marketing

Strength

Uber has grown in the last 10 years into a global market leader offering services venturing in over 65 countries and 785 cities. In the United States Uber has 69% market share ride-hailing market. Uber make emphasis on customer satisfaction. It has often given priority to satisfy its customers. Uber has realized that it is offering services in a customer-driven market where there is an increase in competition. Uber has the biggest ride-sharing technology. In the world, it has set itself the largest ride-sharing technology. Uber being transportation Company in more than 760 cities internationally has more than 40 million active monthly users in the year 2016. Adaptability and change is a strength of Uber. It has a unique business model that began to offer rides. Many customers are served each day in various nationalities and territories. The main success factors are adaptability and change. An example of Uber adaptive nature is beginning various business such as Uber Freight, Uber Easts, Uber Bike and Uber Health.

Weakness

 One of the main weakness of Uber is depending on smartphone devices and the internet. For instance, developing and emerging countries where people lack enough skills to operate Uber app or where internet is not accessible to all parts of the countries. Customers of Uber should have a smartphone and access to the internet. Uber depends on manpower. The face of the company depends on the drivers and the image of the company depends on how the drivers behave towards the customer. Drivers have unpredictable behavior and led to damaging the image of the company. Moreover, Uber has heated debate over controversies. Since its inception, it is also the centre of the news and controversies. Uber and Lyft drivers conducted a strike in several parts of the world against Uber and Lyft concerning low wages and lack of transparency. Many other controversies created mistrust in the mind of drivers and customers hence affecting the brand image.

Opportunities

Uber is a technology company thus internet savvy world is a lucrative opportunity to be utilized. Nowadays, people spend most hours on their mobile phones and do not like walking around. Uber Apps is a platform that motivates users to utilize Uber Apps such as Bike, Uber Eats and Health. This will be an opportunity for Uber to make an increment of their customer base and profitability. Another opportunity for Uber is driverless technology. Driverless cars on the road is an opportunity and a challenge for Uber. If Uber Company would bring safe and reliable self-driving experience to its clients, it will enable the company to be more profitable and advanced Technology Company in the whole world.

Threats

Fierce competition is a threat facing Uber. It is facing very strong competition from companies such as DIOI, OLA and Lyft. This strong competition is facing can result in a reduction of its industry rates. Due to increasing competition, Uber is facing a difficult time to retain customers and employees. Due to increasing competition, Uber is facing a difficult time to retain customers and employees. This can affect profitability and market share. The profitability and market share of this company can be affected in the ride-hailing industry. Driver’s low-profit margin is another threat of Uber. According to Uber’s initial public offering, it focuses on making customers rich excluding its workforce. The app used by Uber tries to make the maximum number of rides to drivers despite facing a low-profit margin. This will end up affecting the overall quality of services offered by drivers leading to dissatisfied customers.

Proposal for Uber’s Product that Requires Development of Marketing plan

The product or service line I want to develop a marketing plan for is Uber black. Uber Black matches riders with drivers who are top-rated driving luxury vehicles at a higher price. Customers attending a business meeting or a special night out can hire Uber Black. Also, it is featuring cars have leather seats that enable customers to feel comfortable and show up in style. I think this service deserves a more dedicated campaign. Uber Black is highly-priced; thus, marketing investment is warranted.

How to Achieve Competitive Differentiation

The three components of competitive differentiation encompass branding, regulation, and cost. To attain competitive differentiation for Uber black, I would recommend branding by building a good reputation so that it can easily attract customers attending meetings or a special right would go for Uber Black due to its valuable services Regulation, on the other hand, can help in promoting the service. Uber Black have the competitive advantage of avoiding regulation, Uber utilizes non-commercial cars, drivers who avoid costly commercial insurance and taxi medallions which offers service a cost advantage over other Uber products. Uber Black has a competitive advantage of cost, charges customers a higher price because are driven by professionally trained chauffeurs. Moreover, customers can get longer trips which leads to more money to the driver.