Business Strategy of UBER EATS Samples †MyAssignmenthelp.com

Question: Discuss about the Business Strategy of UBER EATS of Australia. Answer: Introduction UBER EATS is an online food delivery business of Australia. It provides meal using online mode of business. It came in the year 2014, founded by the California, United States and San Francisco (Chen Frazier, 2017). They also launch UBER FRESH in California that later renamed as UBER EATS. The company trades globally and it achieved huge success in terms of financial position. The technology has gained maximum benefit and encouragement in terms of driving cars (Day, 2017). Now it is expanding its business in food and restaurants. It has captured its business in Melbourne city. With rapid success and growth, the business created an easy mode of selling their product by creating their website for accepting online orders (Diega Jacovella, 2016) The second part of the report deals with the critical analysis of the business using models and factors to determine the strength and position of the company. Pestle model helps to determine the various factors affecting the business (Fang, Huang Wierman, 2017). Five forces deal with those five points that structures the whole business and finally the SWOT analysis gives the strength, weakness of the business. It gives the overall business performances and financial position in terms of globally. PESTLE model The model gives the brief summary on the various factors like political factors, environmental factors, social factors, technology factors, legal factors and economic factors. Political factors deals with the political issue and relations with the other countries. Australia comes at 25th position in terms of political stability globally (Fitzgerald Gunter, 2017). There is minimum political risk in Australia; therefore, one can do business easily. Environmental factors include those positive and eco friendly climate can largely influence the growth of the business. Therefore, pollution free environment will create sustainable business and hygienic food. Economic factors include the national and internal economic conditions and effect on the business (Kennedy et al., 2017). As Australia had a forecast of facing a financial crisis in the year 2017 as per economic speculations, therefore country will get affect in terms of purchasing power. Not only UBER EATS will get effect, the entire business industry will affect the economic sector. Due to recession, people will not have any savings therefore; there will not be any consumption or investments (Lo, King Mackenzie, 2017). This will reduce the production unit due to low supply and demand. Global relation will also get affected with the financial crisis especially the trading collaborators. Sociological factors depend on the mode of business. There will be more customers and more demands if there is easy communication access. As UBER EATS have their website for online food orders, therefore it leads to more demands for the food. There are instances when people want food on urgent basis due to some reasons, therefore, this method of business adds to their requirements and fulfill their needs and demands. This results in the profit of business growth in terms of customers and locality. Technological factors deals with updated technology and quality services. Late services in case of food delivery will create a negative impact on the business. In this business, what matters most is the time punctuality means food delivery on proper time. The other important thing is the quality and the standard of the food. Good food with fresh quality will attract more customers to apply for the order that can affect the business in a positive way. Lastly, legal factors provide the certai n rules and regulation of the company (Mathmann et al., 2017). It also includes the consumer rights that are present in the documents. In sum, with this it gives a brief summary or the outline about the pestle model of UBER EATS. PORTERS five forces Five forces of porter give the overall structure of the business industry; it gives an analysis about the performances of the business and the business threats. These five forces are supply power, buyer power, threat of new entry, competitive rivalry and threat of substitution. Supply power- As the customers are aware of tastes and brands, therefore when they do not meet the requirements the supply decreases as demand from the customer reduces due to changes in tastes and poor quality standards. Buyer power- with respect to poor services the buyer tends to change the service sector. They prefer to use those services from which they get high satisfaction (Pugliese, 2016). The ultimate purpose of buying is to satisfy wants and demand and when these not achieved properly then buyers tends to shift to other services. Threat of new entry- Due to robust growth, the industry reaches product life cycle stage therefore creates strong competition among the different businesses. Because of diversity, there is minimal point of risk for the new entry. Threat of substitution- There is moderate level of risk in terms of substitution as the business of UBER EATS is dependent on UBER industry, therefore the rival companies had already tested the UBER staffs. That is why the risk burden of substitution is moderate. Competitive rivalry- As there is diversity the competitive rivalry is high. According to the demands and requirements of the customers, there are creations of more business