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Evaluate the two options and recommend which Uber should choose to become market leader - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Question 2
Evaluate the two options and recommend which Uber should choose to become market leader. The Indian market is still potentially massive due to its population and, a... show full transcript
Worked Solution & Example Answer:Evaluate the two options and recommend which Uber should choose to become market leader - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Step 1
Decision for adapting its products to India
Answer
India is the second biggest country in the world by population and therefore home to a diverse range of language groups, customs, and tastes. By adapting its service to local needs, such as by recruiting staff that speak each local language fluently, Uber can reach a wider market and compete effectively with Ola and other Indian rideshare businesses.
Moreover, by becoming involved in local disputes and adapting their service to specific features of Indian cities, Uber can use innovative pricing strategies to attract customers. The ridesharing market operates differently around the world, so implementing successful strategies used in the US and UK might be beneficial in gaining market share. Hence, Uber should focus on customizing their services to better fit the Indian context.
Step 2
Decision for focusing on improving its business ethics
Answer
Businesses face ethical challenges that may or may not be used as a basis for decision-making. By addressing ethical concerns, Uber can differentiate itself from competitors like Ola, which may have lower ethical standards. Customers selecting rideshare services prefer to know their drivers are well-rested and fairly compensated, contributing to their safety and overall experience.
Additionally, offering competitive pay to drivers in India could help in attracting a better caliber of employees and thus improve service quality. As ethical considerations become increasingly significant for consumers, adopting higher ethical standards may help Uber build a trustworthy brand image in India. This could position Uber as a more ethical choice in comparison to its competitors.
Step 3
Recommendation
Answer
Based on the evaluation of both options, Uber should focus on adapting its products to meet India's diverse needs while simultaneously improving its business ethics. This dual approach can provide Uber with a competitive edge in the rapidly growing Indian market, as it seeks to cater to various consumer preferences while ensuring ethical operations. The long-term success of Uber hinges on its ability to balance effective adaptation with socially responsible practices.