Application of the Strategic Management Theories in Uber Bangladesh

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Table of Contents
List of Figures...........................................................................................................................4
Chapter One: Introduction.....................................................................................................5
1.1 Origin of the Report.........................................................................................................5
1.2 Objective of the Report....................................................................................................5
1.3 Scope of the Report..........................................................................................................6
1.4 Limitations of the Report.................................................................................................7
1.5 Sources and Methodology................................................................................................8
Chapter Two – Overview of the Uber Bangladesh .............................................................10
2.1 Uber Technologies Inc. at a glance................................................................................10
2.2 Uber in Bangladesh........................................................................................................10
2.3 Uber’s mission ...............................................................................................................11
2.4 Uber’s business objectives:............................................................................................11
2.5 Using Uber in Bangladesh:............................................................................................11
2.6 SWOT analysis of Uber from Bangladesh perspective: ................................................13
Chapter Three - External Environment Analysis...............................................................17
3.1 Transportation Industry Overview in Bangladesh .........................................................17
Transportation Sector at a Glance:...................................................................................17
Modes of Transportation in Bangladesh:.........................................................................18
Contribution in Economy:................................................................................................21
3.2 Porter’s Five Forces Model............................................................................................22
3.3 Strategic Groups within Car Rental Service Industry....................................................26
3.4 Industry Life Cycle: .......................................................................................................27
3.5 PESTEL Analysis for Uber BD:....................................................................................28
Chapter Four - Analyzing Internal Resources....................................................................31
4.1 Distinctive competencies of Uber..................................................................................31
4.2 Value Creation by Uber .................................................................................................32

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4.3 Value Captured by Uber ................................................................................................32
4.4 Value Chain of Uber ......................................................................................................33
4.5 Business Model of Uber.................................................................................................36
Chapter Five – Functional Level Strategy...........................................................................37
5.1 Sources of and Strategies to Achieve Competitive Advantage .....................................37
5.1.1 Achieving Superior Efficiency ...............................................................................37
5.1.2 Achieving Superior Quality....................................................................................40
5.1.3 Achieving Superior Innovation...............................................................................41
5.1.4 Achieving Superior Customer Responsiveness ......................................................43
5.2 Durability of Competitive Advantage of Uber: .............................................................44
Chapter Six – Business Level Strategy.................................................................................47
6.1 Value Creation Frontier & Value innovation.................................................................47
6.2 Blue Ocean Strategy of Uber using ERRC Grid............................................................48
6.3 Competitive Positioning : Generic Business-Level Strategy for Uber ..........................49
6.4 Strategies in Embryonic and growth industries .............................................................50
6.5 Strategic Implications: Crossing the Chasm..................................................................51
6.6 Navigating Through the Life Cycle : Strategies for Uber..............................................52
6.7 Game Theory : Uber Vs Pathao (a hypothetical case study) .........................................53
6.8 Strategy shapes the payoff structure of the game ..........................................................54
Chapter Seven: Global level strategies of Uber ..................................................................55
7.1 Types of Global Strategies.............................................................................................56
7.2 Global strategy followed by Uber:.................................................................................57
7.3 How did Uber enter Bangladeshi market?.....................................................................58
7.4 Why Uber Choose Bangladesh ......................................................................................59
Chapter Eight - Corporate Level Strategies........................................................................61
8.1 Corporate level Strategy of Uber Bangladesh ...............................................................63
8.2 Value creation of Uber by Strategic outsourcing:..........................................................64

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8.3 Uber’s Getting Benefits from Outsourcing....................................................................65
 Focus on Core Activities:........................................................................................65
 Cost and Efficiency Savings:..................................................................................65
 Operational Control................................................................................................65
 Staffing Flexibility...................................................................................................65
 Continuity & Risk Management............................................................................65
 Develop Internal Staff:............................................................................................66
8.4 Strategic alliances between Uber and Grameenphone Ltd ............................................66
Conclusion ..............................................................................................................................68
References...............................................................................................................................69

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List of Figures
Figure 1: Price of the Uber in Bangladesh...........................................................................12
Figure 2: Transportation Industry of the Bangladesh .......................................................19
Figure 3: Porter’s Five Forces Model ..................................................................................22
Figure 4: Strategic Groups within Car Rental Service Industry ......................................26
Figure 5: Industry Life cycle.................................................................................................27
Figure 6: Value cahin of the Uber ........................................................................................34
Figure 7: Achieving Superior Efficiency..............................................................................37
Figure 8: Achieving Superior Quality..................................................................................41
Figure 9: Achieving Superior Innovation............................................................................42
Figure 10: Achieving Superior Customer Responsiveness.................................................44
Figure 11: Value Creation Frontier .....................................................................................47
Figure 12: Types of Corporate Level strategies..................................................................61
Figure 13: Value creation of Uber by Strategic outsourcing .............................................64

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Chapter One: Introduction
1.1 Origin of the Report
To have an overview of Strategic Management in practical life we’ve a study on “Application
of the Strategic Management Theories in Uber Bangladesh”, a transportation services
company and one of the largest companies in the world. Now a day’s education is not just
limited to books and classrooms. In today’s world, education is the tool to understand the real
world and apply knowledge for the betterment of the society as well as business. From
education the theoretical knowledge is obtained from courses of study, which is only the half
way of the subject matter. Practical knowledge has no alternative. The perfect coordination
between theory and practice is of paramount importance in the context of the modern business
world in order to resolve the dichotomy between these two areas. Therefore, for the B.B.A.
program we are assigned to prepare a report on “Application of the Strategic Management
Theories in Uber Bangladesh” for Strategic Management Course (F-408) course by our
honorable course teacher Ms. Samia Sultana Tani.
1.2 Objective of the Report

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Our objectives are…
 To increase our experience in data collection & analysis.
 To know about the actual picture of Uber Bangladesh.
 To have practical knowledge of Strategic Management.
 To know the implications of Strategic Management.
 To have better analytical abilities regarding Strategic Management in real world.
 To know Uber Bangladesh from a closer view.
1.3 Scope of the Report

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While completing the report we’ve had a lot of scopes of gathering knowledge of real
business world and the wide horizon of business, although the report is only concerned
about the Uber Bangladesh. We have collected their information from the internet as it a
multinational company and its head office is outside of Bangladesh. We got almost all the
information we needed because the website of the company is very much updated and
resourceful. We knew about their mission, vision, products, area of operation, accounting
system, managerial and organizational structure etc. We are really grateful to our course
teachers for assigning us such an interesting and knowledgeable topic.
1.4 Limitations of the Report

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While preparing this report, we have faced some problems. The main problem was to co-
ordination all the group members. Moreover, during data collection we faced several
problems.
 Due to limited access of the data, this study may not be perfect to the scent percent.
 Lack of enough experience in analyzing of data.
Due to inadequate information, in-depth analysis could not be done in the report
1.5 Sources and Methodology

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This report’s research is based on application of Strategic Management in Uber Bangladesh.
The data types are secondary that were collected from the internet. The company’s updated
information is given on its website and we mainly collected information from there.

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Chapter Two – Overview of the Uber Bangladesh
The word UBER firstly introduced in March, 2009. Uber Technologies Inc. is a global
transportation technology company headquartered in San Francisco California, United States,
operating in 633 cities worldwide. It develops, markets and operates the Uber car transportation
and food delivery mobile apps. Uber drivers use their own cars although drivers can rent a car
to drive with Uber.
2.1 Uber Technologies Inc. at a glance
Formerly called Ubercab (2009-2011
Company type Privately held company
Industry Transportation service.
Founded March 2009
Founders Travis Kalanick, Garrett Camp
Head quarters San Francisco, California
Area served Worldwide, 633 cities
Products Mobile app, website
Services Vehicles for hire, delivery commerce.
Revenue US$ 6.5 B (2016)
Net income US$ -2.8 B (2016)
Number of employees More than 12,000
Website www.uber.com
2.2 Uber in Bangladesh
Uber, the US online taxi-hailing company, on Tuesday, November 22, 2016, launched its
operation in the Bangladeshi capital Dhaka. ”The world’s largest on-demand mobility platform
will be available in Dhaka (from Tuesday) to offer safe, reliable and affordable rides at the
push of a button while opening up flexible, economic opportunities for driver-partners,” the
company said in a statement.

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2.3 Uber’s mission
Its mission statement is "make transportation as reliable as running water, everywhere, for
everyone."
2.4 Uber’s business objectives:
 Create the world's biggest taxi network, connecting riders with safe, reliable,
convenient transportation providers at a variety of price-points in cities around the
world.
 Create the world's biggest P2P logistics platform, allowing anyone to either request
or provide physical delivery of a myriad of goods & services (In-progress)
 Shift from 100% human-driven logistics to 100% machine-driven logistics. Profit
immensely. (This phase will be the most difficult)
2.5 Using Uber in Bangladesh:
Previously in Dhaka city there were not any transportation like ubar.One tap and a car comes
directly to you. Hop in—your driver knows exactly where to go. And when you get there, just
step out. Payment is completely seamless.

