Assignment on

Strategic Management Practices of Uber Technologies Limited

Submitted to
Dr. Shariful Alam Khandakar
Associate Professor,
Tourism & Hospitality Management,
Faculty of Business studies,
University of Dhaka.

Submitted by
Md. Abid Hosain
Student ID: 719 28 005

Date of submission: May 11, 2021

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May 11, 2021

Dr. Shariful Alam Khandakar

Associate Professor,
Tourism & Hospitality Management,
Faculty of Business studies,
University of Dhaka.

Subject: Submission of assignment.

Dear Sir,
This is my pleasure to inform you that I have completed my term paper on “Strategic
Management Practices of Uber Technologies Limited.” I am pleased to present this report after
a long and rigorous effort. I have tried to incorporate all the knowledge that I have acquired
during the completion of this course to make this report as informative, reliable, and relevant
as possible. I would like to express my gratitude to you for your endless support, valuable
suggestion, and guidance in preparing this report. By writing this report has been a great
experience for me.

I would like you to kindly accept my report and to acknowledge my devotion and efforts. I will
be glad to answer any of your queries regarding the report.

Yours Sincerely,

Md. Abid Hosain (719 28 005),

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Acknowledgements
First. I would like to express my gratitude to Almighty Allah for enabling me to complete this
report on "Strategic Management Practice of Uber Technologies Limited”. Completing any
type of project requires helps from several persons. I have also taken help from different people
for the preparation of this report.

Now, there is a little effort to show my deep gratitude to that helpful person. I convey my
sincere gratitude to my Academic Coordinator Dr. Shariful Alam Khandakar, Associated
Professor, Tourism & Hospitality Management, Faculty of Business Studies, University of
Dhaka. Without his kind direction and proper guidance, this study would have been a little
successful. In every phase of the project, his supervision and guidance shaped this report to be
completed perfectly.
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Executive summary
The task of strategic management is too important to sustain a business model feasible. This
study gives emphasize on strategic management process and competitive advantages of Uber
Technologies Limited with their management overview. Their strategic management process
is conducted in three different phages: strategy formulation, implementation, and strategy
evaluation. Some competitive advantages which give them both financial and non-financial
leverage like technology, global network, dynamic and affordable pricing policy etc. are shared
in this descriptive qualitative study.
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Table of Contents
1. Introduction ............................................................................................................................ 1
2. Objectives .............................................................................................................................. 1
3. Literature review .................................................................................................................... 1
4. Methodology .......................................................................................................................... 2
4.1 Research Design ............................................................................................................... 2
4.2 Data Collection Source..................................................................................................... 2
4.3 Data Collection Tenure .................................................................................................... 2
5. Management overview ........................................................................................................... 2
6. Strategic Management Process .............................................................................................. 3
6.1 Strategy formulation ......................................................................................................... 3
6.2 Implementation................................................................................................................. 4
6.3 Strategy evaluation ........................................................................................................... 4
7. Competitive advantages ......................................................................................................... 4
7.1 Technology ....................................................................................................................... 4
7.2 Global Network ................................................................................................................ 4
7.3 Marketing ......................................................................................................................... 4
7.4 Customer Service ............................................................................................................. 5
7.5 Customer Loyalty ............................................................................................................. 5
7.6 Large service range .......................................................................................................... 5
7.7 Pricing policy ................................................................................................................... 5
7.8 Business model................................................................................................................. 5
7.9 Strong financial backing................................................................................................... 6
7.10 Diversified revenue & new opportunities ...................................................................... 6
7.11 First mover advantage .................................................................................................... 6
8. Conclusion ............................................................................................................................. 6
References .................................................................................................................................. 7
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Strategic Management Practice of Uber

Technologies Limited
1. Introduction
Strategic management is an on-going process that evaluates and controls the business and the
industries in which the company is involved; assesses its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reassesses each strategy
annually or quarterly [i.e., regularly] to determine how it has been implemented and whether it
has succeeded or needs replacement by a new strategy to meet changed circumstances, new
technology, new competitors, a new economic environment, or a new social, financial, or
political environment. Strategic management is dealing with both the financial and non-
financial sectors by planning, monitoring and, testing organizational activities to ensure
organizational efficiency, grab more market share, and stay profitable. (Tucci & Roy, 2020)
Strategic planning is influenced by engagement, communication, innovation, project
management, and organizational culture (Stanleigh, 2011). Management functions, structural
transformations, competition, socio-economic factors, laws and technology influence strategic
management process. Major tasks of strategic management are assessing the organization's
current strategic direction; identifying and analyzing internal and external strengths and
weaknesses; formulating action plans; executing action plans; and evaluating to what degree
action plans have been successful and making changes when desired results are not being
produced.

2. Objectives
The aim to conduct this study is given below-

(i) to understand how competitive advantages are used in modern world, and
(ii) to understand how strategic process works in a modern organization.

