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Evaluate the two options and recommend which one 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 one Uber should choose to become market leader.
Worked Solution & Example Answer:Evaluate the two options and recommend which one 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, being the second biggest country in the world by population, hosts a diverse range of language groups, customs, and tastes. To effectively compete with Ola, Uber should adapt its services to local needs by recruiting staff who can communicate in the local languages fluently. This approach would enhance user satisfaction and expand its market reach.
Additionally, Uber can leverage its knowledge from other countries by incorporating features that are successful in the US and UK markets, modified for the context of Indian cities. Utilizing local strategies to enhance customer interaction and improve app usability is crucial for gaining a competitive edge in India.
Moreover, the ridesharing market globally may not differ much from that in India, allowing Uber to implement proven strategies effectively.
Step 2
Decision for focusing on improving its business ethics
Answer
Uber faces significant ethical scrutiny, particularly regarding driver treatment and customer trust. By prioritizing ethical practices, such as ensuring fair compensation for drivers and providing them with necessary work protections, Uber could distinguish itself from Ola, which may have lower ethical standards.
Enhancing the image of Uber as a socially responsible company might attract more customers who are concerned about ethics. Furthermore, offering fair wages may result in a better caliber of driver, leading to improved service quality. Striving for high ethical standards could not only attract customers but retain them as well, thereby enhancing Uber's market position.
Step 3
Recommendation
Answer
After comparing the two options, I recommend that Uber should focus on improving its business ethics. While adapting product offerings is important and can lead to market penetration, focusing on ethical standards directly addresses significant consumer concerns and enhances brand reputation. As customer trust is crucial in the ridesharing industry, prioritizing ethical practices could lead to customer loyalty and a stronger market presence in the long term.