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In our efforts to showcase the writing and research skills of our writers, we regularly publish papers on the most sought after topics. This post presents Porters five forces analysis on uber company and explains reasons the company is so successful.
Uber is hailed as a major disruptive force in the taxi and logistic business. It draws upon industrial organization economics to derive five forces that determine the competitive intensity and therefore the attractiveness of an industry.
The five forces framework works by looking at the high points of five essential elements that affect competition. These fall under Supplier Power, buyer power, competitive rivalry, threat of substitutions and potential new entrants. Uber is one of the fastest growing omnipresent ride-sharing transportation company that has managed to command a significant presence in the main parts of the world spreading by over 60 countries since its inception in Within the few years of existence, the organization has succeeded in capturing the loyalty of its customers by catering to the on-demand rides of individuals of all caliber of society.
This has, in turn, enabled Uber to expand its market share and provision of better services. The potential threat of new market entrants: The potential risks that the enterprise face are as follows; Setting itself in the technological arena, Uber aims to provide a linking bridge between customers and transport providers.
As the demand to balance costs become imminent, Uber is not invulnerable to raising rates, making it easier for other organizations to penetrate the industry. Various problems have popped up in Uber operations; legal issues, negative press around several areas and even fines by government authorities such as Germany, France, India, Thailand, Netherlands and United Kingdom has made the market to be under controversies thereby making new entrants very cautious stepping into the business.
This has at least for a short period, reduced the threat of new entrants into the market who must work in overcoming all these challenges. As a technology-based company, it is not easy for Uber to stop any form of imitation by any other transportation firm.
This means that it is easy for the concept to be copied by new ride-sharing companies and other competitors thereby to not only operate in the same way as Uber but to also charge less for the same distance.
The threat of substitutions: A Substitute is a well know fear that is experienced in a competitive business environment. In the transportation industry, there are numerous member organizations that can quickly provide a replacement for Uber services.
With the service quality that Uber provides, taxi services, for instance, is the closest opponent and a potential substitute emerging from the traditional transportation industry. Taxi service is traditional to towns with ride-sharing operations because of both its lower-cost and efficiency, and user-friendly designing.
As such, their abundance is enough to curb Uber from elevating the service fees. It is noteworthy that due to price sensitivity, a minor rise of Uber rates can result in customer taking on the services of its closest adversaries and alternatives.
A constant threat of substitutes is currently a weak force in the case of Uber. The threat of supplies to Uber is experienced below: One of the leading suppliers of the transportation industry is the availability of drivers.
Uber does not own vehicle among its fleets.
It is also tough to substitute individual drivers as they are given the freedom to choose between the organization and rivals. Oil and gas suppliers is another major provider. · In this article, we will look at 1) understanding suppliers, 2) bargaining power of suppliers, 3) effect on target market, 4) example - the diamond industry, and 5) example - the fast food An important force within the Porter's Five Forces model is the bargaining power of timberdesignmag.com://timberdesignmag.com The Tobacco Industry – a Porters 5 forces analysis Essay Sample.
The twelve year return-on-equity data for the Tobacco Industry of % is substantially above the all-industry average of % given in the Business Week timberdesignmag.com://timberdesignmag.com How to Do Industry Analysis, Examples, Steps, Porter Model.
by Avadhut. First of all use Porter’s 5-forces model on Pharma industry. You can also visit this link for more information. Use your own parameters to select the best companies. Hope this helps. Regards, Avadhut. timberdesignmag.com://timberdesignmag.com International Paper Company Porter Five Forces & Packaging & Containers industry analysis at just $11 per timberdesignmag.com Five Forces Analysis is a strategic management tool to analyze timberdesignmag.com · What is Porter’s five Forces model?
This model helps marketers and business managers to look at the ‘balance of power’ in a market between different types of organisations, and to analyse the attractiveness and potential profitability of an industry timberdesignmag.com://timberdesignmag.com /marketing-models/porters-five-forces.
· The porter’s 5 forces is a useful framework for competitive analysis within industry. Competitive analysis is lead into strategic planning and the development of a tailored competitive strategy that expects to exploit the timberdesignmag.com://timberdesignmag.com /timberdesignmag.com