To conduct this study, we need data about competitive advantages and strategic management
process of Uber Bangladesh Limited.

3. Literature review
Strategic management is the process of setting goals, procedures, and objectives in order to
make a company or organization more competitive. Strategic management is dealing with
crafting, implementing and evaluating organizational strategies. Strategy is the forging of
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company missions, setting objectives for the organization considering external and internal
forces, formulating specific policies and strategies to achieve objectives, and ensuring their
proper implementation so that the basic purposes and objectives of the organization will be
achieved (Bracker, 1980).
The strategic management process is comprised of five phases: organizational objectives,
environmental scanning, strategy formulation, strategy implementation, and strategic control
(Singh, Watson, & Watson, 2002). However, Organizational structure and politics, negotiation
and bargaining among decision-makers and the feedback of continually changing strategic
information influence strategic management process (Thomas, 1984).
Major responsibilities to understand the competitive advantages of an organization are
understanding strengths, weaknesses, opportunities, and threats. For analyzing SWOT,
resources and capabilities should be given emphasized. A firm's resources and capabilities
include all the financial, physical, human, and organizational assets used by a firm to develop,
manufacture, and deliver products or services to its customers (Barney, 1995).

4. Methodology
4.1 Research Design
This study describes qualitative information of strategic management process and competitive
advantages of Uber Bangladesh Limited. That is why; it is a qualitative descriptive research.

4.2 Data Collection Source

Various secondary sources are used to collect data. This includes different types of research
documents, journals, periodicals, websites, and other sources. All information is collected from
literature reviews, findings, and other sections.

4.3 Data Collection Tenure

Data collection tenure of this study is 7 days from May 4, 2021, to May 10, 2021.

5. Management overview
Peer to peer logistics service provider Uber Technologies Corporation is established in March
2009 by Gavin Camp and Travis Kalanick in USA (Fata, 2020). Uber’s vision statement is
‘Transportation as reliable as running water, everywhere for everyone’. Uber focuses on
making transportation a simple process by giving people easy access to a vehicle. The main
goal for the company is to provide affordable, safe, and reliable transport that also creates job
opportunities and a dependable income for drivers (Berger, 2020).
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Dara Khosrowshahi (2017 – Present) is the Chief Executive Officer of this company. Nelson
Chai (2018 – Present) is the Chief Financial Officer of this company. Thuận Phạm (2013 –
Present) is the Chief Technical Officer of this company (Fata, 2020). Ali Armanur Rahman is
the Country Director of Bangladesh. Currently, Uber has more than 22 thousand employees in
80 countries (Uber official website, 2021).

Figure: Uber Organizational Structure (Dudovskiy, 2018)

6. Strategic Management Process

Strategic management is a continuous process that appraises the business and industries in
which the organization is involved, its competitors; and fixes goals to meet all the present and
future potential competitors and then reassesses each strategy. The strategic management
process defines the organization’s strategy. The strategic management process of Uber
Technologies is conducted in three phases. They are described below-

6.1 Strategy formulation

To formulate strategy, management team of Uber Technologies Limited give emphasize on
meeting qualities of vehicle, meeting qualities of service, improving flexibility of operation,
improving service customization, accountability, and cost minimization (UKEssays, 2018).
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6.2 Implementation
To implement the strategy, Uber Technologies Limited gives emphasize on elimination of
various transactional cost, increasing productivity of assets and employment rate, developing
technology in different platform, affordable and dynamic pricing policy, flexible payment
method, and quality control (Luenendonk, 2018).

6.3 Strategy evaluation

To evaluate and monitor of the service, Uber Technologies Limited use two-way rating system
and information from both drivers and passenger (O'Toole & Matherne, 2017). The evaluation
process has three steps. Firstly, they set SMART goals and objectives. Secondly, they monitor
the performance. Finally, they take necessary steps according to their assessments.

7. Competitive advantages
Strategic competitiveness is accomplished when a firm successfully integrates a value-creating
strategy. The key to having a complete value-creating strategy is to adopt a holistic approach
that includes business strategy, financial strategy, technology strategy, marketing strategy and
investor strategy.

7.1 Technology
Technology is at the core of Uber’s business model which has evolved very fast since the
company’s foundation. Users can book ride with a single tap and a lot of trouble that was
previously involved in getting a taxi is no more there. The raft strategy core technology is also
the reason that Uber can pay its drivers better. Uber started as a simple app to connect riders
with drivers. Thus, technology has proved to be a source of competitive advantage and is at the
core of Uber’s fast growth (Pratap, 2018).

7.2 Global Network

Uber’s global network is also a source of competitive advantage for the brand. However, it has
connected more than 75 million riders globally with more than 3 million drivers. It is offering
its services across 65 countries and 600 cities. Every day, around the globe, its vehicles
complete around 15 million trips. Its main competitors are Lyft and a few other taxi services
(Pratap, 2018).

