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    Case Study 10 & 11 - Pascua Nesvelle Mae

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    Nickler John Soria

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    Case Study 10 & 11 - Pascua Nesvelle Mae

    Uploaded by

    Nickler John Soria
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    Case Study 10 & 11_pascua Nesvelle Mae

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    40 views4 pages

    Case Study 10 & 11 - Pascua Nesvelle Mae

    Uploaded by

    Nickler John Soria

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    University of Southeastern Philippines

    BA 2004 – MANAGERIAL ECONOMICS

    Case 10. Business Model Innovation Matters More Than Ever


    Case 11. High Prices and Long Wait Times: What’s Ahead for Uber and Lyft?

    Submitted by:
    Nesvelle Mae A. Pascua, REE

    April 23, 2022


    Case 10. Business Model Innovation Matters More Than Ever

    I. Introduction
    Business model innovation has become a new form of innovation. It’s best conceived of as
    how to do business and how to do business in new ways. It’s centered on the firm’s activity system,
    and it represents a new form of value creation.

    II. Problem Statement


    There are number of moments that have redefined business—the World War II, oil crisis,
    development of internet, and coronavirus pandemic to name a few. Each has upended businesses
    in a very short period. Each has prompted companies to reimagine and redesign their business
    models.

    III. Analysis of the case


    To further the discussion, SWOT Analysis for the business model innovation will be used.
    Strengths Weaknesses
    • Has capabilities and resources that it can • Low return on investment since
    leverage to build a sustainable competitive it operates in the most reliable
    advantage in the marketplace measure of profitability, that is
    • Strong Brand Equity and Brand Awareness Return on Invested Capital rather
    • Provides resources to not only thwart than one favored by financial
    competitive pressures but also to invest into analysts such as – Return on
    research and development Equity & Return on Assets
    • Can offer a wide array of patents and • Not efficiently managing the
    copyrights through innovation and buying inventory and cash cycle
    those rights from the creators
    Opportunities Threats
    • Growing Market Size and Evolving • Culture of sticky prices in the
    Preferences of Consumers industry – inability on part of the
    • E-Commerce and social media-oriented organization to increase prices
    Business Models that its premium prices deserve
    • reduce the number of offerings in the • Increasing costs component for
    market and focus the marketing efforts on working in developed market
    only the most successful products because of environmental
    • Opportunities in Adjacent Markets regulations

    IV. Recommendations
    To do business model innovation systematically and in a disciplined manner, one must have a
    strategy for it, especially if working for a large company. This is not just for start-up entrepreneurs,
    but it’s particularly important for established companies who need to reinvent themselves. Clearly,
    COVID-19—all other moments in the history—presents us with a rationale for why it’s important
    to think about reinventing ourselves. The challenge is great but so are the potential rewards.
    Case 11. High Prices and Long Wait Times: What’s Ahead for Uber and Lyft?

    I. Introduction
    Like many other service-based companies, Uber and Lyft have said they are struggling to
    find enough workers as the economy roars back to life. The loss of supply (drivers) and increase
    in demand (rides) has pushed fares and waiting times into the stratosphere.
    II. Problem Statement
    Soaring prices and longer wait times are frustrating customers of Uber and Lyft as the ride-
    hailing companies scramble to meet demand that is slowly returning to pre-pandemic levels.
    III. Analysis of the case
    To further the discussion, SWOT Analysis will be used.
    Strengths Weaknesses
    • They have high standard of service, • Many riders have also noticed increased
    verified drivers and cars. wait times for rides. The main reason is a
    • Operational cost is quite low. As it shortage of drivers.
    relies on customer-to-driver • The relationship between Uber/Lyft and
    interaction, a dispatcher is not the drivers is ethically questionable. It
    needed. lacks the real connection. So, it is
    • Very little competition—major expected that loyalty between Uber/Lyft
    competitors are Uber and Lyft only
    and its drivers is quite low.
    • The system is convenient for the
    drivers. They can work flexible • Also, company and its customers have no
    hours and even choose to be a part- bonding. Incentive to remain with Uber
    time employee. Drivers can also is low.
    reject unwanted clients. • Costs of operating vehicles are very high.
    But the drivers do not earn so much.
    Opportunities Threats
    • Customers are often dissatisfied • Drivers’ realization that working for a
    with traditional cab companies gig platform isn’t all that beneficial
    because of high prices and long • Drivers aren’t happy with the low-profit
    waiting time. margins. This might lead to bad
    • Rise in number of drivers will publicity. This can in turn discourage the
    reduce the Estimated Time of new drivers from joining Uber/Lyft.
    Arrival. This will make tech- • Self-driving cars, e.g., Google Cars, will
    companies more liked. The startup eliminate the need for Uber/Lyft.
    will get more revenue and drivers • Increasing competition will ultimately
    will be profited as well. decrease prices. This will discourage
    • Cheaper electric cars can be used. It drivers from joining the startup in new
    will reduce the cost and increase markets. This will result in loss of
    the driver’s profit margin. customers. Uber/Lyft’s revenues will
    • Additional services like decline.
    transporting older patients to • Some new legal regulations in countries
    hospital, transporting children to like Germany will ban them from
    school, and transporting pets to the operating.
    vet can be offered.
    IV. Recommendations
    There is no doubt that the customers love Uber and Lyft. They enjoy benefits of the service.
    Apart from the fact that it is convenient, they like how Uber/Lyft helps save time and money. But
    governments and drivers often hate Uber/Lyft. To main its customer-centric approach, the
    company charges a very low price. Therefore, the drivers do not have a high-profit margin.
    Uber/Lyft does not have to follow the regulations that traditional drivers must abide by. It
    has been fined for skirting regulations many times. Germany, France, India, Thailand, Netherlands,
    and United Kingdom are some of the countries that fined Uber. Negative press is something the
    startup must work on overcoming.
    It is not known what Uber’s or Lyft’s future is. Google Cars are a big threat to its success.
    They should maintain its strengths. It should address the weaknesses found in the SWOT. The aim
    should be to turn weaknesses into strength. The team must work and exploit the opportunities and
    avoid the weaknesses.

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