UBER â€Market Analysis in Australia-Free-Samples for Students

Question: Discuss about the Market Analysis of Uber. Answer: Introduction The analysis of SWOT and macro- environmental factors is important for an organization. For instance, the SWOT analysis of the report helped to understand the internal strength, weakness and external opportunities and threats. The segmentation of market is analyzed for Uber using segmentation variables. Two segments are chosen- the market segment for transportation and that for food-delivery. The attractiveness of each segment is analyzed and a positioning map is drawn for the target segment. Macro Environmental Factors Macro Environmental Factors Political factors-The political environment of Australia is stable which is an opportunity for Uber. The government introduces tax policies for protection of the economy and can introduce laws related to protection of environment (Hollensen 2015). Economic Environment- Australia is a large capitalist economy with a dominance of service sector which is an opportunity for Uber. The Uber service is not completely regulated in all states of Australia (Bond 2014). Socio-Cultural Environment- the Australians are technologically aware and have high disposable income which is an opportunity for Uber, however the preference of Australians towards local brand can act as a threat (Wallsten 2015). Technological factors- Australia focuses on technology and innovation, R D and new technology like electric cars can be an opportunity for Uber; however disruptive technology like Google car can act as a threat (Keller and Kotler 2016). SWOT Strength The operational cost of Uber is low(Chen and Sheldon 2016) The standard of service for Uber is high; drivers and cars are verified (Bresler and Lubbe 2014). Uber has a brand name recognized worldwide Uber has a good customer base in Australia Weakness The loyalty factor between Uber and driver is low The service idea of Uber can be imitated by competitors (Cusumano 2015). The customer base of Uber does not demonstrate loyalty, switching among customers is high (Rogers 2015). The privacy concerns of consumers are high Opportunities Uber can leverage new technologies like electric cars The Estimated Time of Arrival can be reduced with an increase in number of drivers for Uber Uber can introduce alternate medium of Transport like Uber Chopper The valuation of the company can attract more investors (Wallsten 2015). Threats New Technology like driverless Google cars is a threat for Uber Uber faces competitive rivalry Drivers of Uber are dissatisfied with profit margins which is low Fraud and scandals can tarnish brand name (Hollensen 2015). Consumer behavior Definition and importanc It is the study of how individual consumer, or groups and organizations satiate their needs and ways by selection, purchase, usage and disposal of goods and service. It is important for organizations to study consumer behavior to create better value for consumers (Hollensen 2015). The two market segments for Uber are the passengers that use the vehicles of Uber for transportation Another market segment for Uber is the people who use Uber Eats App for ordering food from their favorite restaurants. Audit i) Internal influences like inner psychological motive of consumers, experience from previous purchase and attitudes and core values are internal influences that affect consumers. ii) External influence like word-of-mouth from opinion leaders and recommendations of family affect consumers The decision making process for the buyers of these two segments can go through the following stages Need-Recognition or Awareness of Problem- The customers who avail Uber do so when they have a need to transport, the customers for UberEats first need to satiate hunger. Information Search- The customers can search for information about alternate medium of transport online and the information about different food delivery app can be accessed by consumers. Evaluation of Alternatives- After information search about rival companies offering similar products and service, consumers will choose the best alternative. The alternatives can be rated in terms of variables like price, quality and the best option is chosen by consumers. Purchase- Consumers take the purchase decision after evaluating the alternatives. Post-Purchase Evaluation- Consumers are satisfied or dissatisfied at this stage. They can rate the Apps of Uber and take the decision of loyalty or switch (Armstrong et al. 2015). Segmentation Process Definition and importance The segmentation process divides a homogeneous market into identifiable segments that demonstrate similar characteristics, needs and wants. The segmentation process is important because segments are measurable and accessible which facilitates in targeting and positioning (Keller and Kotler 2016) A table with two segments Market segment that uses Uber for transport Market segment that uses Uber for food delivery Demographics- Income level, technological education, family size can be used as demographic variables for this segment Demographics- Family size, ethnicity and age are demographic variables for this market segment Behavioral- Loyalty status and usage rate can be behavioral variables for this segment (Keller and Kotler 2016). Behavioral variables for this segment can be occasions and benefits sought. Geographic segments like rural-urban, division of segment by cities can be used for this segment. Geographic variables like area and location for customers