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Uber is helping the people of the Megacity of Dhaka by providing facility to go anywhere,
anytime in the city. Daily commute. Errand across town. Early morning flight. Late night
drinks. Wherever you’re headed, count on Uber for a ride—no reservations required.
Economy cars at everyday prices are always available. For special occasions, no occasion at
all, or when you just a need a bit more room, call a black car or SUV.
2.6 Prices of Uber in Dhaka
Uber introduced in Bangladesh with their car services and now they accelerating their business
by the ridesharing app that connects riders with drivers to provide convenient, reliable and
affordable rides at the push of a button, on 9th
November, 2017 launched its bike-sharing
product, UberMOTO, in Dhaka.
Figure 1: Price of the Uber in Bangladesh

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2.6 SWOT analysis of Uber from Bangladesh perspective:
Strengths:
 Low Fixed Investment: Uber, being an aggregator does not require high fixed
investment and so it becomes easier for Uber to add more cities like Chittagong,
Rajshahi, Sylhet, Cox’sbazar to its network. It has expanded rapidly in Bangladesh
because there is no fixed investment or infrastructure required.
 Emphasis on Customer Satisfaction: Uber has always prioritised customer
satisfaction. Uber has understood that it is serving in a totally customer driven market
where competition is increasing. To keep an edge over the rivals, it needs to provide
better customer satisfaction and enhanced user experience
 Dynamic Pricing strategy: Uber has adopted the dynamic pricing strategy which
works on the demand supply principle of economics. Higher the demand, Higher the
price. This becomes really beneficial for the company and the drivers. In peak hours as
well as in Night time, drivers earn a good amount of money.
 Adaptive: Uber is also known to adapt very well to business conditions in Bangladesh.
Because of its international exposure, Uber faces various problems in various regions.

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Uber is known to be a smart marketer and has adapted very well wherever it has
established its business.
 Uber is the pioneer app based transportation service company in Bangladesh.
 Traditional services of taxi is not applicable for Uber.
 Uber is a web and app based service provider with low cost.
 Small amount competitors are exist currently in Bangladesh.
 Low amount of prices relative to other taxi or auto services
 Easily available medium for transportation in Bangladesh.
 Contains all categories of customers with their income range.
 Currently providing auto car and Moto services to the people of Dhaka.
Weakness:
 Highly Dependent on Manpower: Drivers are the face of the company and thus the
company’s image depends on the behaviour of drivers towards the customer. This is a
highly uncontrollable situation even though strict guidelines are provided to the drivers.
 Highly dependent on Internet: Uber is heavily dependent on internet connectivity to
expand and develop itself in developed countries. Thus, it is facing problems in
developing and emerging countries like Bangladesh, where internet is slow or poor.
 Caters only to Tech Savvy individuals: Digital Literacy in developing nations like
Bangladesh is low and hence technology based applications such as Uber only cater to
those who are technologically updated.
 Low barriers to entry: Uber is in an industry where the barriers to entry are very low
so it will face competition in multiple fronts. Already in Bangladesh various
transportation service company are giving tough competition to Uber.
Opportunities:
 Dissatisfaction with unorganized market: Customers are unsatisfied with the
unorganised cab market which presents an opportunity for Uber to take advantage of in
Bangladesh. This is one of the main reasons for the success of Uber. Local cab drivers
are known to be rude and do not comply.

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 Increasing internet penetration: With Government’s move to digitise Bangladesh,
Number of smartphones are increasing and technology based applications like Uber can
expand their services to other cities and enlarge its footprint over the country.
 Rising Disposable income: With rising disposable income, customers are willing to
spend higher on convenience in Bangladesh.
 Alternate transport: Uber has launched ‘Uber Moto’ in Bangladesh and can look for
other transport medium catering local needs.
 Poor government transport: In markets like Bangladesh where there is over
population and people are tired of using public transport, Uber provides a kind of
privacy and relief where the user gets his own space to travel and does not have to drive
in Traffic.
 Special transport: Uber can provide special transport services such as paid ambulances
or urgent and emergency vehicles for dedicated transport operations.
 Logistics: A smart idea for Uber can be to launch movers and packers support whereby
people can search movers and packers in the nearby area via Uber. Local logistics can
also be integrated. Though this is easier said than done.
Threats:
 Government regulations are unclear: The primary point of disagreement between
cab aggregators and government regulators is about their legal status and whether they
should be treated as conventional taxi companies or as IT companies.
 Customer retention and brand switching: As competition rises in Bangladesh, it
becomes all the more difficult to retain customers and drivers for Uber. Any monetary
advantage can sway the customers and drivers from Uber.

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 Low margins: Uber helps the drivers in Bangladesh to get a high number of daily
rides but it does not have a high-profit margin for the drivers and thus they can easily
be swayed away.
 Revolt from unorganized market: The unorganized market of cab drivers can revolt
against such companies which are taking away the bread and butter of drivers from
unorganized market. Such a revolt will directly affect the operations of a brand like
Uber.

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Chapter Three - External Environment Analysis
3.1 Transportation Industry Overview in Bangladesh
The transportation industry in Bangladesh is heavily subsidized and regulated (taxi fare prices
included) by the federal government. Developing a good working relationship with the federal
government would be essential to enter the market.
Transportation Sector at a Glance:
Bangladesh ever since the independence has focused on constructing roads & highways. In last
three decades transportation sector & construction of roads has been the top priority of
government. International monetary organizations Like ADB, IMF, WORLD BANK all the
organizations have invested in this sector.

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Modes of Transportation in Bangladesh:
Transport sector of Bangladesh is enriched with variety of modes. Being almost a plain country,
all three modes of surface transport road, railway and water are widely.

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Figure 2: Transportation Industry of the Bangladesh
 Road Transport:
There has been a dramatic expansion of road network all over the country in recent years. In
1947 there were only 461.8 kilometers of metaled roads. In 1997, the total length of paved road
under the Roads and Highways Department stood at more than 20,000 kilometers. The road
transport carries about 70% of the country’s total passenger and cargo. Bangladesh is a riverine
country. So, in past days, main transportation was through water. But in recent years,
Construction of a number of important bridges over the mighty rivers such as the Bangabandhu
Jamuna Bridge, Meghna Bridge. Meghna-Gumti Bridge, Bangladesh-China Friendship Bridge,
Shambhuganj Bridge and Mahananda Bridge have been completed. The 4.8 km long
Bangabandhu Bridge is the eleventh longest in the world over the Jamuna River. It has
established a strategic link between the East and the West of Bangladesh. Especially north
Bengal is now strongly connected with the main stream of the country. It is faci1itating
transmission of electricity, natural gas and the telecommunication links.The Rates of Road
transport in Bangladesh is one of the cheapest in the world.
 Railways:
32% of the total area of Bangladesh is covered by the railways effectively. Bangladesh Railway
is a state -owned service and it operates a track of 2706 kilometer and provides passenger and
cargo services through 502 stations all over the country. It provides an efficient service to
Transportation
Industry
Road
Transport
Car Rental
Local
Transport
Taditional
Transport
Railways Waterways Airways

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places of interest like Chittagong, Sylhet, Khulna, Mymensingh, Bogra, Rajshahi, Dinajpur
from Dhaka. The inter-city Express Service is available within the important cities at
economical fares.
 Waterways:
About two-thirds of Bangladesh has a dense network of rivers, canals and creeks. Water
transport is the only way in nearly 10% of the country. The waterways vary from 8372
kilometer during the monsoon to 5200 kilometer during the dry season. State-owned BIWTC
provide passenger and cargo services in waterways within the main land and coastal areas of
the country.
There are two major sea ports in Bangladesh. Chittagong, the oldest port (at least 1000 years)
and The Mongla port in Khulna region. The country has also communication between the
mainland and islands by waterways. Saint Martin has communication by sea track, troller etc.
Because of Bangladesh’s many rivers, ferries are a major form of transportation. These ferries
carry people and cargo. Many types of traditional country made boats are also used for
transportation. The landscape of Bangladesh is dominated by about 250 rivers and so these
carry passengers and merchandise on a large scale. Journey by Steamer from Dhaka
(Sadarghat) to Khulna Sundarbans will be a rocky experience.
 Airways:
Bangladesh can be reached by air from any part of the world. The national flag carrier Biman
of Bangladesh flies to 26 international and 8 domestic destinations. Biman Bangladesh airlines
connected Dhaka with 27 major cities of the world. They are- London, Muscat, Dhahran,
Baghdad, Kuwait, Yangoon, Bangkok, Mumbai, Calcutta, Doha, Dubai, Jeddah, Karachi,
Kathmandu, Kualalumpur, Abu Dhabi, Amsterdam, Athens, Rome, Tripoli, Tokyo, Singapore,
Baharin, Frankfurt, Ho Chi Minh City, Hong Kong, Jakarta, Sarjah, Seoul, Riyadh and Delhi.
Biman, Bangladesh Airlines also connected Dhaka with major cities of Bangladesh,
Chittagong, Jessore, Cox’s Bazar, Rajshahi Saidpur and Sylhet in its 7 domestic routes. There
are total 11 airports in Bangladesh. These are Dhaka, Barisal, Chittagomig. Comilla, Cox’ s
Bazar, Ishurdi, Jessore, Rajshahi, Syedpur, Sylhet and Thakurgaon. The airports at Dhaka,
Chittagong and Sylhet are international. Besides Biman, Air careo and Short Take-off and
Landing (STOL) services have been opened to the private sector by the government.

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 Car Rental:
Private car hire service is available in Dhaka and all other towns in Bangladesh. Bangladesh
Parjatan Corporation (State owned tourism industry) has started a service of air-conditioned
and non-air-conditioned cars, microbuses and jeeps. They offer transfer service for tourists
between Dhaka airport and main city points or hotels.
 Traditional Transport:
Palanquin, dool, horse carriage, bullock cart, tomtom etc are traditional transports of
Bangladesh. These transports are nearly extinct for normal use now. Now paalkee/ Palanquin
(sedans), tomtom (horse carriages) and gorur gaari (bullock carts) are used fashionably in
marriage, New Year celebration and many other celebrations. In some village areas they are
also used till now.
 Local Transport:
Cycle Rickshaw is the mostly used local transport of Bangladesh. It is a very interesting
transport. Bicycle, petrol auto bikes (tricycle), cycle van are also common in both urban and
rural areas. The Nochhimon and Korimon, locally made mechanical hauler using irrigation
pumps as main engine, are mainly used for transporting agricultural goods and rural folks.
Contribution in Economy:
The GDP growth rate of the country has been pushed by the sector wise development in
transport sector. This includes RAIL WAYS, ROADS & HIGHWAYS, and WATER WAYS
& AIRWAYS. Most of the Budget allocated for Ministry of Transportation & communication
is spend on land route of transportation.

