Photo AI
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. To adapt its service to local needs, Uber could recruit staff that speak each local language fluently, helping to reach a wider market and compete effectively with Ola and other Indian businesses.
Uber has faced disputes in established markets such as the US and UK, and by customizing its service features to Indian cities, like utilizing specific pricing strategies, Uber is more likely to attract customers.
The ridesharing market around the world does not differ fundamentally between markets. Consequently, Uber can implement strategies used in markets where it has succeeded, thus aiding its growth in the Indian market.
Step 2
Decision for focusing on improving its business ethics
Answer
Uber's business ethics raise significant concerns, which may or may not be used as a basis for decision-making. Addressing these concerns can help differentiate Uber from competitors like Ola, who may have lower ethical standards.
Moreover, ensuring customer safety by taking care of driver welfare—such as ensuring drivers are well-rested and paid fairly—can help to build trust in the service provided. This might make Uber’s offering more appealing to customers concerned about safety and ethical business practices.
Being more ethical could potentially lead to customer loyalty, making the service more reliable and trustworthy in a competitive market.
Step 3
Recommendation
Answer
Ultimately, adapting its products for the Indian market is essential for Uber to thrive due to the diverse population and varied cultural requirements. However, it is equally crucial to ensure that Uber's business practices are ethical and resonate with customers who seek reliable services. By focusing on both product adaptation and ethical standards, Uber can enhance its market position and work towards becoming the market leader in India.