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Finally, on the aspect of stakeholder analysis, the company has stakeholders in two categories namely primary and secondary stakeholders. The primary stakeholders involve individuals with a direct interest in Uber, particularly the employees and the shareholders. The
STRATEGIC ANALYSIS REPORT FOR UBER5employees work hard to bring the company financial success through the provision of efficient services. Proficient employees (who are mostly the drivers) imply that more consumers are likelyto get attracted to the services leading to the company earning more money. On the other hand, the shareholders, as the primary stakeholders of the company enjoy the benefits of the company’ssuccess. They get dividend payments and capital appreciation. This implies that shareholders invest in the success of the company leading to increased share value which leads to heightened amounts of dividend they get. As for the secondary stakeholders surrounding the company, they mostly comprise the public (the customers and other individuals interested in the company matters). Customers are the most significant secondary stakeholder of the company as per their mission and values. Uber is interested in delivering a prima experience to the customers by ensuring that they are not late for their destinations, giving them an affordable payment, and ensuring they satisfy the customers to make them always opt for their services. If the company fails to satisfy the customers, then they might be compelled to seek cab services elsewhere. Along with the customers, the public interested in the affairs of Uber can be another stakeholder of the company.This is in the perception that they have the ability to influence the success of the company when conducting marketing. Hill et al. (2017) note that Uber relies on the word of mouth to market its services, i.e. the people user Uber’s services on the basis of a referral. So, if Uber attains negative publicity, then chances are that the public will discourage potential customers from using their services. It, therefore, implies that Uber must know how it handles critical situations involving the public for them to always have a good reputation in the eyes of the public. External Analysis
STRATEGIC ANALYSIS REPORT FOR UBER6In analyzing the external environment of Uber, this section uses Porter’s Five Forces model (Figure 1). The model is a framework of five dimensions namely the risk of entry by potential competitors, rivalry intensity among established companies in the industry, consumers’ bargaining power, suppliers’ bargaining power, and the closeness of substitutes to the products ofthe industry (Hill et al., 2017). However, as far as Uber is concerned, this section intends to discuss the threat of new entrants, rivalry from established industries, and the consumers’ bargaining power.