with diversity in food. People come across various choices of food with respect to differences in the taste. There is a strong competition among the existing rivals. SWOT analysis SWOT analysis deals with the business strength, weakness, opportunities and threats in terms of market insight and financial terms. These involve internal benefit for long-term growth of the business. With the greater output and success, it creates more competition in the market globally. When there is more competition then there is at threat of competitive rivalry. Strength - Strength of the business gives support and helps to compete with the rival firms or business. The mode of competition can be the quality of the food, time punctuality in case of the delivery of food and economies of scale (Smallens, 2016). UBER EATS holds two biggest strengths that are brand and quality of the food, the other is financial help from UBER. With standard and hygiene, food will create more demand for the customers and the food. Weakness- Two major weakness of this business and they include staff turnover and risk of perception can be there if the food is environment unfriendly. When there are new staffs the taste of the food can vary, timing for delivery of food can fluctuate. If the food is not hygienic then it can severely lead to decline in the demand of the food, which further will create decrease in the production and sale of orders. Opportunities- Good growth of the business creates doors for more opportunities. Variety in production leads to many opportunities means fit also leads to tough competition effect in the market (ZANELLA, 2016). Fragmentation in market creates opportunities and business growth, thereby, creates market share. The other part of encouraging and creating opportunities is the technology effect. Proper updated means of technology and brand can help in expansion of the business. As per the customer need and demands, there should be quality food, thereby will lead to more profit to the business. Threats The major threat to this company can be the external competitors, means if there is poor quality of food or if there is delay in the delivery of the product then this can act as the major threat to the business in terms of customers, and profit (Tan, Pan Liu, 2016). Other threat can be in relation to diversity that is less choice leads to decline in the availability of the customers. Changes in government rules and regulation can create negative impact on the business; as a result can act as a threat to the business industry. Conclusion UBER EATS is a type of online business that deals in the selling of food by taking online orders. The report provided the pestle analysis of the business along with the porters five forces. It had also briefly mentioned about the strength and weakness of the business and its competitive strength globally. While doing business in food, the seller and the producer should give importance to three things quality of the food, easy convenience and product diversity. Quality of the food means the food should be of fresh quality and hygienic. Easy convenience means as the business takes online orders still the mode of convenience should be easy and reachable within less span of time. The restaurants should be a classy and environment friendly ambience. Lastly, it involves the diversity factor; there should be good number of variety and choices in terms of availability of food. The business should be customer friendly as when customer gets satisfaction then they create more customers and more demand for the service they get. This marks a good indication to the business in terms of its growth and profit. References Chen, B., Frazier, P. I. (2017). Dueling Bandits With Weak Regret.arXiv preprint arXiv:1706.04304. Day, J. (2017). Collaborative Economy and Destination Marketing Organisations: A Systems Approach. InCollaborative Economy and Tourism(pp. 185-202). Diega, G. N. L., Jacovella, L. (2016). UBERTRUST: How Uber Represents Itself to Its Customers Through its Legal and Non-Legal Documents.J Civil Legal Sci,5(199), 2169-0170. Fang, Z., Huang, L., Wierman, A. (2017, April). Prices and subsidies in the sharing economy. InProceedings of the 26th International Conference on World Wide Web(pp. 53-62). International World Wide Web Conferences Steering Committee. Fitzgerald, T., Gunter, H. M. (2017). Debating the agenda: the incremental uberisation of the field. Kennedy, J., Nansen, B., Meese, J., Wilken, R., Kohn, T., Arnold, M. (2017). Mapping the Melbourne Sharing Economy. Springer International Publishing. Lo, A., King, B., Mackenzie, M. (2017). Restaurant Customers Attitude toward Sustainability and Nutritional Menu Labels.Journal of Hospitality Marketing Management, 1-22. Mathmann, F., Chylinski, M., de Ruyter, K., Higgins, E. T. (2017). When Plentiful Platforms Pay Off: Assessment Orientation Moderates the Effect of Assortment Size on Choice Engagement and Product Valuation.Journal of Retailing. Pugliese, C. M. B. (2016).Creating value with digital platforms: the cases of Uber and Airbnb(Doctoral dissertation). Smallens, Z. M. (2016).Prosperity in the On-Demand Economy: Reinvigorating the American Labor Force(Doctoral dissertation, Oberlin College). Tan, F. T. C., Pan, S. L., Liu, J. Y. (2016). Towards a Self-Organizing Digital Business Ecosystem: Examining IT-Enabled Boundary Spanning Practice of Chinas LeEco. ZANELLA, F. (2016). Innovation of meaning in two-sided markets: how to attract the second side?.