Case CH 10 - Case from chapter 10 PDF

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Case from chapter 10...

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CASE STUDY CHAPTER 10 1.Analyze Uber using the competitive forces and value chain models. What is its competitive advantage? Uber’s competitive forces are based on structure of the company and IT systems. Obviously, Uber was able to effectively implement information technology into its’ business model. The primarily strategy is to provide quicker and cheaper transport services to people in big cities. Everything started in big cities because of huge demand and lack of good service since waiting time and prices for taxis were high unreasonably high. Taxi service was a monopoly quite for a long time and no competition costed high prices. After entering the market Uber gained advantage by targeting big cities with a higher demand for rides. Talking about Porter’s five forces, Uber gets a competitive advantage for most of the components. Bargaining power of suppliers almost doesn’t exist since Uber does not seem to have suppliers. There is no threat coming from suppliers as Uber does not need products or services from any suppliers as its drivers have their own cars and customers have their phones in order to get a ride. Stable price on gas and internet are the only suppliers. In our case Uber is a new substitute of Taxi and public transportation. While taxis are still in business, more and more people are choosing Uber because of its speed and price. I believe that threat of new entrant can be serious, however Uber and it is main competitor Lyft are well-developed companies that are leading in the market with pretty high barriers to enter. Customers do not seem much bargaining power as competitors like public transportation is not able to provide a fast and convenient ride. Uber is dominating in the market, but ride services industry is changing, and company needs to position themselves thoughtfully in order keep their reputation.

Uber gained a competitive advantage by being one of the first online platforms that offers ride hauling services with direct use of innovative information technology systems. Company needs to keep being focused on providing new innovative opportunities to clients like using selfdriving cars What is the relationship between information technology and Uber’s business model? Uber’s business model is focused on gathering and interpreting information when IT focuses on increasing the flow of information and bringing together different functional areas in order to increase performance, productivity, and efficiency. Uber’s business strategy is aligned with same actions. The company gathers data through the app, interprets the information, and provides a service that is more efficient than the standardized service. Uber uses the information technology to be step ahead and provide what customers want and prefer by analyzing data in order to improve the service. Most likely Uber would not exist without information technology completely as without using IT systems it would not have a well-developed application with millions of users. How disruptive is Uber? Uber should be counted as one of the most disruptive companies of this century so far as it changed completely ride industry and brought a new competition to transportation industry. Uber disrupted the market by providing a digital based platform with lower price and faster drive and automatically dominated the cab industry. Another advantage of using Uber is convenience as you have the option to order in advance or choose less expensive deal and wait longer. However, there is a thought that Uber might lose customers buy using disruptive method which leaves a lot of customers worried about safety of their personal information. Is Uber a viable business?

I believe that Uber is viable business for now, however, there is a big question mark for the future wellbeing. Uber is missing an important aspect - good reputation as in the past it did not protect personal information of users as well as many other factors that costed them a good reputation. Nowadays more and more people are focused on being eco-friendly and Uber wants to make them prepare something for that because more and more people are choosing an alternative of using a car in order to reduce their footprint....