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3.2 Porter’s Five Forces Model
Porter's Five Forces Framework is a tool for analyzing competition of a business. It draws from
industrial organization economics to derive five forces that determine the competitive intensity
and, therefore, the attractiveness of an industry in terms of its profitability.
Figure 3: Porter’s Five Forces Model
Porter’s Five Forces Model for Transportation industry in Bangladesh is given below:
1. Threat of New Entrants: (Moderate)
A company’ position can be immensely affected by the ability of other organizations to enter
their market. The potential risks that the enterprise face are as follows:
 Economies of Scale:
Economies of scale would be a significant factor in any industry. The reason for the growth in
the industry is the economies which are available to existing players.
 Brand Loyalty:
Many companies whining this car rental service industry enjoys brand loyalty like Uber,
Pathao, Toma taxi service, Cholo, Garivara, Amarbike etc.
 Customer Switching Cost:

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Switching costs arise when it costs a customer time, energy and money to switch from the
products offered by one established company to the products offered by a new entrant.
Customer switching cost for car rental service industry is very low because customers are not
incurring any significant cost to switch between customers.
 Government Regulation:
Like most large industries, the auto rental sector faces regulations mainly aimed at consumer
protections. Aside from having their cars licensed and insured, states vary considerably in their
legislation. However, there are a few categories of concerns multiple states and cities
commonly address.
 Price Disclosure
 GPS Monitoring
 Taxes
 Liability

2. Rivalry Among the Competitors (High)
This is the strength of competition in the industry. The trend of concentration of the industry
appears to be higher than previous years, and the existing companies in the market compete
with both suppliers (car drivers) and customers.
 Industry Competitive Structure:
Car rental industry is consolidated industry because of small number of large companies. The
competition among the players in this market will be high and rising. The major competitors
in this industry are Uber, Pathao, Toma taxi service, Cholo, Garivara, Amarbike etc.
 Industry Demand:
The demand in this industry is growing significantly. Because of excessive traffic congestion
in Dhaka, many different technologies based rental service like pathao, uber got unbelieving
response from the market.
 Cost Condition:
Many companies in this industry has huge fixed cost which lead to fierce competition in rental
service industry. Companies in this industry is more or following the same business model and
similar cost structure.

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3. The Bargaining Power of Buyer: (High)
The strength of customers can affect the performance of a firm by lowering the prices placed
on the products and services.
 Switching Cost and Substitutes:
Customer are sensitive to price variations due to the existence of alternatives and rivals. As the
market grows bigger, the number of opponents bringing customers more choice also becomes
larger thus makes the switching cost for customers comparatively low. Customers can therefore
freely choose between Uber, Pathao, Toma taxi service, Cholo, Garivara, Amarbike, Taxiwala
or other emerging ride-sharing entities at no cost.
4. Bargaining Power of Suppliers: (High)
This is the ability of suppliers to drive up the prices of a company’ inputs. The threat of supplies
to Uber is experienced below:
 Availability of Drivers:
One of the leading suppliers of the transportation industry is the availability of drivers. Uber,
pathao and may tech based rental service provider do not own vehicle among its fleets. As
such, the company’s business model is mostly dependent on drivers owning cars. Regrettably,
the concentration of this group of suppsliers to work is not very high due to the stringent
requirements needed to be hired by many companies. Many companies utilize a subcontracting
policy for its employment process to individuals that meet the terms of use of their web
application. It is also tough to substitute individual drivers as they are given the freedom to
choose between the organization and rivals. This results in drivers negotiating for better
attention to the company’s expense. Therefore, it is undeniable that the suppliers have a
stronger power in impacting performance.
 Oil and Gas Suppliers:
Oil and gas suppliers is another major provider. The oil price has been plunged since 2015.
Highly fluctuation of the price of such an essential component to company’s transportation
industry brings a high risk to the market because of the level of uncertainty and non-
predictability of oil to powers vehicles. Suppliers of these components thereby have a high
bargaining power.

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5. Threats of Substitutes: (High)
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 each other. With the service quality that Uber, Pathao 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 each other’s 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. Moreover, due to the presence of other public means of
transport like trains, private cars that offer similar services can threaten operations.
Sixth Force: Complementors
As many rental service providers is dependent on technology and condition on the roads in
Bangladesh. These two factors act as a Complementors for this industry. Smartphones
represented only 6% of phone sales in 2013.Nearly 40% of Bangladesh citizens live on $1.25
a day and do not have the ability (no smartphones) to pay for Uber services. The low percentage
of main and improved roads is one of the largest drawback’s of the transportation market.
Underdevelopment of key infrastructure (bridges and bypasses) have left the southwest and
eastern zones of the country isolated. Congested roads and highways in major city centers are
a safety and efficiency concern for potential Uber drivers.

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3.3 Strategic Groups within Car Rental Service Industry
Companies in an industry often differ significantly from each other with respect to the way
they strategically position their products in the market in term of such factors as the distribution
channels they use, the market segments they serve, the quality of their products, technological
leadership, customer service, pricing policy, advertisement policy and promotions.
Strategic group means group of companies in which each company follows a business model
that is similar to that pursued by other companies in the group but is different from the business
model followed by companies in other group.
Figure 4: Strategic Groups within Car Rental Service Industry

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3.4 Industry Life Cycle:
Life cycle models are not just a phenomenon of the life sciences. Industries experience a similar
cycle of life. Just as a person is born, grows, matures, and eventually experiences decline and
ultimately death, so too do industries and product lines. The stages are the same for all
industries, yet every industry will experience these stages differently, they will last longer for
some and pass quickly for others. Even within the same industry, various firms may be at
different life cycle stages. A firms strategic plan is likely to be greatly influenced by the stage
in the life cycle at which the firm finds itself. Some companies or even industries find new uses
for declining products, thus extending their life cycle.
s
Figure 5: Industry Life cycle
The growth of an industry's sales over time is used to chart the life cycle. The distinct stages of
an industry life cycle are: introduction, growth, maturity, and decline. Sales typically begin
slowly at the introduction phase, then take off rapidly during the growth phase. After leveling
out at maturity, sales then begin a gradual decline. In contrast, profits generally continue to
increase throughout the life cycle, as companies in an industry take advantage of expertise and
economies of scale and scope to reduce unit costs over time
The overall car rental service industry is in mature stage. Recently the introduction of
technology based rental service changes the industry structure. This new innovation has divided
the whole car rental service industry in two groups. First one is technology based group like
Uber, Pathao, Toma taxi service, Cholo, Garivara, Amarbike etc and the second one is
Traditional group like Toma Construction Ltd, Trust Transportation Service, CNG, Taxicab
etc. If we consider technologically based group separately this industry is in growth stage

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because the demand is expanding rapidly and many companies are getting first mover
advantage and brand loyalty.
3.5 PESTEL Analysis for Uber BD:
A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro
environmental (external marketing environment) factors that have an impact on an
organisation. Uber has been in the news frequently. It’s regarded as the fastest growing app
taxi-sharing company. But it has also seen various controversies regarding the taxi industry,
minimum wage complications, and banning in worldwide countries. However, it’s continues
to grow. Here is the PESTLE analysis of Uber.
Political Factors:
Uber has ignited charged political debates globally. Several governments are concerned over
the regulation of the sharing economy. On the one hand, while the sharing economy and Uber
have their pros, they also have their cons. Uber’s rise has had a disruptive effect on the business
of other traditional taxi services. This has given rise to opposition which even turned political
at several stages. Even the authorities are concerned if they need to bring new laws for the
companies like Uber.
In Bangladesh, soon after the launch, the Bangladesh Road Transport Authority said the ride-
hailing service of Uber was in violation of the country's motor vehicles regulations. In the
notice, the BRTA said taxi services in Bangladesh are regulated under the 'Taxicab Service
Guideline-2010' and prospective companies must seek approval from the BRTA. Vehicles that
are rented or run on fare are registered in a series different from other vehicles. Basically, Uber
is not a taxi company; rather it's a tech company. To incorporate Uber's business model some
countries have already adopted guidelines for ride-sharing services, with many countries in the
pipeline to do so.
Economic factors:
Uber is affected by and affects economic factors. Sharing economy has generated employment
for people on a large scale who would otherwise be searching for jobs everywhere. It has
created unique jobs and generated employment for a very large number of drivers. Uber has
had other benefits too. It has reduced the costs of searching for taxis too and not just that, the
traditional taxi services too were forced to cut down prices to not to be thrown out of

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competition. Uber has grown exponentially since its initial launch. But countries have banned
or restricted its services due to Uber having an unfair competition against regular taxis. Other
companies in this industry face debate, but Uber’s fast development has led them to be the
focus point.
It has generated extraordinary competition that has become a cause of worry for the traditional
services. Low cost service providers are always ahead in terms of competition even in times of
economic downturn. It is because people are always looking for cheaper products and services
and especially so during times of economic recession. So, when it comes to being affected by
economic factors, their effect on Uber is not so deep. Uber has seen very fast growth in the face
of intense competition mainly based on low prices and great customer service.
Social factors:
The social aspect of businesses is also just as important as the others. It is because the two have
a mutually beneficial relationship and none can hold without the other. So, for Uber too, it is
important that it manages a socially acceptable and respectable image. It has gained fast
acceptance and popularity based on two things. First come the prices and second is its quality
of customer service. These are its points of differentiation. It offered the riders an advantage
that was previously not available to them. Such businesses do not face big hurdles to find
growth. Uber’s growth has been both rapid and easy. Something that finds popularity in the
society will rise. However, that does not mean Uber has not faced any controversies. It has
faced controversies related to competition, laws, human resources and even related to
background checks for its drivers. Still, if Uber has emerged as a tough challenge for its
competitors then it is to a large extent for its social image has been strong.
Technological factors:
Technology is at the root of everything big in the 21st
century and to imagine growth without
technology is difficult if not impossible. Behind Uber is also excellent technology. Uber
grabbed a large piece of the ride sharing market based on excellent technology that provided
both smooth access and great experience for drivers and the riders. Uber has integrated several
special features into its app to provide an extraordinary experience. From geolocation to
direction, push notifications, payment all are integrated into a single app.

