Question

Complete an external environmental analysis for the company uber that considers the following factors. Note: This analysis must be done before you can complete the actual assignment below.

Laws and regulations

Economy

Technology

Demographics

Social issues

Suppliers

Competitors

New entrants

Substitutes and complements

Customers

Answer 1

External Analysis helps us in giving insight on the opportunities and threats existing in the organization's environment.

The purpose of an environmental analysis is to help to develop, create and manage plans by keeping decision makers within an organization.

It covers 4 components:

Scan - Study all segment in environment

Monitor - Observe changes to see if there is any seasonal / trendy observations

Forecast - development of feasible projections, prediction, about the future results

Access - determine timing and significance of effects of changes and trends

External Environmental Analysis - Uber:

Laws and Regulations (Political):

• Laws banning/Limiting number of Uber drivers
• Airport pick point/ not allowed/ Surcharge
• Toll way regulations

Economic:

• Increased Competition
• Alternatives

Technology:

• Self-Driving Cars
• Electric Cars

Social Issues:

• Low/Moderate driver wages (Leading to bad publicity)
• Increasing fraud and Scandals
• Specific Area Coverage
• Problem/issues with local authorities (Leading to penalty/fines)
• Economic friendly alternative

Suppliers:

• Hotels
• Supply of drivers
• Travel Agents
• Small/Mid organizations

Competitors: Rivalry

• Lyft
• Curb
• Grab Taxi
• Ola

New Entrants: (Threat)

• High Barriers to entry
• Domestic Regulations on number of drivers

Substitutes and Complements:

• Taxi
• Public Transport
• Metro
• Personal Transport (Bike/Car/Cycle)
• Car Pooling (Same Area/Office goers/same organization/College)
• Quality of Service
• Price Comparison

Customers:

• Travelers
• Office goers
• School/College
• Customer without vehicles

Threats:

• Uber has deep pocket and can burn cash heavily
• Presence of many national players
• Future uncertainty
• Customer loyalty