Good Case Study On The Operations Of Uber

The VRIO analysis is a section of a bigger strategic plan of a company. The first strategic process that any company goes through is the vision statement followed by the objectives, then the external and internal analysis, strategic choices, and finally the strategic implementation. Any particular firm will hope that the scheme consequence is a competitive advantage in the marketplace that the company operates in. The VRIO framework is used to analyze Uber to determine whether it is positioned for a sustained competitive advantage. VRIO is an abbreviation for the four basic questions that one asks in order to determine the competitive advantage of the firm. They include: the question of value, Rarity, the ability to imitate, and the question of organization. The key thing that justifies the valuation of the business is its ability to scale internationally, like Face book and Twitter. The firm has confirmed that it can outsource its technology beyond the borders of the United States. This is important to the growth story of the company. Further, the company reaches equilibrium without manual intervention. This implies that the company can grow within a city without hitting dis-economies like most of its competitors. On imitation, there are a number of companies doing similar services as Uber. For instance, gettaxi and mytaxi offer the same services as Uber. However, they do not reach the levels of Uber because they are not well marketed.
The competitive scope of Uber is broad because it has outsourced the technology into many countries in the world. The company has a competitive advantage over other companies offering the same services because of a considerable amount of marketing done on the product in many countries. The Uber application is cost-centric. This implies that the business does not directly add to profit but still costs the firm money to operate. It contributes to the company’s profitability indirectly unlike profit-centers which contribute profit directly.
The value-cost model explores the value of service that clients get for their money. In the transport sector, clients have been receiving different type of services from the traditional taxi drivers and from the Uber taxis. There is basically a difference between Uber Taxis and traditional taxis on the basis of value and cost drivers. There is value in Uber much than in the traditional taxis. First, Uber has more cars because it has absorbed most traditional taxis that existed before the launching of Uber. In terms of quick response, Uber is first and quick in responding to a client’s call which gives it an advantage over its competitors. There is a high demand associated with the Uber taxis as compared to the traditional taxis. The technology has been warmly welcomed in many parts of the world due to its affordability and reliability. The higher the demand for transport, then higher the work done and the more money the drivers get. Uber has reclaimed a significant percentage of clients in the transport sector which gives it a notch higher in comparison with the traditional taxi operators. When it comes to the drives, there is a big difference between how they operate in Uber and how they do it with the traditional taxis.
Drivers in Uber are humble and helpful. This is because, the technology has rolled out a platform where clients can rate the services provided by the driver. Every driver would like to display a good impression to a client so that they can be rated high. In contrast, traditional cab drivers do not have a platform to have them on the check. They, therefore, behave and operate the way they like which gives Uber a competitive advantage over them. Based on the internal and external analysis of Uber, there are alternative strategies that Uber may adopt apart from the ones mentioned above. The main strategy that Uber should adopt is that of killing competition and ruling the market. To kill competition, the company would require advance technology to enable it reach more clients throughout the world. To achieve this, the company should partner with technological companies such as Baidu and Times Internet to help it roll out new technological advancements.