Uber Faces Serious Strategic Issues


Uber Faces Serious Strategic Issues

Companies face strategic issues, and as such, they have a strategic plan in place to achieve their mission, or else they will cease to operate. For the company to rely on the contingency plan, it must base it on triggers that must be external, specific and quantitative (Abraham, 2012).

Based on the environmental scanning and the SWOT analysis of Uber, the company is facing serious issues that need an urgent contingency plan or else it will be bypassed by competitors like Bolt, originally Lyft in the industry. The leading risks facing Uber are multiple scandals and controversies, lawsuits and legal regulations, data breach, fierce competition and driver low-profit margin. The above issues have led to constant conflicts between the company and the drivers and the regulators as well. For example, last month Uber was banned from operating in London by London’s Transport Authority, citing the company’s inability to provide customer safety (Thomson, Lanxon, & Bloomberg, 2019). Based on the current and potential risks that might occur on Uber, the possible trigger will be:

“If Uber continues to disregard legislation/regulation, drivers’ issues, and customers’ safety, it will lose more markets to competitors, and its sales and profits will drop significantly.”Order Now from Course ResearchersThe trigger applies to the current and possible future issues that might face Uber since, based on the present analysis, the company is performing poorly on public relations. The company should focus on setting policies that will address drivers’ strikes as well ensure are their employees are appropriately vetted to avoid false identities who continued to threaten customers’ safety. Uber will also solve its problems by complying with legislation and regulations in both current and potential markets.

References

Abraham, S. (2012). Strategic management for organizations. Retrieved    from https://content.ashford.edu/

Thomson, A., Lanxon, N., & Bloomberg. (2019, November 27). Uber’s London Ban May Just Be the Beginning of a Global Ride-Hailing Backlash. Retrieved from https://fortune.com/2019/11/27/uber-london-ban-global-ride-hailing-backlash/



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