Uber Corporate Strategy

1010 Words 5 Pages
This essay aims to demonstrate the possible influences of autonomous vehicles on the strategic planning of ride hailing industry with a specific company - Uber Technologies Inc.. In the following paragraphs, the changes Uber might make on their business-level strategy would be illustrated with the mention of PESTEL framework and strategic alliance. Subsequently, it is indicated that Uber is able to achieve competitive advantages by implementing the diversification of corporate-level strategy. The challenges Uber face are demonstrated along with some recommendations at the end of the essay.

Introduction
Due to the emergence of autonomous vehicles, Uber Technologies Inc., a ride-hailing company that highly depends on automobiles needs to modify
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Analysing with the Boston consulting Group matrix, these two businesses are both in the “problem child” of the matrix which means that they both have a high market growth but currently a low market share within the portfolio. However, revolutions could be made in the corporate-level strategy with the intervention of driverless vehicles technology. The “problem child” have the chance to turn into a “star” in the next few years (Johnson et al., 2014). From the company perspective, Uber truly save the cost of human capital and the delivering speed might be faster than that of a human-driving car. Consumers benefit from paying lower delivery fees and could order food and receiving packages regardless of the weather. Additionally, UberEat could possibly provide services that keep the food warm with embedded specific facilities in their vehicles. As a result, Uber could be more profitable in the market of food and package delivery, stretching the corporate management competences. It enables Uber to transform the self-driving industry regarding to Michael Porter’s five forces framework. With the growth of business, Uber could spend more on the innovation portion, leading to a more intense rivalry that could increase the rivalry among the industry and lower the threats of potential entrants (Volberda et al., …show more content…
The first challenge is considering with the maturity of self-driving vehicles technology. There are still scenarios that human drivers can deal better than autonomous vehicles. Moreover, the issue of cybersecurity should not be neglected. Since self-driving vehicles gain information from the cloud, it could simply expose the personal data and being hacked for improper purposes. Hence, the software system requires lots of improvements before being popularized. Secondly, the traffic congestion issue has been a highly discussed societal topic. Self-driving vehicles are believed to eliminate traffic, yet Muoio (2017) claimed that some experts consider the impact to be minimal or negative. Owing to the convenience, zero-occupant vehicles occur and travelling by public transportation decreases. Uber should concern this issue and provide feasible

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