Social their app. It also involves the collection of

Social forces like consumers
wanting fast, reliable and cheap ride-sharing can drive the company’s strategic
strategy as their company’s success counts on
ridership and reputation. Uber’s “digital strategy is about leveraging your
knowledge of each customer’s preferences and using digital tools to customize
his experience” (GOLDENBERG, 2016, pg.6). 
Their digital strategy involves the Uber app that allows customers to
hail a ride just by using their app.  It
also involves the collection of customer information and using it to improve
service as they can use data like age or sex of riders for marketing and common
pick-up and drop-off spots to better saturate an area with their service (GOLDENBERG,
2016).  Uber’s strategic strategy is multi-layered
where one force of the macroenvironment could impact all the rest.  If the economy tanks, fuel prices rise or
government regulations passed, just one
of these elements would hurt the company financially.

Economic forces can impact
Uber’s ability to expand service or re-invest in the company for new technology,
training, and equipment. In many ways, the economy will dictate their strategic
strategy for investing and expansion. The passing of the Trump tax plan will
certainly boost the company’s bottom line as they will now pay 21% for
corporate take vs. 35%. The tax cuts
would give the company extra revenue to make those investments to recruit more
drivers and technology expansion.

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Uber’s strategic strategy involves
extensive analysis of the elements in the external environment. Macroenvironment is elements that could impact
Uber’s revenue and growth (Parnell, 2016). These elements or categories involve
“political-legal, economic, social, and technological” (Parnell, 2016, p.43).  Uber’s whole existence and expansion are about recruiting more drivers’ every day at low cost and “differentiation
elements like application program interface and flexible employment” (Hales and Mclarney, 2017,
p.10).  Since Uber drivers own their cars,
the company doesn’t have to pay for the driver’s gas, insurance or car maintenance;
this is a substantial saving for the
company and a big advantage over cab companies as they have extensive overhead
to keep their cabs running.  Cab
companies get regulated by local and
state ordinances & laws, were Uber
drivers only have to follow the driving laws of the state they work.  The force of
political-legal factors such as politicians at the local, state and federal
levels who want to protect consumers safety and rights against abuse and harm
is a tightrope the company has to walk.  They
want to appease everyone, so they don’t become tightly regulated like cab
companies as this costs an extensive amount of money for licensing, training,
fines, etc.  This tightrope would
consist of a strategic strategy utilizing lobbyists to convince politicians not
to regulate.

Uber is a personal taxi service where anyone with a car, license and
insurance can apply to be an independent contractor and work on their own
time.  Consumers use the service by
downloading the Uber app and then simply requesting a driver in the area to
come pick them up (Uber.com, 2018).  Uber has one main competitor called Lyft and
general taxi services across the nation as their
competition. To remain competitive, Uber must formulate a strategy that
makes their service more appealing than
their competitors and continues lobbying
efforts to curtail government regulation of their industry.  Uber’s strategic process involves “operating
in ‘sharing economies’ of collaborative consumption (Botsman& Rogers,
2010), where people offer and share underutilized resources in creative, new
ways” (Cohen and Kietzmann, 2014, p.279).