Uber Uber’s strategic strategy involves extensive analysis of

 

Uber
is a cab like company 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).

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 these 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.

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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.

Social forces like consumers wanting fast 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.