Question

In: Operations Management

Complete an external environmental analysis for the company uber that considers the following factors. Note: This...

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

Solutions

Expert Solution

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

keosha answered 9 months ago

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