Uber Case Study Answers To Questions 1v25k

What challenges does Uber face during Global expansion? As stated in the weaknesses and threats sections in Uber’s SWOT analysis, the company faces the following challenges:

Is Uber's vulnerable since is easy for others such as DIDI Kuaidi in china and ola in India to imitate ? Given the nature of the competitive environment, and particularly the threats and weaknesses revealed by the SWOT analysis, it is an undeniable fact Uber is vulnerable. As a mater of fact, Uber Can uber overcome the challenges from foreign governments? But in a Europe and in Asia, Uber’s arguments have been strongly contested. Unless Uber finds new “hustling” strategies to continue eluding regulations, they will not overcome these challenges. Uber will have to submit to regulation or exit markets. Should it try to collaborate with these governments ? If so, how? Uber should definitely try to collaborate with governments. This implies submitting to regulations. Regarding the regulation of sharing economies, Barro (2018) indicates that companies and lawmakers are speaking the same language, climbing down from extreme positions, and doing better at finding compromises that grasp the benefits of business innovation while limiting unintended costs imposed on communities. seems to be the case with Hong Kong, who, as Povkin its, has shown no interest in Uber’s proposal to offer solutions for Hong Kong’s plans to become a smart city. What are the pros and cons of doing so? If collaboration implies submitting to regulations, it will have a definite impact on operational costs for a Uber. Then, if the company es the cost down to them, consumers and employees (business associates or independent not contractors) will also be affected. While consumers could pay higher fares, drivers could have to pay for special licensing and permits, buy more insurance, and improve vehicle functioning and safety out of their own pockets. Uber would lose some competitive advantage and profits of course as their cost approach those of competitors. However, this would level-up the field, in of fair competition for taxi companies and other public transportation providers who are subject to laws and regulations that Uber and similar companies are not. Uber, who had been getting the lion’s share over these traditional companies, would have to decide whether to make strategic alliances to absorb the higher costs, or exit the market. As data shows, Uber’s new CEO leans toward abandoning leonine practices and establishing partnerships. What strategies should Uber Implement to expand globally?

Global strategic alliances, work partnerships For western companies expanding to China, it is often critical to align with the right local business partners. Local companies typically have a better handle on the cultural, economic, and political environment, and can help foreign firms navigate the full set of risks they face (Salomon, 2916). This premise seems to apply Uber global expansion to many countries comprising the Asia-Pacific global region where the company has failed horribly. One answer to Uber’s situation is the establishment Global Strategic Alliances. A global strategic alliance is usually established when a company wishes to edge into a related business or new geographic market, particularly one where the government prohibits imports in order to protect domestic industry (Delaney, 2019). Some revenue is better than no revenue. Firms are guided by the profit motive. Uber should implement both, strategic retreats (exiting a market where it is losing and acquiring stocks in superior rival companies) and strategic alliances (as defined above) in its efforts to continue to expand globally particularly in countries where it has not been able to face monumental competition and rigid government regulations. In fact, this is exactly what Dara Khosrowshahi, Uber’s new CEO is proposing to achieve in Hong Kong, China (Yau, 2018 ), and in Japan (Kikuchi and Kanematsu,2018) abandoning what he calls Uber’s toxic culture (Russell, n.d). In a Japan, according to Kikuchi and Kanematsu (2018), Uber’s CEO Dara Khosrowshahi was on a mission to change Uber's image -- a scandal-filled, expansion-mongering startup -- into that of a friendly company that is in Japan to help the country's taxi industry. Yao states that Khosrowshahi has vowed to change Uber’s unruly behavior and to mend relations with the local taxi industry in Hong Kong. Consistent with this global strategic alliances, Horowitz (2017) posits that Uber announced a partnership with Howa Taxi, an operator of taxi fleets across Bangkok, to add its more than 5,000 cabs to Uber’s existing fleet of vehicles so that s in the city will hail a Howa cab using the UberTaxi option on the app and pay online. Similar alliances are forming in other markets as Uber intends to survive in the AsiaPacific region.

Barro, J. (2018). Governments are getting better at regulating the 'sharing economy' https://www.businessinsider.com/governments-regulating-sharing-economy-uber-scooters-2018-8

Delaney, L. (2019). Advantages and Disadvantages of Global Strategic Alliances. Retrieved from https://www.thebalancesmb.com/global-strategic-alliances-advantages-and-disadvantages-1953552 Horwitz, J. (2017). After years of battling against city taxis, Uber is embracing them in Asia https://qz.com/1153795/uber-asia-after-years-of-battling-against-city-taxis-uber-is-embracing-them/ Kikuchi, T. & Kanematsu, Y., (2018). Uber turns over a new leaf in Asia. https://asia.nikkei.com/Business/Multinationals-in-Asia/Uber-turns-over-a-new-leaf-in-Asia

Russell, (n.d.). Uber’s new Asia chief wants to work with governments and taxi firms not against https://techcrunch.com/2017/11/11/uber-takes-a-different-approach-to-asia/

Solomon, R. (2016). Why Uber could’nt takeChina? Retrieved from http://fortune.com/2016/08/07/uber-china-didi-chuxing/ Yau, C. (2018). Uber says it has changed its ways and is willing to partner with Hong Kong government to help smart city plan. Retrieved from https://www.scmp.com/news/hongkong/transport/article/2171602/uber-says-it-has-changed-its-ways-and-willing-partner-hong

This is where Uber erred: It tried to tackle a risky and complex market alone. Partnering with a company like Didi from the outset might have saved Uber some costly pain, and the embarrassment of having to accept a role as junior partner in a Chinese company.

A ride-hailing battle in South-East Asia Anthony Tan and Hooi Ling Tan, unrelated founders of Grab, a Singapore-based ride-hailing platform, and Nadiem Makarim, founder of Go-Jek, an Indonesian scooter-ride startup, all graduated from Harvard Business School in the same year. https://www.economist.com/business/2018/09/29/a-ride-hailing-battle-in-south-east-asia