Uber Final

Topics: Innovation, Disruptive technology, Marketing Pages: 1 (319 words) Published: March 28, 2015
Uber is successful because of disruptive technology and their ability to use judo strategy. Disruptive technology, or disruptive innovation, is an innovation that improves a product or service by reducing the price or changing the market dramatically in a way it does not expect. Christensen (2000) stated that “disruptive technologies are typically simpler, cheaper, and more reliable and convenient than established technologies” (p. 192). The judo strategy involves using your strength to compete rather than going after your opponent, and in the case of Uber, technology was used to disrupt the taxi industry, and they used this strength as a competitive advantage. The taxi industry has been around for a long time and became comfortable, so when Uber introduced their technology, the taxi business was overconfident and viewed Uber as a specialized toy that could never threaten their decades-old franchise. In this case, the taxi companies took no action or innovation, instead ignoring the new entrants and delaying them with regulatory actions that included forcing UberCab to change its name to Uber. Uber and Lyft’s early skirmishes with regulatory bodies are good examples of this standard tactic. Similarly, Airbnb has been pursued by the hotel lobbyists in NYC. Today Uber is simpler, cheaper, and convenient. It is shaking the industry and increasing competition by providing opportunities for part-time income and efficiently utilizing resources. Usually an industry’s disruption happens faster than anticipated, with business appearing normal to the slow moving incumbents who often have not faced a real market threat for some time. However, the incumbents’ business undergoes sudden, cataclysmic collapse.  Uber and Lyft are in the midst of causing this pattern that is slowly eating away at the taxi industry. By integrating disruptive technology with the use of the judo strategy, Uber has successfully entered the market and will continue to be successful because they use...
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