Uber, Egyptian case study. point of view

Discuss the external factors that might have an impact on ‘Uber operations in Egypt in the coming few years.?

????In my point of view when talking about external factors which may face Uber operations company in Egypt in the coming few years based on the scene right now, it will be all factors except the management issues from the inside of the big company, which means it will be a mix from the SWOT analysis, because I will mention the SWOT as a whole external factor and it is the truth as we know strength and weakness comes from the inside of the company which is internal factors but we now talk about the EGYPTIAN economy, which is a mixed one, it’s not strong enough to face global fluctuations, and so it will be affected in the coming days and effect on all companies within it.

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Uber, the transportation service company, may get out of the market soon, especially during the recession days which we and the globe waiting for, Uber at the beginning came to the Egyptian market with the hope to control the market, but there was a competitor which is Careem, then Uber dealt with him, but now as we know about the Egyptian market culture, which imitating any successful experiment, the competition now extends to every region, every street, you will find a small company offers transportation via cars, motorcycles, trucks, and big cars, for people and products in one city and another, Egyptian create new small brands to compete in delivery, compete in transportation, compete in delivering products.

The competition in the Egyptian market is so hard, every day we witness the birth of new companies and new applications which do the same processes as Uber at low prices like InDirive. So, I think Uber will end its work in Egypt in the short run, Egyptian culture of canceling orders and do under table deals with drivers become so popular, the Egyptian culture differ and so Uber needs to develop its policies again in Egypt to keep on track, the Uber management in Egypt should specify special plan not like any other countries to compete and continue otherwise, they will face losses which will lead to the stoppage the Egyptian market.

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Let’s talk about:

Strength: it is an internal factor but in Uber's case may be an external one, which means the strength of the competition and the many trials of many entrepreneurs who create everyday company that competes in the same field, so the strength of competitors who know the Egyptians manner better than Uber, regarding prices issue.

Weakness:?it is an internal factor but in Uber's case may be an external one, a weakness that exists on the driver's side, they are not professional, all of them work other work, and some of them did bad impression about the company, so weakness comes from an external factor, not from the system or the management, some may look at drivers as internal one but I think it is a hybrid of internal and external factors which affect the entire process.

Opportunities: the local competitor has an advantage, he knew the Egyptian needs, reasonable prices, limited area of the work, small scale of work, professional drivers, and many items which give him privileges.

Threats: Uber faces government regulations, new traffic laws, local competition, rumors, and marketing wars. So, in general step by step, Uber lose control of the Egyptian market, and I think in a very short period of time, it will be out of the market.??

The theoretical view

Formulating a strategy often begins with an assessment of the internal and external factors that will affect the organization’s competitive situation. Situation analysis typically includes a search for SWOT—strengths, weaknesses, opportunities, and threats—that affect organizational performance. Situation analysis is important to all companies but is crucial to those considering globalization because of the diverse environments in which they will operate. External information about opportunities and threats may be obtained from a variety of sources, including customers, government reports, professional journals, suppliers, bankers, friends in other organizations, consultants, or association meetings. Many firms hire special scanning organizations to provide them with newspaper clippings, Internet research, and analyses of relevant domestic and global trends. In addition, many companies are hiring competitive intelligence professionals to scope out competitors.

Of course, there are many external factors other than the SWOT includes and all of them will affect Uber's operation in Egypt:

1. Technological factors: other companies update systems and creates new ones

2. Economic factors: Egyptians look for low prices and reasonable services

3. Political and legal factors: the government rules are fluctuated and not secure

4. Demographic factors: Uber can’t cover all regions and can’t serve all Egyptians

5. Social factors: a great slice of Egyptian know nothing about Uber, a lack of marketing.

6. Competitive factors: new companies open every day in the same field.

7. Global factors: pandemics and wars create a shortage of money, and people can’t afford

8. Ethical factors: loyalty to the local service provider, helping youth to work

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I think the coming days will be hard for Uber to continue with a successful financial position, the Egyptian economy's nature is hard, they need a new version of thinking to continue, and they need more research to get back it’s market share or loses it forever.