about protecting customer privacy  Self- driving may diminish the demand The Five Force Model analysis The use of the five force model to analyze industry contributes to find the potential of industry and define the tailored strategy for Uber.  The threat of entry The threat of entry for the industry will be medium. Sharing economy is a new trend and it shows a lot of potential in comparison to the conventional business models. A lot of companies are willing to move into trendy ride-hailing industry. In addition, the business model is always easy to replicate and there is less operating cost for firms. However, new entrants may face a lot of issues like barriers from government regulations and lack of skilled drivers. The initial investment also will be another big problem since firms face a high start-up cost.  The power of suppliers It is high in the industry. The main suppliers for this industry will be drivers, oil and gas suppliers, and technology providers. The companies in the ride-hailing industry do not own their tangible assets, so the suppliers always have power to set price. For example, drivers have no

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