Free «Positioning, Competition, Branding» Essay Sample

The market leader in the transportation network company is UBER. The company headquarter is situated in San Francisco, California and it focuses on satisfying its customers through the ride sharing services. As a market leader, the company has both strengths and weaknesses that directly influence its operation and the level of profitability. Drywer (2015) affirms that the most interesting fact about UBER is that since its launch in 2009, it has remained strong and coped with challenges in the market hence emerging as a top brand. UBER has become a high-tech transportation network company that serves the needs of its customers in the most satisfying manner possible.

Strengths

One of the key strengths is that UBER is a strong global brand. The company does not only operate in the United States, but also other countries around the world hence making it a well-recognized brand across the globe. It operates in over 45 countries around the globe, and this is reflective of its strength as a brand in the transport network market (Drywer, 2015).

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Second, the company has a cashless payment system that is trustworthy and easy to use. Customers do not need to carry cash when they need to use UBER because of the cashless platform it offers them. It is not only convenient and beneficial to customers but also to the company’s drivers who always have an opportunity to receive higher returns (Hausman, 2013). Consequently, the cashless system is also motivational to its own drivers.

Third, the company has an unlimited fleet of vehicles that provides customers with an opportunity to use its services anywhere. As opposed to the traditional taxis, UBER has many vehicles spread across the cities to ensure that customers are able to access them anytime they need with the required level of convenience. Customers do not have to walk for long distances to find the vehicles, as they can always make a call and order the services (Goh, 2014). Customers can track the distance between the driver and themselves using the phone application. As a result, it gives the company an advantageous position in the market.

Moreover, UBER offers lower prices compared to traditional companies in the taxi industry. That is why UBER is considered to be modern and unique in the sense that it charges reasonably lower prices to its customers hence boosting the level of affordability (Goh, 2014). In addition, it makes the company more competitive and preferred by consumers, which has a positive impact on company’s profitability.

 
 
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Weaknesses

First, the company has faced litigations regarding the use of unlicensed drivers. There have been cases against UBER for the use of unlicensed and unprofessional drivers who may put its customers at risk. Hausman (2013) explains that it has also raised concerns among customers who feel unsafe by using vehicles whose drivers cannot be considered reliable.

Second, there have been difference between the exact prices that customers pay for the service compared to the prices that the company promotes through its adverts. In most instances, there have been inconsistences between UBER’s promotion of extremely low prices and charging high prices due to the time zone and location of the customer (Hill, 2015). Moreover, the destination plays an instrumental role in the continued alteration of the prices compared to what is advertised. Such policy leads to the loss of trust among its customers.

Conclusion

In conclusion, amidst the strengths that UBER enjoys in the transport network industry, the company has to focus on addressing the weaknesses it faces. With the high level of technology, convenience, and lower prices it offers, the company must also ensure that its drivers are professional and licensed. It would ensure company’s high position in the industry.

 
   

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