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Evaluate the issues and recommend which Uber should choose to become market leader. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Question 2
Evaluate the issues and recommend which Uber should choose to become market leader.
Worked Solution & Example Answer:Evaluate the issues 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, being the second biggest country in the world by population, presents a unique opportunity for Uber to tailor its services to meet the diverse linguistic and cultural needs of its customer base. By recruiting drivers who are fluent in local languages, Uber can enhance its customer service and compete effectively with local businesses such as Ola. Additionally, Uber's adaptation to local conditions, such as using appropriate ride-hailing strategies for Indian cities, may help to attract more riders.
The ridesharing market in India is also competitive; therefore, adopting features similar to those by competitors could help Uber increase its market share. For instance, accepting cash payments would make the service more accessible in regions where digital payments are less reliable. Moreover, improving ethical practices by ensuring that drivers receive adequate treatment and are insured can foster consumer confidence in Uber's services.
Step 2
Decision for focusing on improving its business ethics
Answer
The ethical considerations surrounding ridesharing is crucial, as customers increasingly prefer businesses that demonstrate social responsibility and fair treatment of workers. Uber's reputation has faced scrutiny due to past ethical issues, which may deter potential customers. Enhancing driver welfare by offering fair wages and benefits is likely to increase the quality of service and attract riders.
Moreover, Uber could adopt an ethical stance that differentiates it from competitors, such as Ola, which may not prioritize these aspects. Ethical leadership could also lead to improved public perception, resulting in a stronger customer base.
The focus on business ethics alongside competitive pricing strategies will be vital in addressing the concerns of consumers in India, potentially leading to increased brand loyalty and customer retention.
Step 3
Potential judgement
Answer
Uber's primary challenge in the Indian ridesharing market lies in providing affordable and reliable services that adapt to local infrastructure and market conditions. To overcome this, adopting flexible payment methods, environmental sustainability practices, and a commitment to ethical standards may position Uber as a leader in the market. Ultimately, combining market-specific adaptations with a strong emphasis on ethics could facilitate Uber's growth and appeal in India's diverse landscape.