SLIDE TOPIC: AN ANALYSIS ON UBER’S PRODUCT DEVELOPMENT PROCESS AND ITS APPLICATION IN VIETNAM

1. Stage – Gate model 2. Introduction of Uber 3. Case of UberPOP in Netherlands 4. Lesson learnt from Uber Karl T. Ulrich and Steven D. Eppinger’s model: Better to applied for tangible products Focus on product design Functional oriented Philip Kotler’s model Focus on marketing perspective of the product Does not include the information on how the product would be evaluated

TOPIC: AN ANALYSIS ON UBER’S PRODUCT

DEVELOPMENT PROCESS AND ITS APPLICATION IN

VIETNAM

Candidate Nam: Tran Phuong Anh

Student ID: 1211150014

1 Stage – Gate model

2 Introduction of Uber

3 Case of UberPOP in Netherlands

4 Lesson learnt from Uber

1 Stage – Gate model

1 Stage-Gate model

• Karl T Ulrich and Steven D Eppinger’s model:

- Better to applied for tangible products

- Focus on product design

- Functional - oriented

Figure 1.1: Key activities and responsibilities of different functions within organization (Ulrich and Eppinger 2012)

1 Stage – Gate model

• Philip Kotler’s model

- Focus on marketing perspective of the product

- Does not include the information on how the product would be evaluated

Idea

Generation

Idea Screening

Concept Development and Testing

Marketing Strategy Development

Business Analysis

Product Development

Test Marketing

Commercialis

ation

Figure 1.2: New Product Development (Kotler 2006)

1 Stage – Gate model

• Robert Cooper’s Stage – Gate model:

Figure 1.3: The typical Stage - Gate model (Cooper 2001)

1 Stage – Gate model

• Robert Cooper’s Stage – Gate model:

- Most likely to make alteration in order to apply to the practice of

the company thanks to its generalization characteristic

- Emphasize the importance of the “gates”, which help to decide whether to cancel the project or not after each “stage” -> save

efforts and money

2 Introduction of Uber

Picture 1.1: How Uber work (Armin Laidre)

2 Introduction of Uber

• Uber’s most popular sevices: UberX, UberBlack

• Uber launched in Vietnam in June 2014

3 Case of UberPOP in Netherlands

3 Case of UberPOP in Netherlands

• UberPOP

- First launched in Netherlands

- Function as “carpool” service

Scoping Building Business Case

Preliminary market assessment Analysis on user’s needs and wants

Preliminary technical assessment Competitive advantage

Preliminary financial and business

assessment

Technical assessment

3 Case of UberPOP in Netherlands

Dutch market analysis:

- Total revenue generated is high

- People prefer using taxi due to the flexibility in time and route

Figure 3.1: Dutch government cost per passenger (Davids et al 2014)

3 Case of UberPOP in Netherlands

Uber’s competitive advantage:

- Low Price

- Effective transportation solution

Figure 3.2: Netherlands's average number of person in car (Davids et al 2014)

3 Case of UberPOP in Netherlands

Figure 3.3: Proportion of UberPOP's driver education (Davids et al 2014)

3 Case of UberPOP in Netherlands

• Pricing

Figure 3.4: Uber's pricing overview (Leeuwen 2014)

PRE-LAUNCH Public Affair

• Personal outreach to all key

policymakers in The

Netherlands

• Make sure they get all

information from us before

they read it in the press

• Broad press outreach on the day

of launch  

• Coordinated strategy development PR & PA

• Preparation of all necessary materials and means

LAUNCH Press Policy stakeholders Users

• Press release + infographic +

• E-mail to selected users

• Blog post launch day

• Blog post with UberPOP facts day after

• Blog post Rider  

POST LAUNCH Press Policy makers Online

• Message discipline: we stick

with our visionary message

• Push ambassadors and

professors with supportive

messages

• Work with friendly politicians and policymakers to guide their reactions

• Personal outreach to tier 1 policymakers to drive message home

• Manage online discussion

• Feed positive messages  

Figure 3.5: Uber's communication phases - stakeholders - activities

4 Lesson learnt from Uber

4 Lesson learnt from Uber

• Current practices of taxi industry in Vietnam:

- High taxi fare

- Price sensitivity is high

- Market is highly scattered

4 Lesson learnt from Uber

• Adapt to the competitive environment

• Be customer-oriented

• Include drivers in product development process

• Make use of media channel effectively

• Have good strategy to cut down the cost