3.7 Analysing the Strategic Position of a Business

Question 1

What does SWOT stand for

Answer 1

Strength Weakness Opportunity Threat

Question 2

Name 2 of Uber’s Strengths

Answer 2

Famous Brand Name
Low cost do not own a taxi
75% market share in America

Question 3

Name 2 of Ubers weakness’

Answer 3

1)There are lots of other taxi-ordering services like Lyft, MyTaxi, Kapten, Hailo etc.
2)There are lots of other food delivery services like Just Eat and Deliveroo.
3)Uber is not very profitable. As of 2020, Uber’s net profit margins were below 0%.

Question 4

Name 1 of Ubers Opportunities

Answer 4

1)It could offer more services, like grocery delivery, or it could create an Uber banking app and give you food & taxi credits on there for using it. Kinda like Venmo or PayPal.
2)Uber also has a great app with lots of data on traffic and people’s movement. It could offer this to delivery or postal businesses like Royal Mail, Deutsche Post or UPS (in the USA)

Question 5

Name one of Ubers threats

Answer 5

1)Businesses that make cars, like Daimler (which owns Mercedes) have invested in taxi-rental apps.
2)Self-driving (autonomous) cars could mean that Uber’s network of drivers is no longer a big advantage in being able to offer consumers rides or food delivery quickly.

Question 6

Example of the legal environment (O2)

Answer 6

In 2016 three takeovers of O2 were banned on the basis that competition would be reduced substantially which could lead to exploitation of customers
The CMA (competiton policy) blocked the takeover

Question 7

What’s the Current UK interest rate?

Answer 7

5.25%

Question 8

What’s the current UK Inflation rate?

Answer 8

3.20%

Question 9

Whats glocalisation

Answer 9

product or service sold globally but made suited to local customers and market

Question 10

2 examples of glocalisation

Answer 10

BMW makes cars on the right-hand side for people in the UK but on the left-hand side for Germany
Another example is McDonald’s since 2012 the Mcveggie for people in India as they do not eat beef

Question 11

Emphasis on healthy eating effect on McDonalds

Answer 11

Mcdonald’s had to issue healthier alternatives to their food, healthier kids menu for example

Question 12

Example of Wellness

Answer 12

Fitbit will continue to grow

Question 13

Lloyds Philanthropic responsibilities

Answer 13

Lloyds Banking Group has donated £243 million to the Foundations since 2014 to help tackle social disadvantage in the communities that need it most

Question 14

Google Philanthropic responsibilities

Answer 14

£80 million to the global COVID-19 response.

Question 15

Who says that Porters 5 forcers are only good for big business’

Answer 15

Brandenburger (2002)

Question 16

Who says the 5 forces oversimplifies strategy

Answer 16

Pascale (2006)

Question 17

What did Ferrari do in 2013 to keep rivalry against existing competitors and barriers to entry low?

Answer 17

Reduce the number of cars it produced to keep its brand exclusive and high in value proposition.

Question 18

Why did Google buy Motorola

Answer 18

Merely for their technological advancements, that were patented which allowed them to improve their technology and create a lower barrier to entry (Porters 5 Forces)