Uber Pricing Strategies and Marketing Communication Case Solution & Answer

Uber Pricing Strategies and Marketing Communication Case Solution

1.1       identify strategies

  • Uber focuses on the generalist strategy in network effect industry.
  • Uber focuses on the Surge pricing strategy in network.
  • Uber focuses on the incentive strategy to join the networks.

1.2       generalist strategy chart

2         Strategic Challenges

The strategic challenges which the company has faced comprises of regulatory challenges, imitators and new technology which is further stated in problem statement in detail. The further information related to the challenges are discussed in the below chart:

Regulations Imitators New technology
·         Under the eyes of law system UBER is performed their services in an illegal way in most of the cities and its does not have licensed drivers)

·         The company has faced restriction in its services from the government authorities. Government partially prohibited the services of the company and also imposed plenty in advertisement, fines, confiscations of cars and other fines.

·         There are various companies in the market that provide the similar services as Uber provide to the customers. The main pressure company faced from its two main competitors which include Lyft and Sidecare.

·         All the people who have the licenses and the drivers are the competitors of the company.

·         The most important challenge that the company faced is the new technological innovations that directly affect the market position of the company as well as create buzz in the marketplace. In short, new descriptive technology is the biggest challenge for the company.

·         The new business model also create challenges for the company.

·         Driverless cars.

3          Supporting Points

The company should maintain its close relationship with government authorities as it would help the company in meeting the need of the market as well as provide the company with basic facilities that helps the company in achieving its organizational goals. The company also needs to focus on ‘too big to fail’ strategy which would help the company in analyzing the market threats as well as guiding the company about the upcoming challenges. It would also help the company in maintaining its market share in the market as well as also assist in achieving target goals. Moreover, the company also needs to retain critical mass and gain economic of scales. On the other hand, the company also needs to invest in research and development department which would help the company in minimizing the risk of failing as well as reducing the effect of new technology. Uber must put strong eyes on the activities of the competitors and never leak the secrets of the company with anyone that support the company in securing its secrets from its competitors. Furthermore, it is necessary for the company to involve innovation in its products and services which would create differentiation among competitors’ products as well as it would increase the demand for products in the market.

  • The strategic challenges would help the company in better understand the vision of the company as well as properly look over the mission of the company. They would also provide the company a sense of direction, leadership staff, continuity and accountability
  • These challenges would providethe company a better understand about the facilities that are related to the problems and market environment as well as provide awareness about the strategies that better fit with the culture of the organization.
  • The strategic challenges help the companies in attaining control over the future activities as well as the destiny of the organization. Therefore, it also provides the company opportunities to impact the future and undertake a preemptive position.
  • The strategic challenges and objective strategies are the points of planning. It is necessary for the company to maintain an effective position in the market as well as never give change to its competitors thus it attain the market share of the company……………….                                                                                                             This is just a sample partial work. Please place the order on the website to get your own originally done case solution
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