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Essay Available:
Pages:
4 pages/β‰ˆ1100 words
Sources:
3 Sources
Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 17.28
Topic:

Should Uber Leave Global Markets and Focus Only on the U.S. Market?

Essay Instructions:

Grading Criteria
Answer the case study questions specific to your case in a thoughtful and comprehensive way. In addition, provide any additional insights you feel are appropriate. Apply judgment and your analytical skills with regard to the key issues in the case. Your ability to “connect the dots” between the various aspects of the case and linkage to the course concepts is an important criterion to consider.
Since this case is written about an actual company, there is a significant amount of material in the business press and on the internet regarding the company and its respective industry. Although you may find it helpful to reference some of this information (with appropriate footnotes), the majority of the analysis and recommendations should be your own assessments and thoughts. Take time to assess the consequences of your recommendations.
Your paper should be written clearly with a logical flow for each question. It should reflect proofreading and editing.
Case Summary
Alexander Cooper, head of Asia expansion for Uber Technologies, Inc., was sitting in a Tesla that he did not own. The Tesla showed up for his Uber ride to the meetings he was about to have with Travis Kalanick, Uber’s CEO, and Ryan Graves, head of Global Operations. It was morning in San Francisco, California, but the sun was setting in China where the action had occurred. Cooper checked for updates on the new petition they had launched to keep Uber running in Hong Kong, where days before five Uber drivers and three office staffers had been arrested in a police raid. Hong Kong was a new market for Uber, and its success or failure there could define the company’s next move, not only in Asia but globally. Uber had posted bail to release the drivers and employees, but the situation was still developing. The drivers would be due in court in several months on charges of operating without car permits. For cooper, this represented another challenge to Uber’s growth. As he was mentally prepared for this meeting, he knew that Kalanick and Graves, while concerned about the situation in Hong Kong, would have broader and more significant questions related to Uber’s quest for global expansion and leadership role in the sharing economy.
Answer the following questions:
Due to the furious competition from rivals in global markets (China, India, or Southeast Asia), should Uber leave these markets and focus only on the U.S. market?
What are the pros and cons of Uber’s choice?

Essay Sample Content Preview:

Uber Case Study
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Instructor’s Name
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Uber Case Study
The international market provides immense opportunities for companies that offer unique products and services. However, operating in the international market environment has its fair share of challenges. As shown in the case, while Uber has grown immensely in the U.S. market, the global market has proven quite challenging (Case W04C79, 2016). In Europe, strong regulations and a heavy presence of trade unions significantly hampered the growth of Uber. In the Asian market, strong competition appears to limit the company's chances of success. The quick growth the company has experienced in the U.S. market indicates that its future in the country is guaranteed. While it is not clear whether the company's losses emanate mainly from global operations, it is obvious from the case that Uber has struggled to perform in the international markets. In essence, the company's management faces the great question of whether it should leave global markets and focus solely on the U.S. market.
Should Uber Leave Global Markets and Focus on the U.S.?
The challenges Uber has faced in the international market mean that it is important for the company to rethink its expansion strategy, and leaving global markets and focusing only on the U.S. markets is the most appropriate approach. Although the company has made huge investments in the Asia market, its future there is not guaranteed due to competition, unsupportive governments, and a lack of understanding of local business practices.
Fierce competition is arguably the biggest reason Uber should leave global operations and focus on the U.S. market. As shown in the case, in 2014, Didi Dache and Kuaidi Dache controlled 99% of the ridesharing market in China, with both companies being backed heavily financially (Case W04C79, 2016). The business model and concept of Uber are also not different from the local competitors. Without a unique service in the Asian market, succeeding is bound to be challenging. Given that the local competitors offered discounts of more than $400 million to prevent Uber from entering the Chinese market, it is clear that they are willing to engage in fierce competition to keep their market shares. It is important to note that the companies even merged to strengthen their position in the market. With these companies already having experience in the Chinese market, it is no doubt that Uber will struggle to gain market share. In addition, it is worth noting that the merger, Didi Kuaidi, entered into an agreement with WeChat, the country’s most popular messaging application to facilitate ride booking. In sum, the merger has engaged in aggressive strategies to cement its position in the Chinese market. Similarly, Ola in India put up measures to defend its position when Uber invested in the market. As such, Uber’s chances of being successful in the Asian market are limited. Therefore, it would be unwise to continue operating in a market in which the existing players have such strong control.
The Asian governments are also bound to be unsupportive of foreign companies seeking to gain market share in the region. As informed by McGregor (20...
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