Answering the article Essay Example
Uber has employed Michael Porter’s Competitive Advantage Framework and has set platform to improve most of its aspects into the future. Uber is a transportation company that has infiltrated many markets with a lot of success. They have a sustainable advantage which can be analyzed through their use of porters force aspects. First of all, this company does not have any protection from new entrants and has no crucial elements that can prevent new entrants from competing in the industry. On the other hand due to low capital requirements, Uber faces low protection against new entrants. There is a higher threat to
Uber has worked hard to advance in technology for mobile car shuttling services. The only shortfall about this company is the supplier power. This business model does not have their own vehicles but relies on drivers with their own vehicles as partners. Although there was news of Uber buying drivers from Google, the news were just a hoax. Supplier has the power to negotiate for higher price at Uber expense. There are so many substitutes in the market competing against Uber. Sidecar and Lyft have similar business models and suppliers and thus these companies are competing for customers throughout. Even though Uber is dominant in the ride sharing industry, there is a dire need for advancement of its innovation strategies so that they can gain competitive entities (Casadesus-Masanell, Makenzie & Didiomov ). This company has a well established business network and large capital investment making it a market leader. However, insignificant differentiation strategies limit the firm potential and thus competition is a weaker force given Uber’s dominance.
Casadesus-Masanell, R., Makenzie, I., & Didiomov, D. . Uber and the Taxi Industry (pp. 1-12). :. Massachusetts: Harvard Business School.Print., 2015.
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