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Uber acts just as a platform to connect the two ends – the riders and the drivers. However, if
not for excellent technology, this kind of differentiation would not have been possible. Uber
uses technology to provide people what they need or want and when they want it. It was
difficult to call a taxi as easily without long waiting periods. Now, Uber has managed it so well
that one can call the nearest cab within few minutes. So, technology is one of the very important
factors driving Uber’s fast growth. Moreover, Uber has continued to improvise and uses
technology intuitively for marketing purposes too.
Environmental factors:
Uber’s effect on the environment is ever shifting. Many believe it increases traffic congestion
and fuel usage. But studies have shown Uber hasn’t increased congestion. People may use Uber
instead of public transportation. Analysts will have to compare Uber fuel usage versus public
transit versus own transportation for a thorough analysis of Uber’s environmental impact. As
many different factors can contribute to the final number.
Legal factors:
Legal compliance is an important challenge before the businesses and being unable to comply
may result in large fines for businesses. The rise of Uber has come as a challenge for legal
authorities, which are in a fix over whether the laws applying to traditional services must apply
to it or not. Uber is facing legal problems not just related to taxes, but human resource issues
too.
Legal factors were touched on under the political factor part of this analysis. Uber faces much
criticism, bans and attempted bans in locations worldwide. The company must follow technical
usage laws, copyright laws, labor and employee safety laws.

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Chapter Four - Analyzing Internal Resources
4.1 Distinctive competencies of Uber
A company can have a competitive advantage over it’s competitors when it’s profitability is
higher than industry’s average profitability. This competitive advantage comes from distinctive
competencies that arise from resources and capabilities.
Resources of Uber are-
 Innovation
 Customer loyalty
 Services quality
 Financial position
Capabilities of Uber are-
 Uber did not invent smartphone maps, GPS tracking systems, online payment or
feedback programs. Rather it brought them together in a package that customers
desired. Here many programs can operate together to serve a function.
 Uber contributes to the perceived customer benefits of the end product. Uber is
offering services to existing needs in a different way. It ensures customers
convenience which makes them different from others transportation service providers.
VRIO Analysis:
Here we will use VRIO analysis to analyze Uber’s internal resources and capabilities to find
out whether they can be a source of competitive advantage. Here VRIO stands for
V= Value (Question of value- Is the firm able to exploit an opportunity or neutralize an external
threat with the resource/capability?)
R= Rarity (Question of Rarity: Is control of the resource/capability in the hands of a relative
few?)
I= Imitability (Question of Imitability: Is it difficult to imitate, and will there be significant
cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?)
O= Organization (The Question of Organization: Is the firm organized, ready, and able to
exploit the resource/capability?

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VRIO analysis of Uber-
Resources Valuable Rare Costly to
Imitability
Exploitability by
Organization
Competitive
advantage
Innovation Yes Somewhat Yes Yes Temporary
Customer
loyalty
Yes Yes somewhat Yes Parity
Services
quality
Yes Somewhat yes Yes Competitive Parity
Financial
position
Yes Yes No Somewhat Sustained Advantage
4.2 Value Creation by Uber
Uber provides an alternative to the dysfunctional transportation system to its customer with
some varieties. The value that Uber is trying to offer all of its customer is reliability. It gives
desired services to its customer at any time and fulfill the request at a shorter period of time.
Value proposition of Uber is shown below-
Value propositions for
customers
Value propositions for
drivers
Profit proposition of Uber
Exclusive ride at an
affordable price
Extra income Surge pricing
Convenient Flexible work hours Car rides on per KM/Mile
basis
On demand availability Easy payment procedure UberX, Uber Premier,
UberMoto
Shorter wait time
4.3 Value Captured by Uber
Pricing and payment: Uber estimates prices for the rides and receives non-cash payment. Uber
fares are based on dynamic pricing model. Here fares are higher when demand for rides are
high. Same route may cost different at different times due to supply and demand.

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Charges of Uber rides and its competitor are shown below:
Services Transportation Base
Fare
Per kilometer
Fare
Per Minute
Waiting
Charge
Cancellation
fee
UberX Car 40 18 3 30
Uber Premier Car 80 22 3 30
UberMoto Motorbike 30 12 1 0
Pathao Cars Cars 50 20 2.5 -
Pathao rides Motorbike 25 12 .5 -
Trust Taxi Cab - 42.5 4.25 -
Toma Taxi Cab - 42.5 4.25 -
CNG
Autorickshaw
Autorickshaw 40 12 2 -
Splitting the proceeds:
Majority of Uber fares go to the independent drivers. Uber receives 20% of the payment and
80% of the gross fares are received by the drivers.
Operating expenses:
The percentage of fares received by Uber is used to cover variable expenses within the service.
These include payment for payment processing, customer services, R&D, marketing,
employees and infrastructure, local regulatory efforts.
Reinvest to grow:
Uber reinvests and acquires new businesses and focuses on new technologies to grow. Uber is
trying to offer its services to more parts of the country.
4.4 Value Chain of Uber
Value chain refers to the idea that a company is a chain of activities for transforming inputs
into outputs that customers value. The transformation process involves primary and secondary
activities.

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Figure 6: Value cahin of the Uber
Primary activities conducted by Uber are given below-
Research and Development:
Main activity of Uber is matching demand and supply in mobility by using a mobile app.
Improvement and R&D activities are main part of these main operations.
Marketing and sales:
In several ways marketing and sales functions can add value. Brand positioning and
advertisement can increase customer value. Words of mouth marketing has been essential for
Uber’s marketing strategy. It offers discount for the new users. Another marketing strategy is
rating system for both drivers and passengers. This promotes trust and better service in Uber
Customer services:
Uber offers mobile technology platform that allows consumers to get prompt transportation
services by third party providers
Supporting activities conducted by Uber are given below-
Information systems:
Information systems are the electronic systems for managing inventory, tracking sales, pricing
products, dealing with the customers. In Uber getting a ride is very simple: simply open the
app, set the pickup location, request a car, get picked up and pay with the tap of a button. But
it requires a great deal of data to make all of this happen in a relatively smooth process. All
these data are collected, stored and processed in the Uber’s information system so that prices

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can be fairly determined, demand and supply can be predicted and provide convenient and safe
ride to the customers.
Human resource:
Uber’s main human resources are internal management team, recruiters and drivers. Here
drivers are not hired. They are independent contractors. Uber provide access to skill
development and driver training to the unskilled and helps to receive commercial licenses.
Performance appraisal is based on rating. Drivers are rated by the customers and Uber tracks
such highly rated drivers. Riders are also rated by the drivers. Poor rating may ban them from
the Uber system.
Infrastructure:
Uber stores information on their drivers and customers. The infrastructure is based on this
information. It connects the right drivers to the right customers.

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4.5 Business Model of Uber
A business model describes the rationale of how an organization creates, delivers, and captures
value. Now we will see the business model of Uber.
Business Model Canvas of Uber
Key Partners:
* Drivers
*Payment
Processors
* Investors
Key Activities:
* Product
development and
Management
* Marketing
* Managing
Drivers Payouts
* Customer support
Proposition:
Customers:
*Affordable ride
* On demand
availability
*Shorter wait
Time
Drivers:
*Extra income
*Flexible work
hours
*Easy payment
procedure
Customer
Relationship:
*Social media
*Customer support
*Rating system
Segments:
Users:
*Who don’t own a
car
*Who like to travel
in style
*Who want a cost-
effective Cab at
their Doorstep.
Drivers
*Who own a car
and want to earn
money.
*Who like to drive
*Who want to a
partner of Uber
Key Resources:
*Technical
Platform
* Skilled drivers
Channels
*Websites
*Mobile App for
Android and ios
Cost Structure
*Technological infrastructure
*Salaries to permanent employees
*Marketing expenses
Revenue Stream
*Car rides on per Km/Mile basis
*Surge pricing
*UberX, PremierUber, UberMoto
Uber is a smartphone app that provides on-demand services to users. This app is user-friendly,
fast responsive. Uber has established a solid infrastructure, branding and consumer trust. These
are the reasons behind its success.

