Cost Control Strategy Of Uber Case Study Solution
Reason for Subject Selection
The prime reason to elect the topic is, since the technology is gripping the Chinese economy and the global economy simultaneously, and has offered numerous disruptive technological models, the aim of the research is to identify how the increase in technological advancement can affect the cost structure and functions of the car hailing services.
With the advent of the articular model of car hailing, many technological advancements have been brought about in the system to maximize the customer experience and to minimize the cost structure of the overall business plan (Daniel, 2015).The topic under study is the effective planning of uber and the technology that it used to raid the US, European markets.Uber has achieved a substantial market share and brand image in the US markets along with European markets too. It has been operating in more than 60 countries and in two different regions.
Though the business model of Uber remains at high peak in the US markets irrespective of the intense competition from Lyft and careem in USA and UAE. It managed to undercut the businesses by levering the technology.On the other hand, it has been found that Uber has been rigorously entering in the market of chain, however it only covers 11% of the market share due to heavy competition, political system and the protectionism of the local business (Frost, Uber VS Didi, 2016).Also, according to a research paper, Uber is fighting in the Chinese market to take more market share instead of developing a separate value proposition strategy(Yang, 2016).
Hence in order to find the factors and the success features of Uber’s strategy in the Chinese market, the research is conducted to understand the influence of technology in the operations and its impact on the market penetration strategy of Uber in China in terms of controlling the cost and leveraging the expertise to adopt the strategy (Frost, Uber in China: Driving in the Gray Zone , 2016).
Content of the Research
Under the research topic “the impact of technology on cost control strategy of Uber, the main focus will be on the analysis of the trends of technology and its wide spread in China.Since technological development has completely changed mode of business practices and provided them with new opportunities to explore market with greater significance and an improvement in level of penetration (Ahujaand Galvin, 2003).
cost control strategy of Uber Harvard Case Solution & Analysis
Internet technology is universally accepted as the greatest innovation of this era that has converted world into global village (Catoiu, 2009). It has improved the level of interaction among individuals from different parts of the world to share ideas, thoughts and has assisted in regional development and global integration (Chelcea, Mărginean and Cauc, 1998). In this context, technology is identified as an active mode of cultural integration and has helped in understanding not only the global trend but also has provided an active platform to marketers to learn from data shared on technological platform and employ in their marketing strategies to determine the consumer’s intention to adapt the service leading to high market share (Chelcea, 2005).Also, with the increased use of technology, the businesses have been able to use the techniques in optimizing themselves and replacing the costlier processes with the advanced technology.......................
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