Question

make TOWS analysis of SWOT Of Uber's?

strenghts;

• It is strength of Uber Company that it has a well-recognized structure, communication mechanism and brand as well.
• It provide services higher than standard, verify and investigate driver’s personal profile and also vehicle profile. Uber Black provide premium services to premium customers.
• Number of vehicles are limitless. Rules and Regulation which are applicable on Regular Taxi service not applicable for Uber.
• Uber has least permanent staff and do not hire full-time drivers. By this way it minimize employment regulation on company.
• Its operational cost is very low.
• Due to massive use of technology, and initial set-up cost, competition is very low. Lyft is major competitor.
• Online, secure and cashless payment method is being used which minimize security measure cost.
• Safety and Trust is boosted through double rating system.
• Flexible working condition for drivers. It’s on driver’s choice whether to do full time or part time. What will be the schedule of working hours?
• More Economical then traditional Taxi Service.
• Trusted Brand and People want to make investment.

WEAKNESSES:

• Same product and same service can be easily provided by simply develop a system application and mobile application. It can be copy easily.
• It is ethically questionable to relation between drivers and Uber. Drivers feel themselves unsecure that why not loyal to Company.
• Customer can be switch easily due to no switching cost.
• Drivers earnings are low and vehicle’s operating cost is high. So drivers can’t save much.
• Business is technology based and that’s why unpredictable.
• Customers are concern about their privacy because Uber has their movement record.

OPPORTUNITIES:

• Due to long wait and high prices customers are not happy with traditional Cab System.
• It has very big market such as crowded cities of the world in China, America, India and Pakistan
• Can also capture those areas where cab system is not available.
• By increasing number of vehicles and Drivers, it can reduce wait time and be more popular among customers and can be more profitable for itself and drivers.
• Uber operates on cash model that appeal investors.
• New Hybrid vehicles can be used, that will increase drivers’ profit
• Services such as school van, visit to hospital and occasional event can also be provided.

THREATS:

• Unhappy drivers cause bad publicity and ethical and social groups may boycottits services.
• Legal Regulation may adversely affect company profitability and its operation.
• Local Regulation may impose fine due to non-compliance to rules which will again effect profitability.
• Entrance of new service provider may cause to reduce prices and market share also.
• Due to Expansion in new markets, company may have to face fraudulent practices.
• Fully automatic and self-driving cars may eliminate the need of Uber.

Answer 1

TOWS analysis is similar to SWOT analysis as they both consider the company's internal strengths and weaknesses and external opportunities and threats. The difference lies in the approach. SWOT focuses on strengths then weaknesses, then opportunities and last threats. While, TOWS focuses in reverse direction. It helps in creating strategies for business growth. Based on above data following strategies can be developed and used to achieve higher business growth :

• Focus on maximizing customer satisfaction and improved customer safety.
• Devise new strategy to gain customer attention and ultimately, preference.
• Take initiatives towards employee satisfaction. Provide employees intrinsic motivation.
• Provide training to drivers on soft skills.
• Make strategic decisions to manage risks associated with fraudulent practices.
• Focus on reducing wait time. Value stream mapping can be used.
• Using new Hybrid vehicles to maximize profits.
• Market expansion can be sought, venturing in to new markets or same markets with new service offerings.
• Providing security and building strong relations with drivers.
• Use promotional strategy to build up reputation of Uber further.
• Use differentiation strategy to gain a competitive edge over it's rivals in the industry.