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Chapter Five – Functional Level Strategy
5.1 Sources of and Strategies to Achieve Competitive Advantage
There are four sources of competitive advantage of a company. They are
 Superior efficiency
 Superior quality
 Superior innovation
 Superior customer responsiveness
Uber’s competitive advantages and strategies to achieve them will be discussed in this chapter.
5.1.1 Achieving Superior Efficiency
Theoretical Aspect
Theoretically, an efficient company has higher productivity, and therefore lower costs than its
rivals.
Uber
Generally, Uber efficiency is measured by how much time drivers spend searching for
somebody who wants a ride or driving to pick them up. Most of the time, Uber's service is
proven to be efficient. But in some cases, Uber fails to reach their customers in a timely manner
because of traffic jam.
There are some steps that the Uber takes to increase its efficiency and thereby lowering the
cost structure and those are-
Marketing and
efficiency
Human
resources
strategy and
efficiency
Figure 7: Achieving Superior Efficiency

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Marketing and efficiency
Theoretical Aspect
Marketing strategy refers to the position that a company takes with regard to pricing,
promotion, advertising, product design and distribution. Generally, it is determined by the
customer defection rate, which is a percentage of a company's customers who defect every year
to competitors and it is determined by the customer loyalty, which in turn is a function of the
ability of a company to satisfy its customer. The lower customer defection rate allows a
company to achieve a lower cost structure.
Uber
Uber is an app-based private car taxi service. When it was first launched in Bangladesh, it faced
no competition, but the situation is different now as several others domestic companies are
operating motorcycle ride sharing apps in Dhaka.
Uber follows a very distinct marketing strategies to develop a base of loyal users and to reduce
the customer defection rate. Uber provides different types of offers to its customers such as-
 Uber Promo Code: This applies to the new users. This is typically available when
the rider sign up for the app.
 Uber Free Ride upto BDT 250: To encourage the new customers, Uber offers free
ride upto BDT 250 for the first ride.
 Bonus Discount: This bonus discount will auto apply when the rider takes a ride on
UberX from the designated area (mentioned in the app) to anywhere in Dhaka within
the mentioned time frame.
Besides these, Uber also has taken some other strategies to serve the existing customers and
those are-
 Uber has partnered with Daraz to provide customers voucher code so that they can get
Tk 500 off on the entire order.
 Uber provides 50 free rides to 50 UberSTARs who have taken at least 3 rides on
Uber.
 Uber also made a strategy to offer its customers special UberX fares during Uber
Happy Hours which is between 11 am to 3 pm.
 Uber sometimes offers free voucher upto a certain amount to the customers if they
take rides on Uber.
 Uber provides invite code to the customers who have Uber account. This code can be
shared with the new customers who are interested in creating a rider or driver account
and in turn the existing customer will receive rewards.

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These promotional strategies can have an economic benefit and that is it can result in long time
customer loyalty, which in turn result in the free advertising that the customer provide for a
company.
Human resources strategy and efficiency
Theoretical Aspect:
Employee productivity is one of the key determinants of a company's efficiency, cost structure
and profitability. There are some certain ways to increase employee productivity such as-
 Hiring Strategy
 Employee Training
 Self-Managing Teams
 Pay For Performance
Uber:
Uber which is a technology based company has human resources strategies to ensure efficiency
and increase employee productivity.
Hiring Strategy: Uber, a global on demand ride sharing company, has a following set of
requirement for hiring their employees-
 8+ years of consulting, investment banking, marketing or operations management
experience
 Data driven decision mentality and sound business judgement through strong
analytical thinking
 Creative solutions driven mindset
 Relevant experience in consumer service marketing
 Stellar networking skills and the ability to make smart partnerships
Uber also has some driving requirements. Most of the people are eligible to drive on the Uber
platform if the following requirements are fulfilled-
Driver cum partner: A driver cum owner drives a vehicle that he or she owns. There are a few
minimum requirements to follow-
1. Driving License
2. National Identity Card
3. Vehicle Registration
4. Vehicle Tax Token
5. Vehicle Insurance
6. Vehicle Certificate of Fitness

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Driver under partner: A driver under partner drives a vehicle owned by a non-driving partner.
The following document is required of a driver under partner-
1. Driving License
Non-driving partner: A non-driving partner or fleet partner is someone who does not drive on
the Uber platform but owns vehicle and manages at least one driver. Becoming a non-driving
partner requires-
2. Vehicle Registration
3. Vehicle Tax Token
4. Vehicle Insurance
5. Vehicle Certificate of Fitness
Employee Training: Uber provides training to their employees and their driver-partner as
well.
 Uber is educating employees with training by experts that reflects the wisdom and
imparts an understanding of the societal issue while building empathy.
 On the other hand, Uber conducts a mandatory soft skill training that enables the
drivers to offer riders a great experience. This soft skill training means two or three
hours of training on how to use the GPS.
5.1.2 Achieving Superior Quality
Theoretical Aspect
Theoretically, the quality can be thought of in terms of two dimensions:
1. Quality as Reliability
2. Quality as Excellence
High quality products are reliable in the sense that they do the job they were designed for and
do it well and also perceived by the consumers to have superior attributes. On the other hand,
strong reputation for quality allows a company to differentiate its products from those offered
by the rivals thereby creating more utility in the eyes of customers, which gives the company
the option of charging a premium price for its products.
Uber
Uber is an e-hailing service that offers diversified and quality service to its customers and
ensures quality compared to its competitors in the following ways-

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1. Cars that are mostly used on Uber are given by owners in the city, so most of the time
they are comfortable and luxurious.
2. UberX provides fully air conditioned, four seated sedans to the customer at a more
affordable price so that customers continue to experience high quality platform.
3. Uber has launched UberPREMIER which is an in-app upscale ride option. The
passengers of the Uber taxi service will be able to select and enjoy a plush ride every
day. Under the new service of "Premier Ride", riders can avail superior premium quality
sedans with specially trained driver partners.
4. Uber has launched the "Driver Compliments" feature in Dhaka.
5. Uber provides 24/7 service to its customers.
6. Uber has integrated the government's helpline number in the app, which would prompt
riders to dial 999 in case of an emergency.
5.1.3 Achieving Superior Innovation
Application
Based
System
Rating
System
Safety
Features
Registration
Facility
UberPOOL
Vehicles UberX
Uber
PREMIER
Driver
Compliment
24/7
service
Emergency
Helpline
Vehicles UberX
Uber
PREMIER
Driver
Compliment
24/7
service
Emergency
Helpline
Figure 8: Achieving Superior Quality

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Theoretical Aspect
In many ways, building distinctive competencies that result in innovation is the most important
source of competitive advantage because innovation can result in new products that better
satisfy customer needs, can improve the quality of the existing products or can reduce the costs
of making products that customers want. The ability to develop innovative new products or
processes gives a company a major competitive advantage that allows it to-
1. Differentiate its product charge a premium price
2. Lower its cost structure below that of its rivals
Uber
Uber is a technology company that is changing the way the world thinks about transportation.
Uber thrives on finding ways to constantly improve and refine the technology to provide safe
and reliable rides.
Innovation can be regarded as the most important factor behind Uber's success such as-
 Uber does not own any cars, it just act like a middleman between customers and cab
drivers. It has made the task of booking a cab easier. Once a person signs up for Uber's
free app and enters relevant credit card information, he/she can call a car by opening
the app and giving information about their location. The system says how long the
driver will take to arrive.
 The second innovation is a rating system for the drivers. It serves as a two-way feedback
to improve the service.
 Uber provides safety features such as status sharing with friends and family, GPS
tracking of the trip en-route.
Application
Based
System
Rating
System
Safety
Features
Registration
Facility
UberPOOL
Figure 9: Achieving Superior Innovation

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 Uber has teamed up with Bangladesh's leading mobile network operator Robi to allow
the prospective driver-partners to complete their registration with Uber in the Robi
Walk-In-Centers with convenience. Uber driver partners will also enjoy specialized
SIM card and Data packs from Robi.
 Uber is also planning to introduce UberPOOL in Bangladesh. This feature will allow
pick up and drop off multiple riders going in the same direction.
5.1.4 Achieving Superior Customer Responsiveness
Theoretical Aspect
To achieve superior responsiveness to customers, a company must give customers what they
want, when they want it and a price they are willing to pay. Customer responsiveness is an
important differentiating attribute that can help to build brand loyalty.
Achieving superior responsiveness to customer means giving customers value for money and
steps taken to improve the efficiency of a company's production process and the quality of its
products should be consistent with this aim.
There are some ways of doing this such as-
1. Achieving superior efficiency, quality and innovation are all part of achieving superior
responsiveness to customers.
2. A company has to develop a competency in listening to and focusing on its customers
and in investigating and identifying their needs.
3. It constantly needs to seek better ways to satisfy those needs.
Uber
Uber, the largest ride sharing app works to provide best service to its customers in the following
ways-

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 Uber connects with the customers with a reliable service when they request for a ride.
 Uber provide 24/7 service to its customers.
 It allows the riders to rate the driver and provide anonymous feedback about their trip.
 Uber introduced "Driver Complements" feature to encourage good behaviors from
drivers.
 To ensure the safety of the riders, Uber integrated the government's helpline number
in the app.
 Uber also started to reduce the cost to provide affordable and quality ride with
minimal cost.
5.2 Durability of Competitive Advantage of Uber:
Durability of competitive advantage addresses the question how long will a competitive
advantage last once it has been created? This answer depends on three factors- barriers to
imitation, capability of competitors and industry dynamism.
A. Imitability:
A company having competitive advantage will earn higher profits. But this profit potential will
be reduced if competitors easily imitate its distinctive competencies. Thus, the competitive
advantage will not last for long period.
Connection with
Customers
24/7 Service Rating Facilities
Driver
Compliments
Ensuring Safety
Connection with
Customers
24/7 Service Rating Facilities
Driver
Compliments
Ensuring Safety
Figure 10: Achieving Superior Customer Responsiveness

