Uber's differentiation

The classic busy city street with a person in need of a ride waving down a taxi was the way people have being taken cab rides for generations. Uber has shaken up this old business model and revolu
tioned the way the ride-sharing industry must compete for business. Through the app Uber, a customer can use their smart phones to request a ride to a location they want. As a customer myself, I’ve seen the way Uber has changed the cab industry as local taxi services decrease in popularity in favor of the convenience Uber brings. 

We see lots of benefits that come with uber such as convenience, lower prices compared to traditional taxis and long waiting times. There are even options to enjoy luxury rides or share rides with other, the spectrum of customers Uber targets has widen over the years. Uber takes advantages of the demand for convenient transportation and have developed both a cost leadership and a differentiation strategy. By lowering their service fares, other local businesses cannot find it difficult to maintain their position in the industry. As Uber’s website says, the three needs that are differentiators are: request from anywhere, ride with style and convenience, and hassle-free payment.

Uber and Lyft are the two biggest competitors in the industry but Uber has innovated its service by expanding its spectrum of driving services. For example, the Uber penetrated the food service industry with the release of their UberEats application. The new service line to their company generated them $4.8 billion in 2020, which was a 152% increase in revenue generated from the prior year. (Businessofapps.com) The UberEats service line has also changed over time as its original purpose was to deliver food from restaurants right to the customers door. 

Other businesses and services have jumped at the opportunity to promote and sell their products through UberEats. The company came up with a new slogan, “Now Delivery Eats, And Don’t Eats.” (Ubereats.com) in order to encourage businesses to use their delivering service even if they aren’t a food oriented business. The commercials and advertisements that came with the new slogan also targeted customers who want to purchase groceries, alcohol, convenience, flowers and retail items. The innovation Uber has with its services in 70 different countries allows for them to continue their competitive edge over its rivals. It is estimated that uber earns 2$ more for every ride when compared to it’s closet competitors, Lyft. Overall Uber has developed a sustainable business strategy edge that disrupts the old cab industry business model. Uber will continue to innovate ideas that drive up with annual revenue and implementing them into different countries to continue their global expansion.

Citations

Contributor, PESTLEanalysis. “SWOT Analysis for Uber.” PESTLE Analysis, 21 June 2016, https://pestleanalysis.com/swot-analysis-for-uber/. 

Davis, Levi. “Lyft vs. Uber: What's the Difference?” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/articles/personal-finance/010715/key-differences-between-uber-and-lyft.asp. 

Explore the Uber Platform | Uber United States. https://www.uber.com/. 

Gil, Paul. “How Uber Works: A Helpful Primer on the Ride-Hailing Service.” Lifewire, Lifewire, 11 July 2021, https://www.lifewire.com/how-does-uber-work-3862752. 

Jalloh, Mohamed S. “Uber: Advantages and Disadvantages.” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/articles/investing/110614/taxi-industry-pros-cons-uber-and-other-ehail-apps.asp. 

Not so boring Board Games?

 I always find myself in the same situations every time I want to play a board games: Having no one else to play with, getting bored after playing for too long or consider playing a mobile. With these problems in the mind of consumers, it’s become a reason to question buying new board games are worth it. Clearly board games companies have caught on to these problems through an analysis of consumer behavior, but how have they changed their products to deal with these issues?

The board game industry is a highly competitive market where new entrants find it hard to break into it as brand recognition has proven to be a barrier to entry. With technology rapidly growing every year, electronic games are becoming more available at an arms length, leaving companies with a new threat of competing for the attention of consumers. Rather than compete against the technology market by continuing to produce physical copies of their games, companies innovated their table top games to be able to played across multiple device platforms, creating a new marketing segmentation 

The new market segmentation focuses on people who like to use mobile technology for entertainment purposes. Hasbro’s Monopoly and Milton Brandy’s Games’ Game of Life are examples of well known board games that have been transferred onto digital gaming platforms and are relatively cheaper to purchase compared to their physical counterpart. A reduction in the price of the digital game doesn’t reflect a negative affect on sales, rather digital versions of board games are able to bring in new customers to purchase the physical copies, as a result the industry is expected to grow by 34.3% globally by 2026. More opportunities created is monetization through in app offers and offering different versions of the game that users can purchase. The table top games are known to partner with other companies and create themed boards that appeal to this generation pop culture. This is no exception to the digital version as they are offered to opportunity to customize their board to their will.

Overall, by offering a new way to experience the way board games are played companies have found a way to deal with the issues previously listed. They are able to provide tutorials for new players, and allow users to play with other users online, and having the option to save games and come back to finish them later. The ability to monetize the games through in app purchases where the user is able to customize their game has opened opportunities for further revenue. Companies have adapted to the technological advancement and have innovated their products in order to adapt and compete to the new market and most of all enjoyable for old and new broad game players.

Citations

“Board Games - Worldwide: Statista Market Forecast.” Statista, https://www.statista.com/outlook/dmo/app/games/board-games/worldwide#revenue. 

Nick. “How Technology Is Upgrading the Board Game Industry: Global Board Games Market Report.” Technavio, Technavio, 4 Feb. 2020, https://blog.technavio.org/blog/technology-board-game-industry. 

Team, MBA Skool. “Hasbro SWOT Analysis, Competitors & USP.” MBA Skool, MBA Skool, 12 Apr. 2020, https://www.mbaskool.com/brandguide/media-and-entertainment/6016-hasbro.html. 

Technavio. “Board Games Market Size to Grow by USD 2.56 Billion: Market Research Insights Highlight Rapid Improvements in Content and Gameplay as Key Driver: Technavio.” Board Games Market Size to Grow by USD 2.56 Billion | Market Research Insights Highlight Rapid Improvements in Content and Gameplay as Key Driver | Technavio, 25 Jan. 2022, https://www.prnewswire.com/news-releases/board-games-market-size-to-grow-by-usd-2-56-billion--market-research-insights-highlight-rapid-improvements-in-content-and-gameplay-as-key-driver--technavio-301466663.html.