7.3 Marketing
It grew famous as ride sharing company soon, but it also used marketing to grow its services
and reach more and more people. However, its user network also proved a major advantage for
the company in terms of marketing. It is a review system that lets the company market its rides
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and drivers to new users. However, some sources also say that t in many major markets it has
used aggressive marketing techniques to grab a larger market share (Pratap, 2018).

7.4 Customer Service

A main reason behind the fast growth of Uber is the level of focus it has placed on customer
service. In this way, Uber has created a system that places high level focus on the users and
tries to create the best benefits for them. This is not just about the prices but extends to the
convenience of hailing a ride and being connected with best drivers too. Apart from that it
listens to customer complaints and has always tried to improve its services. Uber has often been
praised for its highly customer friendly approach (Pratap, 2018).

7.5 Customer Loyalty

One other major source of competitive advantage for Uber is the kind customer loyalty it has
been able to build over time. It has also used a mix of loyalty programs and other different
kinds of rewards to build customer loyalty. Today when Uber’s competitors are doing their
best to grab a larger market share, customer loyalty is a strong source of competitive advantage.
However, loyalty depends the most on the kind of trust that the users place in Uber. Uber offers
is also a reason behind its string customer loyalty (Pratap, 2018).

7.6 Large service range

Uber offers a large service range that addresses the needs of several customer segments
including the higher end customers who want luxury rides. In the taxi services category, it has
brought a large range of services starting from basic rides to luxury rides that are costlier. the
large service range is meant to cater to a variety of customer segments including individual
riders, groups and families as well as businesses. Its services are not limited to just taxi rides
but extend to other areas too including food delivery, health and logistics (Pratap, 2018).

7.7 Pricing policy

Uber’s affordable pricing model has proved to be a key driver of demand and growth around
the world. Its pricing strategy has driven its popularity high and made transportation affordable
for millions around the globe. Uber provides a large range of affordably priced services for
individual users and groups as well as businesses. This allows it to pay its drivers more than
the other taxi services and charge its customers less (Pratap, 2018).

7.8 Business model

It has adopted a business model that allows it to cut down operational costs while also keep
prices low and deliver the best performance. The networking model it used allowed the
company to add many drivers as well as grow the number of users (Pratap, 2018). Main
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objective of their business model is simplicity, building in scale, diversification, and admitting
their fault (Fata, 2020).

7.9 Strong financial backing

Part of Uber's ability to grow so quickly has come from the company's significant financial
backing from early investors. The company's large market share and huge valuation will likely
convince investors to buy up Uber's shares and help the company raise even more capital to
expand the business (Neiger, 2019).

7.10 Diversified revenue & new opportunities

Uber invest in ride sharing app, food delivery app named Uber Eats, Uber Freight, Uber AV
(Autonomous Vehicle). Thus, they diversify their risk and earn profit from different sectors of
their business. Day by day, they are expanding their business and entered new opportunities
(Neiger, 2019).

7.11 First mover advantage

Initially, Uber enjoy a first-mover advantage and they become the creator of rules of business.
Uber enjoy freedom from normal rules what gives a competitive advantage. Though day by
day others like Obhai, Pathao etc. start duplicate the idea, skilled workforce gives a sustainable
competitive advantage (Ahmer, 2019).

8. Conclusion
Uber Technologies limited is very successful to maintain a profitable relationship with its
partners by ensuring customer satisfaction by providing a peer-to-peer logistic service. Due to
Copywrite act and information security, their idea is tough to duplicate. An affordable dynamic
pricing system helps them to grow globally and ensure consumer loyalty. These unique
competitive qualities help them to stay profitable.
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References
Ahmer, A. (2019, November 12). WHY IS UBER WINNING THEIR COMPETITION? Retrieved from
Doers Empire: https://www.doersempire.com/why-is-uber-winning-their-competition/
Barney, J. (1995). Looking inside for competitive advantage. Academy of Management Executive,
9(4), 49-62.
Berger, B. (2020, September 20). 13 Vision Statement Examples & How To Write One. Retrieved
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examples/#:~:text=Mission%3A%20Uber%20focuses%20on%20making,a%20dependable%2
0income%20for%20drivers.
Bracker, J. (1980). The Historical Development of the Strategic Management Concept. The Academy
of Management Review, 2019-224.
Dudovskiy, J. (2018, March 7). Uber Organizational Structure. Retrieved from Business Research
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Luenendonk, M. (2018, February 16). 7 strategies Uber Is Using To Disrupt The Taxi Industry.
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Neiger, C. (2019, April 3). Uber: What Competitive Advantages Does the Ridesharing Giant Have?
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O'Toole, J., & Matherne, B. (2017). Uber: Aggressive management for growth. The Case Journal,
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UBER TAXI; WHAT YOUR ORGANIZATION MUST LEARN FROM UBER TAXI TO IMPROVE
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