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For Uber:
Uber’s main distinctive competency is app based transportation services and rating system for
drivers and riders also. These innovations are of course powerful. But these can be easily copied
by its competitors. Already there are some companies those provide similar services and trying
to take market share from Uber. They are Pathao, Chalo, Garvara.com.bd. So, such innovation
may not be a durable source of competitive advantage for Uber for longer period.
To get the advantage of competitive advantage for a longer period, Uber will have to develop
new competencies like marketing and technical know-how and protect them with patent
system.
B. Capability of competitors:
Competitors capability to imitate a competitive advantage depends on its strategic
commitments and absorption capacity. Strategic commitment means a company’s commitment
to a particular way of doing business. If competitors’ strategic commitments are high, a
company’s competitive advantage will be relatively durable. Absorption capacity refers to the
ability of an enterprise to identify, value, assimilate and use new technology. If competitors’
absorption capacity is lower then the durability of competitive advantage will be higher.
For Uber:
Strategic commitment:
In Uber’s case strategic commitments can be seen in traditional transportation services like
CNG autorickshaws, taxi cabs etc. Where passengers have to hire CNG autorickshaws or cabs
by directly interacting and set prices by bargaining. This way is time consuming and often not
customer friendly. Here Uber can be treated as more suitable and customer friendly alternative
of such problem. Introduction of such services reduces regular trips for them. But these service
providers cannot easily change way of delivering services mostly due to lack of technical
knowledge of the drivers. They may not understand the Uber’s mechanism. Such strategic
commitment may give Uber’s competitive advantage more durability.
Absorption capacity of competitor
Absorption capacity of Uber’s competitors is higher. There are some companys provide similar
services and so there is a higher risk that Uber’s competitive advantages will not serve it for
long. Uber provides app based car services like UberX, Uber Premier. Pathao that initially

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started motorbike service Pathao rides now also provide Car services. Competitors’ such
absorption capacity can be a threat to Uber’s competitive advantages
Absorption capacity of Uber
On the other hand, Uber’s absorption capacity is also higher like Pathao rides it launches new
services UberMoto to capture another market segment. Uber’s such capacity will help it to
adopt new technology and knowledge and create more value to customers and attain
competitive advantage.
Uber can attain competitive advantage through branding. Its brand and reputation may attract
drivers and passengers in new locations and it may allow it to charge higher prices.
C. Industry dynamism:
A dynamic industry environment is one that is changing rapidly and where there is higher rate
of product innovation. In such type of industry competitive advantage may not last long.
For Uber
In transportation service industry Uber is expanding its business by using new technologies.
To be a dominant player it continues to introduce new services to new segments, tries to fulfill
unsatisfied demands. Uber’s competitors are also trying to offer something new and more
valuable All these efforts result in product innovation. In such changing industry competitive
advantage of Uber can be fleeting.

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Chapter Six – Business Level Strategy
6.1 Value Creation Frontier & Value innovation
Every firm in car rental industry try to stay at value creation frontier. Each player in the value
creation frontier try do well in terms of his or her strategic perspective. One can be cost leader
or differentiator in the same time staying at the value frontier. CNG and Taxi Cab shifted the
value frontier of car rental industry almost two decades ago. They are the early innovator in
the car rental industry. However, TaxiWala is a taxi hailing application for both Android and
iOS platforms had been launched in Bangladesh in 2015. After that, local venture Pathao
started their app in car rental industry by introducing their motor bike. Both Pathao and
TaxiWala do not provide service by owning any car or bikes. They works as an intermediary
between the car owners and the users. Recently, Global brand of online car rental Uber has
introduced their operation in Bangladesh. Therefore, the overall market paradigm has been
changed through value innovation.
Figure 11: Value Creation Frontier

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Therefore, Uber and Pathao is lying on the new value frontier. Though other car rental with
same business model such as Share a Motorcycle (SAM) , Garivara, Chalo, TaxiWala,
Amarbike, none of them are not in the newly defined value creation frontier. Uber and Pathao
are the most dominant market leader in this newly defined niche market. However, the rate of
Pathao is relatively lower than Uber. Pathao try to differentiate their service along with as much
low cost as possible. However, However, Uber charge about higher margin than Pathao.
6.2 Blue Ocean Strategy of Uber using ERRC Grid
Blue Ocean Strategy presents a systematic approach to making the competition irrelevant and
outlines principles and tools any organization can use to create and capture their own blue
oceans. Blue Ocean Strategy can be developed by introducing some generic changes in the
overall value chain in any industry. Uber’s Blue Ocean Strategy can be analysed using the
ERRC Grid. ,where Uber has eliminated
- the hassles of booking taxi
- paying the driver exactly or change problems
- tipping issues, arguments & denial of services
Moreover, they have reduced the problems of drivers too along with customers by matching
the rides and Uber just takes 20% or less from total fare and rest goes to drivers, drastically
raised the customer service levels and comfort levels and created a new market by using the
latest technologies and devices. The

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Eliminate: The uncertainties in getting the taxies in right time has significantly reduced after
introducing ridesharing application by Uber in Dhaka City. The passengers need not to wave
their hands for taxies for hours to get taxies in the street in office time and urgent office hours.
The passengers need not be the hostage of dishonest CNG drivers who charge over the meter
rate .
Raise: The chance of getting taxies has significantly increased. Uber has introduced their 24
hours service in 24 hours. Moreover, they have introduced mechanism to rate their riding
experience of Uber which will help them to introduce more additional features in their services.
The have provided their utmost emphasis on the safety of journey in Uber. They have ensured
location-tracking system. The passengers and their parents can easily track the position of the
car through GPS. Uber has recently made an agreement so that the passengers can call 999 to
get emergency service.
Reduce: Uber has reduced the time to wait and searching for a taxi. It has varieties of payment
method. An passenger can pay through his or her debit card or credit card. Moreover, they can
choose payment by cash option too.
Create: Uber is easy and comfortable to use. Uber is not limited to the premium customer by
providing Uber Premium service. They have introduced Uber X, which is economy class
service suitable for middle class people. As the service of Uber is expensive for students , they
have introduced Uber Moto, which is a ridesharing service through motorcycle. Uber has
created a platform of collecting the passengers and drivers thorough their application. They
have created opportunities for the drivers extra revenue.
6.3 Competitive Positioning : Generic Business-Level Strategy for
Uber
To reach the value creation frontier and thus achieve above-average profitability, a company
must formulate and implement a business model using one or a combination of three generic
business-level strategies: cost leadership, differentiation, and focused differentiation. A generic
business-level strategy gives a company a specific form of competitive position and advantage
vis-à-vis its rivals that results in above-average profitability. Generic means company of any
type of form can follow these strategies to ensure their position on value creation frontier.
Uber Bangladesh has entered into Bangladesh with the business level strategy of Focused
Differentiation. The have caused a significant shit of the value frontier of the car rental industry

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in Bangladesh. Though Pathao has started their ride ridesharing service one year before Uber
in Bangladesh.
But, at the first time Pathao has focused their differentiation strategy on the motor bike sharing
service. However, Uber has started their focused differentia by introducing Uber Premium.
After few days, they have introduced another economy class service which is Uber X, which
basically suitable for the middle class people class and lower middle class people. Uber has
shifted their business level strategy from focused differentiation strategy to differentiation
strategy, which is consistent with their mission of “Make transportation as reliable as water,
everywhere, for everyone”. They have car sharing services from low cost to luxury. Moreover,
they have recently introduced Uber Moto, motorbike sharing service to have head to head
competition with Pathao. Therefore, they have targeted many group of customers to provide
distinctive products. Recently, SAM, a local ridesharing service provider through motorbikes,
is going to offer their new service Pink SAM, which is special ridesharing service. In Pink,
both the driver and passenger will be women. Uber is cautious about these market offers and
create and curtail their products to cope up with these changes.
6.4 Strategies in Embryonic and growth industries
Most embryonic industries emerge when a technological innovation creates new product or
market opportunity. In this case, by the introduction of app based ride sharing by TaxiWala on
March 1, 2015 has introduced the embryonic stage of ridesharing industry in Bangladesh. After
3 months, another start-up named Chalo, which is the most prominent Uber alternative in

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Bangladesh. In 2016, Garivara, Pathao, and Amarbike started their operation in bike sharing
segment of car rental industry. Though Uber entered in Bangladesh in 2017, they have captured
significant market share of other local players within few months due to its global reputation.
Three dominant player is now Uber , Pathao, and Chalo.
Customers needs and demand is now changing because about three years have been passed in
this new innovative industry segment. The early adopters has already used their services. They
were less brother about the quality at all because they ride to taste it for the first time. But, early
majority has started and showing their interest to ridesharing services rather than traditional
car rental services. So, it is the high time of building mass market. Each market players have
to develop their strategies to cope up with the changing customer demands.
6.5 Strategic Implications: Crossing the Chasm
We see that in most of the newly developed industries pioneering companies often unable to
create a business model that allows them to be successful over time and remain the market
leaders, because early majority customers want ease in use and reliability. The distribution and
promotion style have to be adapted to provide services or products to a mass customers.
However, ridesharing industry is at the later stage of embryonic stage and will enter into the
growth stage. Though TaxiWall has started their venture first, they fallen in the chasm and
failed to cope up with initially. Then, they have changed their business model and revived their
position. On the other hand, Uber and Pathao is trying try to strength their business model to

