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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 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 will reach a wide market and compete effectively with Ola and other Indian businesses.
Uber has been involved in disputes in some developed markets such as the US. Adapting their service to the specific features of Indian cities, such as using appropriate pricing strategies, is likely to attract customers.
Moreover, the ridesharing market around the world does not differ significantly between markets. Therefore, Uber can continue to use the strategies that they have used in the US and UK to grow, particularly through the app.
Step 2
Decision for focusing on improving its business ethics
Answer
Businesses ethics are at the core of moral principles and may or may not be used as a basis for decision-making. Implementing ethical practices could help Uber differentiate itself from competitors like Ola, who may have lower ethical standards.
Customers who use ridesharing will want to be confident of the safety of their service. This means that drivers must be well-rested and paid fairly, rather than simply completing as many jobs as possible.
Offering good pay to Uber’s drivers in India will also allow them to choose better quality employees, which could improve service quality. Ethical marketing may lead to lower costs than adapting its strategy to Indian norms, with lower ethical standards potentially lowering the cost of service in other markets.
Step 3
Potential judgement
Answer
The primary concern of customers in the Indian ridesharing market is likely to be a cheap and reliable ridesharing service. Thus, adapting the service is vital to meet this expectation. Uber should consider offering cash payments and drivers who speak local languages to begin improving its market position.
However, if Uber fails to maintain high ethical standards and its reliability, it risks losing customers to competitors like Ola. Therefore, focusing on ethical practices while enhancing service reliability will be crucial to the sustained growth of Uber in India.