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1. Use your own words, do not copy any sentences or phases from the case; do not use outside sources, only use the information from the information. 

2. Each question answers 1-2 sentences and must include some bullet points. 


a. What are the four components of strategy?
(Chapter 1)
b. Internal and external analysis: SWOT (strengths,
weaknesses, opportunities, threats)
c. Porter’s five forces industry analysis.
Attractiveness of an industry (external analysis)
d. Components of corporate level strategy
e. Understanding of cost leadership strategy
f. Understanding of differentiation strategy
g. Barriers to imitation (how to sustain competitive
h. Capabilities and resources (Internal analysis;
VRIO analysis to see if competitive advantage is
i. International expansion
j. Horizontal and vertical analysis of financial
statements and commentary on analysis


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Uber, a company providing peer-to-peer shared car rides through a smartphone app, went public at a valuation of $82 billion in
May of 2019, raising $8.1 billion at $45 per share.1 Prior to this, Uber had announced that it expected to reach a market value of
$120 billion at its initial public offering (IPO), which created a frenzy in Silicon Valley and on Wall Street, as Uber would become the
biggest American company to initially list on an American stock exchange—larger even than Facebook, which went public in 2012
at an impressive $104 billion valuation.2 However, Uber was not able to capitalize on the $120 billion promise and never reached a
market cap greater than $82 billion that year. Uber would not exceed its IPO market cap until November of 2020 during a historic
run up of the stock market.3

Dara Khosrowshahi, who had become CEO in 2017, had already faced numerous challenges as he moved the company toward its
IPO. Challenges included charges that the culture was rife with sexism, that drivers were involved in hundreds of sexual assaults
and other crimes on passengers, and that the company still had not turned a profit. Hired to “clean up the mess” left by former
CEO Travis Kalanick, Mr. Khosrowshahi had quietly listened to employees and steadied the ship.4 Yet, while negative headlines
finally began to subside, operating losses continued to expand unabated. That problem was made worse in March 2020 as the
global coronavirus pandemic cut demand for rides. Serendipitously, as demand for rides fell, a silver lining emerged in the form of
rapidly expanding demand for Uber Eats, the food delivery service owned by the company.

The stark ability of one growth business in the portfolio to make up for some of the downturn in another business proved crucial
during the pandemic. But Mr. Khosrowshahi also knew that the core business of ridesharing continued to face numerous
challenges of regulation, lawsuits, competition, and operating losses. This presented an ongoing need to either find a profitability
fix for the core business or to find new businesses that could potentially supersede or replace ridesharing. Beyond food delivery in
Uber Eats, another obvious place to look was to autonomous vehicles, which were seen to have the potential to replace drivers
with a fleet of robotaxis. Uber had been investing heavily in this area, and yet success in a future vision of autonomous vehicle-
based transportation was anything but assured. Other competitors were also investing heavily in the space and no company had
yet reached the goal of 100 percent autonomy with

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In response to the disruption of the system, many taxi drivers complained that “These new
transportation systems lack the proper insurance, driver training, and passenger liability
measures” necessary to operate legally and ethically.46 In its efforts to influence regulations, the
taxi industry spent $3,500 on state legislature lobbying for every $1 spent by Uber, Lyft, and
Sidecar (see Exhibit 6 for market share comparison in number of drivers).47

EXHIBIT 6 Estimated Market Share Comparison in Number of Drivers, US, 2020

Rank Company Total Users
1 Taxis 200,00048

2 Uber 1,000,00049

3 Lyft 2,000,00050

Uber’s Product Portfolio

Uber continued to develop and launch new products and services outside of ridesharing services.
While the original Uber app was still under development, the company created a think tank
consisting of a nuclear physicist, a computational neuroscientist, and a machinery expert who
worked on predicting demand for private hire car drivers.51 The think tank produced some of the
most notable and most innovative creations from Uber to date, beginning with uberX in 2012—the
original idea allowing local drivers to respond to notifications on the Uber app by driving
customers in their own non-luxury.52

Uber offered its first non-car transportation option in UberChopper, an expensive helicopter
service in the Hamptons of New York City, each ride raking up a tab of $3,000.53 In August 2014,
Uber launched UberPool, a carpooling service with the intent to reduce fares below that of a
typical subway ticket to further capture the price sensitive demographic.54 And later the same
year, Uber released Uber Fresh in Santa Monica, the lunch delivery service that was later
rebranded as Uber Eats.55 The meal delivery service later operated in more than 6,000 cities across
45 countries as a stand-alone app (see Exhibit 7 for a view of the expansion of Uber’s service

EXHIBIT 7 Uber Service Portfolio57, 58, 59, 60, 61



uberX The original ridesharing concept (4 passengers) 2012
uberXL Larger vehicles, hosting up to 6 passengers 2012
UberSelect Entry-level premium service (4 passengers) 2013
(Black Car)

Large, premium service vehicle 2013

UberChopper Commercial helicopter service 2013







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