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cross this chasm. All the players such as Chalo, Uber, Pathao, Amarbike, SAM will have to
either cross this chasm or fall into this chasm within one or two years.
So, the ridesharing industry is has already embraced almost all the early adopters. This segment
of the overall car rental industry is will go through the chasm and get the customers from early
majority.
6.6 Navigating Through the Life Cycle : Strategies for Uber
In the embryonic stage, Uber have to emphasis the development of a distinctive competency
and an associated business model. During this stage, investment needs are great because a
company has to establish a competitive advantage. Therefore, the best strategy Uber has folled
in this stage is share-building strategy. The aim is to develop market share by developing a
stable and distinctive competitive advantage to attract customers who have no knowledge of
the company’s service.
Share-
building
Strategy
Growth
Strategy

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6.7 Game Theory : Uber Vs Pathao (a hypothetical case study)
Uber and Pathao are the two most dominant player in the ridesharing segment of car rental
industry in Bangladesh. Both Uber and Pathao provides different forms of discounts on the ride
fare to promote customers to take their service. However, it has become a trend to some
customers to fait for a promo code or discount offer. Both players pay to lose some profit due
to sending such discounts. The following payoff matrix shows the payoffs to Uber and Pathao
with discounts and without discounts
The four cells in this matrix represent the four possible outcomes of pursuing or not pursuing
discount strategy. The numbers in parentheses in the centre of each cell represents the profit
that Pathao and Uber , respectively, will get in each case (in BDT Lakh). If both Pathao and
Uber decides to provide no discount, they both will get BDT 30 lakh (in cell 1). If Pathao gives
discount and Uber does not not, then Pathao will get BDT 35 Lakh and Uber will get BDT 20
lakh (cell 3). If Pahao does not give discount and Uber gives discount, then Pathao will get
BDT 20 lakh and Uber will get BDT 35 lakh ( in cell 2). If both go for discount , then both will
earn BDT 25 lakh (in cell 4).
Both Uber and Pathao will try to develop dominant strategy, one that makes you better off than
you would be if you played any other strategy, no matter what strategy our opponent uses.
From the payoff matrix it is clear that Uber’s dominant strategy is to offer discount because
whatever strategy Pathao pursues, Uber does better if it offers discounts than it does not. Same
No
(30, 30)
(60)
(20,35)
(55)
(35,20)
(55)
(25,25)
(50)
Discount
NoDiscount
Uber’s Strategy
Pathao’s

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argument is true for Pathao also. Both will end up with discount, though it does not maximize
total payoff of the industry. As per game theory prisoners dilemma type game has been played
here.
6.8 Strategy shapes the payoff structure of the game
To come out of this trap of mutually destructive price competition associated with prisoner’s
dilemma type game, the players have to change their business models and differentiate their
product offerings in the mind of customers and thereby reducing their sensitivity to price
competition. In short, the changes in strategy and business model of the players can change the
payoff structure associated with the game.
Uber has changed their perspective and introduced membership card to their customers. This
card will provide some exclusive facilities to the riders. Uber will differentiated their service
to customers and take the position of competitive advantage. As it is not a copyright idea, so
Pathao will copy it quickly by introducing their own card. By this the customers who used to
Pahtao will prefer it and least likely switch to Uber and Uber’s old customers will not switch
to Pathao. Therefore, the sensitivity of the customers to discounts will be reduced. The payoff
structure will changed to the following matrix.
The dominant strategy has been changed. After this strategic change in business model, Uber
and Pathao will end up with no discount strategy. They both will get payoff of BDT 40
No Discount
(40, 40)
(80)
(30,35)
(65)
(35,30)
(65)
(25,25)
(50)
Discount
NoDiscount
Pathao’s
Uber’s Strategy

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Chapter Seven: Global level strategies of Uber
After the establishment of Uber in 2009, it has not looked back since and is one of the fastest
growing companies all over the world with a revenue of $1.5 billion and estimated worth of
62.5 billion USD and has an exponential revenue growth. This Exponential growth comes from
the very business model that, it doesn’t have to make any capital expenditure on Cars at all. It
invests heavily on technological research and is equipped with the most advanced technologies
including artificial intelligent that the world has to offer right now.
Uber is considered the most dominant cab sharing service in the world right now and has
operations currently in 82 countries and even although being a USA based company has been
competing successfully against its competitors in almost every local market which most
European countries have failed to do. We will further analyse what strategies Uber followed
that made of one of the fastest growing companies all over the world.

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7.1 Types of Global Strategies
Selecting the perfect strategy for global expansion is crucial as it involves a lot of money, time
and resources. The selection of a proper global strategy is what has given Uber competitive
advantage over all the cab sharing services operating globally such as Lyft, Curb, Didi
Chuxing, Grab and Ola. Here briefly discussed Global strategies available for companies and
Uber’s strategy.
1. Global Standardization: This strategy mainly focuses on Cost reductions through location
economics and economies of scale and providing a standardized products services in all
areas and reaping the benefits of technological advantage on a mass basis by product
duplication. These strategies are pursued when Pressure for cost reduction is high but
pressure for local representativeness is low.
2. Localization: This strategy focuses on boosting profitability by offering customized
services according to local customer needs so that they can satisfy what customers’
demands and achieve superior customer satisfaction. In other words, it can be referred to
as varying its product offerings by country and local customer needs. These strategies are
Global
Standardization
Strategy
Transnational
Strategy
International
Strategy
Localization
Strategy
HighLow
HighLow
Pressureforcostreduction
Pressure for local representativeness

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pursued when Pressure for cost reduction is low but pressure for local representativeness is
high.
3. Transnational: Transnational strategies are followed when there is pressure for both cost
reduction and local representativeness. To pursue this kind of strategy, companies generally
develop business model that allows them to achieve low costs and product differentiation
and facilitates skill development in different subsidiaries based on geographical location to
meet localization demands.
4. International strategies: This strategy is followed when both the pressure for cost reduction
and local representativeness is low. This strategy is pursued when there is minimal or no
competition and customers have minimal idea about the business thus they don’t push for
cost reduction. Generally, this kind of business environment arises when a company
introduces a new technology and they have monopoly power over it. But in the current
business context this kind of scenario is extremely rare as companies have become efficient
in imitation of technology rapidly.
7.2 Global strategy followed by Uber:
Uber has achieved great success all around the globe with the successful application of the
Localization strategy. Specially in the Asia pacific region localization has been the game
changer. The wide cultural varieties present in different countries, varying weather conditions,
different laws in different regions and different people calls for customized products and
marketing strategies and recruitment needs.
To counter the entrance of Uber in China, two of the biggest tech giants of China, Tencent and
Alibaba joined forces to form Didi, a cab sharing service similar to Uber. However, as a counter
strategy Uber has uses customer segmentation based on age provides them offers accordingly
and also classifies cities in tier 1 and tier 2 and localizes strategies for each of the major cities.
Based on local preferences UB also offers specialized services to its customers. For example,
UberPOOL, a carpooling service at cheaper prices and faster services. Uber has also launched
UberBOATS in Istanbul and UberCHOPPER in Shanghai. Uber also has food delivery services
named as UberEATS in Europe, Asia and other regions.
Uber has just started its operations in Bangladesh and already has experienced success. Uber
has already introduced Uber cars and moto service and has been taking strategies specific to
local needs. As one of the biggest local competition comes from CNG fuelled auto’s, Uber may

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launch Uber autos in Bangladesh too like it did in India recently. It also provides discounts
based on local preferences and occasions such as public holidays and celebrates local festivals.
7.3 How did Uber enter Bangladeshi market?
A foreign company can get access to a country through a number of modes including
franchising, licensing, exporting, joint venture and investment in wholly owned subsidiaries.
1. Franchising is an agreement where a foreign country buys the rights to produce a
company’s products or right to use its technology to provide services and the company pays
royalty to the original owner or company and the franchisee has total control over quality
of services, marketing and operational strategies of the foreign company. Thus, it is better
for maintaining brand reputation.
2. Licensing is similar to franchising but the franchisee does not have any control over the
foreign company and thus affects its brand reputation.
Franchising Liscensing Exporting
Joint venture
Wholly owned
subsidiaries

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3. Exporting is one of the most popular method of entering foreign markets and mostly
followed by manufacturing companies. It only exports the products and does not have any
operations in the foreign country.
4. Joint venture is a method where the foreign company established relationship with a local
company and agrees to pool their resources for accomplishing a specific task. It is very
effective for entering highly competitive markets and where local competition in fierce and
local companies have advantage over foreign companies.
5. Wholly owned subsidiaries are another method where a company establishes its own
company branch in a foreign company and runs operations independently. To do so a
company can acquire a foreign company or establish its own operations to promote its
services and products.
Ubers penetration mode:
Uber has established its own operations in Bangladesh on November 22. 2016. It has partnered
with Grameen phone to bridge the gap between drivers and riders and recently has also
partnered with Robi to provide a better experience to customers and provide discounts to the
users of Robi and also launch co-branded products. So, Uber is operating as a separate entity
in Bangladesh and is a direct expansion of Uber as a wholly owned subsidiary.
7.4 Why Uber Choose Bangladesh
Reasons for
Expansion in
bangladesh
Cheap
Manpower
Low competition
Lack of cheap
alternatives

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Bangladesh is one of the most fastest growing frontier markets in the Asia pacific region and
has shown huge potential over the years. Recently Uber launched in Bangladesh and one of the
biggest reasons is the growing income level of the people of Bangladesh and a growing need
for cheap transportation alternatives.
Uber has a business model for micro-franchising drivers. Compared to other countries the costs
associated with Uber in Bangladesh is relatively low due to cheap man power.
The private transportation services are generally dominated by CNG fuelled auto rickshaws
and the costs associated with the is relatively very high as there are lack of initiatives by
regulatory authorities to control fare. Whereas, Uber charges a very cheap rate within defined
rules and regulations and convenient payment facilities.
The local competition is relatively low and Ubers biggest competitor here is Pathao but lacks
the technological advantage that Uber have and also the financing capabilities that Uber can
manage if it plans to go for a price war.

