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BUS 5114 Case 1 Assignment

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A guide to case study on sustainable competitive advantage with a focus on Lyft. The role of information technology on sustainable competitive advantage in Lyft.

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  • February 19, 2024
  • 4
  • 2022/2023
  • Case
  • Dr. charlotte barett
  • A+
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Lyft is one of the most known rideshare companies along with Uber in the United States. It
focuses on providing user-friendly, convenient, and cost-effective transportation alternatives for
around a 23 million people across the U.S (Iqbal, 2020). The company was first established in
2012 and expanded its business and currently, it is valued at $24 billion (Madrigal, 2019).

Discuss how the company you have chosen has been able to create a sustainable competitive
advantage

Lyft's sustainable competitive advantage is born from its core mission and strategy. Lyft's
strategic mission is to "Improve People's Lives, as the World's Best Transportation" (Eadicicco,
2019). The company focuses on three key points to deliver its promises. One, it focuses on
bringing communities together and building social well-being.

Next, it focuses on providing affordable transportation making it economically competitive.
Lastly, the company invests heavily to redesign its operation and minimize carbon emissions.
This contributes to environmental well-being. Furthermore, this attracts many customers who are
more conscious about the environment while being a mechanism for customer retention.

Based on your own research, identify and discuss the role that technology and information
systems play in creating and maintaining the company’s competitive advantage.

Lyft integrates the latest technology and information system to operate its business and retain its
competitiveness. Lyft uses Amazon Web Services (AWS) Cloud to maintain its database
(NSTEC, 2020). It allows reliable security with unlimited server capacity for Lyft. This will help
the business to focus on expanding its business while offering quality services.

Additionally, Lyft is investing in the autonomous-vehicles market by partnering with Ford
(Neiger, 2019). Subsequently, it is developing its self-driving team to provide the best service in
the industry. It has 300 people working on this technology to push the firm to be the leader in the
future of ridesharing (Neiger, 2019). This would make it hard for its competitors since Lyft
would get a huge head start in the self-driving space.

Discuss where the company has succeeded where their competitors have failed… consider
what role, if any, information systems play in this success. Provide at least one example.

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