Analysis Of PESTEL And Porters 5 Forces Of Grab In Singapore - 275 Words

Analysis Of PESTEL And Porter's 5 Forces Of Grab In Singapore (Essay Sample) Content: Analysis of PESTEL and porter's 5 forces of Grab in Singapore Student’s Name Institutional Affiliation Date This purpose of this paper is to discuss various impacts of PESTEL as well as Porter†²s 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†²s 5 forces The following external forces are seen when Porter†²s 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†²s 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 t...