Korean Uber Porters Five Forces Analysis

To the drivers, it offers a referral service to a nearby customer. This section examines the five competitive forces that affect the Uber business in Korea. (I) The Bargaining Power of Buyers/ Customers The strength of customers has a direct effect on the company’s performance. It determines how high or low the price of the services can go. Uber is operating in an environment with many players offering a similar service. (II) Suppliers bargaining power It is important to note that Uber does not own cars that operate under its name. The company depends on the drivers who own cars. The number of drivers who meet the company’s requirements is low (Chang-hyun n. p). There is a policy guideline that describes the terms of employment for individuals who qualify to use its web application.

Its competitors are accessing the same application at a lower price because of it readily available today (Ovidijus n. p). Therefore, they can enter the market quickly. Additionally, the Uber Company offer their customers with the software free of charge and it can be swapped to other users at zero cost. As a result, new entrants can have the application without paying a dime and use it to operate in the same market. It is a niche for other taxi companies to enter the market and make something out of it. The competition has led to many taxis offering similar services to flood the market (Alexander et al. , n. p). As a result, Uber has been forced to lower its prices on a regular basis which has affected the total annual returns.