can be used for this segment Psychographic variables like lifestyles can be used for this segment Psychographic variable like Interest can be used for this segment (Keller and Kotler 2016). An explanation of the table The two segments chosen in the above section are different and Uber can use different strategies for the segments For market segment that uses Uber for transport- This segment should be customers with disposable income and customers who are aware of technology. The loyalty status of these customers and their rate of usage should be checked by Uber. The lifestyle of these customers and their location, for instance, in which city of Australia they are located or whether they are rural or urban customers will be valuable information for Uber. For the market segment that uses Uber for food delivery- The family size, ethnicity and age of this segment should be considered because the choice of food and amount ordered depends on these factors. The occasions during which food is ordered and benefits sought should be taken into account. The location of consumers and psychological motive behind ordering food or interest should be considered for this segment (Keller and Kotler 2016). Target Markets Explanation for the choice of two target market Target market that uses Uber for transport- This target market is an attractive market segment for Uber because there are consumers who would prefer to rent a cab instead of their own car or public transport like bus or train. Uber can be used for transportation by school kids, college-goers or professionals. Target Market that uses Uber for food delivery -This target market is attractive because there is an increase of customers in Australia who prefer their favorite food to be delivered at doorstep (Keller and Kotler 2016) Strategies for each segment Uber should leverage this opportunity of transportation needs of consumers and adopt the strategy to provide easy and timely transportation for this segment. Uber can use the strategy to tie-up with local restaurants and hire food delivery person to deliver food timely to consumers who will order food by app. Diagram explanation Uber should provide food high in nutrition and good to taste which is evident from the positioning map which can be a competitive advantage for this segment (A table with two segments Market segment that uses Uber for transport Market segment that uses Uber for food delivery Demographics- Income level, technological education, family size can be used as demographic variables for this segment Demographics- Family size, ethnicity and age are demographic variables for this market segment Behavioral- Loyalty status and usage rate can be behavioral variables for this segment. Behavioral variables for this segment can be occasions and benefits sought. Geographic segments like rural-urban, division of segment by cities can be used for this segment. Geographic variables like area and location for customers can be used for this segment Psychographic variables like lifestyles can be used for this segment Psychographic variable like Interest can be used for this segment. An explanation of the table The two segments chosen in the above section are different and Uber can use different strategies for the segments For market segment that uses Uber for transport- This segment should be customers with disposable income and customers who are aware of technology. The loyalty status of these customers and their rate of usage should be checked by Uber. The lifestyle of these customers and their location, for instance, in which city of Australia they are located or whether they are rural or urban customers will be valuable information for Uber. For the market segment that uses Uber for food delivery- The family size, ethnicity and age of this segment should be considered because the choice of food and amount ordered depends on these factors. The occasions during which food is ordered and benefits sought should be taken into account. The location of consumers and psychological motive behind ordering food or interest should be considered for this segment (Keller and Kotler 2016). Uber should position itself as a transportation system that delivers service in a wide range of locations with limited choice, because consumers can only book certain variety of cars in Uber App. Uber has USP of network of drivers and App for this segment(Rogers 2015). Recommendations Uber should choose the market segment of transportation. This segment is preferred over the other segment because transportation is the core competency for Uber and the company has technological know-how in this field (Rogers 2015). Reference Lists Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education. Bond, A.T., 2014. An app for that: Local governments and the rise of the sharing economy.Notre Dame L. Rev. Online,90, p.77. Bresler, M. and Lubbe, I., 2014. Marketing management. Chen, M.K. and Sheldon, M., 2016, July. Dynamic Pricing in a Labor Market: Surge Pricing and Flexible Work on the Uber Platform. InEC(p. 455). Cusumano, M.A., 2015. How traditional firms must compete in the sharing economy.Communications of the ACM,58(1), pp.32-34. Hollensen, S., 2015.Marketing management: A relationship approach. Pearson Education. Keller, K.L. and Kotler, P., 2016. Marketing management. Pearson. Rogers, B., 2015. The social costs of Uber.U. Chi. L. Rev. Dialogue,82, p.85. Wallsten, S., 2015. The competitive effects of the sharing economy: how is Uber changing taxis?.Technology Policy Institute,22