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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
Adapting Uber's services to the Indian market is critical due to its diverse population with multiple languages and cultural nuances. By hiring local drivers who speak regional languages and are familiar with local customs, Uber can enhance its appeal to a wider customer base. They should also modify their services to cater to the unique demands of Indian cities, such as optimizing their app for local usage patterns and payment preferences.
Moreover, Uber's engagement in ethical practices will help in gaining customer trust. Given the criticism Uber has faced in other markets, implementing ethical standards comparable to those of local competitors like Ola can improve its reputation. A focus on driver welfare, including fair pay and working conditions, will help attract better talent and reduce turnover.
Lastly, by offering cash payment options and ensuring proper safety measures for customers, Uber can cater to a demographic that prefers these services, particularly in less urbanized areas.
Step 2
Decision for focusing on improving its business ethics
Answer
Focusing on ethical business practices is essential in differentiating Uber from competitors in India. By prioritizing the well-being and rights of drivers, Uber can build a reputation for being a responsible company. Ethical standards could include ensuring drivers receive fair compensation and providing benefits akin to full-time employment, which may not be common in the ridesharing industry in India.
Furthermore, Uber needs to be transparent about its operations and actively engage with stakeholders to address concerns raised by both drivers and customers. Improvement in ethical practices may not only foster better relations with drivers but also improve customer satisfaction, which is vital in a market where customer loyalty is crucial.
In a competitive landscape, Uber's ability to offer not just services but a reliable and ethical operational model could be instrumental in edging out peers like Ola.
Step 3
Recommendation
Answer
Based on the analysis, Uber should prioritize both adapting its products to meet local needs and enhancing its business ethics. However, the focal point should be on improving business ethics to cultivate long-term trust and loyalty among customers and drivers. As the primary concern for many users in India is the reliability and ethical employment of drivers, adopting high ethical standards will set Uber apart from competitors.
By leaning into ethical business practices while simultaneously tailoring their services to suit local preferences, Uber can not only appeal to current users but also attract new customers, paving the way to market leadership.