Organization description
Uber is a multinational transport company that leverages on technology to maintain a competitive advantage to remain dominant. Headquartered in San Francisco, Uber created an online transport application that efficiently links drivers and taxi users. With a few clicks on the phone, a customer hails the nearest taxi to enjoy a convenient ride to any destination. Both the driver and client are members of the public. Uber gained a niche by linking drivers and customers to alleviate the problems witnessed by traditional taxi companies. Uber’s mission statement is to be as reliable as running water. The company focuses on reliability and geographical coverage to serve clients and markets in all possible regions. Running water in a developed country is an essential commodity that is reliable in taps. Uber’s mission is to compare its service and products to be as secure as the most basic services on earth (Moon, 2015). Due to its focus on implementing the company’s mission, Uber has spread its service to over 750 cities globally. The over 110 million users worldwide foster Uber’s vision of enabling the world to adopt a driverless transport system. One of the first steps of attaining its vision is by disrupting the norms of the transport venture through technology (Uber, 2020).
Capitalizing on the value of the business strategy process
Through the implementation of several innovative plans, Uber managed leveraged on business strategy process to attain market leadership within the transport industry. Before formulating a strategy, the multinational corporation conducts a thorough business environmental analysis that aids in informing its decision-makers. Therefore, key decision-makers within the company have enough data to evaluate and extrapolate the future. The business environmental analysis enables Uber to understand the external and internal conditions of the business before the formulation of any operational strategy. Through this study, respective management and specialists identify strengths, opportunities, weaknesses and threats. Therefore, the environmental analysis at Uber promotes strategy formulation by providing vital information to enable the organization to leverage on its strengths while mitigating risks and weaknesses. Overall, the company, through an informed development and implementation of strategy, enjoy a competitive edge in a tight market. Decisions made within the company are informed by data and analytics that provide insight into how the organization understands its operating environment (Teece, 2010).
After the development of strategy, Uber carefully roles out its operation that aims at adding value to the organization’s activities. Most of the formulated strategy and subsequent implementation aims to attain long term results. For instance, when the company opened shop in 2009, it had a long term goal of disrupting the perennial taxi industry. It took several years for Uber to attain meaningful achievements. However, they stuck to the formulated strategy. After strategy development, Uber allocates adequate resources in terms of technology, time and personnel ensure successful implementation. Resource allocation at Auber ensures that any section of the company has enough support and goodwill to focus on optimization of operations (Moon, 2015). While implementing the strategy, top management breaks down the mission into specific tasks. These tasks are assigned to particular teams to enhance performance and accountability in the organization.
Uber implements a process of strategy evaluation to ensure that its strategies are effective. All the developed approaches are evaluated to determine their suitability in helping the company attain various goals and objectives. For instance, the company estimates the developed Uber mobile app used by clients to hail curbs. Before launching the apps for use in the market, Uber tests its functionalities internally and after that, with selected external users. These tests provide the company with valuable insight into the performance of its products and services in the market. Therefore, the company can use this feedback to make further strategic decisions regarding products and services without adversely affecting revenues and corporate brand.
Approaches recommendations
Organizations have plenty of approaches to choose from to enhance the incorporation of innovation in its strategy. However, the major challenge occurs during the approach selection stage. One of the ways of introducing innovation in an organization is to establish a research and development department. Investment in research and development fosters the organization’s quest by continually generating new ideas and innovative business approaches. With the presence of a research and development department, an organization has the opportunity to test ideas and determine their viability before incorporation into the overall business strategy (Dyer et al., 2016).
Uber can also develop a framework that encourages employees and clients to regularly communicate their recommendations, ideas and concepts without fear of castigation. Employees are the company’s connection to the market. Therefore, they have a lot of information about the products, services and market response. Uber can leverage on this and develop a model to increase engagement between employees and the management in the decision-making process. Consumers should also provide their input regarding the various products and services offered by the company. After that, key decision-makers and company strategies should put all the suggestions into consideration while formulating policies. Moreover, the development of a framework that encourages employee engagement promotes positivity in an organization (Moon, 2015).
Innovation is a risky venture that may lead to massive financial losses in an organization. However, the prospects of attaining breakthroughs due to successful implementation of change can lead to increased revenues and market dominance. Therefore, Uber should set aside a generous amount of resources and financial support for innovation. Innovation often requires heavy financial backing and human resources. Thus, the company should take calculated risks and actively pursue innovative approaches in its strategy development.
Leveraging data in business strategy
Companies leverage data to attain a competitive advantage within a market. Data comes in various forms. During strategy formulation, companies rely on data to generate meaningful information. Taking an example of the transport industry, before making strategic decisions, Uber analyzes data on regional demographics, safety index, economic stability and infrastructure. Before extending its services into a new city, Uber establishes how many people are likely to use its application. Uber also identifies the status of competition within the target market. Data regarding the operations of competition enables Uber to develop entry strategies that will address areas of weakness while leveraging on its strength to establish dominance. For instance, before the company’s incorporation in 2009, key stakeholders analyzed data and realized that there was a niche in ride-sharing services. Many people in the city could not afford traditional taxi services. However, the need for affordable and convenient transport encouraged Uber to establish an app linking car owners and clients in urban settings.
Uber also utilized data from geographical information to aid in navigation. Drivers can find the easiest and fastest route to their customers and respective destination, thereby, reducing wastage of time and fuel. Through the use of this data, customers spend less on transport costs while drivers generate extra income. use of data enables Uber to optimize its operations. The company evaluates traffic information and time to determine prices. In peak hours, the application automatically establishes higher rates to encourage drivers while increasing the company’s revenues. Therefore data plays an integral role in the formulation of a strategy for any company. Through data manipulation, the company aligns its strategy in a manner that fosters success and achievement of the overall organizational mission.
Business strategy and innovation
Business strategy and innovation are complementary. Uber can use business strategy to promote innovation in various ways. First, the company can develop and execute a strategy aimed at facilitating innovation in its environment. Such a strategy can be the development of a framework that promotes employee and customer engagement in the decision-making process. Employees who feel engaged and heard will increase productivity and provide ideas that focus on the improvement of the company. An approach of employee engagement is for Uber to avail funds to foster and support innovative ideas within the company (Teece, 2010). Any employee with an innovative proposal receives support to actualize their ideas.
Moreover, the company can increase resource allocation to the research and innovation section of the organization. Through research, proposed ideas are tested and developed to determine their viability in the market (Dyer et al., 2016). While formulating its strategy, the company should always focus on its vision to attain driverless transport. Such a vision entails development of business strategy that promotes research and innovation. The vision requires technological breakthroughs. Many other companies such as Google and Tesla are working on autonomous transport systems. These compete with Uber’s vision. To attain and maintain competitive advantage, it is imperative for Uber to tailor its strategy to foster innovation through research.