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Chapter Eight - Corporate Level Strategies
Corporate level strategy is concerned with the strategic decisions a business makes that affect
the entire organization. Financial performance, mergers and acquisitions, human resource
management and the allocation of resources are considered part of corporate level strategy.
Managers use corporate-level strategy to identify which industries their company should
compete in to maximize its long run profitability. There are three types of strategies which are
given below:
Figure 12: Types of Corporate Level strategies
I. Vertical Integration:
A company pursuing a strategy of vertical integration expands its operation either forward
integration or backward integration. There are two types of vertical integration.
Forward integration is when a company at the beginning of the supply chain controls stages
farther along. Backward integration is when a business at the end of the supply chain takes on
activities "upstream."
Corporate level
strategies
Vertical
Integration
Backward
Integration
Forward
Integration
Horizontal
Integration
Strategic
Outsourcing
Strategic
Alliances

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II. Horizontal Integration:
Horizontal integration is the process of a company increasing production of goods or services
at the same part of the supply chain. A company may do this via internal expansion, acquisition
or merger. In business, horizontal integration refers to a strategy in which a firm acquires
similar firms to increase its market share and profits. Firms adopt this strategy as a way to
strengthen their position in the market.
Firms usually acquire other firms through:
 Acquisition
 Merger
The acquired companies are most often competitors or similar companies whose customers
are a different demographic. Horizontally integrated companies are able to gain market share
because they have access to the customers of the company they acquired. It is important to note
that horizontally integrated companies must possess the necessary financial resources to
acquire and manage other firms or they risk failing to achieve the desired effects of horizontal
integration.
An acquisition is simply one company purchasing another. Mergers are a little more
complicated because they include two companies joining together. Just as the name applies,
a hostile takeover is for the lack of a better word, hostile. It is when a company has been
acquired that did not want to be acquired.
III. Strategic Outsourcing:
Strategic outsourcing is the decision to allow one or more of a company’s value chain activities
or functions to be performed by independent specialist companies that focus all their skills and
knowledge on just one kind of activity. When a company chooses to outsource a value chain
activity, it is choosing to focus on fewer value creation activities to strengthen its business
model.
IV. Strategic Alliances:
Strategic alliances are distinguishable from joint ventures because the companies involved do
not take an equity position in one another .Strategic alliances are partnerships that exits for a
defined period during which partners contribute their skills and expertise to a cooperative

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project. For example, one partner provides manufacturing capabilities while a second partner
provides marketing expertise.
Fundamental features of strategic alliances:
 A strategic is a unique one-to-one relationship between two or more companies
working on a project designed to generate a profit neither partner could achieve of its
own.
 An alliance is a specific type of partnering arrangement where organizations come
together to form a new joint venture.
 Each strategic alliance may be formed by several companies collaborating to create a
new product or service.
 Strategic alliances are wider in scope spanning from an informal business relationship
based on a simple contract such as network, sub-contracting, licensing etc.
 The overriding element of a strong partnership lies I mutual respect for each company
in organization .This includes strong executives commitment to one another, trust in
each other capabilities and the willingness to work together closely on multiple fronts.
 As with mutual respect flexibility in establishing and operating any partnering
arrangement is of paramount importance. Project members give full authority to act
on their own initiative without having to refer back for approval.
 Communication is an essential ingredient of strategic alliances, particularly when
operating across the participants to a strategic alliance.
8.1 Corporate level Strategy of Uber Bangladesh
Uber is essentially a transportation service that does not own any vehicles. The company
specializes through the integration of various resources. By cooperating with local non-equity
strategic alliances, Uber is able to provide passengers with a higher-end, more personalized
travel plan. At corporate level, Uber uses a product development strategy. With the current
market Uber enhances the quality of its services by improving its application platform; which
facilitate the connection between riders and driver.
Through increased capabilities of the application a driver will gain more business while
consumers will have more choices and convenience. Uber has low level of diversification.
More than 95% of its revenue comes from one business unit that is connecting riders to drivers.
It has been extremely successful with the launch of its application and needs to further grow it

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before it diversifies .It can further justify its low level of diversification through its strategic
outsourcing capabilities.
Horizontal
Integration
Vertical
Integration
Strategic
Outsourcing
Strategic
Alliances
Uber Bangladesh
× × √ √
From Bangladesh perspective, Uber use strategic outsourcing strategy because it takes car on
rent and hire employee outside their business. But in U.S.A Uber follows Vertical integration
strategy in corporate level.
8.2 Value creation of Uber by Strategic outsourcing:
Research and
development Car
Marketing and
sales
Customer
service
Company boundary before outsourcing
Research and
development
Outsourced
Marketing
and sales
Outsourced
Car Customer
Service
Company boundary after outsourcing
Figure 13: Value creation of Uber by Strategic outsourcing

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This figure shows the primary value-chain activities and boundaries of Uber before and after
it has pursued strategic outsourcing. Uber decided to outsource its car and customer service
function. Once outsourcing has been executed, the relationship between the company and its
specialists are then often structured as long term contractual relationships.
8.3 Uber’s Getting Benefits from Outsourcing
 Focus on Core Activities:
In rapid growth periods, the back-office operations of a company will expand also. This
expansion may start to consume resources at the expense of the core activities that have made
your company successful. Outsourcing those activities will allow refocusing on those business
activities that are important without sacrificing quality or service in the back-office.
 Cost and Efficiency Savings:
Outsourcing is a good option when functions are complicated in nature, but the size of company
is preventing from performing at a consistent and reasonable cost. Uber service newly launched
its business in Bangladesh so the cost is higher in this case. Through outsourcing Uber can
minimize its cost and increase its efficiency.
 Operational Control
Operations whose costs are running out of control must be considered for outsourcing.
Departments that may have evolved over time into uncontrolled and poorly managed areas are
prime motivators for outsourcing. In addition, an outsourcing company can bring better
management skills to your company than what would otherwise be available.
 Staffing Flexibility
Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional
resources when need them and release them when you're done. In this perspective Uber has
great flexibility in staffing. It has enough number of staff to operate its function.
 Continuity & Risk Management
Periods of high employee turnover will add uncertainty and inconsistency to the operations.
Outsourcing will provide a level of continuity to the company while reducing the risk that a
substandard level of operation would bring to the company.

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 Develop Internal Staff:
A large project needs to be undertaken that requires skills that Uber’s staff does not possess.
On-site outsourcing of the project will bring people with the skills need in Uber. Its people can
work alongside them to acquire the new skill set.
8.4 Strategic alliances between Uber and Grameenphone Ltd
Uber, the taxi hailing smartphone application, has alliance with mobile phone operator
Grameenphone to launch its operation in Dhaka on 22 November, 2016. This agreement has
been signed between Grameenphone and Uber in order to ensure quick transportation facility
across the country. Uber is launched in Dhaka promising to bring a change in the commuting
experience in the busy capital. The world’s largest on –demand mobility platform will be
available in Dhaka to offer safe ,reliable and affordable rides at the push of a button while
opening a flexible, economic opportunities for driver –partners, according to a Uber press
release. The partnership with Uber will enable Grameenphone customers to use the service in
a convenient way.
Customers
benefit
Company
benefit
Economic
benefit

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Customers benefit:
Under this agreement customer will be provided different services where they will enjoy
several facilities:
 Download the free app from the apple store or Google play
 Sign up using customers phone number and e-mail
 Request a ride and a driver will pick customer up within minutes
 Simply pay in cash at the end of the ride
Company benefit:
 Increased brand awareness
 Access to supplementary services
 Opportunity to reach new markets
 Access to new customer base
Economic benefit:
 Providing a reliable and affordable journeys to customers
 Minimizing congestion
 Reducing pollution

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Conclusion
There are four sources of competitive advantage that Uber can achieve and they are superior
efficiency, superior quality, superior innovation and superior customer responsiveness. Uber
achieves superior efficiency through marketing and human resource strategy. Quality is
achieved through its vehicle facility, driver complement facility, 24/7 service and emergency
helpline. On the other hand, innovation can be the important source of competitive advantage
for Uber and it is achieved through the rating system, safety feature, registration facility and
the introduction of UberPOOL. Uber achieves the customer responsiveness by creating
connection with their customers, providing 24/7 service, ensuring safety and so on. Uber uses
strategic outsourcing strategy because it takes car on rent and hire employee outside their
business. And the company specializes through the integration of various resources. By
cooperating with local non-equity strategic alliances, Uber is able to provide passengers with
a higher-end, more personalized travel plan. At corporate level, Uber uses a product
development strategy. With the current market Uber enhances the quality of its services by
improving its application platform; which facilitate the connection between riders and
driver.

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References
Ansoff, H. (2014). Strategic management. [Place of publication not identified]:
Palgrave Macmillan.
Birkinshaw, J. (2004). Strategic management. Northampton, MA: Edward Elgar
Pub.
Hanson, D., Hitt, M., Ireland, R. and Hoskisson, R. (n.d.). Strategic management.
Uber.com. (2017). Sign Up to Drive or Tap and Ride. [online] Available at:
https://www.uber.com/en-BD/ [Accessed 17 Dec. 2017].

Application of the Strategic Management Theories in Uber Bangladesh

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