Uber | SWOT Analysis for Uber

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SO

·         O2+S2+S3 Focus on Smartphone application and create more application functions over the phone all over the world.

·         O1+O3+S1+S2 Do more promotions overseas especially in the developing countries and take control of the market.

 

 

WO

·         W2+O1 Improve product differentiation to increase customer loyalty when they expandtheir market

·         O1 W1 Further standardize their process when they enter the unorganized market.

·         O3 W1 Grant commission to drivers if they participate in promotion activities.

·         O1 O2 W1 Enhance the profitability by increasing the market share

 

ST

·         S1+S2+S3+S5+T1+T2

Build customer feedback system to track every driver and every customer’s satisfaction.

 

·S4, T4 Gain moresupport from investors to alleviate the financial pressure.

·         S1, S5, S6, T3: Perform price strategy, further increase its awareness as well as enrich product portfolio will keep Uber outstanding among ridesharing competitiors

 

 

WT

·         W1+T1Swap Uber’s mobile app into voice app. Enhance the voice function on Uber’s mobile app

·         W3+T2Locate customers while they are using the app instead of always tracking.

·         W3, T1 Further regulate the process and strengthen the supervision to improve the passengers’ security.

 

SO Strategies

Focus on Smartphone application and create more application functions over the phone all over the world.

Currently, Uber’s customers are mostly using Uber over their app, which can easily track and choose highly rated divers at a cheaper price by one click and made the payment over the phone as well. This app is really easy for customers to follow the  “Uber system”. Uber could also develop more functions for their multi cultural customers, which would become their very own functions in their country. This strategy will increase the users all over the world and suits everyone needs.

 

Do more promotions overseas especially in the developing countries and take control of the market.

The unorganized market in developing countries can be fertile soil for Uber’s future development. Uber can easily get into the market without competitors.

Uber could do more promotions in the developing countries in order to attract more customers. Furthermore, the company can offer more rewards for the drivers who work for Uber, this will result more and more oversea taxi drivers join Uber.

WO Strategies

Keep the company unique and their app functional.

Uber should develop more unique functions in order to keep the customer more convenience and happy to use their product. Furthermore, the company needs to develop more functions that suit to use in every different countries in order to have more customer loyalty. Afterwards, there will be higher entry barriers for the similar companies. Otherwise, Uber is too easy to be copied.

ST Strategies

Build customer feedback system to track every driver and every customer’s satisfaction.

In order to keep the customers safe and satisfy for Uber’s service, the company needs to build a feedback system through the app or the Internet. Therefore, customer can easily pick up a “high rated” driver to make them feel Uber is more reliable to trust. Also this system will increase customers and drivers loyalty in order to stabilize Uber’s development.

 

WT Strategies

 

Swap Uber’s mobile app into voice app.

 

Uber drivers should pay attention to the mobile phone in order to provide a fast service to customers (Weinstein, 2014). However, this will increase the car accidents to the both drivers and customers. Uber should develop a voice control into the mobile app. Instead of looking from the phones, the app should provide a voice control function for all the drivers or the customers. Therefore they can focus on what they are doing and decrease the accident rate.

 

Locate customers while they are using the app instead of always tracking.

 

Many people accuse Uber in terms of its customer privacy (Weinstein 2014). Uber should stop their app to location customers all the time and instead of this, only use consumers’ location while they are using the app. This will increase customers’ loyalty and respect them.

 

 

 

 

 

Description

Uber’s revenue is mainly derived from sales commission and its drivers use their private cars, which also makes Uber avoid many regulatory costs (licensing, training, comprehensive insurances) that taxi firms are entitled to, giving it further cost advantages against the traditional taxi industry (Uber Technologies Inc. 2014).