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BA313CaseCompetition.pptxUber Case
Group 38: Kathryn Brunskill, Tao Fan, Jeff Steinke, Yun Wang, Brianna Wilson
First concern:
Lack of proper approvals for testing
Solution
More regulations on how testing is done
Our first main concern is in regards to Uber’s lack of proper approvals for testing. According to the case, Uber stopped testing self-driving trucks and instead reassigned Otto engineers to focus on driverless cars. After buying 24,000 Volvo SUVs for $1.4 billion, Uber was accused by multiple cities for testing without proper approvals.
Solution: As a result, we believe there should be many more regulations on how testing is done. A consequence that could result from being more intentional with safety is the amount of money that would be spent because testing can be expensive. On the other hand, the benefit to this solution is owning cars that are safe and reliable to the public.There is too much money being invested in this AV industry for there to be any mistakes or lawsuits resulting from something as preventable as proper testing.
Security problems in the autopilot system
Solution
Shut down the operations of automatic vehicles in all cities, beyond Arizona
Do more tests for the system
Second Concern:
Pressure from investors
Solution
Come up with a reliable commercial strategy
Make a plan about the development of future AV market
Third Concern
Implementing a detailed and thought our strategy could result in missing out on the idea to compete the AV industry.
Ford in 2017 replaced their CEO for lack of investment on AV technology.
VRIO Analysis
How do we utilize our strengths to enable our recommendations?
Value
CNBC listed Uber as the second most disruptive company of 2018, behind only SpaceX
399.1 million users globally in 2018
Operates in 76 countries and 450 cities worldwide
Rarity and Imitability
Established ride-hailing titan of industry
Unique brand perception cannot be replicated easily, ie. Uber Eats
Established mass consumer base and brand loyalty
High revenue and capital investment potential create a barrier of entry for smaller, new companies
Organization
Annual revenue of $11.8 billion in 2018
Established company on a multinational scale for over a decade
Company culture, driver expectations, and reliability are key focus points of Uber
What does this mean?
Uber is structured to capitalize on resources and capabilities that result in a sustained competitive advantage
Through the VRIO framework we can assess Ubers’ strengths as a company, and their capacity to answer the problems presented.
Uber is a high value company, meaning they have the ability to set an example for other companies on proper testing in this new technological field
Due to Ubers’ large amount of capital spending potential, they can become a frontrunner in AV security and capability if they are willing to invest in the R & D
Organizational structure has the potential for sustainable competitive advantage, incentivising investors and removing doubts
Conclusion
