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Ans: Careem which is a leading app based car service with it's operations in more 100 cities across 14
countries changed the people travel the lot has to do the app which provides hassle-free services. If
you look at the logo of Careem, it is so appealing that it creates gratification and instant pleasure
among it's customer base.

Porter's Five Forces Framework is a method for analyzing competition of a business within a
particular industry. It uses sum of five forces that determine the competitive intensity and, therefore,
the attractiveness of an industry in terms of its profitability.

Let us operate Porter's five forces competitive analysis to Careem as a brand and as an organisation.

Threat of New Entrants : The economies of scale is fairly difficult to achieve in the industry in
which Careem Raising a Unicorn operates. This makes it easier for those producing large
capacitates to have a cost advantage. It also makes production costlier for new entrants. This
makes the threats of new entrants a weaker force. Career is vulnerable to new entrant threat
because model of Careem howsoever appealing is not enjoying the absolute power differenation
as we already have players offering services in the same landscape which includes Ola, Bykea,
Uber( though Careem is its subsidiary ). Capital requirements coupled with great Research and
Development expenditure give career ccompetitive advantage.

Bargaining Power of Suppliers: The products that the suppliers of Careem provide are
characterized by a great deal of standardistion, less differentiation which makes switching cost
very low for Careem. The Bargaining power of suppliers is therefore favouring Careem.

Bargaining Power of Buyers: The Industry which Careem operates has less players operating
offering the same service which makes the bargaining power of Buyers less powerful. The
product differentiation of Careem, low income of is all the favour of Careem

Threat of Substitute Products or Services: There are few substitutes within the industry which
makes the threat a little less threatening. Also, the players who operating within the industry
operate at a high cost which then passed on to customers which means the customers already
associated with careem are less likely to make a switch.
 Rivalry Among Existing Firms: Rivalry which is always cutthroat in service industry is less
present in the case of careem which is operating under patronage of heavyweight Uber which
acquired Careem. The products produced within the industry in which Careem Raising a Unicorn
operates are highly differentiated makes it difficult for existing firms to win the customers of
each other because of each of their products are highly differentiated.

Strategies which can be used by Careem can be

1. Careem to focus on differentiating its products so that the actions of competitors will have less
effect on its customers that seek its unique products.

2. As the industry is growing, Careem can focus on new customers rather than winning the ones from
existing companies.

3. Careem can conduct market research to understand the supply-demand situation within the
industry and prevent overproduction.

SWOT Analysis of Careem

One of most widely used strategic planning tools is a SWOT (Strengths, Weaknesses, Opportunities,
and Threats) analysis. Most companies use it in one form or another. SWOT analysis is often used as
basic guide for strategic planning. It should be noted that Strengths and Weaknesses are always
internal to an organization while as Weaknesses and Opportunities are external. SWOT Analysis was
given by Albert Humphrey.

Let us do a SWOT analysis of Careem

1. Strengths: The strengths of Careem are many and as I doing this analysis, Careem is doing it's
infinity to capitalise on it's strength areas while mitigating weaknesses.

Massive local Image and a well-recognized brand.

Much more engaging via local sponsorships.
Better reputation for drivers and consumers who use it.
Brilliant App which is easy to use.

2. Weaknesses: Following are the weaknesses faced Careem :

Supply and demand problems mainly during peak seasons like Eid.
High Cost of operation while drivers not earning that high.
Very unpredictable business Model.

3. Opportunities : These are external to the business and always remain potential to the business:

Carpooling Services which are nowadays encouraged by people.

Signing with other companies and ferrying their employees to and fro like Shuttl.
Partnership with Government.
Capitalising on Ubers' business which is now a parent company of.

4. Threats: These are also external to business and must be tacked at every front. Careem in it's
pursuit of changing the way people ride to keep a check on threats which are posed by external
environment.

Threat of new entrants like Ola, Bykea, Shuttl.

Legal regulations which favour local Taxi unions.
Automation like self-driving cars will make current model irrelevant.

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