SWOT analysis is a dynamic analysis techniques that fully evaluates the internal environment and provide a holistic view how an organisation is capable of managing its external environment by managing its internal environment. This article evaluates UBER’s internal strengths and weaknesses to compare with opportunities and threats.

UBER’s Portfolio Summary

Primary Uber’s portfolio is instant access to a ride for anyone connected to the Uber app as a registered user. The portfolio extends where Uber partners with drivers for providing commuting services (B. Jiang & Tian, 2019). Uber is also involved in the business of food delivery, which is largely convenient for users especially in large, urban cities, where time is of the essence and a quick meal is urgently demanded. Similarly, restaurants and cafes partner with Uber to extend their supply chain.

Uber freight appropriately matches logistic providers to clients looking to transport their goods. Uber is also innovating, by releasing prototypes last year of Uber air travel, which would ensure even more convenience for the customer who may get from point A to B in a dramatically reduced amount of time (Andreassen et al., 2018). Lastly, Uber has also engaged in partnerships with health organizations to make healthcare more accessible to those in need, for rides to be booked between patients and doctors, in a two-way system, based on the medical needs.

UBER’s SWOT Analysis

UBER’s Strengths

• Strong brand image
• Established standard of service quality
• Enjoys robust competitive position
• Not restricted by number of vehicles owned, as cars belong to drivers.
• Well-designed payment system
• Rating system on both ends ensures satisfaction for all parties
• Promising valuation figures to attract investors
• Low operating costs, as they are passed on to drivers.
• Pricing cannot be competed against by conventional taxi and cab driver fares.
• Safety, as drivers are verified by Uber and always tracked by the system.

UBER’s Weaknesses

• Low barriers of entry, and can be easily replicated by potential competitors
• Difficult to manage relations with driver unions
• Difficult to retain customer loyalty, as shifting over to competitors with lower pricing is easy
• Drivers may not always be satisfied with earnings and responsibility of running costs
• Data storage and security for rides and customers is costly
• Business model is unstable as it is difficult to predict the various factors that income is derived from.

Opportunities For UBER

• Most untapped markets are still dominated by conventional taxis with exploitative fares. This is especially true in large markets with huge growth potential such as East Asia and India.
• Many suburban districts in many countries do not have access to even conventional taxis.
• The estimated time for a driver to arrive could further be shrunk if there is an increasing in total drivers available to a market.
• The total valuation of Uber still has massive potential to grow, especially before its IPO this year, which could attract enormous investment amounts.

Threats Faced by UBER

• Drivers could rally against unfair wage policies which could tarnish the brand image.
• Complex legal framework to operate within.
• Increased competition would result in lower fares for drivers and discourage others from working in Uber.
• The concept of self-driving cars could potentially eliminate the need for Uber.
• Difficult to oversee large geographic areas, especially where law and order situation is unstable.

For a solid marketing strategy, it would be prudent to take advantage of the strong brand image and capitalize upon it when entering into new and emerging markets, where the reputation of Uber may give the company an early advantage (Dudley, 2018). Furthermore, when looking for expansion options, Uber could potentially scout for markets dominated by conventional taxi setups that would not be able to compete with the company.

Also, wise would be to invest in data centers and information systems so as to gain a competitive edge and raise the barriers of entry for any future competitors who may not initially have the resources to equip themselves with big data analytics (Rana, 2019). Big data would help ensure the satisfaction of both the driver as well as of the customer, and it would be a valuable and inimitable core competency that could be capitalized upon. To better build up customer loyalty, Uber could work on building a more positive image by extensively engaging in CSR activities to cater to the needs of society.