Uber case Expansion in China
Also, though the difference in language used in the application and local community may pose a challenge, it would still be easy translating the application to meet the taste of the Chinese setting. ii) Geographical landscape: The Application technology that Uber uses limits the geographical distance between the uses. The gap is reduced by the use of mobile platforms which could quickly be updated to meet the context in the Chinese market. Besides, the company does not own cars and drivers but instead uses the mobile application to reach their customers. iii) Economic distance: The GDP per capita of approximately $15,184(as of 2015), check appendix. Additionally, China was highly populous mainly the urban population which was more palpable to use the public transport system (Dong, 2014).
The estimates of about 69 car owners for every 1000 people in mainland China also meant demand for taxi transport system was inevitably in high demand. In conclusion, the Cage analysis presents the facets of business factors that are essential for growth of the business. China has excellent growth potential in developing applications in the transport industry. Uber can take these opportunities in the market to expand its current market situation. ii) The power of customer/buyers: The basis established is the ability of customers to influence market price and the overall performance of the company. Uber failed to identify that Chinese market is highly responsive to the price of their product. Added to this was the natural switching between the service providers.
As such, the high cost they charged for their transport services added to sending customers away. Still, the consumer tastes and preferences were given little focus as the company was insensitive to their plight about high prices. Even, its technology application was not hard to acquire by competitors. v) The power of suppliers: This refers to how quickly suppliers can affect the prices of goods and services. Usually, the number of suppliers determine their influence on the prevailing market prices. The fewer the supplier and highly company are dependent they are, the higher the power. Uber failed to appreciate that their drivers would efficiently operate with their rivals as Yidao and Didi Kuadi could conventionally become independent taxi operator. The plan also improves the public image of the company and to improve support.
Moreover, it protects the company from insincere negative concerns that regulators might have leveled against the company. Such a policy could also make their intentions known to the government to help shield them from the degenerative government regulatory frameworks. iii) Implementation of innovative strategies: such an approach will ensure that sustainability within the industry. There is need to improve both the profit margins and customer satisfaction; consequently, the company should consider investing in projects that enhance the visibility of their products to the customers. If the above strategies are adopted in the business model, then the company would be able to meet the influence of other competitors progressively. These policies provide a better plot of conquering and dictating the market (Wirtz and Christopher 630) bibliography Asmi, F.
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