Uber Technologies is widely known as Uber is one of a biggest multinational company. It is America ride-hailing company, which offers services like peer to peer ridesharing, food delivery, ride services, and micro-mobility system with scooters and bikes. The company is in San Francisco and operating in more than 785 metropolitan areas across the globe. Its platforms are easily accessible via mobile apps and websites. It believes in making the transportation easier for the people with its fast and affordable service (Uber, 2020).
Ansoff matrix is essential for every company as it is a marketing planning tool used for the purpose of growth. The matrix suggests the growth strategies to the companies in combination of products and markets. The company implement the relative strategy by examining the strategic condition. Here is the detailed Ansoff matrix analysis of Uber.
Market Penetration
Market penetration is the growth strategy suggested by Ansoff matrix. This strategy motivates the company to increase the sales of the current products and services in the current markets. This strategy helps the company in increasing the market share in industry. Furthermore, there are number of ways for achieving this. Companies can do aggressive marketing to penetrate deeply in the market. They can opt for competitive pricing strategies to gain more consumers. Uber has successfully adopted this strategy. It engages itself in markets through different sales promotion techniques. It provides promotion codes to the loyal customers and enable clients to markdown their next ride as Uber VIP. This provide the access to most valued drivers to clients. Moreover, Clients can access for free rides if they invite any of their friends to ride and join Uber. Uber has affordable and reasonable rates as compare to Careem which helps it in gaining more consumers (Eduzaurus, 2020).
Product Development
Product development is the strategy suggested by Ansoff matrix. This strategy encourages the company to introduce new product for the current market. This is also called product expansion strategy as this expands the product portfolio of the company. the company can either introduce completely new product or different version of existing products. Uber is providing services in number of different countries. It has adopted this strategy on different levels. The company advanced in providing international transportation technology and increasing its services continuously. Currently, it is providing number of services like Uber X, Auto, Go, Xl, Access, Rush, Premium, and Moto. It also offers Uber KIDS in which car will be provided with child safety seat. The Uber BLACK is also a service provided by the company where the black luxury car will be provided to the clients (Eduzaurus, 2020).
Market Development
Ansoff matrix also suggests the market development strategy to the companies. This strategy motivates the company to expand itself in new markets and attract new customers for the existing products. This strategy also known as market expansion, as companies have to explore new markets and start their operations. This expansion can be either geographically or demographically. Uber adopted this strategy by expanding itself geographically. The company started its operations from San Francisco initially and now serving in more than 760 area across the globe. Uber is looking forward to expanding itself in other countries also as a global transportation technology. The company did not limit the users demographically. It provides services to every gender, age groups, working groups, individuals, etc. (Dudovskiy, 2018).
Diversification
Diversification is the strategy suggested by Ansoff matrix. This strategy is the riskiest strategy as companies have to enter in the new market with a new product. Companies have to do lots of research and innovate the product according to the target market’s demand. Uber has adopted this strategy successfully. It was a riding service business, diversified itself in food industry. It also started its operations in food delivery area. Moreover, it has bought few ice-cream trucks and also sell ice-creams, which is completely different service line for the company (Consumer value creation, 2016).
References
Consumer value creation, 2016. ANSOFF (1957) MEETS CONSUMER VALUE CREATION AND UBER’S GROWTH OPPORTUNITIES. [Online], Available at: https://consumervaluecreation.com/2016/03/03/ansoff-1957-meets-consumer-value-creation-and-ubers-growth-opportunities/, [Accessed on: 17th February, 2020].
Dudovskiy, J. 2018. Uber Ansoff matrix. [Online], Available at: https://research-methodology.net/uber-ansoff-matrix-2/, [Accessed on: 17th February, 2020].
Eduzaurus, 2020. Uber Strategic Analysis. [Online], Available at: https://eduzaurus.com/free-essay-samples/uber-strategic-analysis/, [Accessed on: 17th February, 2020].
Uber, 2020. About us. [Online], Available at: https://www.uber.com/bh/en/about/, [Accessed on: 17th February, 2020].