Analysis of PESTEL and porter’s 5 forces of Grab in Singapore

This purpose of this paper is to discuss various impacts of PESTEL as well as Porter′s 5 forces. These impacts are discussed in detail. They include the following:

Impacts of PESTEL

With regard to the taxi industry, PESTEL is so controversial because it is associated with global banning and minimum wage complications. Its analysis is;

Political factors

There was lack of clear regulations at its initial development. It is also difficult to establish where the insurance lies exactly; is the accident the company’s fault or the driver’s?

Economic impacts

Sharing economy is one of the factors in which PESTEL operates. The economy is on the basis of intellectual and physical resources sharing (Frue, 2017). Drivers are hired by Uber to respond to clients and drive them to their destinations. Since the launch of Uber, its growth rate has been so exponential. However, its services have been banned by most counties with the view that its completion was unfair to other taxi firms. The rate at which PESTEL grows depicts that there is also economic growth.

Social factors

One of the impacts of this service is that it is easily available. Clients enjoy its platform which is easy to access and its reliability. The application can be installed and used in a Smartphone thus easier pick-up and appointment time (Hutchins, 2016). The prices are fair thereby allowing it to grow fast. Most people enjoy its convenience and simplicity. The consumers have spread their experience with PESTEL on social media around the world attracting new clients.

Technological factors

Uber spreads on social media faster. Consumers make appointments on the app ant estimate travel cost is seen. The clients are then driven to their destinations by the drivers on duty. The application cannot work if it goes down. The company has a responsibility of ensuring that reliable and faster network is availed, preferably 4G.

Bandings: Legal Factors

Uber is faced with much criticism, attempts of being banned bans in global locations. The company ought to ensure those usage laws, copyright laws, labor and employee safety laws are followed.

Impacts of Porter′s 5 forces

The following external forces are seen when Porter′s 5 forces are applied:

The Rivalry among other industries

There are various locations at which Uber operates thus the presence of many competitors (D., 1970). The intense competition is evident in most of the markets and Uber responds to this through market share and provision of quality services.

New entrance threat

Most people love convenience. This has called for an urge to come up with new ways that are attractive and convenient to the travel industry. Most people want to venture into such a business since it is cheap (Porter′s 5 forces, 2017). The company works on the basis of registering the drivers who which to work for them with their own vehicles.

The Substitute’s threat

Substitutes of Urber not only give competition but also make efforts to provide fair prices and convenience to customers.

The Bargaining power of suppliers

The company is dependent on the suppliers since it does not own any vehicles registered under its name. Therefore, the drivers get the upper hand on upper.

The Bargaining power of buyers

The consumers are not permanent unless they are forced to do so by the quality services they get or convinced by any other reasons (M., 2017). This means that the customers have an upper hand since they can shift from one service to the next.

References

D., K. (1970, January 01). Zacks. Retrieved from Who are Uber’s Biggest competitors?: https://www.zacks.com/stock/news/279108/who-are-ubers-biggest-competitors

Frue, K. (2017, June 01). PESTEL analysis. Retrieved from PESTLE Analysis of Uber: http://pestleanalysis.com/pestle-analysis-uber/

Hutchins, M. (2016). Professional Theories. Retrieved from Markrting Theories: PESTEL Analysis: https://www.professionalacademy.com/blogs-and-advice/marketing-theories—pestel-analysis

M., J. (2017, July 15). How Uber Works. Retrieved from Insights into Business and Revenue Model: https://jungleworks.com/uber-business-model-revenue-insights/

Porter′s 5 forces. (2017, July 15). Retrieved from Porter′s 5 forces Model of Uber: https://www.porteranalysis.com/porters-five-forces-model-of-uber/