Introduction
Unit 41 Contemporary Issues in Marketing Management Assignment Help Online
The fundamentals of innovation and how it is used in the actual world are the current challenges in marketing management. Here, an example of UBER (a major taxi firm) has been used as a point of comparison to examine more closely at the innovations that have been put into practise. The definition of innovation is “a novel idea, device, or method.” However, it is frequently also seen as the implementation of superior solutions that address brand-new demands, unstated wants, or current market demands. The goal of contemporary issues in marketing management is to examine and compare the innovation UBER introduced into the industry along with a thorough comparison of UBER to both itself and other businesses.
Unit 41 Contemporary Issues in Marketing Management Assignment Help Online
Analysis of innovation strategy:
As was previously mentioned, innovation is the process of turning an idea or invention into a product or service that adds value or that consumers are willing to pay for. (2006) Davisa, Epstein, and Shelton Innovation comes in many forms:
Product \sDisruptive \sEnhancement
Platform Process Marketing Management Integration Line Extension Value Engineering Organic Experiential Value Migration (Scott et al. 2008).
UBER has distinguished itself as a disruptive innovation among these and will be discussed later in this assignment. It is a well-known fact that travel has always played a significant role in our daily lives and that it should now be considered an essential activity. Globally, there is an increase in the number of individuals who need to commute and travel for work, pleasure, or other reasons, yet it is not realistic for everyone to always have a personal vehicle available. Thus, taxis and cabs are rented for a specific amount of time or distance depending on the need.
This method is more complicated than it first appears because calling a taxi or cab used to be a bothersome process and their dependability was never certain. People also had difficulties with the cost of travelling, thus there was a lot of negotiating that preyed on newcomers to a community who are not familiar with distances.
The introduction of UBER significantly altered how people traditionally hired taxis. In the current situation, UBER’s invention has fundamentally altered the taxi service sector.
By employing a smartphone app that can find a cab for you and send it to your present location via a GPS-based coordination system, UBER has made travelling so convenient and renting a cab a smooth affair. One must have a smartphone with the UBER application installed on it as well as a registered Uber account in order to book a cab through Uber. Once this is done, reservations can be made from anywhere at any time. The customer only needs to request a cab; after an automatic search for the pickup location, the customer can select a cab and get an estimated arrival time. The cab quickly arrives at the pickup point, drops the customer off at their destination, and then charges them appropriately. The two main benefits of this updated cab system are as follows: First off, this approach saves time because there is hardly any waiting time for cabs and customers don’t have to find the cabs themselves because GPS does it for them. Second, because the fare is established, there is no need for haggling. Because of this, using the full human resource management solution has been a really pleasant and easy experience for the consumers. UBER is a disruptive innovation that has displaced a well-established business system in the cab service industry by creating a new market and value network that disrupts an existing market and value network. UBER’s entry into the market has simply put an end to the traditional taxi hire industry, hence it can be said that it is a disruptive innovation based on the information supplied.
In recent years, UBER has had great success capturing the market’s attention. Although prior to the existence of UBER, people would travel by hired cab, but this involved some hiccups, ambiguity, and a lack of comfort and convenience for the public.
Unit 41 Contemporary Issues in Marketing Management Assignment Help Online
UBER decided to fill this gap in service quality and set off on its adventure with the comfort and convenience of its passengers as its primary goal. UBER has become the industry’s brand ambassador in this age of technical innovation for the private automobile rental sector. Since most people in urban areas have access to the internet and most work is now done online, UBER has become quite well-known in the marketplace. People favour UBER over the traditional cab hiring method since it has eliminated all of its drawbacks (Barro, 2014) Additionally, taxi fares are no longer an issue, which makes it a better option for transportation.
Drivers and barriers in innovation:
UBER is well known in the industry and has established itself as a profitable business over time. However, there have been many ups and downs along the way for UBER. Although initially difficult, things gradually became settled in the area after going through all these good and terrible phases. There were numerous issues with the traditional cab hiring system. People encountered challenges with safety, lack of verified services, etc. UBER was created as a better alternative as a result. The following are the factors that made it possible for UBER services to innovate in this sector:
Conclusion
UBER is a disruptive invention, according to this assignment’s conclusion. It has been able to preserve its market worth in spite of encountering several obstacles along the way. It initially ran into a variety of issues, including lack of government support, problems with surge pricing, opposition from private taxi operators to UBER, etc. In the end, everything went as planned because UBER had a lot of benefits, like shorter cab wait times, safety guarantees, complete direction guidance for travellers unfamiliar with the area, affordable prices, and customer care. The only requirements are a smartphone and internet connectivity. It has turned out to be a really helpful service for people throughout time because it has made travelling a very calm and tranquil activity.
References
Gomez-Mejia, L., Balkin, D. Cardy, R. (2008). Management: People, Performance, Change, 3rd edition. New York, New York USA: McGraw-Hill. p. 20-56
Scott, A. et al. (2008). Innovator’s Guide to Growth. “Putting Disruptive Innovation to Work”. Harvard Business School Press. P.12-198
Davila, T., Epstein, M. J., and Shelton, R. (2006). “Making Innovation Work: How to Manage It, Measure It, and Profit from It.” Upper Saddle River: Wharton School Publishing.
Bilton, N. (2012). “Disruptions: Taxi Supply and Demand, Priced by the Mile”. The New York Times (online) available on http://bits.blogs.nytimes.com/2012/01/08/disruptions-taxi-supply-and-demand-priced-by-the-mile/?_r=0 last accessed on 24/10/2016
Uber (2016) Our trip history (online) available on https://www.uber.com/en-IN/our-story/ last accessed on 24/10/2016
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2), 172-194.
Barro, J. (2014). Under pressure from Uber, taxi medallion prices are plummeting. The New York Times.
Rempel, J. (2014). A Review of Uber, the Growing Alternative to Traditional Taxi Service.
David, F., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
Keupp, M. M., Palmié, M., & Gassmann, O. (2012). The strategic management of innovation: A systematic review and paths for future research project. International Journal of Management Reviews, 14(4), 367-390.
