Uber Taxi Company (Research Paper Sample)

How Uber Taxi Company can maintain competitiveness in the taxi industry
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Date of submission
Module/tutor
Word count: 1410
Table of contents
1 Terms of reference................................................................................................3
2 Procedure..............................................................................................................3
3 Findings................................................................................................................3
3.1 Observing the competitors..............................................................................3
3.2 Improved knowledge about customers............................................................4
3.3 Create barriers to entry...................................................................................4
1 Conduct research and development................................................................5
2 Use of intangible assets and tangible assets to maintain competitiveness......5
3.6 Invest in employees.........................................................................................5
4. SWOT analysis..............................................................................................................6
4.1 Strengths..........................................................................................................6
4.2 Weakness.........................................................................................................6
4.3Opportnities......................................................................................................7
4.4 Threats.............................................................................................................7
5. Conclusion....................................................................................................................7
6. Recommendation..........................................................................................................7
7. References.....................................................................................................................9
1 Terms of reference
In the recent years competition in the taxi industry has gradually grown. The existing competitors in the industry have formulated ways to increase their sales and in the process their competitiveness. New firms have also entered the market. The firms have introduced innovative ways to capture and maintain customer loyalty. The situation necessitates the company to formulate strategies that help in maintaining competitiveness in the industry. The board of directors form the intended audience for the report. The report seeks to show the various ways that the company can maintain its competitive advantage over its rivals in the industry. The report includes several methods that the board of directors can adopt in the marketing and distribution of services to the customers with the aim of increasing efficiency. The report shows the strengths, weaknesses, the available opportunities and also the threats in the industry.
2 Procedure
The report sourced its information primarily from secondary sources. The use of primary sources for the research could have proved costly and time consuming. The secondary data shows the various ways that increase competitiveness researched by other individuals.
3 Findings
The various methods that the company can use to improve and maintain competitiveness include:
1 Observing the competitors
The company can observe the competition and use their strategies against them. The success and failures of the competition in the industry can act as a guiding tool for the company. The firm should use its rival’s weaknesses against them. The weaknesses may occur in the physical location that may reduce customer contact. Other weaknesses may occur in the form of poor customer service on the part of their employees. The firm should use improve the service offered to customers. It should focus on making customers feel good when using the firm’s services. Improved customer satisfaction increases customer loyalty and competitiveness in the industry. The company can also opt to employ the improved tactics used by competitors to beat them at their own game. The competitors’ strength may lie in little time to transport customers. In order to achieve competitive advantage, the firm has to increase its response time when called by customers. Reduced response time lessens the waiting time by customers. The customers may in the long run feel satisfied as a result of improved efficiency on the part of the firm. Business information learned from the competition helps in the development of a competitive edge to beat the competition.
2 Improved knowledge about customers
Improved customer knowledge allows the firm to increase its revenue, improve its customer retention and add to its prospective customers. Companies employ the use of various methods to gain information on the trends and consumer preferences. The use of social media has always proved effective in gaining insights to the tastes and preferences of individuals. Social media enables the firm to get information on a large scale about what the target market desired in order to receive maximum utility.
3 Create barriers to entry
All markets have several factors that create barriers to entry in the market. Some of the factors result from the market itself such as a high start up costs. Other factors result from the actions of the players already in the market. Some of the actions may include lowering prices and conducting research and development. New entrants in the market find it difficult to operate in such situations. In order for the company to maintain its competitiveness, it can create barriers to entry. Barriers to entry deter competitors from challenging the company’s market share. The firm’s ability to create barriers to entry to the market preserves its potential for profits in the long run.
3.4Conduct research and development
The use of research and development in the firm helps it maintain its competitive advantage over its rivals. Research aids in the prediction of future trends and also adapting to the needs and wants of the consumer. Through research, the company may form a new service where customers may order for delivery of goods such as parcels and not necessarily their own transportation. Such deliveries remove the need for a person to travel from one destination to another to deliver goods. The move may increase customer loyalty and maintain competitiveness of the firm.
1 Use of intangible assets and tangible assets to maintain competitiveness
Tangible resources include a strong and diversified product portfolio. The intangible assets include knowledge of regional specialities, company image and innovativeness. The company can use a mix between tangible and intangible assets. The mix depends on the gap between the desired and actual turnover of sales that in the end maintain competitiveness. The firm’s learning process in the market aids in the accumulation of intangible assets.
2 Invest in employees
Investment in workers by giving them the industry relevant to improve their output. The company can educate the employees on the best practices when dealing with customers. Such practices may include how to increase their efficiency and effectiveness while working. The firm may offer its employees with opportunities to further their education. Highly educated workers results in increased competitiveness in the market. Investment in employees may also take place through investing in their health. Some drivers under Uber may have medical conditions that can affect their performance. Healthy workers increase the performance of workers. In the year 2014 on August, one of the drivers suffered an epileptic seizure that caused an accident. Investment in workers increases the general performance of workers who in turn ensure the satisfaction of customers CITATION McG13 \p 30 \l 2057 (McGrath, 2013, p. 30).
1 SWOT analysis
The report also adopts the use of the SWOT analysis to know how to increase competitive advantage over rivals. The SWOT analysis examines the strengths, weaknesses, opportunities and threats of the business. The factors considered under the analysis include:
1 Strengths
The strengths of the firm include the accessibility of the service by a wide range of customers over a la...