16 Jun Executive Summary – this should include a summary of the problem/opportunity, your solution to it, how much it will cost, how much new revenue it will generate,
Executive Summary
– this should include a summary of the problem/opportunity, your solution to it, how much it will
cost, how much new revenue it will generate, other benefits to the customer
Description of Organization
– this section should contain…name, profit or nonprofit, what do they do, what industry are they
in?
Overview of vision/mission
– if they don’t have them, develop ones for them. Should they be changed/improved?
What is the problem or opportunity?
Analysis
– put together the critical information you need to know before you make recommendations
– Internal (resources, capabilities, core competencies, competitive advantage etc.)
– External (macro environment, industry, competition, customer)
– Put it all together in a SWOT
– Value proposition (how your organization is uniquely qualified to address the
opportunity)
Target market description
– Who is the current target market, what other markets might they pursue?
Marketing Program
– this is where you describe, using the 4 p’s, your solution to the problem/opportunity
How you will implement your solution
– be sure to include how you will evaluate and control the implementation rollout
Business Case
– costs of solution and projected new revenues, other qualitative benefits to customer
Executive Summary Uber’s app service leads the rideshare market, providing opportunities for increased safety precautions, effective driver retention, & conscious order pricing. Doing annual background checks, implementing a more secure rider/driver verification system, covering 50% of driver gas costs, increasing driver pay by 10% per minute, & launching new services, Uber will be able to increase sales by $10,000 million. While overall costs will be $10.5 million, overall benefits will be $118,000 million, allowing for a $12,200 million increase in income, therefore getting the company out of the red. Company Description
o Rideshare service company founded in 2009 (originally called UberCab) o International launch 2011, employs drivers worldwide o Now considered technology platform for people and things mobility with restaurant
delivery service launch in 2014 (UberEATS) Vision & Mission
o Vision: We ignite opportunity by setting the world in motion o Mission: Smarter transportation with fewer cars & greater access. Transportation that’s
cheaper, safer, & more reliable. Opportunities
I. Safety II. Driver Retention III. Service Growth
Analysis Internal
o Core Competencies: Strong brand image, good customer understanding, ride options o Competitive Advantage: First mover, service innovation & development, algorithm o Resources: Network effect, worker skills, R&D, eco-friendly app based, & global,
financial debt o Capabilities: User friendly, practical, comfort, “tap & ride” o VRIO (Figure 1)
Uber has a sustainable competitive advantage from their innovation & a temporary competitive advantage from their network effect
External o PESTEL
Political: Government regulations in some countries Economical: Cost efficient rides, several pricing models, financial issues (debt) Social: International operations Technology: Innovation in apps, progress with self-driving cars Environmental: Carpool service Legal: Safety issues & improper treatment of employees
o Strategy Canvas (Figure 2) o Perceptual Map (Figure 3)
SWOT Analysis (Figure 4) o Uber should take a COMPETITIVE strategy approach to achieve better performance
Value Proposition o Customers: cheaper than taxis, comfortable, free rides/promotions, efficient o Drivers: flexible schedules, can be second source of income, provided benefits
Target Market Description o Current customers are in middle 50% income, 25-45 years old, & equally split between
male & female, & urban & rural locations o Potential users are 15-24 & 45+ years old, developing communities, lost clients o Target users are cost efficient, those who cannot drive, tourists, partygoers, as well as lost
customers from past mistakes, pet families, & people who are too busy to shop Marketing Program Product
o Smartphone apps for consumers to download & request rides o Ability to contact driver, track their nearby location, & get notifications o Various services for customer preference
Cars: UberX (most popular), UberTAXI, UberBLACK, UberSUV, UberLUX, UberXL, UberPOP, & UberPOOL
Others: UberRUSH, UberFRESH, & UberEATS o Introduce additional services, such as pet transportation, single item delivery, retail or
grocery delivery, & tour guides to reach more customers & maintain competitive advantage
Place o 700 active cities (50+ countries) o Provide drivers additional funds for gas costs & increase wages to incentivize more
people to drive, creating more availability for location expansion Price
o Upfront; App determines pricing o Cost leadership (cheaper than taxis)
Promotion o Advertising through social media & streaming programs & word of mouth o Strategic partnerships with other companies o Rider & driver benefit discounts, free rides & rewards program o Implement more background checks for drivers, & better verification systems for safety
of riders & drivers to regain customer & employee trust Implementation
o December, 2020: Office personnel are increased & background checks on all drivers, new & existing are required & driver behavior is monitored annually
o Spring 2021: Text message verification system between rider & driver are used from app & sent through Uber extension number to direct phone number of each party
o October 2021: Driver wages are increased by 10%, per minute, per ride o February 2021: UberQUICK is launched for people to place orders for few items with no
minimum purchase requirement o Fall 2022: Gas funds are 50% covered for each app ride logged by drivers & are
monitored through app tracking software. UberTOUR is launched for tourist visits. o December 2022: UberPET & UberSHOP is introduced for pet transportation & shopping
delivery & will be available through the app stores on smartphones Costs of Solution (See Figure 5 & 6)
o Overall Cost: $10.5 Million o Overall Benefits: $118,000 Million o $12,200 Million debt recovered
Figure 1
Valuable Rare Difficult to Imitate Organized Pricing Strategy Yes No No Yes Innovation Skills Yes Yes Yes Yes Network Effect Yes Yes No Yes
Figure 2
Figure 3
Figure 4
Strengths: – Low operation
costs – High Service
Standards – Strong
Recognition
M 2
3
2
I 3
3
3
R 6
9
6
Opportunities: – Utilization of more
drivers – Additional services – Exploitation of
new markets
M 2
3
3
I 2
3
3
R 4
9
9
Total 21 Total 22 Weaknesses:
– Scandals & Issues – Financial losses – Increasing
competition
3
3
2
3
3
3
9
9
9
Threats: – Easily imitated – Excludes older
generation – Developing legal
regulations
3
2
2
3
2
3
9
4
6
Total 24 Total 19
Figure 5
Safety Driver Retention Market Growth Costs New Software: $10,000
Marketing: $1 Million Lawyers $20,000
Pay Increase: $975,000 Gas Coverage: $2 Million
R&D: $4 Million Advertising: $2 Million
Benefits Customer Increase: $83 Million
Driver Reliability: $15 Million
Increased Sales: $20 Million
Figure 6
2017-2020 2021 2022 Units (Rides) 5.5 Billion 1.9 Billion 2 Billion Net Revenue $33,349 Million $18,000 Million $20,000 Million
COGS $16,991 Million $8,000 Million $8,500 Million Gross Income $16,358 Million $10,000 Million $11,500 Million SGA Expenses $23,117 Million $7,300 Million $8,000 Million
Operating Income -$15,709 Million $2,700 Million $3,500 Million
